Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • nsl101
    • By nsl101 26th Jul 17, 5:02 PM
    • 36Posts
    • 43Thanks
    nsl101
    46,000 possibly more debt I want it gone..
    • #1
    • 26th Jul 17, 5:02 PM
    46,000 possibly more debt I want it gone.. 26th Jul 17 at 5:02 PM
    Hi all,

    so its gone on too long, ever since i was in my teenage years and i could get debt i've had debt, I've struggled with depression and although I probably can afford debt its growing and I really want to get rid.

    I can't tell you exactly how much debt i have but in short I have one bank loan currently sitting at 16,000 two credit cards one is at 8,000 the other i think is about 4,000 i dip in and out of my overdraft, I have a car on PCP finance that's about 10,000 and on top of all this i owe my father another 8,000 which he is in no hurry for but still i feel its time i face up to it and actually paid this stuff off .

    I also have a sofa loan which i think is about 4,000 but to be honest i really don't know...

    I have three teenage children and I'm divorced, i live on my own in a house i bought 2-3 years ago on the help to buy scheme which i will have to extend my mortgage to buy the other percentage in a few years so I'm on a ticking time bomb to loosing my home if i don't straighten this all out.

    I'm here for the motivation and the kick up the wotsit to get it done, and in double quick time before my Girlfriend who i love dearly looses it with me over money worries.

    I plan to sort out a full break down of what i owe and post it in due course. In the mean time I hope this may be of interest to anyone else in a similar boat reading some of the posts on this forum has really encouraged me to get on with this i should have done it years ago.
Page 1
    • quintwins
    • By quintwins 26th Jul 17, 5:09 PM
    • 5,004 Posts
    • 29,342 Thanks
    quintwins
    • #2
    • 26th Jul 17, 5:09 PM
    • #2
    • 26th Jul 17, 5:09 PM
    Well done for posting, just writing it down is a start.

    Will you have to buy the other half of your house in a few years? the way it works here is you can just keep paying the "rent" on the bit you don't own.

    You need to look at when your pcp ends and you need to pay the remainder (or just hand it back and get a run around).

    these 2 problems might not be as big of problems as you think they are. its unlikely you will be forced to buy the rest of your house, remember your council don't want to make you homeless or you become their problem then.
    DFW 7632/28996 26.3%
    • pennystretcher
    • By pennystretcher 26th Jul 17, 8:44 PM
    • 389 Posts
    • 1,449 Thanks
    pennystretcher
    • #3
    • 26th Jul 17, 8:44 PM
    • #3
    • 26th Jul 17, 8:44 PM
    It is painful but take the paperwork out and work it all out. The main thing is to start paying off the most expensive debt first, Once you put your mind to it, you can do it, no doubt! You have had your LBM and now it's time to sort it. You will feel so much better once you have a plan in place. (It might take time, but don't be discouraged by the time - it'll fly by..)
    Mortgage free
    • Pixie5740
    • By Pixie5740 26th Jul 17, 8:48 PM
    • 12,191 Posts
    • 17,220 Thanks
    Pixie5740
    • #4
    • 26th Jul 17, 8:48 PM
    • #4
    • 26th Jul 17, 8:48 PM
    You don't have to repay the equity loan at the end of 5 years.

    After five years you will be required to pay an interest fee of 1.75% of the amount of your Help to Buy shared equity loan at the time you purchased your property, rising each year after that by the increase (if any) in the Retail Prices Index (RPI) plus 1%.
    The loan itself is repayable after 25 years or on the sale of the property if earlier.

    Taken from: https://www.helptobuy.gov.uk/wp-content/uploads/Help-to-Buy-Buyers-Guide-oct-16-V1016.pdf
    • nsl101
    • By nsl101 27th Jul 17, 2:06 PM
    • 36 Posts
    • 43 Thanks
    nsl101
    • #5
    • 27th Jul 17, 2:06 PM
    • #5
    • 27th Jul 17, 2:06 PM
    So in making a start ive spent my lunch break looking at this SOA link in the sitcky post.

    This may be a shocker i don't know, but i've filled this in roughly with what i know... Ive left out what i owe my father for now as ive not managed to dig out all the paper work yet...

    [font=courier new]Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 1
    Number of children in household......... 0
    Number of cars owned.................... 3

    Monthly Income Details

    Monthly income after tax................ 2179.31
    Partners monthly income after tax....... 0
    Benefits................................ 0
    Other income............................ 295
    Total monthly income.................... 2474.31


    Monthly Expense Details

    Mortgage................................ 482.9
    Secured/HP loan repayments.............. 482.19999999999993
    Rent.................................... 220
    Management charge (leasehold property).. 0
    Council tax............................. 98
    Electricity............................. 25
    Gas..................................... 25
    Oil..................................... 0
    Water rates............................. 29
    Telephone (land line)................... 47.49
    Mobile phone............................ 142.27
    TV Licence.............................. 12.12
    Satellite/Cable TV...................... 0
    Internet Services....................... 0
    Groceries etc. ......................... 0
    Clothing................................ 0
    Petrol/diesel........................... 350
    Road tax................................ 20.99
    Car Insurance........................... 105.74
    Car maintenance (including MOT)......... 20
    Car parking............................. 5
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 300
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 15.99
    Contents insurance...................... 0
    Life assurance ......................... 55.69
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 0
    Haircuts................................ 0
    Entertainment........................... 0
    Holiday................................. 0
    Emergency fund.......................... 0
    HP ink.................................. 1.99
    Total monthly expenses.................. 2439.38



    Assets

    Cash.................................... 0
    House value (Gross)..................... 140000
    Shares and bonds........................ 0
    Car(s).................................. 10000
    Other assets............................ 0
    Total Assets............................ 150000



    Secured & HP Debts

    Description....................Debt......Monthly.. .APR
    Mortgage...................... 110000...(482.9)....0
    Secured Debt.................. 16324.2..(272)......3.251
    Hire Purchase (HP) debt ...... 10000....(210.2)....0
    Total secured & HP debts...... 136324.2..-.........-


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    MBNA Card1 (nuba)..............8074.99...81........0
    NBNA Card 2....................3102.64...95........0
    Total unsecured debts..........11177.63..176.......-



    Monthly Budget Summary

    Total monthly income.................... 2,474.31
    Expenses (including HP & secured debts). 2,439.38
    Available for debt repayments........... 34.93
    Monthly UNsecured debt repayments....... 176
    Amount short for making debt repayments. -141.07


    Personal Balance Sheet Summary
    Total assets (things you own)........... 150,000
    Total HP & Secured debt................. -136,324.2
    Total Unsecured debt.................... -11,177.63
    Net Assets.............................. 2,498.17
    • nsl101
    • By nsl101 27th Jul 17, 2:16 PM
    • 36 Posts
    • 43 Thanks
    nsl101
    • #6
    • 27th Jul 17, 2:16 PM
    • #6
    • 27th Jul 17, 2:16 PM
    I know i need to sit down and do this accurate but at least i know i have the correct figures for my Credit cards... that feels like a start... i've set the payments just above the minimum so that as the minimum payment drops the payments actually don't... I also have another income to include, but i'm working on my numbers for that atm as i have to self asses the tax on that but basically its 200 a month.. this is all feeling a it squeaky. I think having read the advice about the Help to buy scheme i feel happier that that's not so much of a time bomb as i was thinking... I'm good at catastrophising things...

    I feel once i get the bigger picture, i will be looking to remove unneeded stuff and moving that money onto the smaller credit card and get that paid off.

    Well its the first thought. the PCP finance is a bit of a bind, i ended up being stuck without a car on a 6 year contract for PCP, i was offered a way out by the car dealer a year ago, which put me on a 4 year deal, while i was without a car i bought a cheap working vehicle which i love its reliable and bigger than the replacement car i was offered to get out of the original pcp, long term, i figured it was better to have the car for the 4 year term offered on the pcp and then pay the balloon payment and then shift the car on either trade in or sell it privately... simply put the fees for breaking it early are just as expensive as paying it over time... and i don't have the cash to cover the fees to break it early... so hence the number of 3 cars, the 3rd car is my morris minor probably worth a few hundred quid not on the road atm, and waiting for a day when i have the money to restore it like it should be.. Ive had the car 10 years and its a loved and cherished possession, and a good reason to be sorting all this debt out...

    I hope that helps explain some of it...
    • quintwins
    • By quintwins 27th Jul 17, 2:16 PM
    • 5,004 Posts
    • 29,342 Thanks
    quintwins
    • #7
    • 27th Jul 17, 2:16 PM
    • #7
    • 27th Jul 17, 2:16 PM
    sorry we crossed posted, can you not sell your wee run around car?
    Last edited by quintwins; 27-07-2017 at 2:19 PM.
    DFW 7632/28996 26.3%
    • chelseablue
    • By chelseablue 27th Jul 17, 2:18 PM
    • 2,419 Posts
    • 2,889 Thanks
    chelseablue
    • #8
    • 27th Jul 17, 2:18 PM
    • #8
    • 27th Jul 17, 2:18 PM
    So in making a start ive spent my lunch break looking at this SOA link in the sitcky post.

    This may be a shocker i don't know, but i've filled this in roughly with what i know... Ive left out what i owe my father for now as ive not managed to dig out all the paper work yet...

    [font=courier new]Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 1
    Number of children in household......... 0
    Number of cars owned.................... 3 Why do you own 3 cars?

    Monthly Income Details

    Monthly income after tax................ 2179.31
    Partners monthly income after tax....... 0
    Benefits................................ 0
    Other income............................ 295
    Total monthly income.................... 2474.31


    Monthly Expense Details

    Mortgage................................ 482.9
    Secured/HP loan repayments.............. 482.19999999999993
    Rent.................................... 220
    Management charge (leasehold property).. 0
    Council tax............................. 98
    Electricity............................. 25
    Gas..................................... 25
    Oil..................................... 0
    Water rates............................. 29
    Telephone (land line)................... 47.49
    Mobile phone............................ 142.27 How many phones is this for?
    TV Licence.............................. 12.12
    Satellite/Cable TV...................... 0
    Internet Services....................... 0
    Groceries etc. ......................... 0 You never buy food?
    Clothing................................ 0
    Petrol/diesel........................... 350
    Road tax................................ 20.99
    Car Insurance........................... 105.74 I presume this is for 3 cars?
    Car maintenance (including MOT)......... 20
    Car parking............................. 5
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 300 What is this for?
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 15.99
    Contents insurance...................... 0
    Life assurance ......................... 55.69
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 0 You never buy presents?
    Haircuts................................ 0
    Entertainment........................... 0
    Holiday................................. 0
    Emergency fund.......................... 0
    HP ink.................................. 1.99
    Total monthly expenses.................. 2439.38



    Assets

    Cash.................................... 0
    House value (Gross)..................... 140000
    Shares and bonds........................ 0
    Car(s).................................. 10000
    Other assets............................ 0
    Total Assets............................ 150000



    Secured & HP Debts

    Description....................Debt......Monthly.. .APR
    Mortgage...................... 110000...(482.9)....0
    Secured Debt.................. 16324.2..(272)......3.251
    Hire Purchase (HP) debt ...... 10000....(210.2)....0
    Total secured & HP debts...... 136324.2..-.........-


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    MBNA Card1 (nuba)..............8074.99...81........0
    NBNA Card 2....................3102.64...95........0
    Total unsecured debts..........11177.63..176.......-



    Monthly Budget Summary

    Total monthly income.................... 2,474.31
    Expenses (including HP & secured debts). 2,439.38
    Available for debt repayments........... 34.93
    Monthly UNsecured debt repayments....... 176
    Amount short for making debt repayments. -141.07


    Personal Balance Sheet Summary
    Total assets (things you own)........... 150,000
    Total HP & Secured debt................. -136,324.2
    Total Unsecured debt.................... -11,177.63
    Net Assets.............................. 2,498.17
    Originally posted by nsl101
    Comments in red.

    Thinking about it, those 3 cars, are 2 of those your childrens cars??
    Mortgage starting balance 231,000
    Mortgage after Year 1 225,000
    Mortgage after Year 2 218,000
    • EssexHebridean
    • By EssexHebridean 27th Jul 17, 3:09 PM
    • 8,716 Posts
    • 45,982 Thanks
    EssexHebridean
    • #9
    • 27th Jul 17, 3:09 PM
    • #9
    • 27th Jul 17, 3:09 PM
    Ok - comments in red as usual


    [font=courier new]Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 1
    Number of children in household......... 0
    Number of cars owned.................... 3

    Monthly Income Details

    Monthly income after tax................ 2179.31
    Partners monthly income after tax....... 0
    Benefits................................ 0
    Other income............................ 295
    Total monthly income.................... 2474.31


    Monthly Expense Details

    Mortgage................................ 482.9
    Secured/HP loan repayments.............. 482.19999999999993 Are you duplicating your mortgage payment here or is tit coincidental that your car payment is the same as your mortgage monthly?
    Rent.................................... 220 Presumably it's a Shared Ownership property?
    Management charge (leasehold property).. 0 If shared ownership are you sure there's no service charge? It would be unusual...
    Council tax............................. 98 Single person discount applied? Do you pay over 12 months or the standard 10?
    Electricity............................. 25
    Gas..................................... 25
    Oil..................................... 0
    Water rates............................. 29
    Telephone (land line)................... 47.49Does this include TV & Internet as well?
    might be worth having a search around and haggling to reduce

    Mobile phone............................ 142.27 HOW much? This must be a typo...
    TV Licence.............................. 12.12
    Satellite/Cable TV...................... 0
    Internet Services....................... 0
    Groceries etc. ......................... 0 Oh I rather think you do spend on this!

    Clothing................................ 0 budget a small amount to cover the essentials even if you don't need anything else new currently.
    Petrol/diesel........................... 350
    Road tax................................ 20.99 Do you actually pay this monthly?
    If so budget to pay 6 monthly or annually to avoid the fee for paying by monthly DD

    Car Insurance........................... 105.74 This is three cars I take it so not as high as first appears?
    Car maintenance (including MOT)......... 20 For two cars if we're not counting the MM? No - not a chance - this will barely cover two MoT's, never mind servicing, repairs and the sheer amount of depreciation on the mileage you're clearly doing.
    Car parking............................. 5
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 300 Child support I assume?
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 15.99 Contents included in this too?
    Contents insurance...................... 0
    Life assurance ......................... 55.69 Do you need to be paying this?
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 0 Bearing in mind you have child related expenses earlier in your SOA I think this is unlikely - you never buy presents for anyone at all?
    Haircuts................................ 0 Assume you use clippers and do it yourself?
    Entertainment........................... 0
    Holiday................................. 0
    Emergency fund.......................... 0 You needs to look to build this as a homeowner - aim to get 1000 in place as a starting level
    HP ink.................................. 1.99
    Total monthly expenses.................. 2439.38



    Assets

    Cash.................................... 0
    House value (Gross)..................... 140000
    Shares and bonds........................ 0
    Car(s).................................. 10000 Bearing in mind the value of the car finance you've mentioned this is a low value to take account of all three
    Other assets............................ 0
    Total Assets............................ 150000



    Secured & HP Debts

    Description....................Debt......Monthly.. .APR
    Mortgage...................... 110000...(482.9)....0
    Secured Debt.................. 16324.2..(272)......3.251
    Hire Purchase (HP) debt ...... 10000....(210.2)....0
    Total secured & HP debts...... 136324.2..-.........-


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    MBNA Card1 (nuba)..............8074.99...81........0
    NBNA Card 2....................3102.64...95........0
    Total unsecured debts..........11177.63..176.......-



    Monthly Budget Summary

    Total monthly income.................... 2,474.31
    Expenses (including HP & secured debts). 2,439.38
    Available for debt repayments........... 34.93
    Monthly UNsecured debt repayments....... 176
    Amount short for making debt repayments. -141.07


    Personal Balance Sheet Summary
    Total assets (things you own)........... 150,000
    Total HP & Secured debt................. -136,324.2
    Total Unsecured debt.................... -11,177.63
    Net Assets.............................. 2,498.17
    Originally posted by nsl101
    OK - it doesn't make pretty reading but I suspect there is a way out for you and that the cars may hold the key to this. Bearing in mind your high mileage the running costs are killing you - something needs to give there.

    What's included in your PCP deal? Does that include servicing etc? If so that makes some sense of the maintenance figure. I absolutely get you not wanting to get rid of the Moggie - I wouldn't either! I assume that's not costing you much though as it's SORN'd?

    What's the current situation with handing the PCP car back? And how does that compare with paying the remaining payments and then handing back? Which of your two working cars gives you the best deal in terms of a combination of road tax/insurance & MPG?
    MORTGAGE FREE 30/09/2016
    Sainsbugs 0% card: 22/12/16 1229.00/995.38 (22/06/18)
    SOA Calculator for DFW newbies: Stoozing.com SOA Calculator
    • nsl101
    • By nsl101 27th Jul 17, 8:48 PM
    • 36 Posts
    • 43 Thanks
    nsl101
    First things first, thankyou for the feedback, its all valuable.

    So I could try and answer questions individually but i think ill do another SOA and clean up the bits i missed,and give some meat around the bones with explanations next to the items that have spawned questions... I think its important to note my office is 97 miles from my home and as such i lodge for 2 days a week near the office, this has caused me some lifestyle issues like i don't do traditional shopping.. these things will have to change..

    Yes the amount for secured loans is the same as the mortgage by chance its made up of the PCP and a bank loan..

    I'm now going to sit down and work through the SOA again...

    I will grab some time over the next few days to talk to my mobile service provider, i think i can reduce the mobile bill by cancelling insurance and haggle with them a bit to reduce the tariffs, this does include my phone and 3 more devices for my children. Also I will call the car finance provider and refresh my data on the terms and real figures of terminating the agreement early, and letting it go to the balloon payment so i can post here the full details and talk through my thinking and make sure that what i thought a year ago is sane or insane lol...

    The issue with selling the cheaper car i bought is that its big enough to ferry my DJ kit about which earns me another income.. The one on finance is not really up to what i put the 54 plate c-max through...

    The numbers are scary but there not accurate yet however i can do some things to reduce my bills now anyway and this will do something to help... however Id like to get the numbers right so i can show that success lol...

    Please bear with me... I promise to get the right numbers soon.. I'm a believer in saying I have done and i will do... rather than id like too... feels more positive to me.. :-)
    • nsl101
    • By nsl101 27th Jul 17, 8:55 PM
    • 36 Posts
    • 43 Thanks
    nsl101
    i have cancelled Netflix, 7.49 back in my pocket monthly...
    • enthusiasticsaver
    • By enthusiasticsaver 27th Jul 17, 9:58 PM
    • 6,617 Posts
    • 13,917 Thanks
    enthusiasticsaver
    You cannot afford the mobile devices for you and your children while you have 141 shortfall on paying the most basic and probably inaccurate soa. The pcp on the car and the mileage per month is crippling you too. Can you either sell the house and move nearer work and rent or get a job nearer home?

    As it is just you I would cancel the life assurance. Long term though this is unsustainable to be paying out 710 in car costs, 300 child maintenance, 450 in debt payments (without the 8k to your dad or I assume the sofa payment) and 703 in rent and mortgage. This leaves you nothing to feed or clothe yourself let alone cover unexpected emergencies with car or house.

    I think you need to do some serious thinking about the cars and house. Even if you end up handing the pcp car back you won't have to pay insurance on it. Working as far away from home as you do means you having to fork out a fortune in extra rent and fuel unless the fuel is high due to your DJ job? In which case put your prices up as the income is barely covering costs of transport especially as you are having to run another car especially for that.
    Debt free and mortgage free and early retiree. Living the dream

    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
    • Lucylocks
    • By Lucylocks 27th Jul 17, 10:08 PM
    • 87 Posts
    • 225 Thanks
    Lucylocks
    With regards mobile costs that is a huge amount! I've got both my kids mobiles on SIM only t3sco mobile contracts. These allow costs to be capped each month so no unexpected bills. If the want new handsets these are usually bought second hand as birthday present. I pay between 8-10 a month each
    LBM 28/3/17 24,971 28/6/17 14,376 42% paid
    • nsl101
    • By nsl101 31st Jul 17, 12:18 PM
    • 36 Posts
    • 43 Thanks
    nsl101
    so with the mobile contract.. I have made some progress. The contracts i took out a year ago for my children for birthdays. in short the contracts penalty's are high to break out at the moment, but i have negotiated, i have also capped the usage for them however they were not using a lot of calls anyway but better to be safe. My own device has a massive amount of data as i use it when DJ'ing, however i plan to go through my statements over the past 6 months and find out how much of that free data i have used and see if i can dial it back a bit to make a further saving... But to cut a long story short...

    142.27 is now...
    108.28

    I have also cancelled my life assurance and income protection..

    55.69 is now
    0.00

    so thats a saving of 89.68 monthly.

    add in the cancellation of netflix in one weekend ive saved 97.17 monthly I know i have quite a way to go but its a start...

    Im still going through the piles of invoices and receipts from my DJ income, as currently i'm holding the money for my tax bill in the account from last year, i can then pass this all on to my lady who does the books and get my tax bill done for last year, this also helps me in completing a better SOA. Once the tax bill is in i should have some funds i can release from that account and push that into my debt, but also going forward i intent to skim the account monthly leaving 25% of dj income minus costs, for tax. this will help again as I can sink it on the debt now rather than waiting...

    Ive been looking for 1 bed flat near to where i work so i can stay there more than the two nights a week, and im looking at options for getting a lodger in my room mon-fri to cover that increase in rent. This should help decrease the money im spending on fuel and car maintenance etc.

    There is a lot of plates at the moment spinning... I feel if i can sort out a lodger that's important as if this will give me extra moneys to sink on the debt.

    Just trying not to let this lot get on top of me as depression is always an issue and that's when i give up on all this...

    So hopefully ill have this accurate revised SOA soon.
    • enthusiasticsaver
    • By enthusiasticsaver 31st Jul 17, 5:46 PM
    • 6,617 Posts
    • 13,917 Thanks
    enthusiasticsaver
    Great start on cutting back and if you can get a lodger Monday to Friday then this will help with costs.
    Debt free and mortgage free and early retiree. Living the dream

    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
    • nsl101
    • By nsl101 2nd Aug 17, 3:49 PM
    • 36 Posts
    • 43 Thanks
    nsl101
    I think i should have started this thread under the diary sub forum, is there anyway i can move this thread over? or should i start a new one, as I am starting to feel like i want to keep updating the thread, i don't want to upset any admins lol...

    Today's Success.

    Went through my DJ account today and worked out income minus costs then I've kept back 25% plus a 100.00 buffer to allow for outgoing payments. I've skimmed off the excess, my tax bill will be lower so i have more than enough put by for my income so far, as this is not taking into consideration millage at the moment. I plan to do a skim monthly so i can get the money working for me sooner rather than waiting till the end of the year. In short I've found 715.40

    I've also opened up two saver accounts with my bank so i can skim moneys out of my current account with my phone app into a place where i can hold it so i can then build up a buffer and see daily what im building..

    Transferred the skim from the DJ monies and the amount ive saved from my monthly bills into account 1. account 1 is my buffer, im building up 1,000.00 in that account to stop me using the credit cards when i need to repair or replace something..

    Account 2 this account is for me to put money that i would have burnt on spending to make myself feel happy, this will build for a month then at the end of the month that money will be used towards paying off a debt. I am going to try and snowball the credit card with the smallest balance. The rule i have set myself is that if i crave and think i would order something in then I have to transfer the money it would cost into this account I would then goto the fridge and make something to eat. I am also going to start packing lunches - this then will also be used to build up this fund.

    I have my living room floor littered with bank statements and invoices, and today i invested 5.00 in filing boxes and plastic pockets, i plan to make them up for each month historically with a balance sheet, this is going to take me some time but its worth it to get that accurate SOA.

    Car on PCP - Finance..
    Managed to talk this through with the company today... I cannot give the car back until i have made 50% of the scheduled repayments, that will take another year.. So i am stuck with the contract and the car, however I have made a note in the diary the date i hit that all important 50% mark so i can then give the car back without a charge. I will revisit it then...

    However in the mean time, My brother in-law has just got himself a job and needed to borrow a car, so i have agreed he can use it for a few months, interestingly adding him as a named driver has reduced my car insurance (multi car policy) to 80.55 It also means the vehicle is being driven so its not going to seize up, and additionally he is going to pay me 50.00 a month for now while he saves for a car. This equates to freeing up 75.19 for me monthly.. so ill be watching my account as soon as i see this on the statement that will be added to my pot in account 1 to help build that buffer.

    I'm typing all this while i have a well earned cuppa... I've also started to clear out the room i intend to rent.. Oh and i shopped at Aldi this weekend and i for the first time I went with a list and working with what i had in the cupboards and fridge/freezer already i had my kids to stay and fed them and myself since on 10.00 for the week. normally id go to Tesco almost daily. or order in... going to try and keep Aldi as my first port of call..

    The encouragement from this forum is great I wish i'd spent some time on it before.. I know I'm not moving super fast on this but i am working through it as fast as i can...

    So I guess i have 2 Targets ATM simple ones...

    1: Build 1,000.00 buffer..
    2. Get a 100% accurate SOA completed ASAP

    Account1 (buffer) = 812.50
    Account2 = 7.24
    Last edited by nsl101; 02-08-2017 at 3:52 PM. Reason: adding account balances on new savings accounts
    • nsl101
    • By nsl101 5th Jan 18, 3:00 PM
    • 36 Posts
    • 43 Thanks
    nsl101
    Fresh start LBM #2
    ok So ive had an eventful time since i last posted...

    but heres an updated SOA

    Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 1
    Number of children in household......... 0
    Number of cars owned.................... 3 (Focus, Panda, morris)

    Monthly Income Details

    Monthly income after tax................ 2882
    Partners monthly income after tax....... 0
    Benefits................................ 0
    Other income............................ 290 (Lodger)
    Total monthly income.................... 3172


    Monthly Expense Details

    Mortgage................................ 482
    Secured/HP loan repayments.............. 0
    Rent.................................... 220 (this is my room where i work to cut down mileage)
    Management charge (leasehold property).. 0
    Council tax............................. 98
    Electricity............................. 26.5 (paid for in one so ive divided by 2)
    Gas..................................... 26.5
    Oil..................................... 0
    Water rates............................. 29
    Telephone (land line)................... 47.49
    Mobile phone............................ 124 (contracted untill nov 2018 on 4 devices exiting contracts costs the same)
    TV Licence.............................. 12.37
    Satellite/Cable TV...................... 0
    Internet Services....................... 3.3 (email hosting - did away with personal web server)
    Groceries etc. ......................... 120 (now shopping in aldi and im doing amazingly well)
    Clothing................................ 5
    Petrol/diesel........................... 345.47
    Road tax................................ 21.87 (both panda and focus together)
    Car Insurance........................... 88.55 (multicar insurance)
    Car maintenance (including MOT)......... 20.82 (service plan plus montly put aside for both cars)
    Car parking............................. 3 (i might pay for parking an hour or so a month)
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 362 (maintenance they are now in there teens)
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 14.86 (buildings and contents combined)
    Contents insurance...................... 0
    Life assurance ......................... 55.69 (tried to re-negotiate waiting for tests on a lump on my neck then i can bring this down to 20 if all clear)
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 90 (provision goes into dedicated account)
    Haircuts................................ 8
    Entertainment........................... 0 ( I need to rework things to be sensible but this month this is very true)
    Holiday................................. 0 ( I'm struggling with this i need to budget for a holiday but i cant justify it to myself atm)
    Emergency fund.......................... 0 ( I have already built my 1000.00 emergancy fund looking to sell things to raise a bigger pot in the comming months)
    Total monthly expenses.................. 2204.42



    Assets

    Cash.................................... 1006.64
    House value (Gross)..................... 187000
    Shares and bonds........................ 0
    Car(s).................................. 7000
    Other assets............................ 0
    Total Assets............................ 195006.64



    Secured & HP Debts

    Description....................Debt......Monthly.. .APR
    Mortgage...................... 110000...(482)......3.6
    Total secured & HP debts...... 110000....-.........-


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    First direct (loan)............44589.....530.......6.7
    Hitachi (sofas)................1987.6....47.95.....0
    Total unsecured debts..........46576.6...577.95....-



    Monthly Budget Summary

    Total monthly income.................... 3,172
    Expenses (including HP & secured debts). 2,204.42
    Available for debt repayments........... 967.58
    Monthly UNsecured debt repayments....... 577.95
    Amount left after debt repayments....... 389.63


    Personal Balance Sheet Summary
    Total assets (things you own)........... 195,006.64
    Total HP & Secured debt................. -110,000
    Total Unsecured debt.................... -46,576.6
    Net Assets.............................. 38,430.04


    So I've already started work on this...
    1) over Christmas i did a consolidation of my loans and credit cards as i couldn't keep track of all the interest mess. This has meant i now have a massive frontloaded interest loan but i can overpay and it also means i have a maximum amount on the interest which i didn't have before. Also I have now only two payments monthly which is more manageable
    2) The consolidation means I am now free to sell the panda, which i think is worth about 5,500 to 6,000 private sale. The plan is to sell it beginning of Feb, this will be used to pay down the the capitol of the bigger loan.
    3) Drawn up a chart and im on the 1% challenge, the plan being to raise 370 as my 1% this is quite high, but i really really need to try.
    4) you can earn up to 7500 a year tax free with lodgers so im investigating renting my bedroom too a second lodger mon-fri as im mainly away during the week this will raise 330 a month to go towards the debt.
    5) My car insurance is up for renewal and i have had an SP30 drop off my history so im going to re-negotiate my car insurance, and see if i can do better.
    6) I am going to haggle with my energy supplier to try and bring that down.
    7) I am looking at ways to increase my income by looking for higher paid work however this is not likely to happen quickly.
    8) Selling as much as can and decluttering the house.

    Not sure if there any other ideas out there, also looking at this and im not sure if the SOA is accurate i think i spend more on groceries so i need to go back through my budget and compare it again, when it says 389.63 left i'm not sure i believe it... lol but it could be right, ive been tightening my belt and this is the first month on this new plan.

    The money I owe my dad is not included here and im looking to sort that after ive paid back the loan. After talking to him he is in no hurry for it and would like me to pay back the loan first.

    Its still a mess but feels a bit better.
    Last edited by nsl101; 05-01-2018 at 3:37 PM.
    Fresh start & LBM #2: 21/12/2017 : DFD: 02.02.2024
    Debt at 21/12/2017: 46,506.94 | FD Loan: 334.04/35,700.00 | O% finance: 143.85/31918.00
    1% challenge: 0%
    • Silver Queen
    • By Silver Queen 5th Jan 18, 3:25 PM
    • 398 Posts
    • 1,909 Thanks
    Silver Queen
    Just a thought...do you really need a landline telephone when you have a mobile phone?
    Debt Totals June 2018::
    350 Natwest Credit Card / Now 0 (paid off and closed 04/2017) 15,500 postgrad loan from parents/ Now 10,000 500 train ticket loan from parents / Now 0 (paid off 16/02/18) 2,000 Overdraft Now 0 (paid off 09/03/18)
    • nsl101
    • By nsl101 5th Jan 18, 3:39 PM
    • 36 Posts
    • 43 Thanks
    nsl101
    Yes i do, its for the internet, the mobile phone reception is not good, and i work from home two days a week. Also I use casting sticks for TV using iplayer and the like instead of paying for TV.
    Fresh start & LBM #2: 21/12/2017 : DFD: 02.02.2024
    Debt at 21/12/2017: 46,506.94 | FD Loan: 334.04/35,700.00 | O% finance: 143.85/31918.00
    1% challenge: 0%
    • vickthestick
    • By vickthestick 5th Jan 18, 7:32 PM
    • 192 Posts
    • 1,526 Thanks
    vickthestick
    Everything is starting to look so much better for you.
    Well done!
    Womble #9 2018 0 / Roadkill 0
    Loan 175.40 /month until October 2018 Loan 312.21 /month until April 2025
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

96Posts Today

2,183Users online

Martin's Twitter
  • Ah these care free days of watching #ENG score 5 goals in the first half of a World Cup match. It reminds me of... Never.

  • Then it should be. It's not some accident. It's deliberate grappling https://t.co/UxVTuUSNio

  • Penalty yes but time someone was sent off for these wrestling moves #WorldCup

  • Follow Martin