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  • FIRST POST
    • laingn
    • By laingn 9th Jan 18, 2:14 PM
    • 56Posts
    • 40Thanks
    laingn
    Where to start
    • #1
    • 9th Jan 18, 2:14 PM
    Where to start 9th Jan 18 at 2:14 PM
    Hi All,

    So for a long time I've basically gone round in circles with debts but I now need to get it under control as I seem to have less each month.

    I live at home with my parents and pay a small amount of rent each month but cover the phone, sky, broadband etc here is my SOA. I've gone through my bank statement and things are as close as I could get them to be.

    I've no entitlement to any state benefits and I am already looking at second jobs even though I work full time.

    Household Information[/b]
    Number of adults in household........... 1
    Number of children in household......... 0
    Number of cars owned.................... 1

    Monthly Income Details

    Monthly income after tax................ 1330
    Partners monthly income after tax....... 0
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 1330


    Monthly Expense Details

    Mortgage................................ 0
    Secured/HP loan repayments.............. 0
    Rent.................................... 100
    Management charge (leasehold property).. 0
    Council tax............................. 0
    Electricity............................. 0
    Gas..................................... 0
    Oil..................................... 0
    Water rates............................. 0
    Telephone (land line)................... 40
    Mobile phone............................ 39
    TV Licence.............................. 0
    Satellite/Cable TV...................... 52
    Internet Services....................... 0
    Groceries etc. ......................... 200
    Clothing................................ 0
    Petrol/diesel........................... 50
    Road tax................................ 10.06
    Car Insurance........................... 30
    Car maintenance (including MOT)......... 30
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 0
    Contents insurance...................... 0
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 50
    Haircuts................................ 15
    Entertainment........................... 0
    Holiday................................. 0
    Emergency fund.......................... 0
    Total monthly expenses.................. 616.06



    Assets

    Cash.................................... 0
    House value (Gross)..................... 0
    Shares and bonds........................ 0
    Car(s).................................. 5500
    Other assets............................ 0
    Total Assets............................ 5500


    No Secured nor Hire Purchase Debts


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    mbna...........................7000......75....... .19.9
    creation.......................800.......30....... .24.9
    barlclaycard...................2300......52....... .0
    tesco loan.....................18000.....361.......0
    next...........................1500......30....... .34.9
    nationwide.....................3200......30....... .15.9
    Total unsecured debts..........32800.....578.......-



    Monthly Budget Summary

    Total monthly income.................... 1,330
    Expenses (including HP & secured debts). 616.06
    Available for debt repayments........... 713.94
    Monthly UNsecured debt repayments....... 578
    Amount left after debt repayments....... 135.94


    Personal Balance Sheet Summary
    Total assets (things you own)........... 5,500
    Total HP & Secured debt................. -0
    Total Unsecured debt.................... -32,800
    Net Assets.............................. -27,300
Page 1
  • National Debtline
    • #2
    • 9th Jan 18, 3:22 PM
    • #2
    • 9th Jan 18, 3:22 PM
    Hi laingn,


    It is understandable that the pressure of debt can get on top of you and knowing where to start can sometimes be the hardest thing. The good thing about your budget is that your expenses are limited because you live at home. There may be places that you can still try and cut back even further on. Such as your mobile phone (when the contract is up for renewal), the landline and satellite bundle, housekeeping and possibly presents as well. The more money you saving, the more you can overpay the debts to drive the balances down.


    You can maintain the minimum payments and then, to get rid of the debts as quick as possible, you should overpay them. Use the additional surplus (135 as your budget shows) and any extra savings you make on your budget to pay extra to the debts. You can start with the highest APR and work your way down. You could also look at other potential 0% interest cards to switch to, if possible.


    Destroy the cards, and do not use any more credit. You could consider downgrading your car as well if you wanted to pay lump sums off the debts as well, but that is not a requirement. Best of luck,


    Laura
    @natdebtline
    Last edited by National Debtline; 09-01-2018 at 3:25 PM.
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
    • Karonher
    • By Karonher 9th Jan 18, 7:27 PM
    • 491 Posts
    • 2,126 Thanks
    Karonher
    • #3
    • 9th Jan 18, 7:27 PM
    • #3
    • 9th Jan 18, 7:27 PM
    Do you just buy your own food or is that amount part of the agreement you have. If it is just you, I think that can be cut back.
    Getting ready for Christmas 2018

    Aiming to make 5,000 online in 2018.
    • zippygeorgeandben
    • By zippygeorgeandben 9th Jan 18, 7:37 PM
    • 840 Posts
    • 1,097 Thanks
    zippygeorgeandben
    • #4
    • 9th Jan 18, 7:37 PM
    • #4
    • 9th Jan 18, 7:37 PM
    I'm not sure that 0 in entertainment is realistic when you've accrued 32k in debt.
    Maybe put say 20 in here, otherwise I'm not sure you'll ever understand the errors of the past.
    End Sep 2016 End May 2018
    8236.57 0
    (Tesco 4.8%) 0pcm
    6185.75 0 (Zopa 4.0%) 0pcm

    5344.50
    490.04 (Sainsburys 0% until 06/19) 140pcm
    2000.00 133.38 (Sister 0%) 133.33pcm

    Total debt
    19.766.82 623.42 Original DFD May 2019.
    • Debtslayer
    • By Debtslayer 9th Jan 18, 8:34 PM
    • 433 Posts
    • 624 Thanks
    Debtslayer
    • #5
    • 9th Jan 18, 8:34 PM
    • #5
    • 9th Jan 18, 8:34 PM
    Hi All,

    So for a long time I've basically gone round in circles with debts but I now need to get it under control as I seem to have less each month.

    I live at home with my parents and pay a small amount of rent each month but cover the phone, sky, broadband etc here is my SOA. I've gone through my bank statement and things are as close as I could get them to be.

    I've no entitlement to any state benefits and I am already looking at second jobs even though I work full time.

    Household Information[/b]
    Number of adults in household........... 1
    Number of children in household......... 0
    Number of cars owned.................... 1

    Monthly Income Details

    Monthly income after tax................ 1330
    Partners monthly income after tax....... 0
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 1330


    Monthly Expense Details

    Mortgage................................ 0
    Secured/HP loan repayments.............. 0
    Rent.................................... 100
    Management charge (leasehold property).. 0
    Council tax............................. 0
    Electricity............................. 0
    Gas..................................... 0
    Oil..................................... 0
    Water rates............................. 0
    Telephone (land line)................... 40 - does this include broadband? Still high even if it includes broadband. Check if you can get cheaper
    Mobile phone............................ 39 - very high. Are you still in contract? If not go pay as you go
    TV Licence.............................. 0
    Satellite/Cable TV...................... 52 - this could be cut
    , do you watch all the channels?
    Internet Services....................... 0
    Groceries etc. ......................... 200 - is this just for one or for parents as well? It's a lot just for one
    Clothing................................ 0
    Petrol/diesel........................... 50
    Road tax................................ 10.06
    Car Insurance........................... 30
    Car maintenance (including MOT)......... 30
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 0
    Contents insurance...................... 0
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 50 - this is a lot, cut in half
    Haircuts................................ 15 - this seems high. Try to go for longer between cuts and try local colleges to get cheaper cuts
    Entertainment........................... 0
    Holiday................................. 0
    Emergency fund.......................... 0
    Total monthly expenses.................. 616.06



    Assets

    Cash.................................... 0
    House value (Gross)..................... 0
    Shares and bonds........................ 0
    Car(s).................................. 5500
    Other assets............................ 0
    Total Assets............................ 5500


    No Secured nor Hire Purchase Debts


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    mbna...........................7000......75....... .19.9
    creation.......................800.......30....... .24.9
    barlclaycard...................2300......52....... .0
    tesco loan.....................18000.....361.......0
    next...........................1500......30....... .34.9
    nationwide.....................3200......30....... .15.9
    Total unsecured debts..........32800.....578.......-



    Monthly Budget Summary

    Total monthly income.................... 1,330
    Expenses (including HP & secured debts). 616.06
    Available for debt repayments........... 713.94
    Monthly UNsecured debt repayments....... 578
    Amount left after debt repayments....... 135.94


    Personal Balance Sheet Summary
    Total assets (things you own)........... 5,500
    Total HP & Secured debt................. -0
    Total Unsecured debt.................... -32,800
    Net Assets.............................. -27,300
    Originally posted by laingn
    I've made some suggestions above.
    You need to throw every spare penny at your highest interest debt first and then move onto the next
    Current Mortgage 01.10.17 113,513.88
    MFW Start Mortgage: 114,794.64
    Current MED: 2036 Target MED: 2026
    Overpayment Target for remainder of 2017: 2,000
    Mortgage overpayment savings: 684.80
    MFW No 124
    • laingn
    • By laingn 10th Jan 18, 10:34 AM
    • 56 Posts
    • 40 Thanks
    laingn
    • #6
    • 10th Jan 18, 10:34 AM
    • #6
    • 10th Jan 18, 10:34 AM
    HI all and thank you for your replies.

    My folks give me the money for there mobile phones and it comes out of my accounts hence including it. The funds go into another account which covers my breakdown cover and account charge and mobile phone cover as I purchased a phone out right so I wanted cover as it has broken once already.

    The food of 200 normally isn't as high as that but that was me going though my bank statement for the past month and picking out all the supermarkets.

    The landline includes unlimited broadband and all calls and the Sky is currently half price at the 52 which is due to end in August 2018.

    As a female I don't think haircuts at 15 every approx 6 weeks is too bad.

    I don't smoke or drink or do drugs. I couldn't tell you the last time I was at the cinema and my last night out was a Christmas night out and the one before that I couldn't tell you when it was. I like to go on holiday which is how I think I have gotten into this state and I have a couple of trips already arranged for this year but the money for that is already set aside and goes into a different account direct off my salary. I know I should give these but and chuck everything at my debt but what would be the point in living if I didn't have any kind of enjoyment and just worked and went home every day.

    I haven't missed any payments and I pay more than the minimum payment required so I am not in the cycle of making the min payment only. Some I am overpayment by 25 a month. I don't know if it makes a difference what I pay and if I reduce these to just being 1 over the min would it still show as not being a min payment made?

    thank you for all your help and I am willing to take on board all advice. I need to get myself out of this hole as I earn an OK wage just annoyed I'm still in this cycle.

    thanks
    • Pixie5740
    • By Pixie5740 10th Jan 18, 10:55 AM
    • 12,167 Posts
    • 17,164 Thanks
    Pixie5740
    • #7
    • 10th Jan 18, 10:55 AM
    • #7
    • 10th Jan 18, 10:55 AM
    You might not go out often but you do sometimes go out so should budget something for entertainment. Same for clothing? Do you genuinely never buy clothes, not even new underpants? If holidays are your thing and want to continue them then you should be budgeting something for holidays each month as well.

    Do you really need a car given that you are only spending 50 a month on petrol/diesel? Could you save money using public transport/cycling and only hiring a car as and when you need one?

    According to your SOA you have 135.94 left each month. Where is that money going because currently you have no savings?
    • mangle101
    • By mangle101 10th Jan 18, 12:58 PM
    • 142 Posts
    • 148 Thanks
    mangle101
    • #8
    • 10th Jan 18, 12:58 PM
    • #8
    • 10th Jan 18, 12:58 PM
    0 cash in assets but you've listed 50 for presents & 30 car maintenance per month, is this set aside along with your holiday money?

    Start a spending diary, listing every penny that you spend over the course of each month, you may be surprised.
    'Dont Bury Your Head In The Sand As Your Problems Will Still Exist'
    Debt Free Since 1st September 2009
    • anna_1977
    • By anna_1977 10th Jan 18, 2:37 PM
    • 691 Posts
    • 939 Thanks
    anna_1977
    • #9
    • 10th Jan 18, 2:37 PM
    • #9
    • 10th Jan 18, 2:37 PM
    well done oni starting to face debts.
    Have a look at October/November food shops, I suspect December, with Christmas. time off etc it will be higher than normal.
    • pennystretcher
    • By pennystretcher 11th Jan 18, 7:36 PM
    • 386 Posts
    • 1,448 Thanks
    pennystretcher
    Welcome and good luck on your debt busting journey!

    Telephone (land line)................... 40 - even if this includes unlimited broadband, you can do better - if you are not tied up in contract, switch this.
    Mobile phone............................ 39 - so this is for three people? In that case not too bad. Include the money you get from your parents in your income and add "breakdown cover and account charge" in SOA. And what account charge and how much is that?
    TV Licence.............................. 0 - assuming your parents pay this?
    Satellite/Cable TV...................... 52 - do your parents need this or is this only for you? If only for you, end it in August and do without for a while or switch to Netflix etc.
    Groceries etc. ......................... 200 - if this is only for you, you can cut this down. I assume this includes any lunches you pick up during working day? (Start making your own, at least say three days a week to start with and hopefully you get into habit of making them every day)

    Definitely pay off Next and Creation first - any extra you should put towards these.
    Tesco loan - is it really 0%?
    Mortgage free
    • enthusiasticsaver
    • By enthusiasticsaver 11th Jan 18, 10:29 PM
    • 6,597 Posts
    • 13,782 Thanks
    enthusiasticsaver
    There are lots of gaps in the soa like holidays (you have already admitted a lot of the debt comes from taking unbudgeted ones) and entertainment. You are struggling for money because almost half your wages are going on debt repayment. The 32k + debt has presumably arisen through overspending and consolidation, one of the big no nos in debt repayment.

    To get out of the debt cycle there are only two ways - one is to knuckle down and live in budget and keep the interest rates as low as possible. 4 of the debts seem to be on fairly high interest rates so if you cannot get any 0% deals to transfer them to then they should be tackled first. Your outgoings are relatively low though as you live with your parents. If you are going to take holidays though you have to budget for them and not borrow. You should also get rid of your credit cards as I guess the reason they are not going down is because you are still spending on them. The other way of getting out of debt is to increase income and in your case then it would be a second job.

    You need an emergency fund as you have a car so some of that surplus should go towards that. I am not sure where the holiday money is coming from as it does not appear you have enough spare to save for holidays so I can only guess you are borrowing for it unless they are quite cheap holidays.
    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
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