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£17,750 debt accumulated over the last 10 years
keyboardtime
Posts: 3 Newbie
I've managed to accumulate £17,750 debt over the last 10 years and I'm finally ready to face this head on with the goal of complete elimination of the entire debt in 3 years maximum.
I have nothing to show for this debt, and I have racked it all up through a series of failed business experiments. I have a problem where I get a business idea and then rush off to test it out. Sadly, i haven't had much success.
Thankfully, I work fulltime earning 36K and here's my SOA
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................ 2200
Partners monthly income after tax....... 2500
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 4700
Monthly Expense Details
Mortgage................................ 432.2
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 114.5
Electricity............................. 15
Gas..................................... 15.5
Oil..................................... 0
Water rates............................. 15.325
Telephone (land line)................... 0
Mobile phone............................ 32.08
TV Licence.............................. 6.06
Satellite/Cable TV...................... 17
Internet Services....................... 12.5
Groceries etc. ......................... 200
Clothing................................ 25
Petrol/diesel........................... 50
Road tax................................ 0
Car Insurance........................... 40.32
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 80.75
Other child related expenses............ 75
Medical (prescriptions, dentist etc).... 12
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 22.39
Life assurance ......................... 22.48
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 26.45
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1214.56
Assets
Cash.................................... 0
House value (Gross)..................... 265000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 265000
Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 230000...(432.2)....2
Total secured & HP debts...... 230000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Halifax........................3750......150.......19.95
HSBC...........................6000......0.........29.99
Nationwide.....................1750......0.........19.99
Vanquis........................3000......0.........29.99
Total unsecured debts..........14500.....150.......-
Monthly Budget Summary
Total monthly income.................... 4,700
Expenses (including HP & secured debts). 1,214.56
Available for debt repayments........... 3,485.44
Monthly UNsecured debt repayments....... 150
Amount left after debt repayments....... 3,335.44
Personal Balance Sheet Summary
Total assets (things you own)........... 265,000
Total HP & Secured debt................. -230,000
Total Unsecured debt.................... -14,500
Net Assets.............................. 20,500
I have nothing to show for this debt, and I have racked it all up through a series of failed business experiments. I have a problem where I get a business idea and then rush off to test it out. Sadly, i haven't had much success.
Thankfully, I work fulltime earning 36K and here's my SOA
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................ 2200
Partners monthly income after tax....... 2500
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 4700
Monthly Expense Details
Mortgage................................ 432.2
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 114.5
Electricity............................. 15
Gas..................................... 15.5
Oil..................................... 0
Water rates............................. 15.325
Telephone (land line)................... 0
Mobile phone............................ 32.08
TV Licence.............................. 6.06
Satellite/Cable TV...................... 17
Internet Services....................... 12.5
Groceries etc. ......................... 200
Clothing................................ 25
Petrol/diesel........................... 50
Road tax................................ 0
Car Insurance........................... 40.32
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 80.75
Other child related expenses............ 75
Medical (prescriptions, dentist etc).... 12
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 22.39
Life assurance ......................... 22.48
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 26.45
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1214.56
Assets
Cash.................................... 0
House value (Gross)..................... 265000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 265000
Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 230000...(432.2)....2
Total secured & HP debts...... 230000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Halifax........................3750......150.......19.95
HSBC...........................6000......0.........29.99
Nationwide.....................1750......0.........19.99
Vanquis........................3000......0.........29.99
Total unsecured debts..........14500.....150.......-
Monthly Budget Summary
Total monthly income.................... 4,700
Expenses (including HP & secured debts). 1,214.56
Available for debt repayments........... 3,485.44
Monthly UNsecured debt repayments....... 150
Amount left after debt repayments....... 3,335.44
Personal Balance Sheet Summary
Total assets (things you own)........... 265,000
Total HP & Secured debt................. -230,000
Total Unsecured debt.................... -14,500
Net Assets.............................. 20,500
0
Comments
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Hello and welcome to MSE.
I'm a bit confused about your SOA - is it for you alone, or both you and your partner? You include both incomes but seem to halve the expenses.
Also, you say you have £17750 debt, but your SOA shows a lesser figure (excluding mortgage)?0 -
If your soa was accurate you'd be able to pay off the debts very quickly, throwing over £3k at them each month. However, there seems to be a lot missing from it. With 2 children do you never buy a birthday/Christmas gift? You will need something under car maintenance. Also, things such as tv licence only seem to be half what they should be? Gas, electricity and water are very low, and do you only spend £200 per month on groceries?Starting a new debt free journeyStarting Debt: £5,250Current Debt: £4,995.50Amount Paid: £254.50 Percentage Paid: 4.84%Emergency Fund: £3500
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Hi
your debt represents £34.14 overspend per week per year for 10 years.
Need to sit down with partner and agree your life goal (debt free)
Agree a plan to stop the drip drip drip of spending and spend on needs not wants.
Reconcile your bank a/c daily and accrue for medium term spends (annual insurances, xmas, b'day, mot, servicing etc) and deduct this monthly accrual from your a/c.
Analyse monthly spends and agree how to eliminate, minimise or maintain
good luckDebt is a symptom, solve the problem.0 -
Thanks. I think I have done this incorrectly. I have erroneously added both incomes when the debt is mine alone. Sorry, I was post 12-hour shift. I’ll do this again.0
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Great observation.
I contribute to half the bills so the figures represented at half the actual costs.
I also don’t drive (yet) and my work is a 25 minute walk from where I live, so I spend around £70 on taxis for days where I’m running late.0 -
£70 on taxis when you are running late is a red flag, how about cutting this expense as #1? Small hurt ( getting up earlier) but tangible benefit?0
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keyboardtime wrote: »Thanks. I think I have done this incorrectly. I have erroneously added both incomes when the debt is mine alone. Sorry, I was post 12-hour shift. I’ll do this again.
If the failed business ventures had succeeded wouldn't they have benefited the whole family? If so it seems reasonable to take a combined view of the debt and income.
Even discounting the second income your SOA shows £800 a month available to pay down the debt (although it does look like some expenses are missing).loose does not rhyme with choose but lose does and is the word you meant to write.0 -
keyboardtime wrote: »Great observation.
I contribute to half the bills so the figures represented at half the actual costs.
I also don’t drive (yet) and my work is a 25 minute walk from where I live, so I spend around £70 on taxis for days where I’m running late.
Your SOA doesn't make sense to me. You don't drive but pay car insurance and petrol?
Some of your bills look very low whereas some look about right?
There are no monthly repayment amounts for 3 of your credit cards?
As a household don't you receive child benefit for your two children?
You either need to post a joint SOA with all the household expenses listed in full or just your SOA with what you contribute to the expenses.0 -
keyboardtime wrote: »I also don’t drive (yet) and my work is a 25 minute walk from where I live, so I spend around £70 on taxis for days where I’m running late.
How about a bicycle? Save time and money.0
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