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  • FIRST POST
    • mick1234
    • By mick1234 5th Dec 17, 5:00 PM
    • 63Posts
    • 103Thanks
    mick1234
    Its time to sort out this mess!
    • #1
    • 5th Dec 17, 5:00 PM
    Its time to sort out this mess! 5th Dec 17 at 5:00 PM
    Hi,

    I have been around these forums for a long time and posted a few bits but I really need to be made accountable for my debts, I know I have lived in the red for a long time now and a few factors have stopped me moving on, I am lucky that I have a good job and have money spare as some of my friends do not. Being a newly single Dad with 50 / 50 co-parenting gives me more motivation to get myself sorted,

    I am terrible at spending on my debit card and credit cards as you can see, I got credit cards for emergencies and then shuffling the balances round trying to keep 0% has caused more issues of extra money that I have spent on nothing sometimes just living costs when I have no money left at the end of the month and I need shopping or petrol, I don't even go out as in getting drunk or spending on clothes or fast cars

    WORST SPENDING.

    Shopping dinners at work
    Shopping - nipping into the supermarket to buy some tea
    Fueling up at random times during the month



    I need a way to make sure every 1 has a job as everyone says but I can never do it I always have money left over and it just goes,

    I have already started with my bills.

    Virgin Media internet and tv - from 80 to 30
    Phone bill 70 - 12 with 60 cashback
    shopping all done at Aldi - trying to budget this per week.
    Called Barclay card and they took my Apr from 18.6 to 8

    any tips or pointers will help anything you have

    Statement of Affairs and Personal Balance Sheet

    Household Information

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

    Monthly Income Details

    Monthly income after tax................ 1997.23
    Partners monthly income after tax....... 0
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 1997.23


    Monthly Expense Details

    Mortgage................................ 401
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 104
    Electricity............................. 61
    Gas..................................... 0
    Oil..................................... 0
    Water rates............................. 40
    Telephone (land line)................... 0
    Mobile phone............................ 12
    TV Licence.............................. 12.37
    Satellite/Cable TV...................... 32
    Internet Services....................... 0
    Groceries etc. ......................... 200
    Clothing................................ 0
    Petrol/diesel........................... 100
    Road tax................................ 0
    Car Insurance........................... 43
    Car maintenance (including MOT)......... 0
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 300
    Other child related expenses............ 100
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 23.53
    Contents insurance...................... 0
    Life assurance ......................... 47.4
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 20
    Haircuts................................ 25
    Entertainment........................... 20
    Holiday................................. 0
    Emergency fund.......................... 0
    Total monthly expenses.................. 1541.3



    Assets

    Cash.................................... 0
    House value (Gross)..................... 130000
    Shares and bonds........................ 0
    Car(s).................................. 1200
    Other assets............................ 0
    Total Assets............................ 131200



    Secured & HP Debts

    Description....................Debt......Monthly.. .APR
    Mortgage...................... 106000...(401)......2.17
    Total secured & HP debts...... 106000....-.........-


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    BC.............................9800......167...... .8
    Halifax........................1405.89...36.42.... .0
    RBS............................1400......50.81.... .0
    Tesco..........................3500......28....... .0
    NUBA...........................3439.61...33.18.... .0
    Total unsecured debts..........19545.5...315.41....-



    Monthly Budget Summary

    Total monthly income.................... 1,997.23
    Expenses (including HP & secured debts). 1,541.3
    Available for debt repayments........... 455.93
    Monthly UNsecured debt repayments....... 315.41
    Amount left after debt repayments....... 140.52


    Personal Balance Sheet Summary
    Total assets (things you own)........... 131,200
    Total HP & Secured debt................. -106,000
    Total Unsecured debt.................... -19,545.5
    Net Assets.............................. 5,654.5


    Created using the SOA calculator at www.stoozing.com.
    Reproduced on Moneysavingexpert with permission, using other browser.
Page 5
    • Working Mum
    • By Working Mum 4th Jul 18, 1:28 PM
    • 290 Posts
    • 967 Thanks
    Working Mum
    Hi mick1234
    I have caught up on your thread. You seem to be meeting yourself coming back!

    Have you done the simple stuff like write down all the direct debits which come out of your bank account and the date they come out? You can arrange to get them paid on the day you have money paid into your account which would mean you pay them and then whatever is left in your account you make that last until next payday - it also means you don't get charged 25 or whatever for the bank charges for returning direct debits unpaid.

    Have you done an inventory of all of the food (and toiletries & cleaning products) which is in your cupboards/fridge and freezer? This way you know what you have and what you need to buy from the shops - do you shop with a list??

    Meal planning and shopping with a list will save you lots of money!!

    When I was really overwhelmed and felt everything was going crazy I used to get up 20 minutes early every day and in those 20 minutes I checked my bank account so had no nasty surprises, updated my spends book from the previous day, made any payments required, ate the frogs, sorted my lunch/snacks for taking to work and started my day calm and balanced.

    Slowly you will build an emergency fund but right now I would suggest getting into a stable, calm position so you can see the wood for the trees and build from there.

    I would definitely check out the cancellation sitch with your current car insurance provider - take a few minutes inputting your details onto a comparison site and you will be able to see how much you could save by leaving - loyalty means nothing to a lot of these companies. Even if you can't cancel this year you can make a note in your phone/in a dairy a month ahead of renewal next year and you can shop around next time.

    Keep posting and good luck!
    • mick1234
    • By mick1234 16th Jul 18, 2:25 PM
    • 63 Posts
    • 103 Thanks
    mick1234
    @workingmum thanks I have started to do more of this and monitoring my spending, my meal planning is getting better.

    Also on another note some advise would be good it is possible I may receive some money in a month or two im not sure yet how much but it should be at least 8000 what would you do in my situation, pay off the Barclaycard ?
    • efes shareholder
    • By efes shareholder 16th Jul 18, 3:11 PM
    • 334 Posts
    • 904 Thanks
    efes shareholder
    @workingmum thanks I have started to do more of this and monitoring my spending, my meal planning is getting better.

    Also on another note some advise would be good it is possible I may receive some money in a month or two im not sure yet how much but it should be at least 8000 what would you do in my situation, pay off the Barclaycard ?
    Originally posted by mick1234
    I would stash half somewhere where it can be accessed but not instantly - I put mine in Prem bonds

    I would then distribute the other half across all of the debts
    • mick1234
    • By mick1234 17th Jul 18, 9:04 AM
    • 63 Posts
    • 103 Thanks
    mick1234
    I would stash half somewhere where it can be accessed but not instantly - I put mine in Prem bonds

    I would then distribute the other half across all of the debts
    Originally posted by efes shareholder
    Can you still make money off Prem Bonds ?
    • efes shareholder
    • By efes shareholder 17th Jul 18, 10:35 AM
    • 334 Posts
    • 904 Thanks
    efes shareholder
    Thats down to luck but the interest rates are so poor I decided to let mine play the lotto for me , with the bonus of being able to take it out at any point

    Obviously the bigger the pool of bonds , the higher the probability but even one 25 win is probably more then you would get in interest
    • mick1234
    • By mick1234 10th Oct 18, 9:51 AM
    • 63 Posts
    • 103 Thanks
    mick1234
    Things are getting a lot better, I am budgeting every month, I have an emergency fund which I do not touch and I have paid over 1000 of my MBNA Card, I am just waiting for the credit report to update and then I should be able to get some better deals and transfer some of the debts.

    One thing I have been contemplating is selling my house, I have been wanting to move for a while but I just have never done anything about it, so i'm just after some of your thoughts. If I sold I would walk away with around 22000 this would clear all my debts, I would then rent and still have money to start saving for a deposit for another house, I would be basically starting again but this looks like the best option, debt free, no house repairs to think about, I would still have an emergency fund I would need to rent for a few years in order to save... thoughts


    thanks for all the reply's it helps so much!
    Last edited by mick1234; 12-10-2018 at 8:19 AM.
    • mick1234
    • By mick1234 12th Oct 18, 8:50 AM
    • 63 Posts
    • 103 Thanks
    mick1234
    The other option is to sit tight for a few years probably 3 in order to pay everything off.
    • Working Mum
    • By Working Mum 12th Oct 18, 9:13 AM
    • 290 Posts
    • 967 Thanks
    Working Mum
    The agreed wisdom on here is not to sell your home to pay off your debts - there are so many hidden jinxes with that strategy including moving to unsecure home situation, finding deposits, poor landlords etc etc

    You seem to be heading in the right direction and have changed your behaviours so you are making real progress into your debts and you should be proud of that.

    3 years is nothing in the scheme of things and if you can be debt free in 3 years, with an emergency fund that puts you in a strong position to make some choices from a position of freedom!!
    • mick1234
    • By mick1234 12th Oct 18, 11:40 AM
    • 63 Posts
    • 103 Thanks
    mick1234
    thank you, its hard when you look at everything to see what the right thing to do is and one of the benefits is that my mortgage it is very low compared to others I know.

    The area isn't great but I've been there awhile so a few more years will not kill me.
    Last edited by mick1234; 12-10-2018 at 11:50 AM.
    • enthusiasticsaver
    • By enthusiasticsaver 12th Oct 18, 12:10 PM
    • 7,191 Posts
    • 15,631 Thanks
    enthusiasticsaver
    Don't sell. Renting will be more expensive so you won't be able to save as well even if the debt is gone. It is also much more unsettling as you are sometimes having to move at the whim of a landlord. If you are budgeting and saving now then you are going in the right direction. This year you have spent out on a relatively expensive car you could not really afford so that has scuppered your chances of getting debt free in a relatively short period of time but hopefully things will start to improve next year when you have had some time without high childcare costs and the debt has gone down somewhat.
    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
    • mick1234
    • By mick1234 12th Oct 18, 1:20 PM
    • 63 Posts
    • 103 Thanks
    mick1234
    thank you, yes the childcare has defiantly helped.
    • Working Mum
    • By Working Mum 13th Oct 18, 4:35 PM
    • 290 Posts
    • 967 Thanks
    Working Mum
    If I had my time again I wouldn't have moved to this house I am in now! I would have overpaid my mortgage and would be mortgage free now! I am 51 and to have that freedom in a house which is low maintenance would be sheer bliss now.

    I share this as I don't know how old you are but owning your home is freedom to choose when your child has left home and you gives you real choices when you're older!

    You seem to doing a lot of things right and you should be proud of how far you have come.
    • mick1234
    • By mick1234 15th Oct 18, 9:09 AM
    • 63 Posts
    • 103 Thanks
    mick1234
    thank you, i always want to move somewhere better, and I am learning that you should just be happy with what you, once my debt is paid I will reevaluate the situation.
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