Everything changes

itsthelittlethings

As my old lecturer at university said to me once when we were discussing the topic of my second year dissertation.

Anyway I’m sitting here at the start of a long weekend, I owe about £2000 and I’m going to need to put food on my credit card to get to the end of the month. I think I will still end up forward at the end of the month.

Currently wrestling with the dilemma of whether to borrow money for a holiday/ art course in September (not a good idea) or borrow more money to consolidate debt (also not a good idea). I am very good at keeping to fixed commitments like car payments and rent but very very bad with credit cards. I also can’t save.

The bank texted me to say they need to talk to me. Hopefully it was just about a loan application I made (for the holiday).

My phone broke today. It was in my bag and when I took it out it was really hot and really low battery so I think it had a power surge. I’m going to buy a new phone tomorrow. I also need to get my bike serviced some time in the next few months. You have to be one step ahead in this game.

I was thinking about getting my driving licence. It would be nice to have.

SOA to follow.

itsthelittlethings

I just guesstimated the loan repayments for a loan consolidating my debt. It was ok. I might call them tomorrow. Comments welcome.

itsthelittlethings

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

Household Information[/b]
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 0[b]

Monthly Income Details[/b]
Monthly income after tax................ 1748
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0[b]
Total monthly income.................... 1748[/b][b]

Monthly Expense Details[/b]
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 250
Council tax............................. 145
Electricity............................. 95
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 45
TV Licence.............................. 15
Satellite/Cable TV...................... 0
Internet Services....................... 25
Groceries etc. ......................... 400
Clothing................................ 125
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 30
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 17
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 40
Haircuts................................ 35
Entertainment........................... 150
Holiday................................. 50
Emergency fund.......................... 10[b]
Total monthly expenses.................. 1432[/b]
[b]

Assets[/b]
Cash.................................... 0
House value (Gross)..................... 125000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0[b]
Total Assets............................ 125000[/b]
[b]
No Secured nor Hire Purchase Debts[/b]

[b]Unsecured Debts[/b]
Description....................Debt......Monthly...APR
Credit card....................1450......0.........0
Credit card....................550.......60........30[b]
Total unsecured debts..........2000......60........- [/b]

[b]
Monthly Budget Summary[/b]
Total monthly income.................... 1,748
Expenses (including HP & secured debts). 1,432
Available for debt repayments........... 316
Monthly UNsecured debt repayments....... 60[b]
Amount left after debt repayments....... 256[/b]

[b]Personal Balance Sheet Summary[/b]
Total assets (things you own)........... 125,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -2,000[b]
Net Assets.............................. 123,000[/b]

[i]Created using the SOA calculator at www.LemonFool.co.uk.
Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]

I did some serious guessing here including on my credit card rate of interest.

I would welcome any observations but please don’t tell me to cut down on food. I cook from fresh and find it really hard (I may not quite spend £400 perhaps more like £300) so it costs me a lot.

itsthelittlethings

Also I am paying off a section 20 hence why the management charge is so high.

Emmia

Clothes and entertainment are the obvious places to cut your budget - you almost certainly don't need more clothes. On paper you shouldn't have a problem, which makes me think this isn't an honest SOA.

I presume as you've listed neither mortgage or rent you own your property outright (aside from the £250 a month charge)...

I'm sorry to say this but getting a loan for a holiday, or paying on a credit card without the money in the bank to pay it off isn't something you should do.

You got lots of advice on your previous thread started around a year ago.

https://forums.moneysavingexpert.com/discussion/6605328/should-itsthelittlethings-spend-less-on-coffee

MFWannabe

I’m not sure why you have created another thread?
You had lots of really good advice on your last thread

The main problem is you are ignoring what you need to really do; you seem to think some miracle is going to happen or you can borrow your way out of debt( which you can’t!); you have to knuckle down; make the changes and get it paid off

You do not need to be spending a large amount of money each month on clothes and food and could easily cutback and pay off your debts

But there’s many of us who’ve said this over and over again in your other thread and here you are again with another thread and ignoring all the good advice you’ve already been given

itsthelittlethings

Plan for the evening.

Dry up.

Drink a decaf coffee.

Read a year old copy of Vogue.

Waste time on the internet.

Listen to 6music (free).

Stay up till 9.30.

Research my new phone.

If that SOA is right I can put £300 towards debt a month. That feels right and comfortable. The advice I got on this website has helped me a bit with my finances.

The most important thing with debt is for it to go down not up.

Emmia

https://forums.moneysavingexpert.com/discussion/comment/81947898#Comment_81947898

I think you should read your previous 67 page thread through in full. I have this morning.

When you look at your posts, try and imagine that person isn't you - what advice would you give that person? What patterns do you see...

You're in an enviable position with a mortgage free/rent free flat that you just need to cover the service charge on - many people are not in this position. Your debt is small, and you could knock it on the head in just a few months of being more considered in your spending.

If you had rent/mortgage and you were spending as you are, I think you would be in significant amounts of debt - in a rent/mortgage scenario I estimate from the other thread you'd be spending at least £500 - £1000 a month more than you'd really have... Or £6k - £12k a year.

Personally I think you should remove your overdraft facility completely and freeze the cards. Try a no clothes/craft/coffee spend for a month challenge (or only spend what you can make by selling stuff on Vinted /eBay etc.). And leave your wallet at home as much as possible.

It's obvious to me and other posters, but for some reason it's not obvious to you.

Sarahwithlove

Do you menu plan? even cooking from scratch £400 is a lot for one person on food. Clothing and holiday both need cutting back whilst you are in debt. You don't have a massive debt and a few minor changes could see you debt free fairly quickly. A consolidation loan and a loan for holiday wont help with either. is your phone a contract because that's also high?

Blackcats

hello - welcome back. We are all here because we are trying to improve our finances and this is designed to be a safe place where we can make less than sensible choices, come back and try again and again and again ….and eventually get it right.

For April could you try and shave a small sum from a few areas and send it towards your credit card that's accumulating interest?
£20 from clothes, £20 from entertainment, just £10 from food and £5 from presents will be 10% of your current balance.

Can you set yourself a challenge to make £45 from selling unwanted items and you'll have wiped £100 off the card.

Focusing on the effort it takes you to achieve that £100 might help adjust your "value of money" mindset. I used to find it was quick and fairly easy to borrow and spend but slow and hard to pay back.
When I'm thinking of spending I try to chant Martin's mantra - is it a want or a need?

jwil

If you consolidate your debt then all that will happen is in a few months time you'll have a £2k loan and a further £2k on a credit card and I speak from experience here. You need to get on top of your spending first.

You are in an enviable position that if you wanted to you could be debt free in just a few months, but all the talk of borrowing for holidays, courses etc shows that your mindset is not there.