Debt free by 30!?

Rhi2 · 23 July 2014 at 11:43AM

Mostly a lurker on the forum in general, especially in the debt sections
Find myself lurking most days though due to constant debt worry.
Constantly worrying that we have ruined "everything" now we will never own our own home, we will never save any money for retirement. Our children we go without etc etc.

Worried that we are fast approaching 30 with NO savings 2 children and no hope.
we had grand plans, and I can see them slipping from our fingers now, all of our debt seems to be for nothing, multiple shop direct accounts just to afford items for the home, I.e the cooker broke "just put it on the very" the amounts have all caught up with us and we are now left in the red EVERY single month. Credit score has taken a dive down the toilet as we constantly struggle to pay our debts. So even if we can dig ourselves out from this financial pit and get some savings, it will be years before we have a credit score even half worthy of a mortgage. So I have had enough of sitting around thinking about how we have messed up and I want to fix it! and make some serious changes to our spending habits as we go along. Onwards and upwards! :T

Well here goes!

Appreciate ALL and any advice as I ramble on, hopefully taking some criticism is the way forward. :beer:

Rhi2 · 23 July 2014 at 11:49AM

Here Is my SOA; Might need some tweeking when I can get into Oh's online banking later, but it looks around 95% there

The debt repayments are already the minimum payments I could get the companies to agree too, the majority are all held with shop direct.
The water and electricity is so high as it includes repayment
The car insurance is for both cars, Mine is high as I am a new driver.
I am stuck with the mobile phones

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 1454.7
Partners monthly income after tax....... 0
Benefits................................ 460
Other income............................ 150
Total monthly income.................... 2064.7

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 92
Electricity............................. 120
Gas..................................... 50
Oil..................................... 0
Water rates............................. 110
Telephone (land line)................... 0
Mobile phone............................ 92
TV Licence.............................. 12
Satellite/Cable TV...................... 30
Internet Services....................... 50
Groceries etc. ......................... 350
Clothing................................ 0
Petrol/diesel........................... 200
Road tax................................ 40
Car Insurance........................... 132
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 15
Pet insurance/vet bills................. 26
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 20
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1339

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 2000
Other assets............................ 0
Total Assets............................ 2000

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Cat 1..........................900.......101.5.....39.7
Cat 2..........................1313.3....160.......39.7
Cat 3..........................2044......101.5.....39.7
HSBC...........................4500......150.......0
NEXT...........................350.......40........0
cat 4..........................2471.4....39.7......0
Total unsecured debts..........11578.7...592.7.....-

Monthly Budget Summary
Total monthly income.................... 2,064.7
Expenses (including HP & secured debts). 1,339
Available for debt repayments........... 725.7
Monthly UNsecured debt repayments....... 592.7
Amount left after debt repayments....... 133

Personal Balance Sheet Summary
Total assets (things you own)........... 2,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -11,578.7
Net Assets.............................. -9,578.7

Created using the SOA calculator at https://www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using other browser.

heartbreak_star · 23 July 2014 at 1:53PM

OK, first off do you have that £133 surplus at the end of the month? If not, then maybe try a spending diary to see where it's going.

Do you really need 2 cars?

Good luck!

HBS x

rockm87 · 23 July 2014 at 1:59PM

I'm sure there are more experienced and savvy forumites on here who can offer some awesome advice.

But something that worked really well for me was to change my supermarket, weve all seen the averts!! I switched to L*dl and it has changed our lives! You can try that, even if its slowly to start with (I still pop into Mr T for specific coffee pod and cat related) but it has saved us! Even if you save £50 a month, thats knocks of your monthly Next Bill.

in_need_of_direction · 23 July 2014 at 2:42PM

Mobile phones, internet and electricity seem ridiculously high. Have you shopped around?

Rhi2 · 24 July 2014 at 4:39PM

heartbreak_star wrote: »

OK, first off do you have that £133 surplus at the end of the month? If not, then maybe try a spending diary to see where it's going.

Do you really need 2 cars?

Good luck!

HBS x

No it's never there, it goes on the little things that I haven't added onto the SOA yet, For example, we pay 11 for laptop insurance, 8 pounds for cooker insurance etc etc, We also don't have any money budgeted for clothes or extras. I have only been shopping once this year, so I basically try to not buy anything, harder with the kids though. You are right I do need a spending diary. I think A paper one might be best ? or maybe some kind of app on my phone to take around with me.

Unfortunately the two cars are a must

My husband works out of town, and my sons school is at the other end of town. One of the cars broke a few months back and it was absolute hell. It took me an hour and a half to get my son from school, it wasn't ideal not to mention he moaned the whole way haha We did this walk for SIX weeks whilst we got the car sorted.

heartbreak_star · 24 July 2014 at 4:46PM

A simple notebook will do you for a diary

Pop those amounts into your SOA too!

HBS x

Rhi2 · 24 July 2014 at 4:48PM

in_need_of_direction wrote: »

Mobile phones, internet and electricity seem ridiculously high. Have you shopped around?

I can't make heads or tails of my electricity bill. IT does seem stupidly high, but when I ring them with the readings they say "oh yeah it is right you must just use alot" Confusing as we don't tend to be wasteful with it, I.e don't leave lights on etc.

I could definitely reduce my Internet though think we are reaching too high with that, that would a result of the OH thinking "only the best internet will do" the mobile phones we are stuck with

until next year. Then changing to a pay as you go sim. Meant to do it at the last renewal but in all honestly we got greedy and wanted new phones

Rhi2 · 24 July 2014 at 4:51PM

heartbreak_star wrote: »

A simple notebook will do you for a diary

Pop those amounts into your SOA too!

HBS x

Will get on it, I meant to do it last night and forgot, I need to log onto my husbands online banking to check the amounts etc. Most of the time they just don't get paid, so it does seem entirely pointless to have them. I think one general house insurance would be better value for money ? and something we should probably have anyways :rotfl:

Rhi2 · 24 July 2014 at 4:57PM

School broke up this week for the summer holidays and I was dreading it. I definitely feel that the school holidays are too expensive I am always made to feel like I need to keep up with everyone elses spending. I asked my friend what she was up to for the first few weeks "bowling, swimming, theme parks, day trip to the beach, cinema" Made me feel blerrgghh.

So today I made a picnic and dragged them out to the local nature park.

Managed to ignore the constant "can I get an ice cream" and "I need a fruit shoot" I took my own juice but apparently it's no good unless it costs the earth haha. Had a pretty nice time, nearly melted! Trying to make the most of it though as I will only be complaining in a few months that it is too cold. So besides putting my weeks petrol in the car (£15 so I remember) I spent nothing else

dawnybabes · 24 July 2014 at 6:16PM

Are your water rates really £110 a month, if so you would probably be better on a meter.

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