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    • Drawingaline
    • By Drawingaline 13th Jan 17, 12:23 AM
    • 681Posts
    • 2,358Thanks
    Drawingaline
    Drawing a line under the debt
    • #1
    • 13th Jan 17, 12:23 AM
    Drawing a line under the debt 13th Jan 17 at 12:23 AM
    So I have been thinking of having a diary here for a while. I love reading through other peoples journeys on here and have been feeling inspired. This past year has been awful for us and the debt situation has really come to a head.

    My other half was made redundant last May and has struggled to find another job. The redundancy payout paid the mortgage for six months but since september I have had to find the money for that from my small part time wage on top of the regular monthly outgoings and debt payments. I have been lucky with overtime and a few months ago I took on a second part time job (I was always planning on doing this, but for money to do up the house rather than for paying the bills!) this is a self empoyed role so the income is variable, but is adding up to around an additional 300 a month at the moment. I have escaped paying tax on it this year due to low income and hoping to use my husbands allowance that he hasnt used, but from April I will have to start saving tax and NI from this, so am planning to increase this to around 400 by the beginning of May.

    Debt wise we owe around 18800, but three months ago this was nearly 22000, since October I have paid off nearly 3K which I am super proud of! I signed up to YNAB after reading about it on speckysquarehead and loubys diaries and I love it. i was always trying to do something similar using lots of savings accounts and my diary, but it never seemed to work, so decided to give the free trial a go. It was so successful, I subscribed, I find it works well for me as I get money into the account on five seperate occasions over the month

    Savings wise I had a sharesave mature through work so have kept this aside as an 'emergency/holiday fund', it is sitting at just over 1300, but I am saving 100a month to it. We are off to the Lake District in May so some will be used then, the rest is my 'my car is 16 years old' fund I am also saving 100 a month into a savings account which really is the beginning of a new car account, but so far it is only at 400, so will take a while. My own fault, I should have been saving it for years. We also have 400 in an account that i am using for the possibilitythat the council tax rebate we received is an error. We dropped to paying half our usual payment when my oh was made redundant, and then three months later they decided we had overpaid so gave us a refund. However I am convinced they are wrong so am still saving the reduced payment until April. If we dont owe anything I will use this to pay car/house insurance upfront and then save the direct debit payments for the following year. Lots of plans!

    Money wise we are doing ok atm. The benefit system has definatley caught us, oh got a 1k tax rebate and paid off his overdraft, we have child benefit and tax credits and receive DLA for one of our children which means we are exempt from the cap. However I am getting increasingly concerned about the tax credit renewal in april, and am really hoping oh has a new job by then, he has applied for loads and has had a number of interviews, we are are facing the issue of either a minimum wage job (which would most likely mean shift work, hard as i work evening in my main job) or a 10k paycut with added travel costs, so making us worse off. but he is super bored and needs to be doing something!

    So congtratulations if you have made it to the end, I amdetermined to be debt free by september 2019, thats when our mortgage deal ends, so am hoping to be able to get a better deal, or possibly extend the mortgage to extend the house.
    Last edited by Drawingaline; 13-01-2017 at 12:41 AM.
Page 1
    • Drawingaline
    • By Drawingaline 13th Jan 17, 1:04 AM
    • 681 Posts
    • 2,358 Thanks
    Drawingaline
    • #2
    • 13th Jan 17, 1:04 AM
    • #2
    • 13th Jan 17, 1:04 AM
    Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 2
    Number of children in household......... 4
    Number of cars owned.................... 1

    Monthly Income Details

    Monthly income after tax................ 1098
    Partners monthly income after tax....... 0
    Benefits................................ 1899
    Other income............................ 0
    Total monthly income.................... 2997


    Monthly Expense Details

    Mortgage................................ 682
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 50
    Electricity............................. 59.26
    Gas..................................... 35.14
    Oil..................................... 0
    Water rates............................. 30
    Telephone (land line)................... 0
    Mobile phone............................ 50
    TV Licence.............................. 12.12
    Satellite/Cable TV...................... 72.4
    Internet Services....................... 0
    Groceries etc. ......................... 300
    Clothing................................ 0
    Petrol/diesel........................... 100
    Road tax................................ 20.12
    Car Insurance........................... 40.44
    Car maintenance (including MOT)......... 30
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 115
    Medical (prescriptions, dentist etc).... 10
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 14.91
    Contents insurance...................... 0
    Life assurance ......................... 43.92
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 80
    Haircuts................................ 50
    Entertainment........................... 60
    Holiday................................. 100
    Emergency fund.......................... 100
    Total monthly expenses.................. 2055.31



    Assets

    Cash.................................... 2100
    House value (Gross)..................... 180000
    Shares and bonds........................ 0
    Car(s).................................. 200
    Other assets............................ 0
    Total Assets............................ 182300



    Secured & HP Debts

    Description....................Debt......Monthly.. .APR
    Mortgage...................... 121000...(682)......4.9
    Total secured & HP debts...... 121000....-.........-


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    loan 1.........................3444......233.......0
    loan 2.........................6979.98...166.......0
    loan 3.........................8457......148.......0
    Total unsecured debts..........18880.98..547.......-



    Monthly Budget Summary

    Total monthly income.................... 2,997
    Expenses (including HP & secured debts). 2,055.31
    Available for debt repayments........... 941.69
    Monthly UNsecured debt repayments....... 547
    Amount left after debt repayments....... 394.69


    Personal Balance Sheet Summary
    Total assets (things you own)........... 182,300
    Total HP & Secured debt................. -121,000
    Total Unsecured debt.................... -18,880.98
    Net Assets.............................. 42,419.02


    Created using the SOA calculator at www.stoozing.com.
    Reproduced on Moneysavingexpert with permission, using Firefox browser.
    • Drawingaline
    • By Drawingaline 13th Jan 17, 1:19 AM
    • 681 Posts
    • 2,358 Thanks
    Drawingaline
    • #3
    • 13th Jan 17, 1:19 AM
    • #3
    • 13th Jan 17, 1:19 AM
    ok a few things to add!

    I know our elec/gas are high, we have been underpaying for over a year, head in sand etc, once we have cleared the debt we will look at other suppliers.

    The mobile figure is for three handsets. Myself and the two older kids. I was previously sim only but broke my phone so had togo back to contract. The kids will go sim only once the contract is up for renewal.

    The sky figure includes landline, internet and tv. However I have persuaded oh to cancel this from next month as the sports package increases in price. we are going to try without for a bit.

    I have been saving 50 a month to car maintenance over the past few months for new tyres and MOT. MOT is this month, am hoping to drop to 30, but at some point it will be morecost effective to get a new car, anything in this account will be used towards this.

    The insurance is contents/buildings together.

    The life insurance is three policies for life insurance and accident and sickness. unfortuantlywe decidednot to get unemployment at the same time......

    The present figure is high. However for the first time ever we didnt do xmas ona credit card and it felt fab! so I am saving 50 a month for xmas and 30 a monthfor birthday gifts and parties. This can be reviewed later.

    The hair figure is high. Just before the redundancy I began toget my hair properly coloured and it is my one treat. I am going every 10 weeks or so, but htis next time willbeless due togetting a friend to go along so will get some money off. Also all three boys seem to need cuts every 6 weeks at 10 each !

    The loans are not 0% but the figure is what is left to pay.

    During the past four months I have managed to save over 200 for dental work and 400 for some home improvements, and pay an additional 300 a month off the debt. however this monthwith four birthdays and that budget being reset with xmas I paid half that. I alsoreally need a clothing budget, my mum and mil help out a lot with the kids, but me and the oh are in desperate need of some new bits, probably been a good couple of years since we bought anything for ourselves.

    Anyway really ought to go to bed I suppose........
    • louby40
    • By louby40 13th Jan 17, 6:29 AM
    • 1,388 Posts
    • 3,776 Thanks
    louby40
    • #4
    • 13th Jan 17, 6:29 AM
    • #4
    • 13th Jan 17, 6:29 AM
    Wow! That's impressive saving and budgeting in the face of loss is a wage!

    Keep posting

    Louby
    • nonnie44
    • By nonnie44 13th Jan 17, 6:36 AM
    • 466 Posts
    • 925 Thanks
    nonnie44
    • #5
    • 13th Jan 17, 6:36 AM
    • #5
    • 13th Jan 17, 6:36 AM
    As Louby says that's fantastic, have subscribed and looking forward to following your journey xx
    • louby40
    • By louby40 13th Jan 17, 7:38 AM
    • 1,388 Posts
    • 3,776 Thanks
    louby40
    • #6
    • 13th Jan 17, 7:38 AM
    • #6
    • 13th Jan 17, 7:38 AM
    AND you've got 4 kids!! Anyone with more than 2 kids - I hold my hat to you!!
    • SpekySquarehead
    • By SpekySquarehead 13th Jan 17, 10:59 AM
    • 2,603 Posts
    • 21,902 Thanks
    SpekySquarehead
    • #7
    • 13th Jan 17, 10:59 AM
    • #7
    • 13th Jan 17, 10:59 AM
    Hello and welcome,

    You've came to the right place. A bunch of super friendly people here who have more than likely been in a similar position to you before and can offer advice based on their experience.

    I'm over the moon that you've aboard with YNAB and that you took influence from myself and Louby. Trust me, if I can do it, anyone can. I was shocking with my finances and now I'm all over it - thanks to YNAB.

    I've 100% trust in YNAB because it does work. I would recommend making it a habit to check your bank statement and YNAB as often as possible. It seems laborious but it's not - and even if it was, isn't it worth it to get out of debt?

    I appreciate your in a difficult position given that your OH is out of work at the moment but being able to pay a mortgage and feed 6 humans is a huge achievement on it's own - you're doing fantastic.

    I've subscribed and I look forward to seeing you succeed.
    Debt Free Date: 29/09/16

    Follow my diary HERE
    • Drawingaline
    • By Drawingaline 13th Jan 17, 1:50 PM
    • 681 Posts
    • 2,358 Thanks
    Drawingaline
    • #8
    • 13th Jan 17, 1:50 PM
    • #8
    • 13th Jan 17, 1:50 PM
    Thanks for all the encouragement. Spent I adore YNAB, wish I had discovered it years ago. I always checked my bank balance often, I used to work for a bank a long time ago, it was call centre work, but the online banking site was one of the few we could access so it became second nature. However the envelope system in YNAB just works so well for me, and I love the app too.

    Well car passed the MOT with minimal fuss, it's my birthday this month and my dad always pays for this as a birthday present. It needs two new tyres which I am getting on Monday, Monday already budgeted, but dad has offered to go halves which is fantastic, means I can keep some money aside for any other car issues that may pop up.

    Had to drop into the supermarket as needed a few bits, get money for food on Tuesday, so am planning on organising my online shop this evening. I used to work for a supermarket, but our department was 'sold' in September and i lost my discount card, so I have defected to another one and our first online order with them in November was fab, very impressed.

    Anyway need to go pick up the little two from school. And louby two kids is an optimal number, four feels foolish
    • Drawingaline
    • By Drawingaline 14th Jan 17, 3:28 PM
    • 681 Posts
    • 2,358 Thanks
    Drawingaline
    • #9
    • 14th Jan 17, 3:28 PM
    • #9
    • 14th Jan 17, 3:28 PM
    So today has not been the best day money wise. My daughter's tap shoes broke this week so have had to order some new ones, 25 on the credit card. Also I needed a new pair of shoes, have been just wearing my boots which aren't the best for my second job, so 12 for a basic pair of pumps, also on the card. This os because I don't have a clothing budget, so think I definitely need to sort that out.

    On a different note I have decided not to go up to Scotland this year. I go every year, this time I was planning on taking all the kids, but it will be a real stretch financially (I hire a car, and its to one of the islands, so ferry costs too) so I am postponing to next year, opening a new entry on YNAB and will start saving from next month. Now my overtime is a lot less, maybe anything I get from that can go towards it. But this does mean that I may be able to afford to do a long weekend away with the oh if my mil can have the kids
    • Drawingaline
    • By Drawingaline 14th Jan 17, 3:30 PM
    • 681 Posts
    • 2,358 Thanks
    Drawingaline
    This month overtime is around 55 so will be going to the credit card and the beginning of a clothing budget.
    • Bobarella
    • By Bobarella 14th Jan 17, 5:28 PM
    • 10,439 Posts
    • 69,775 Thanks
    Bobarella
    Just joining in with everyone else saying how well you've done in the face of a tough situation. Good luck with clearing the rest.

    Bob
    " Your vibe attracts your tribe"

    Debt neutral 27/03/17 from 40k in the hole 2012.
    Roadkill 17 56.58 2016-62.28 2015- 84.20)
    RYSAW17 1900 2016 2,535.16 2015 1027.20
    • Drawingaline
    • By Drawingaline 14th Jan 17, 7:32 PM
    • 681 Posts
    • 2,358 Thanks
    Drawingaline
    Thanks Bob, been lurking on your thread a while, always in awe of your meals! I am a rubbish cook, but I am hoping to test out more recipes this year.
    • Drawingaline
    • By Drawingaline 15th Jan 17, 6:36 PM
    • 681 Posts
    • 2,358 Thanks
    Drawingaline
    So I have been reading lots of different diaries and am intrigued by non spend days! So I am going to set myself a goal of six before the end of the month.

    Today was not one, was reminded by both the Girl and the Boy (12&11) that they have home tech tomorrow and Tuesday. I get my online shop Tuesday midday so no use for ingredients. The Girl was most put out that I wouldn't let her do lemon and blueberry muffins (have you seen the cost of blueberries ) so she is having to do chocolate ones as had most of the ingredients. Her challenge was finding a recipe that didn't use butter. But I still needed to buy flour and milk. The Boy is doing fruit salad so grapes and strawberries and some tins too.

    And then I blew it all by ordering in pizza for tea bit annoyed with myself. But now I have decided not to go to Scotland I moved it over from the holiday budget. But no more this month

    Tomorrow is a new day, that's what I say
    • Bobarella
    • By Bobarella 15th Jan 17, 7:08 PM
    • 10,439 Posts
    • 69,775 Thanks
    Bobarella
    Thanks Bob, been lurking on your thread a while, always in awe of your meals! I am a rubbish cook, but I am hoping to test out more recipes this year.
    Originally posted by Drawingaline
    Thanks very much. There is no such thing as a rubbish cook. It's all about what you know. If you are interested you are sure to improve. I am self taught. But with the benefit of working in a commercial kitchen for around 4 years till recently.
    " Your vibe attracts your tribe"

    Debt neutral 27/03/17 from 40k in the hole 2012.
    Roadkill 17 56.58 2016-62.28 2015- 84.20)
    RYSAW17 1900 2016 2,535.16 2015 1027.20
    • SpekySquarehead
    • By SpekySquarehead 16th Jan 17, 7:59 AM
    • 2,603 Posts
    • 21,902 Thanks
    SpekySquarehead
    No Spend Days are a great motivator for me to cut back on avoidable small spends. Before, I would justify a coffee because it's only 4 or I need a new t-shirt and so I'll buy it just now at 20 or whatever, now what I do is avoid the small spends of coffee etc full stop as I'd kick myself if something that ruined a NSD and for bigger spends I add it to a list on my phone so that when it is a spend day I can buy them all at once plus it gives me time to think about it and do i really need it.

    6 is a great number to aim for for January, good luck.
    Debt Free Date: 29/09/16

    Follow my diary HERE
    • Drawingaline
    • By Drawingaline 16th Jan 17, 9:40 PM
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    Drawingaline
    So not sure if today was a no spend or not. I spent 8 cash on a relaxation class for me and the Boy, he has had a hard transition to secondary school so we were trying it out to help with his anxiety. But technically it was budgeted and I would have paid upfront if that was an option. But apart from that nothing spent.

    Tomorrow I am having my monthly shop delivered, but apart from that I am hoping for nothing else. May have to go into work tomorrow to cover a colleague for an hour or so. And then am out to my sister's for the evening for a catch up which will be nice.
    • Drawingaline
    • By Drawingaline 18th Jan 17, 10:04 PM
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    • 2,358 Thanks
    Drawingaline
    Feeling sorry for myself today. Went in to have a crown fitted on one of my teeth (been saving up the 233 since Oct) but when I got there I ended up having a root canal filling instead, so the crown has been pushed back to may. My head hurts now.

    On a plus I had an extra two hours work in my second job today, so 20 was earned which I have put aside for the relaxation class I will be doing twice a month with the Boy.

    Tomorrow is my full on day, four hours in my second job, then six hours in my normal one. Basically out the house from 9am until 10pm with an hour between. It's tiring, but the mortgage needs paying.

    I had the second third of the front room plastered today and my sister got me a massive tub of paint for my birthday, so next week we will be painting. Going to get the last third plastered next month so the debt busting is not going to be as good as it has been.

    Anyway off to bed now I am cold and in pain.
    • SpekySquarehead
    • By SpekySquarehead 19th Jan 17, 7:31 AM
    • 2,603 Posts
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    SpekySquarehead
    Hope you're feeling better soon.

    And although plastering costs, painting yourself will save a heap!
    Debt Free Date: 29/09/16

    Follow my diary HERE
    • Drawingaline
    • By Drawingaline 20th Jan 17, 3:16 PM
    • 681 Posts
    • 2,358 Thanks
    Drawingaline
    So yesterday and today have been no spend days. The Boy almost spoilt it by asking to go to the local teen swim evening, but the pool is shut so money saved

    Easy tea tonight, am planning on making something from the wagamamas cookbook tomorrow though, so will need to pop out and grab a couple of fresh ingredients, but should be under 3.

    Been sorting my categories out on YNAB. I have two accounts, basically the joint account and my sole account. Have been getting confused as to what category is in which account so moved them all around a bit. Also sorted my holiday account into holiday and emergency fund. So my emergency fund has 500 in it, and have the money for the rest of the plastering which should be completed next month.

    I used a bit of my entertainment category to make a payment to my credit card. I had been so good and not used it for three months and then the week after Xmas I managed to spend 200 on it so m slowly making small payments to it and haven't really put it on my debt total. Rather annoyed at myself about it tbh.

    Anyway no plans for the weekend, might try and start the painting, need to find out how much is on my b&q voucher (I buy them at a discount through a works scheme) as I need a new paintbrush and mixing bucket. Just doing the mist coat in white atm, so need some tester pots to chose a colour, me and the oh are not agreeing atm
    • Drawingaline
    • By Drawingaline 22nd Jan 17, 12:17 PM
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    • 2,358 Thanks
    Drawingaline
    So no painting happened yesterday, oh was complaining of a headache and i seem to have finally succumbed to the awful cold everyone else has had. I did go and get some tester pots of boring colours to try in the front room (still no agreement between me and oh ) so will get cracking next week.

    7 odd spent in supermarket for bits for tea. And 3 odd in boots for medicine for me, so nsd didn't happen

    I am feeling a bit better today, but the tooth I had work on is niggling and it is so so cold outside I think a pj day will be happening. Got stuff out of the freezer for tea, having a fry up, may see if the Girl will pop out and grab a pack of mushrooms, but I am the only one who will eat them......Decisions!

    So lazy day before a full on week, I WILL be painting tomorrow before work, no excuses........
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