Valentines SOA Massacre

saffronflowers

Well it hs been nearly a year since I joined MSE and what a year that has been. Having sorted many of our money issues though not huge, enough to cause sleepless nights and stress.

Most of the debts that we now have are my OH's however he has come an extremely long way since we both started this journey. He understands the need to budget, snowballing and that when the cashpoint says no it is not the banks fault.

Monthly Incomings:

My salary - £1,200
Partners salary - £1,600
Benefits - £120 - Child benefit

Total - £2,920

Monthly Outgoings:

Mortgage/Rent - £350
Council Tax - £110
Loan Repayment - £518
Gas - £60 - a meter, more expensive but is only for 6 months a year
Electric - £40
Water - £30
TV License - £10.99
Virgin 3 - £45 - for broadband, xl tv and phone
Mobile - £35 - contract linked to kids pay as you go
Food - £280
Pet Food - £35 Iams for three Border Collies and a cat
Pet Inurance - £20 - two 1 year old dogs and emergency cover
Car Insurance - £40 - for my estate and a 28 year old VW camper
Petrol - £60 - school run 13 miles round trip no public transport end Sept 08
RAC - £9.97 - a necessary for an old VW
Cinema - £28 - Orange Wednesdays twice a month for four.
Camping - £100 - We camp everyother weekend from March to October and petrol is very expensive!!!!
Going out - £280
Clothes - £40 - This is for four of us - in the budget but not necessarily spent
Christmas club - £30
Savings - £60 - for car maintenance and mechanical work
Parent Loan - £70
Washing Machine - £70 - Interest Free (two months left,then we will get a new cooker)

Total: £2,293.96

Surplus - £627

Debts

Barclays Loan - £ 1307 - 6.9% - £98 a month to pay this early the full and final settlement would be £1347.

MBNA - £4,900 - 0% - £420 this is our choice to pay as we would like this to be cleared during the 0% Question here - is there any point throwing money at this as it is 0% till Feb 09.

I am really well aware that compared to many our finances are in a healthy state, I am sure we could tweek it here and there. Thoughts please

Thanks

SFx

gems2381

MBNA - £4,900 - 0% - £420 this is our choice to pay as we would like this to be cleared during the 0% Question here - is there any point throwing money at this as it is 0% till Feb 09.

Are you actually paying this off or putting it into a savings account till it needs to be paid off?

angelavdavis

saffronflowers wrote: »

MBNA - £4,900 - 0% - £420 this is our choice to pay as we would like this to be cleared during the 0% Question here - is there any point throwing money at this as it is 0% till Feb 09.

Well done SF, You and OH have done really well. Ref MBNA, I personally would open a high interest account and put a regular payment into there so you can settle as much as possible of the debt when it switches back to interest again. You might as well earn interest on it while the debt sits at 0%!

Martin has warned that the 0% deals are almost certainly going to be disappearing, so best assume that getting another deal might not happen.

lauradora

Hi SF. A few thoughts for you;

1. Do you needs to feed the animals Iams or could you swap tom a cheaper own brand?
2. Food. I feel you could still trim a little off this. Have you tried the grocery challenge on the OS board?
3. Petrol. Have you any nieighbors you could car share with? Maybe you could only save a couple of quid but it all counts!
4. Cinema-nice to have a break but not necessary
5. Camping. I know you've got a ca,per but could you not give this a miss for a month or so until you've cleared the interest bearing loan?
6. £280 going out???? DFW's dont have a life!!!!!;)
7. Savings-stop pat=ying these until the interest bearing loan is payed off.
8. Wasking machine. Once this is payed up you are massivley increasing your income. Do you need a new cooker really?

If you were to make these small changes you would be able to clear that last loan payment in no time which in tun will massivley up your income after that. HTH xxx Laura

saffronflowers

Are you actually paying this off or putting it into a savings account till it needs to be paid off

Thanks guys - had not thought about that - do we then just pay the minimum per month and save the rest?

SFx

Merlot

Saffronflowers, your SOA looks quite healthly, the only thing I would recommend is Life insurance for the both of you.

Merlot.x.

Merlot

saffronflowers wrote: »

Are you actually paying this off or putting it into a savings account till it needs to be paid off

Thanks guys - had not thought about that - do we then just pay the minimum per month and save the rest?

SFx

Yes, its a form of stoozing, you save the money in an high interest account and just repay the min on the credit card.

Merlot.x.

perfectlypoor

The main thing that sticks out is the going out money,that is an awful lot to spend.

saffronflowers

1. Do you needs to feed the animals Iams or could you swap tom a cheaper own brand? It equates to 32p a day per animal - top quality feed less and the pups do agility and fly ball - cheaper equivalent full of colourings etc
2. Food. I feel you could still trim a little off this. Have you tried the grocery challenge on the OS board? I cook everything from scratch and yes I could trim it down but I feel that their is a fine line between DFW and obsessive
3. Petrol. Have you any nieighbors you could car share with? Maybe you could only save a couple of quid but it all counts! No one else goes to the same school as my daughter different village, OH drives her in the morning.
4. Cinema-nice to have a break but not necessary Nope but it is not but it is in the budget so we can if we want.
5. Camping. I know you've got a ca,per but could you not give this a miss for a month or so until you've cleared the interest bearing loan? My kids and I spend 6 weeks away in the summer as well, it equates to a lot less than most summer hols for a family of four. We would be £40 better off if we cleared the loan now, huge penalties.
6. £280 going out???? DFW's dont have a life!!!!!;) I work from home on my own all day everyday, so I need to get out of the house.
7. Savings-stop pat=ying these until the interest bearing loan is payed off. This something I dont understand - cos we would still be heavily penalised if we paid this off in the next three months, we are also awaiting the ppi back which is to the tune of £500
8. Wasking machine. Once this is payed up you are massivley increasing your income. Do you need a new cooker really? YES - I do I have never had a new cooker, I cook all the time, and we can afford it.

Thank you so much for bothering to read my SOA and I do hope that you do not think that I have been rude or disparraging in my replies. I do need to mug up on repaying the interest loan, so that we minamise the penalty. We could transfer balance this, so will learn the best option.

SFx

saffronflowers

Merlot - my OH is insured to the hilt!! I am worth about 2 1/2p I had never thought about getting it as I am self-employed will have a look around.

SFx

Merlot

SF, its important for you to have Life Insurance, I'm a SAHM and I have life insurance of £200,000. My OH would need to get paid help if I wasn't here, I got mine from Tesco for £15.00 per month. My OH get Life Insurance as a perk with work. The Mortgage is also covered on a Life Insurance Policy, i forget the technical term, but if either of one of us dies, its paid for, again for not much money per month, but piece of mind.

You seem to have everything else covered.

Merlot.x.