want t get out of the spiral!

spinach_lilly

I would really appreciate some help please. I have tried and tried to sort this myself but have no energy left. I'll explain the background…

I am 57, have always been in full time employment until May 2025. I have 2 kids/young adults aged 19 and 21, one living with me, one at uni. I left an abusive relationship 5 years ago and had to start again, but this has been the absolute best decision. The only issue left to resolve is debt, a lot of which is carried over from my marriage.

I Left my LA job last year after a period of serious mental health issues, i had been off sick for 6 months. I got to 55 and thought i would take my LA pension and go back in to full time education. I gained a place at college and student loan and bursary were granted, meaning that i could afford to live and pay off my debts. Unfortunately, a month after leaving my job, and before i could start my course in the august, i was diagnosed with hip dysplasia and underwent reconstruction surgery in the august. I couldn't start the course.

I have lived off my small pension (£960 a month) since then and have had to use my credit card to cover the excess expenditure. I got a 0% card which is due to finish in May next year.

I will now be starting my course in 4 weeks with student loan and bursary. I own my flat.

My issue is i want to pay off the credit card (approx 10k) asap but that will mean me not leaving myself any wriggle room and i have no savings, so i always end up having to use a credit card for things that happen out of the blue.

I am worried that if i don't pay off the card, that i will just move it onto another 0% card with yet another fee and the cycle continues. Is there any better way to do this or do i just need to suck it up? It may not seem like the worse of issues but i am really worried about it and can feel my mental health taking another hit. I live on hardly anything, don't spend a huge amount except the bare minimum. I would really appreciate an experts advice please. Thank you so much

Brie

Well done on making so many positive steps!! And making a new start in life too!!! You are obviously resilient!!!!

OK so debt….the best thing to do is to fill out a statement of accounts (SOA, see the link in my signature) using 2 - 3 months worth of statements so you know it's accurate. Then post it back on here so we can see if there are ways we can tighten up your budget.

There is sometimes obvious things to others that you can't see or tricks that we might know that may very well help you.

spinach_lilly

thank you so much :) i couldn't find an easier way to post other than screenshot. The extra student income will only be from aug-may 27

Grumpelstiltskin

If you use the link Brie gave you you need to format for MSE then you can post it on here.

spinach_lilly

I hope this is right :(

The student (other) income btw is only from aug-may

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

Monthly Income Details[/b]
Monthly income after tax................ 960
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 1037[b]
Total monthly income.................... 1997[/b][b]

Monthly Expense Details[/b]
Mortgage................................ 0
Secured/HP loan repayments.............. 151
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 59
Electricity............................. 68
Gas..................................... 112
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 4.99
TV Licence.............................. 14
Satellite/Cable TV...................... 0
Internet Services....................... 58
Groceries etc. ......................... 200
Clothing................................ 0
Petrol/diesel........................... 20
Road tax................................ 0
Car Insurance........................... 25
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 60
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 13
Buildings insurance..................... 10
Contents insurance...................... 9
Life assurance ......................... 34
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
credit union savings.................... 10
lottery................................. 10
gym/fitness............................. 48[b]
Total monthly expenses.................. 905.99[/b]
[b]

Assets[/b]
Cash.................................... 0
House value (Gross)..................... 64000
Shares and bonds........................ 0
Car(s).................................. 2000
Other assets............................ 0[b]
Total Assets............................ 66000[/b]
[b]

Secured & HP Debts[/b]
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 1069.....(151)......8.09[b]
Total secured & HP debts...... 1069......-.........- [/b]

[b]Unsecured Debts[/b]
Description....................Debt......Monthly...APR
tesco credit card..............10591.....196.......0
barclaycard....................1221......31........24.9
creation.......................599.......31........39.9
next...........................211.......11........24.9[b]
Total unsecured debts..........12622.....269.......- [/b]

[b]
Monthly Budget Summary[/b]
Total monthly income.................... 1,997
Expenses (including HP & secured debts). 905.99
Available for debt repayments........... 1,091.01
Monthly UNsecured debt repayments....... 269[b]
Amount left after debt repayments....... 822.01[/b]

[b]Personal Balance Sheet Summary[/b]
Total assets (things you own)........... 66,000
Total HP & Secured debt................. -1,069
Total Unsecured debt.................... -12,622[b]
Net Assets.............................. 52,309[/b]

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

Brie

sorry to say that even on a very large monitor that isn't easily readable.

I can see that you have amounts listed for lottery and for gym/fitness. The lottery isn't a necessity of course so I would suggest stopping that (& don't look at any results, ever!!) and think about whether you can quit the gym (subject to T&Cs)

Also you are paying for a TV licence. Now if you watch live TV and use BBC iPlayer then you should be paying. But thing about whether you do this and whether you are just paying because that's what people do. Our viewing habits have changed so much in recent years.

MasterG83

Hi, welcome, a very inspiring journey, you are a warrior!

Tell me more about the Life Assurance? Beneficiary's etc?

spinach_lilly

Brie, sorry, i almost quit putting it on atall as i couldn't work it out…..is there an easier way for me to put the form on here? I do watch iplayer but tbh, it's not necessary. I pay for the licence because i'm scared not to. It's probably be better to stop and just not go near BBC.

MasterG83 the life insurance, my 2 kids are 50/50 beneficiaries….but they would also get a 1/4 of my pension each and a lump sum when i die, and also my flat. I did wonder if it was necessary….i've paid it a long time and it stops when i'm 70…

Grumpelstiltskin

Lilly your SOA has shown up fine.

spinach_lilly

lottery-cancelled

£30 gym membership is at a LA gym for my hip rehab, i guess i could do it at home but i am not motivated at all and i don't want to also become immobile….18.99 is for an online cycling platform which i will cancel now

ManyWays

the young adult living with you - are they at uni? in work? paying you rent or paying half the bills?
the amounts on your expenses, are they just for you or for both of you eg groceries?