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  • FIRST POST
    • Mumoffourkids
    • By Mumoffourkids 15th Dec 17, 8:12 PM
    • 710Posts
    • 3,773Thanks
    Mumoffourkids
    Single, six kids and going to be debt free!
    • #1
    • 15th Dec 17, 8:12 PM
    Single, six kids and going to be debt free! 15th Dec 17 at 8:12 PM
    Okay, so I finally decided to face up to my debts and now my income is pretty much stable, I can now budget and work out how much to pay. My soa is below and I believe I have budgeted for everything. I know I have a big surplus but this is only recent and from the new year I want to start paying everything off.

    I know that if I threw everything at the debts that I could be debt free a lot sooner but I can't expect the kids to live like that really.

    So I calculated that if I pay 500 off my debts each month, then I will be debt free in 44 months, so three years and 8 months. However, as my old debts are not currently being paid, I plan on offering them minimal payments at the moment and then save up to offer them full and final settlements so hopefully I can be debt free sooner.

    Next is to find some challenges to join!

    Statement of Affairs and Personal Balance Sheet

    Household Information
    Number of adults in household........... 1
    Number of children in household......... 6
    Number of cars owned.................... 1

    Monthly Income Details
    Monthly income after tax................ 900
    Partners monthly income after tax....... 0
    Benefits................................ 3527.64
    Other income............................ 975
    Total monthly income.................... 5402.64

    Monthly Expense Details
    Mortgage................................ 0
    Secured/HP loan repayments.............. 0
    Rent.................................... 1200
    Management charge (leasehold property).. 0
    Council tax............................. 93
    Electricity............................. 120
    Gas..................................... 10
    Oil..................................... 0
    Water rates............................. 63.54
    Telephone (land line)................... 10
    Mobile phone............................ 51.81
    TV Licence.............................. 12.37
    Satellite/Cable TV...................... 39.98
    Internet Services....................... 10
    Groceries etc. ......................... 433.33
    Clothing................................ 100
    Petrol/diesel........................... 260
    Road tax................................ 25.83
    Car Insurance........................... 120
    Car maintenance (including MOT)......... 100
    Car parking............................. 0
    Other travel............................ 10
    Childcare/nursery....................... 1000
    Other child related expenses............ 140
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 0
    Contents insurance...................... 7.27
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 150
    Haircuts................................ 0
    Entertainment........................... 303.33
    Holiday................................. 50
    Emergency fund.......................... 0
    Total monthly expenses.................. 4310.46


    Assets
    Cash.................................... 0
    House value (Gross)..................... 0
    Shares and bonds........................ 0
    Car(s).................................. 500
    Other assets............................ 0
    Total Assets............................ 500

    No Secured nor Hire Purchase Debts

    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    Overdraft......................1000......30....... .0
    Catalogue......................247.......60....... .0
    Catalogue......................593.......35....... .0
    Old debts......................20000.....0.........0
    Tax credits....................410.......0.........0
    Total unsecured debts..........22250.....125.......-


    Monthly Budget Summary
    Total monthly income.................... 5,402.64
    Expenses (including HP & secured debts). 4,310.46
    Available for debt repayments........... 1,092.18
    Monthly UNsecured debt repayments....... 125
    Amount left after debt repayments....... 967.18

    Personal Balance Sheet Summary
    Total assets (things you own)........... 500
    Total HP & Secured debt................. -0
    Total Unsecured debt.................... -22,250
    Net Assets.............................. -21,750
Page 1
    • Florence J
    • By Florence J 15th Dec 17, 8:35 PM
    • 1,896 Posts
    • 11,216 Thanks
    Florence J
    • #2
    • 15th Dec 17, 8:35 PM
    • #2
    • 15th Dec 17, 8:35 PM
    Hello, welcome to MSE, and well done for starting a debt free diary.

    It sounds like you can make good progress, I might suggest putting some money aside for an emergency fund, in the case that if some unexpected cost comes up you won't have to use debt to pay for it.

    As far as I can see all your bills seem reasonable for a larger household, but then I live in a two person household so there might be others on here who are wiser.

    Take care.
    Sealed Pot Challenge 11 #553
    1000 Emergency Fund Challenge #253
    Wombling free 2017 = 2195.92
    Pay off all your debts by Xmas 2017 #53 (3168.45/3000)
    February 2018 Credit Card Debt: 3885
    • Honeysucklelou2
    • By Honeysucklelou2 16th Dec 17, 5:46 AM
    • 1,678 Posts
    • 8,512 Thanks
    Honeysucklelou2
    • #3
    • 16th Dec 17, 5:46 AM
    • #3
    • 16th Dec 17, 5:46 AM
    Well done on your grocery budget...I have 7 children that live at home with me and I struggle to get it lower than 500 a month.

    Good luck with the debt busting.
    paydbx2019 #93 793.95/10,100 .
    School trips 12691269..
    EF 310
    • Mumoffourkids
    • By Mumoffourkids 16th Dec 17, 6:04 AM
    • 710 Posts
    • 3,773 Thanks
    Mumoffourkids
    • #4
    • 16th Dec 17, 6:04 AM
    • #4
    • 16th Dec 17, 6:04 AM
    Thanks honeysuckle, it is hard but I went through a patch wherein had no money and ended up at food banks, so had to budget. That figure includes nappies for my youngest two, cleaning products, and packed lunches for four of the kids. I have a budget of 100 per week which I am normally ok with.

    Thanks Florence, having an e!regency fund sounds like a good idea, although one of the first debts to tackle is my overdraft so that would be an emergency fund in the meantime but I know what you mean about not using debt in an emergency.

    So plan for today is to find out who is currently chasing for !y older debts and then write them letters to say I am currently getting sorted and I will be in contact to arrange a payment plan.
    • Jojo1492
    • By Jojo1492 16th Dec 17, 9:34 AM
    • 1 Posts
    • 6 Thanks
    Jojo1492
    • #5
    • 16th Dec 17, 9:34 AM
    • #5
    • 16th Dec 17, 9:34 AM
    I think it is brilliant you are working too! As you say, as your children get older it's better to already have a job than to have to start looking. Overdrafts are quite expensive so good to tackle that. Setting up a separate savings account for presents could help with the December birthdays and Christmas. The interest won't be much but once that is out of the way you will know it's there. Good luck!
    • Mumoffourkids
    • By Mumoffourkids 16th Dec 17, 9:38 AM
    • 710 Posts
    • 3,773 Thanks
    Mumoffourkids
    • #6
    • 16th Dec 17, 9:38 AM
    • #6
    • 16th Dec 17, 9:38 AM
    Thanks JoJo. My job is very flexible and fits around the kids mostly so I am lucky. I am an accountant so if I found time, I could do extra work from home, but to be honest with six kids, it is hard finding the time. I need a plan and hopefully I will be able to clear my old debts relatively quickly!
    • Mumoffourkids
    • By Mumoffourkids 16th Dec 17, 7:05 PM
    • 710 Posts
    • 3,773 Thanks
    Mumoffourkids
    • #7
    • 16th Dec 17, 7:05 PM
    • #7
    • 16th Dec 17, 7:05 PM
    Ok so today I did the online thing with payplan and then had a chat on the phone. They agreed with me that the best way forward is a DMP and they agreed my budget if slightly revised from the one above. I should be debt free in just over two years if everything stays the same but in theory my income or disposable income at least should go up. I think all I have to do now is set up a new bank account and then sort out a start date for my DMP. So it is all go go go on the debt busting front!
    • somethingcorporate
    • By somethingcorporate 16th Dec 17, 7:10 PM
    • 9,119 Posts
    • 8,806 Thanks
    somethingcorporate
    • #8
    • 16th Dec 17, 7:10 PM
    • #8
    • 16th Dec 17, 7:10 PM
    Bleeding heck, that is some serious cost control! We spend more on groceries than that on a family of 3. Have you kept a spending diary to make sure you arent undercalling it...?

    We just jot it down on a calendar - one column for food for the house, one for eating out.
    Thinking critically since 1996....
    • redofromstart
    • By redofromstart 16th Dec 17, 7:13 PM
    • 2,399 Posts
    • 15,365 Thanks
    redofromstart
    • #9
    • 16th Dec 17, 7:13 PM
    • #9
    • 16th Dec 17, 7:13 PM
    Just dropping in to say happy new diary and good luck with it. I'm impressed at your food spend too.
    • Mumoffourkids
    • By Mumoffourkids 16th Dec 17, 7:19 PM
    • 710 Posts
    • 3,773 Thanks
    Mumoffourkids
    Thanks and yes that is my correct food spend. I tend to do an online food shop at Asda on a Monday which is normally around 70 and the remaining 30 per week is spent in bread, milk, and fruit. Four of the kids have packed lunch out of that, but my youngest two eat at nursery three days a week which does help, although my son then sometimes eats at home as well!

    I got into a habit of a budget of 100 per week when I had no money so now I have money, I still stick at the same amount. Eating out doesn't happen often and when it does, it comes out of entertainment budget!
  • archived user
    Welcome to the forum, I like your ethic wanting to work , even if it seems that all your salary goes on child care , but not for to long. Good job on the DMP work, two years isn't that long to be debt free .

    Good luck.
    • Mumoffourkids
    • By Mumoffourkids 17th Dec 17, 1:44 AM
    • 710 Posts
    • 3,773 Thanks
    Mumoffourkids
    Thanks Cumbria lass, yes if I didn't work, I would slowly go mad. I have always worked apart from two years when I had my middle two children but I lived in France and did other things like tending a small holding!

    And yes my childcare costs are probably higher than my wages, but I do get some tax credits towards the childcare costs and roll on April when my son gets 30 hours funded.

    Two years isn't very long and I plan for that to be sooner but I still want to live. I know could clear a lot sooner if I cut everything right back but why not enjoy yourself a little bit. Obviously if my debts were a lot higher, and it was going to take a lot longer to clear then I would cut back on more things.
    • enthusiasticsaver
    • By enthusiasticsaver 17th Dec 17, 2:11 PM
    • 8,574 Posts
    • 19,913 Thanks
    enthusiasticsaver
    As your children get older you will be able to work longer hours so I think it is worth you working and you will notice the difference as the free hours kick in and gradually childcare costs get less. I think having the work ethic and keeping you in the workplace will have benefits in terms of setting an example to your kids and giving you some child free time as well especially if you are a single parent.

    A DMP sounds like it is the way to go with you and as you already seem to be pretty good at living on a small budget it should definitely be within your means. 2 years is nothing and then you can move forward.

    Your soa looks ok considering you are a large family but I would definitely say you need to allocate something to an emergency fund. How much do payplan say you need to pay each month?
    Early retired in December 2017

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • enthusiasticsaver
    • By enthusiasticsaver 17th Dec 17, 2:12 PM
    • 8,574 Posts
    • 19,913 Thanks
    enthusiasticsaver
    I also think life assurance is a must for you as you have kids unless you get it as part of a pension with your occupational scheme.
    Early retired in December 2017

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • Mumoffourkids
    • By Mumoffourkids 17th Dec 17, 4:23 PM
    • 710 Posts
    • 3,773 Thanks
    Mumoffourkids
    Thanks enthusiastic saver for taking the time to comment.

    I know I am looking forward to April as childcare costs should reduce quite considerably, then again in September.

    I can always work extra from home if I have time! Not slot of that at the moment though.

    I did my soa with payplan, added some bits including emergency fund of 50 per month and they came up with a figure of 806 to pay each month.

    That seems reasonable to me and won't leave me short I shouldn't think.

    Yes good idea about life insurance, I used to have some and it wasn't expensive so I'll look into getting some again, maybe go through a cashback site?

    I have also been having a think today about maybe dealing with my debts myself but using the figures I worked out with payplan? Not sure if that's a good idea or not. One reason why I thought this was because if I get any extra money which may happen, then I would prefer to pay off certain debts just to get rid of them. But if went through payplan, they would want to split any extra payments to all the debts. I don't know if that would work though?

    Also I thought about sending letters to all debts saying I am now getting sorted and will be working out how much to pay them and send them a token payment in the meantime. This should give me January to get sorted and be able to pay off both tax credits overpayment and my littlewoods account which would give me a boost. Would that work?
    • Mumoffourkids
    • By Mumoffourkids 17th Dec 17, 8:46 PM
    • 710 Posts
    • 3,773 Thanks
    Mumoffourkids
    So I have worked out my money for January, February and march on a spreadsheet. To do lists for tomorrow (borrowed the idea from another diary ).
    - send letters to creditors
    - update spreadsheet for April figures
    - finish assignment
    - work out money for the week
    - buy balloons for dd2 birthday
    - iron school clothes
    - update budget software for payments out
    - wrap ds1 presents

    Think that's a good start for tomorrow
    • Crikey123
    • By Crikey123 18th Dec 17, 1:32 PM
    • 32 Posts
    • 89 Thanks
    Crikey123
    Popped in to yours & subscribed so we can cheer each other on.
    • Drawingaline
    • By Drawingaline 18th Dec 17, 3:41 PM
    • 671 Posts
    • 2,336 Thanks
    Drawingaline
    Hello. I have just read your thread on the debt free forum. You sound very determined. What a way to start the new year, tackling your debt head on.

    I will pop by again and look forward to reading about your journey.
    • enthusiasticsaver
    • By enthusiasticsaver 18th Dec 17, 4:46 PM
    • 8,574 Posts
    • 19,913 Thanks
    enthusiasticsaver
    Thanks enthusiastic saver for taking the time to comment.

    I know I am looking forward to April as childcare costs should reduce quite considerably, then again in September.

    I can always work extra from home if I have time! Not slot of that at the moment though.

    I did my soa with payplan, added some bits including emergency fund of 50 per month and they came up with a figure of 806 to pay each month.

    That seems reasonable to me and won't leave me short I shouldn't think.

    Yes good idea about life insurance, I used to have some and it wasn't expensive so I'll look into getting some again, maybe go through a cashback site?

    I have also been having a think today about maybe dealing with my debts myself but using the figures I worked out with payplan? Not sure if that's a good idea or not. One reason why I thought this was because if I get any extra money which may happen, then I would prefer to pay off certain debts just to get rid of them. But if went through payplan, they would want to split any extra payments to all the debts. I don't know if that would work though?

    Also I thought about sending letters to all debts saying I am now getting sorted and will be working out how much to pay them and send them a token payment in the meantime. This should give me January to get sorted and be able to pay off both tax credits overpayment and my littlewoods account which would give me a boost. Would that work?
    Originally posted by Mumoffourkids
    No reason why you cannot manage your own DMP and many do simply because payplan stick to a precise repayment plan so full and finals are better under self managed. I think contacting them all offering tokens is a good start. You really want them to default if they haven't already as then they will be off your record in 6 years from default date. Getting rid of tax credits first is sensible.
    Early retired in December 2017

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • Mumoffourkids
    • By Mumoffourkids 18th Dec 17, 7:24 PM
    • 710 Posts
    • 3,773 Thanks
    Mumoffourkids
    Hello. I have just read your thread on the debt free forum. You sound very determined. What a way to start the new year, tackling your debt head on.

    I will pop by again and look forward to reading about your journey.
    Originally posted by Drawingaline
    Thanks drawingaline. I am very determined and am determined that next year I am going to really tackle my debt!
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