Need to Fix my Finances

bilko89 · 8 November 2017 at 5:09PM

Hi all.

The task is to sort my financial life out. I'm fed up constantly borrowing and ending up in a bigger hole than what I was in. I have no emergency cash incase something happens (car repair outwith warranty, lose job etc.....), and seem to be paying into a never ending pit of debt.

Below is my SOA, I have to add is that the Unsecured Debts listed as paying £0 per month have no agreements in place after I slipped on payments for them a couple of months ago. I just don't know how I can start to offer them anything.

The Presents cash is Christmas basically. £850 over two months. Once I sort myself out, I want to be able to budget things like this over the year, just now I'm not!!

I welcome all comments, no matter how brutal!

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.................... 1

Monthly Income Details
Monthly income after tax................ 1728.46
Partners monthly income after tax....... 0
Benefits................................ 512.04
Other income............................ 0
Total monthly income.................... 2240.5

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 50
Rent.................................... 320 (50 to arrears)
Management charge (leasehold property).. 0
Council tax............................. 325 (160 to arrears)
Electricity............................. 65
Gas..................................... 65
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 74.5
TV Licence.............................. 32.25 (20 to arrears)
Satellite/Cable TV...................... 49 (recently downgraded)
Internet Services....................... 0
Groceries etc. ......................... 217
Clothing................................ 0
Petrol/diesel........................... 90
Road tax................................ 5.25
Car Insurance........................... 52.07
Car maintenance (including MOT)......... 25 (arnold clark autocare)
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 10
Life assurance ......................... 10
Other insurance......................... 0
Presents (birthday, christmas etc)...... 425 (this and next month for xmas)
Haircuts................................ 20
Entertainment........................... 42 Odd days out
Holiday................................. 0
Emergency fund.......................... 0
Car Finance............................. 215.59
Total monthly expenses.................. 2092.66

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

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 207......(50).......0
Total secured & HP debts...... 207.......-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
ARC Europe.....................80........1.........0
Lowell (4 accts)...............1050......12........0
Secure Recoveries..............193.......0.........0
Sunny..........................457.25....166.......0
WDA............................621.45....40........0
Credit Card....................516.18....30........39.9
Lending Stream.................57........0.........0
Wescott (2 accts)..............1859......0.........0
Provident......................273.......0.........0
Capital One....................329.65....0.........0
Uncle Buck.....................307.......0.........0
Payday Express.................121.......0.........0
Total unsecured debts..........5864.53...249.......-

Monthly Budget Summary
Total monthly income.................... 2,240.5
Expenses (including HP & secured debts). 2,092.66
Available for debt repayments........... 147.84
Monthly UNsecured debt repayments....... 249
Amount short for making debt repayments. -101.16

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -207
Total Unsecured debt.................... -5,864.53
Net Assets.............................. -6,071.53

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

cheeky-peach · 8 November 2017 at 5:51PM

Assuming you're in a mobile contract (and that value is for two adults?) - look out for SIM only deals when you are able to.

Is your food bill this static every month?

How long do your arrear payments have left to run?

Mnd · 8 November 2017 at 7:24PM

Why no water rates, included in council tax?
Is there a reason your partner can't earn and help out
Agreed about the mobiles, we pay 20 for 2
You can't afford 800+ on christmas to be honest.there is a separate thread about Christmas on a budget.
Your rent seems very low is this correct.

Hope this helps, good luck

enthusiasticsaver · 8 November 2017 at 8:01PM

Paying £850 on Christmas when you are in arrears with essential bills like rent and council tax let alone loans is crazy. You have 2 children and can easily just get something for £50 for them and you and your partner could just get something small for each other and token presents for everyone else. Cut present list as much as possible by speaking to family and friends and maybe agreeing to just buy for children. Why do you feel under pressure to spend so much when you can't afford it? Christmas is supposed to be a happy family time but getting further into debt by not paying your bills is unwise. Speak to all your creditors and pay a token £5 to the ones you are paying nothing to then make a sensible plan to pay off these debts next year and build up an emergency fund.

datlex · 9 November 2017 at 12:08AM

Mnd wrote: »

Why no water rates, included in council tax?
Is there a reason your partner can't earn and help out
Agreed about the mobiles, we pay 20 for 2
You can't afford 800+ on christmas to be honest.there is a separate thread about Christmas on a budget.
Your rent seems very low is this correct.

Hope this helps, good luck

If the OP is in the North East and living in council housing could be that low.

bilko89 · 9 November 2017 at 12:41AM

cheeky-peach wrote: »

Assuming you're in a mobile contract (and that value is for two adults?) - look out for SIM only deals when you are able to.

Is your food bill this static every month?

How long do your arrear payments have left to run?

Yes two mobile contracts. Our phones are completely fine, contracts up in mid 2018, this is certainly something I would be looking at thanks.

Yes, we spend roughly £40 or under per week, including any other cleaning products etc we may need in a particular week. Aldi was a great discovery to be honest!

I'm £900 in arrears with Rent, a long way away to clearing that on the current repayment I have agreed.
2 months left on the Council Tax arrears
TV License will be done by May.

bilko89 · 9 November 2017 at 12:51AM

Mnd wrote: »

Why no water rates, included in council tax?
Is there a reason your partner can't earn and help out
Agreed about the mobiles, we pay 20 for 2
You can't afford 800+ on christmas to be honest.there is a separate thread about Christmas on a budget.
Your rent seems very low is this correct.

Hope this helps, good luck

Yes water rates are included in my CT here in Scotland

My partner is currently looking for work after 6 and a half years out (lost her job a month before she was due to go back after maternity leave). Our youngest is now in nursery so that was always the plan.

As above, its a great suggestion and one I'll be taking up on once the contracts are up.

Christmas is always a weak spot for me, we love seeing the kids faces and the other kids in the family. To give you perspective, it's £300 each on the kids, £50 each between my partner and I and £150 on everyone else (family). I'm going to have a look at the christmas on a budget thread, thanks!

Yes, I'm in North Lanarkshire, the council rent is ridiculously low and we're in a back and front door terrace with 2 bedrooms!

Thanks for your help

bilko89 · 9 November 2017 at 12:56AM

enthusiasticsaver wrote: »

Paying £850 on Christmas when you are in arrears with essential bills like rent and council tax let alone loans is crazy. You have 2 children and can easily just get something for £50 for them and you and your partner could just get something small for each other and token presents for everyone else. Cut present list as much as possible by speaking to family and friends and maybe agreeing to just buy for children. Why do you feel under pressure to spend so much when you can't afford it? Christmas is supposed to be a happy family time but getting further into debt by not paying your bills is unwise. Speak to all your creditors and pay a token £5 to the ones you are paying nothing to then make a sensible plan to pay off these debts next year and build up an emergency fund.

I just love Christmas but like you say, is it worth starting off the year catching up again? No, it's not! I will certainly be looking at the amount I'm spending.

I'll get cracking on with my budget, allowing for those payments. Should I be building up an emergency fund at the same time? Is there a rule of thumb to how much of a fund I should build ( 2 months wages?) Thanks.

chelseablue · 9 November 2017 at 10:35AM

Sorry if this sounds harsh, but £300 on each child? :eek:

My son is 3 and his main present will be about £50 and then a few other smaller things to open, will probably spend £100 on him altogether

ReadingTim · 9 November 2017 at 10:41AM

bilko89 wrote: »

Christmas is always a weak spot for me, we love seeing the kids faces and the other kids in the family.

Would you rather see a smile on a kid's face at Christmas, or a debt collector at the front door in the New Year?

bilko89 · 9 November 2017 at 12:09PM

chelseablue wrote: »

Sorry if this sounds harsh, but £300 on each child? :eek:

My son is 3 and his main present will be about £50 and then a few other smaller things to open, will probably spend £100 on him altogether

It's something I taken from my mum and dad. Now I've had a LBM, it's something that definitely needs addressed.

Need to Fix my Finances

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