Day one of my debt free journey

bramble281

Hi everyone,

I hope I'm posting this in the right place, I'm a forum newbie!

Today marks day one of my journey to getting my finances back on track.  After a couple of years where expenses and spending just seem to keep rising I've decided this is the year I will break the back of my debt.

Since having my second child a couple of years ago I've come to rely on my credit card and now have about £5k on it. Before this I had never been in debt and want to get it cleared.

We currently structure our finances that both me and my partner pay half of our joint expenses into a separate current account then anything left over from our salaries remains in our own account to spend/pay our individual bills.  If I'm honest I don't really budget the money I have left in my account after bills and end up overspending so suspect I may be better with a current account with pots, although I'm loathe to change from my current current account as it has a small interest free overdraft which gives me a bit of a buffer when needed.  I am currently paying £150 a month towards my debt but with Christmas and unplanned expenses at the end of last year don't really feel I'm making any progress.

I've done the SOA and would love any suggestions where I could cut back. I've halved all of the expenses that I share with my partner and am really struggling to see where I can cut back, I don't feel like there is anything particularly frivolous or excessive on there that I could easily trim back.

[font=courier new][b]Statement of Affairs and Personal Balance Sheet[/b][b]

Household Information[/b]

Number of adults in household........... 2

Number of children in household......... 2

Number of cars owned.................... 2[b]

Monthly Income Details[/b]

Monthly income after tax................ 1674.24

Partners monthly income after tax....... 0

Benefits................................ 85.1

Other income............................ 100[b]

Total monthly income.................... 1859.34[/b][b]

Monthly Expense Details[/b]

Mortgage................................ 402.5

Secured/HP loan repayments.............. 0

Rent.................................... 0

Management charge (leasehold property).. 0

Council tax............................. 103

Electricity............................. 45.5

Gas..................................... 0

Oil..................................... 0

Water rates............................. 27.66

Telephone (land line)................... 0

Mobile phone............................ 10

TV Licence.............................. 7.5

Satellite/Cable TV...................... 2.5

Internet Services....................... 22.36

Groceries etc. ......................... 150

Clothing................................ 0

Petrol/diesel........................... 140

Road tax................................ 15.75

Car Insurance........................... 30.27

Car maintenance (including MOT)......... 50

Car parking............................. 0

Other travel............................ 0

Childcare/nursery....................... 250

Other child related expenses............ 0

Medical (prescriptions, dentist etc).... 50

Pet insurance/vet bills................. 53.38

Buildings insurance..................... 10.39

Contents insurance...................... 0

Life assurance ......................... 22.71

Other insurance......................... 9

Presents (birthday, christmas etc)...... 30

Haircuts................................ 28

Entertainment........................... 0

Holiday................................. 45.96

Emergency fund.......................... 0

Kids savings ........................... 50

Union membership........................ 7.89[b]

Total monthly expenses.................. 1555.37[/b]

[b]

Assets[/b]

Cash.................................... 0

House value (Gross)..................... 288000

Shares and bonds........................ 0

Car(s).................................. 8000

Other assets............................ 0[b]

Total Assets............................ 296000[/b]

[b]

Secured & HP Debts[/b]

Description....................Debt......Monthly...APR

Mortgage...................... 1984.....(402.5)....0[b]

Total secured & HP debts...... 1984......-.........- [/b]

[b]Unsecured Debts[/b]

Description....................Debt......Monthly...APR

Credit cards...................5253......150.......0[b]

Total unsecured debts..........5253......150.......- [/b]

[b]

Monthly Budget Summary[/b]

Total monthly income.................... 1,859.34

Expenses (including HP & secured debts). 1,555.37

Available for debt repayments........... 303.97

Monthly UNsecured debt repayments....... 150[b]

Amount left after debt repayments....... 153.97[/b]

[b]Personal Balance Sheet Summary[/b]

Total assets (things you own)........... 296,000

Total HP & Secured debt................. -1,984

Total Unsecured debt.................... -5,253[b]

Net Assets.............................. 288,763[/b]

[i]Created using the SOA calculator at www.LemonFool.co.uk.

Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]

I'd really appreciate any insights anyone may have to get me back on track!

NeverendingDMP

Have you double checked you can't claim any other benefits. If you can't do you use tax free childcare which will make it cheaper?

Grumpelstiltskin

Are these correct?

TV Licence.............................. 7.5

Satellite/Cable TV...................... 2.5

Also £0 for clothes?

bramble281

We already use tax free childcare, we do also have money coming in from my partners salary but I didn't include that in my calculation as once we've paid half of the joint finances we keep the extra separate.  I have done a benefits calculator before, but it came back that we were just above the threshold to receive any help, all we get is child benefit (I've halved the amount as that goes into the joint pot so half credits towards my side of the bills and half towards OHs if that makes sense)

bramble281

We pay £15 per month for TV licence, but split it with partner, we don't have satellite/cable TV, just the basic netflix package at £4.99 which is split.  I can't remember the last time I bought any new clothes, most of the clothes we get for our children are hand me downs or given as gifts.  Probably £20 max spend there if I add it in I would say.

RAS

So you are paying half the bills. What is your partner's salary? More or less than yours, as that really affects your options?

Nintud

Can you look into alternative Trade unions? They often do reduced rates for new starters.

You could stop the child savings temporarily and cut £50 off the food bill. That saves £100+ and pays off £1200 debt across the year (Nursery must be feeding one child, and batch cooking will help reduce your food costs).

ManyWays

no clothes for you?
what bills are you splitting 50/50 with your partner - does this include childcare and does your partner earn about the same as you?
who is paying for petfood, nappies, toiletries, cleaning stuff - £300 a month between you is way too little. Do you buy all the top up items which is why you are in difficulty and your partner isnt?
who pays for kids clothes, days out, toys, books? 
you need a pot for replacing/repairing household goods.
you can't afford to save money for the children, you are effectively borrowing this money from a credit card at the moment.