Stupid Me

nobbyclarke123 · 12 July 2018 at 11:40AM

Hello guys and gals,

hope you can help me out - in my younger days i was stupid and racked up quite alot of debt on payday loans. I had a lightbulb moment in 2014 - and spent the next 3 years paying of every penny of the £7000 debt I had.
Since clearing the debt I thought i would be able to manage a credit card for any unexpected expenses that cropped up.
24 months later here I am

please see my SOA and advise what i can do to fix things ?

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 2400
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2400

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 695
Management charge (leasehold property).. 0
Council tax............................. 133
Electricity............................. 53
Gas..................................... 0
Oil..................................... 0
Water rates............................. 35
Telephone (land line)................... 30
Mobile phone............................ 40
TV Licence.............................. 29
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 400
Clothing................................ 0
Petrol/diesel........................... 250
Road tax................................ 30
Car Insurance........................... 70
Car maintenance (including MOT)......... 15
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 20
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 15
Entertainment........................... 80
Holiday................................. 100
Emergency fund.......................... 0
Total monthly expenses.................. 2015

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................ 0
Total Assets............................ 1000

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Barclaycard....................0.........0.........0
Aqua...........................741.12....49.93.....51.94
Capital One....................489.74....40........30.34
very...........................272.73....0.........47.9
Paypal.........................437.48....40........17.9
Ratesetter.....................1906.02...102.......21.7
Vanquis........................1026.21...65........34.9
Total unsecured debts..........4873.3....296.93....-

Monthly Budget Summary
Total monthly income.................... 2,400
Expenses (including HP & secured debts). 2,015
Available for debt repayments........... 385
Monthly UNsecured debt repayments....... 296.93
Amount left after debt repayments....... 88.07

Personal Balance Sheet Summary
Total assets (things you own)........... 1,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -4,873.3
Net Assets.............................. -3,873.3

wjr4 · 12 July 2018 at 11:49AM

nobbyclarke123 wrote: »

Hello guys and gals,

hope you can help me out - in my younger days i was stupid and racked up quite alot of debt on payday loans. I had a lightbulb moment in 2014 - and spent the next 3 years paying of every penny of the £7000 debt I had.
Since clearing the debt I thought i would be able to manage a credit card for any unexpected expenses that cropped up.
24 months later here I am

please see my SOA and advise what i can do to fix things ?

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 2400
Partners monthly income after tax....... 0 why is there no income here?
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2400

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 695
Management charge (leasehold property).. 0
Council tax............................. 133
Electricity............................. 53
Gas..................................... 0
Oil..................................... 0
Water rates............................. 35
Telephone (land line)................... 30
Mobile phone............................ 40 Is this just for you or both?
TV Licence.............................. 29 Why is this not £12?
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 400 This is a lot for 2 people. Do you shop in Aldi?
Clothing................................ 0
Petrol/diesel........................... 250 Do you travel far to work? Is this for both? Can you get a car that is more fuel-efficient?
Road tax................................ 30 Is this a month?
Car Insurance........................... 70
Car maintenance (including MOT)......... 15
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 20
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 15
Entertainment........................... 80
Holiday................................. 100 You save this but list no savings below?
Emergency fund.......................... 0
Total monthly expenses.................. 2015

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................ 0
Total Assets............................ 1000

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Barclaycard....................0.........0.........0
Aqua...........................741.12....49.93.....51.94 I'd concentrate on getting rid of this ASAP
Capital One....................489.74....40........30.34 Is this a minimum paument?
very...........................272.73....0.........47.9 I'd also concentrate on this. Why is there no minimum payment?
Paypal.........................437.48....40........17.9 Is this a minimum payment?
Ratesetter.....................1906.02...102.......21.7 Is this a minimum payment?
Vanquis........................1026.21...65........34.9 Is this a minimum payment?
Total unsecured debts..........4873.3....296.93....-

Monthly Budget Summary
Total monthly income.................... 2,400
Expenses (including HP & secured debts). 2,015
Available for debt repayments........... 385
Monthly UNsecured debt repayments....... 296.93
Amount left after debt repayments....... 88.07

Personal Balance Sheet Summary
Total assets (things you own)........... 1,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -4,873.3
Net Assets.............................. -3,873.3

I've written a few notes above - good luck with your debt-free journey!

tallyhoh · 12 July 2018 at 12:05PM

Your grocery bill is very high for 2 people :eek: Go to the old style saving money board for ideas on cutting this down.

Is the other person able to work?

You have no contents insurance listed?

The TV license is usually £12.37, are you catching up?

nobbyclarke123 · 12 July 2018 at 12:08PM

Partners monthly income after tax....... 0 why is there no income here?
My partner earns 1000 pm/ pays £500 towards living costs this SOA is based purely on my salary as the debts are purely all mine.

Mobile phone............................ 40 Is this just for you or both?
This is just myself - 4 months into a 24 month contract

TV Licence.............................. 29 Why is this not £12?
this was due to moving house

Groceries etc. ......................... 400 This is a lot for 2 people. Do you shop in Aldi?
I am aware that this is high - we are shopping in aldi and lidl, but find ourselves eating takeouts regularly due to unsociable finish times

Petrol/diesel........................... 250 Do you travel far to work? Is this for both? Can you get a car that is more fuel-efficient?
I do travel 20 miles per day each way for work - i could get a more fuel efficient car but lack the cash to buy one

Road tax................................ 30 Is this a month?
yes this is per month -it could be reduced if i get a newer more fuel effcient car but as above no funds to purchase this

Holiday................................. 100 You save this but list no savings below?
I try to save this - but when unexpected expense crop up this is the first thing to get depleted. and after a run of bad luck the last three months the savings i had are all gone along with my dreams of a weekend in wales !

wjr4 · 12 July 2018 at 12:15PM

Have you tried batch cooking? I usually batch cook on a Sunday if I'm free, which isn't very often, but it then makes meals for when we finish work late.
What about meal planning? I got a taco kit from aldi the other week for about £1.49 and then quorn mince (veggie) and vegetables. It took me about 10 minutes to make and it was lovely! Meals don't need to take long to prepare

I'd definitely look at getting a cheaper fuel/tax car when you can afford to.
What are the minimum payments on all cards or are they the minimums?

wjr4 · 12 July 2018 at 12:17PM

nobbyclarke123 wrote: »

Petrol/diesel........................... 250 Do you travel far to work? Is this for both? Can you get a car that is more fuel-efficient?
I do travel 20 miles per day each way for work - i could get a more fuel efficient car but lack the cash to buy one

Also, I drive about 50 miles a day for work, 5 days a week and my petrol is absolute maximum of £130 a month. Definitely worth having a cheaper car when you can afford to!

CakeCrusader · 12 July 2018 at 12:20PM

Have you taken a look to see if you can do a balance transfer on your high interest cards?

£400 a month on food is a lot but it's easily done. If you have spare time, it's better to batch cook and freeze the extras rather then spend money on take outs. Even if you cook a couple of extra meals and freeze them, that will help. There's 2 of us, I cook a whole chicken (it works out cheaper than buying portions), then I'll use it all over 2/3 days.

I'd use the £100 a month that you're trying to save for holidays on clearing your highest interest cards if you can (I know it's easier said then done).

If your partner's paying £500 towards living costs, have you added this as additional income?

foxgloves · 12 July 2018 at 2:02PM

Hi,
This should actually be quite 'doable' . If you are serious about getting rid of the debt & starting again with a clean slate, then you probably need to accept that you don't have £100 a month spare to save for a holiday. You can look forward to a fab holiday once all your money is your own. So that will free up £1200 over the next year for you to pay straight off the debts.
Next target - grocery spending. £400 is a huge amount for 2 people. We budget £50 a week to feed me, my big hungry partner, greedy cat & this also includes household/cleaning stuff plus basic toiletries. Some weeks we are a little over, others we are underspent. So if you can reduce £400 a month to £220, that's another £2160 saving over the year - that's £3360 freed up to pay towards your debts & that's without looking at economies in other areas.
I note your comments about buying takeaways because of unsocial hours. Pre-LBM (we owed £35k at its worst, excluding mortgage), we did a lot of that for the same reason you give. It"s not sustainable when you need to pay debts. The key here is meal planning. If you know you won't be in until late, get something put in a slow cooker 1st thing before work, or take something out of the freezer the night before so you only need to heat it up. If you are tempted by take-away type foods, then include 'fake-away' type meals on your meal plans. Home made pizzas can be batch made & frozen so you only need to chuck one in the oven, Chinese style stir-fries are super speedy if you plan to prep the veg when you have 10 mins, things like kaati kebabs are quick tasty & filling & can often assuage the lure of a takeaway curry. But plan. Prioritise meals which use up ingredients you already have in stock, then write a shopping list based on that meal plan, even down to how many packed lunches & breakfasts you'll need. It is definitely doable. Get on it now before it escalates......oh, & get a budget in place so it doesn't happen again. Good luck!
F

AstroTurtle · 13 July 2018 at 11:12AM

please see my SOA and advise what i can do to fix things ?

Stop eating your money away.

The money wasted on food is enough to clear your debts within 12 months ontop of your current repayments.

Simple.

Don't make excuses either about sociable hours blah blah.. If you have time to either sit and wait for a delivery driver or to pickup and sit at a drive thru on the way home then you have time to pop a uncle bens 2 minute rice in the microwave and heat up some chicken.

Or as other replies have mentioned batch cook.

Mnd · 13 July 2018 at 12:31PM

Is your income 2400 a month or does that Inc the 500 from your partner

Car insurance seem high

As others have said, food bill could be halved. We very seldom spend £40 a week on grocery shopping

saajan_12 · 16 July 2018 at 1:10PM

nobbyclarke123 wrote: »

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 2400
Partners monthly income after tax....... 0- you say partner contributes £500 - you should list this as income as you're counting partner's expenses. Also where does their other £500 go?
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2400

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 695
Management charge (leasehold property).. 0
Council tax............................. 133
Electricity............................. 53
Gas..................................... 0
Oil..................................... 0
Water rates............................. 35
Telephone (land line)................... 30 - do you need this if you have a mobile? or does it include broadband?
Mobile phone............................ 40
TV Licence.............................. 29- you say this is due to moving - did you check whether you can cancel & get a part refund on the old place?
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 400 - as others said, this is way too high. I'd restrict eating out to special occassions, and last min / quick food should come from ready meals or batch cooking.. a stir fry takes 5 min with a £3 meal deal. Also if you're getting home at late hours, this may be the perfect time to swing past a supermarket at reducing times to eat the same day.
Clothing................................ 0
Petrol/diesel........................... 250
Road tax................................ 30
Car Insurance........................... 70
Car maintenance (including MOT)......... 15
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 20
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 15
Entertainment........................... 80
Holiday................................. 100 - Not sure you can afford a £1200 holiday each year for just two people.. can you get a cheap break in for £300 closer to home?
Emergency fund.......................... 0
Total monthly expenses.................. 2015

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................ 0
Total Assets............................ 1000

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Barclaycard....................0.........0.........0
Aqua...........................741.12....49.93.....51.94
Capital One....................489.74....40........30.34
very...........................272.73....0.........47.9
Paypal.........................437.48....40........17.9
Ratesetter.....................1906.02...102.......21.7
Vanquis........................1026.21...65........34.9
Total unsecured debts..........4873.3....296.93....-

Monthly Budget Summary
Total monthly income.................... 2,400
Expenses (including HP & secured debts). 2,015
Available for debt repayments........... 385
Monthly UNsecured debt repayments....... 296.93
Amount left after debt repayments....... 88.07

Personal Balance Sheet Summary
Total assets (things you own)........... 1,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -4,873.3
Net Assets.............................. -3,873.3

Added come comments in your expenses. Your current budget as is, indicates a £88 surplus + £100 holiday savings + £500 from partner each month = £8256 per year. If you put that straight towards your debts (separate from your min payments) you could be debt free within the year if you stick to it.

Stupid Me

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