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  • FIRST POST
    • Akd1961
    • By Akd1961 11th Jan 18, 9:45 PM
    • 10Posts
    • 0Thanks
    Akd1961
    Trying to sort finances
    • #1
    • 11th Jan 18, 9:45 PM
    Trying to sort finances 11th Jan 18 at 9:45 PM
    Have been following you guys for a while, I am in a major debt problems, and just discovered I have breast cancer so no time like the present. I have three credit cards totally over 17K. I did a SOA but anyone know how you account for interest free and for a specific time (some coming up now) and have no cards left to transfer too. Also how do you use it
    [tt]Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 2
    Number of children in household......... 0
    Number of cars owned.................... 2

    Monthly Income Details

    Monthly income after tax................ 1776
    Partners monthly income after tax....... 2080
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 3856


    Monthly Expense Details

    Mortgage................................ 789
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 122
    Electricity............................. 50
    Gas..................................... 50
    Oil..................................... 0
    Water rates............................. 38
    Telephone (land line)................... 46
    Mobile phone............................ 25
    TV Licence.............................. 12
    Satellite/Cable TV...................... 27
    Internet Services....................... 0
    Groceries etc. ......................... 600
    Clothing................................ 50
    Petrol/diesel........................... 300
    Road tax................................ 22
    Car Insurance........................... 75
    Car maintenance (including MOT)......... 50
    Car parking............................. 20
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 125
    Buildings insurance..................... 16
    Contents insurance...................... 0
    Life assurance ......................... 65
    Other insurance......................... 15
    Presents (birthday, christmas etc)...... 300
    Haircuts................................ 35
    Entertainment........................... 35
    Holiday................................. 210
    Emergency fund.......................... 167
    Food delivery........................... 5.84
    Home Cover.............................. 22
    Amazon Prime............................ 12
    Gym..................................... 60
    Total monthly expenses.................. 3343.84



    Assets

    Cash.................................... 0
    House value (Gross)..................... 180000
    Shares and bonds........................ 0
    Car(s).................................. 8000
    Other assets............................ 0
    Total Assets............................ 188000



    Secured & HP Debts

    Description....................Debt......Monthly.. .APR
    Mortgage...................... 75151....(789)......2.84
    Total secured & HP debts...... 75151.....-.........-


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    Halifax........................5292.19...100...... .0
    MBNA...........................9283.71...100...... .0
    Barclaycard....................2629.89...59.17.... .0
    Total unsecured debts..........17205.79..259.17....-



    Monthly Budget Summary

    Total monthly income.................... 3,856
    Expenses (including HP & secured debts). 3,343.84
    Available for debt repayments........... 512.16
    Monthly UNsecured debt repayments....... 259.17
    Amount left after debt repayments....... 252.99


    Personal Balance Sheet Summary
    Total assets (things you own)........... 188,000
    Total HP & Secured debt................. -75,151
    Total Unsecured debt.................... -17,205.79
    Net Assets.............................. 95,643.21


    [/tt]
Page 1
    • enthusiasticsaver
    • By enthusiasticsaver 11th Jan 18, 10:06 PM
    • 6,599 Posts
    • 13,817 Thanks
    enthusiasticsaver
    • #2
    • 11th Jan 18, 10:06 PM
    • #2
    • 11th Jan 18, 10:06 PM
    Are you unable to get further 0% cards to transfer the balances to if the deals are about to expire?

    There seem to be large overspends in your soa, - £600 on groceries for 2 people is very high. Are you using discount supermarkets and meal planning to avoid wastage? Most couples could do food shops for £250 a month. The presents figure is also extortionately high if that is monthly. £300 a month is £3600 a year which is extremely high.

    Have you already booked a holiday for this year and that is what the £210 per month is? That is again more than £2400 a year which is high if you have £17k unsecured debt. If you are saving £167 into an emergency fund why is that not showing in the cash column? The pet insurance/vet bills are also high so have you checked to see if you can get it cheaper elsewhere?

    The monthly repayments on the cards are too low for the balances.

    Even with the large overspends on the soa you are still showing a surplus of more than £250 monthly so you should have sufficient to service the debts. Have you done a spending diary to see if that soa is accurate?
    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
    • Mumoffourkids
    • By Mumoffourkids 12th Jan 18, 6:46 AM
    • 646 Posts
    • 3,137 Thanks
    Mumoffourkids
    • #3
    • 12th Jan 18, 6:46 AM
    • #3
    • 12th Jan 18, 6:46 AM
    Your grocery spend is more than I spend and it is me and six kids. You could easily cut this back. In addition I have a budget of £150 per month for presents and again that is for six kids birthday and Christmas. There are places you can easily cut back and then you should be able to pay more to your debts. As enthusiastic saver says, a spending diary is a must as if you don't have the money spare as shown on your soa, you are spending more than you think.
    Total debt Dec 2017 £23090.83
    Ma7 2018 £3691.78 84.01% paid
    Emergency fund £150/£600
    Total Savings £1328.05
    • Akd1961
    • By Akd1961 12th Jan 18, 7:36 AM
    • 10 Posts
    • 0 Thanks
    Akd1961
    • #4
    • 12th Jan 18, 7:36 AM
    • #4
    • 12th Jan 18, 7:36 AM
    No holiday booked but if we had, large family for Xmas 10 grandchildren to start with and 8 children between us, shopping is approx 100 week my partner works shift so we don!!!8217;t eat together also we have four dogs and forgot their food within is approx £80 a. month I look into the e,regency fund bit, thank you !!!55357;!!!56911;
    • enjoyyourshoes
    • By enjoyyourshoes 12th Jan 18, 8:41 AM
    • 1,061 Posts
    • 1,302 Thanks
    enjoyyourshoes
    • #5
    • 12th Jan 18, 8:41 AM
    • #5
    • 12th Jan 18, 8:41 AM
    You need to identify NEEDS and WANTS.

    The work out life goals, involve anyone else with joint responsibility for household. Put these goals in financial terms. (as a starter for ten, it might involve becoming debt free in x years/months?)

    Ditch all your WANTS, then throw everything at debt.

    You don't need me to explain where you might be overspending ad where to save money to throw at the debt?

    List and do cash flow of all debts (include OD ?) and analyse what you can throw at which debt over vat period of time, set up DD for these amounts. Pay off most expensive debts first, be carful to analyse post 0% rate and the effective cost of these.

    Know where you are financially every day, reconcile bank account daily with all of those daily costs.

    Accrue a monthly ammonite to cover medium term bills (annually etc)

    Pay all insurances annually not monthly

    At payday, deduct all SO/DD monthly charges plus the accrual above as your new running balance, then reconcile (don't forget to include any CC purchases, but avaoisu CC now , as this is why you may be in difficult situation)

    Spending is often psychological, so work out why spend and its triggers and have strategies to suppress/eliminative these.

    Analyse monthly accounts and work out where you can save more and what more you can throw at debt.

    Good luck
    Debt is a symptom, solve the problem.
    • cms-help
    • By cms-help 12th Jan 18, 9:29 AM
    • 175 Posts
    • 161 Thanks
    cms-help
    • #6
    • 12th Jan 18, 9:29 AM
    • #6
    • 12th Jan 18, 9:29 AM
    No holiday booked but if we had, large family for Xmas 10 grandchildren to start with and 8 children between us, shopping is approx 100 week my partner works shift so we don’t eat together also we have four dogs and forgot their food within is approx £80 a. month I look into the e,regency fund bit, thank you !!!65533;!!!65533;
    Originally posted by Akd1961
    In no way wish to be rude but £600 on groceries for 2 people is ridiculous if you are worried about your debts. I don't eat with my husband either but we spend half that for a family of 4 and we use Tesco; I'm sure it would be cheaper if I shopped around but I don't have the time.

    Do you actually spend £600 a month (have you been through bank statements to confirm) or is this an estimate?

    Are you putting £300 a month away to service all those presents or is a massive amount going on a card every Christmas?
    • WannabeFree
    • By WannabeFree 12th Jan 18, 10:35 AM
    • 1,593 Posts
    • 13,998 Thanks
    WannabeFree
    • #7
    • 12th Jan 18, 10:35 AM
    • #7
    • 12th Jan 18, 10:35 AM
    [tt]Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 2
    Number of children in household......... 0
    Number of cars owned.................... 2

    Monthly Income Details

    Monthly income after tax................ 1776
    Partners monthly income after tax....... 2080
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 3856


    Monthly Expense Details

    Mortgage................................ 789
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 122
    Electricity............................. 50
    Gas..................................... 50 Have you checked the tariffs and that are on the best deals?
    Oil..................................... 0
    Water rates............................. 38
    Telephone (land line)................... 46 Too expensive.
    Mobile phone............................ 25
    TV Licence.............................. 12
    Satellite/Cable TV...................... 27 Same as above try and get a better deal if you really need TV etc.
    Internet Services....................... 0
    Groceries etc. ......................... 600 This is way to high! As a family of 5 with 1 in nappies and allergies to take into account we never spent more than £250.
    Clothing................................ 50 Every month?
    You can't afford this cut back to essentials only

    Petrol/diesel........................... 300
    Road tax................................ 22
    Car Insurance........................... 75
    Car maintenance (including MOT)......... 50 Do you actually save this?
    Car parking............................. 20
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 125 This is high!
    Check comparison sites and get the best deal you can.

    Buildings insurance..................... 16
    Contents insurance...................... 0
    Life assurance ......................... 65
    Other insurance......................... 15
    Presents (birthday, christmas etc)...... 300 Too high
    Haircuts................................ 35 Every month? stretch the time in between an extra week or so
    Entertainment........................... 35
    Holiday................................. 210 You can't afford this.
    Emergency fund.......................... 167 I guess you don' actually save this? As there isn't cash listed below
    Food delivery........................... 5.84 Whats this?
    Home Cover.............................. 22
    Amazon Prime............................ 12 Why £12?
    Gym..................................... 60 Expensive.
    Walk the dogs - do free exercise

    Total monthly expenses.................. 3343.84



    Assets

    Cash.................................... 0
    House value (Gross)..................... 180000
    Shares and bonds........................ 0
    Car(s).................................. 8000
    Other assets............................ 0
    Total Assets............................ 188000



    Secured & HP Debts

    Description....................Debt......Monthly.. .APR
    Mortgage...................... 75151....(789)......2.84
    Total secured & HP debts...... 75151.....-.........-


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    Halifax........................5292.19...100...... .0
    MBNA...........................9283.71...100...... .0
    Barclaycard....................2629.89...59.17.... .0
    Total unsecured debts..........17205.79..259.17....-



    Monthly Budget Summary

    Total monthly income.................... 3,856
    Expenses (including HP & secured debts). 3,343.84
    Available for debt repayments........... 512.16
    Monthly UNsecured debt repayments....... 259.17
    Amount left after debt repayments....... 252.99
    Do you actually have this left over at the end of the month?

    Personal Balance Sheet Summary
    Total assets (things you own)........... 188,000
    Total HP & Secured debt................. -75,151
    Total Unsecured debt.................... -17,205.79
    Net Assets.............................. 95,643.21


    [/tt]
    Originally posted by Akd1961
    Sorry to hear of your health issues.

    Comments in red as usual. The good thing is there is loads you can cut back on and you already have a healthy surplus before doing this.

    I guess you don't have it left? If not keep a spending diary. All those odd coffee's or popping into a shop for one item that ends up being £20 add up quickly.

    I know you have a big family but you simply can't afford £300 a month on presents. I'm sure they'll understand and appreciate a smaller gift just as much. Even try homemade gifts.
    “Once you hit rock bottom, that's where you perfectly stand; That's your chance of restarting, but restarting the right way.”
    • Akd1961
    • By Akd1961 12th Jan 18, 1:52 PM
    • 10 Posts
    • 0 Thanks
    Akd1961
    • #8
    • 12th Jan 18, 1:52 PM
    Money
    • #8
    • 12th Jan 18, 1:52 PM
    I do watch my money with Microsoft Money, but since the cancer brain not as focused as should be, this is my new SOA so far not missed any payments on anything but will not be working as much soon due to treatment.
    [tt]Statement of Affairs and Personal Balance Sheet

    Monthly Income Details

    Monthly income after tax................ 1776
    Partners monthly income after tax....... 2080
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 3856


    Monthly Expense Details

    Mortgage................................ 789
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 122
    Electricity............................. 50
    Gas..................................... 50
    Oil..................................... 0
    Water rates............................. 38
    Telephone (land line)................... 46
    Mobile phone............................ 25
    TV Licence.............................. 13
    Satellite/Cable TV...................... 27
    Internet Services....................... 0
    Groceries etc. ......................... 600
    Clothing................................ 35
    Petrol/diesel........................... 300
    Road tax................................ 22
    Car Insurance........................... 75
    Car maintenance (including MOT)......... 50
    Car parking............................. 20
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 16
    Contents insurance...................... 0
    Life assurance ......................... 65
    Other insurance......................... 15
    Presents (birthday, christmas etc)...... 300
    Haircuts................................ 35
    Entertainment........................... 30
    Holiday................................. 210
    Emergency fund.......................... 167
    Pet Food................................ 100
    Amazon Prime............................ 12
    Gym..................................... 60
    Home Appliance Cover.................... 22
    Food delivery........................... 6
    Pet Insurance/Vet Bills................. 150
    Total monthly expenses.................. 3450



    Assets

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



    Secured & HP Debts

    Description....................Debt......Monthly.. .APR
    Mortgage...................... 75151....(789)......2.84
    Total secured & HP debts...... 75151.....-.........-


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    Halifax........................5292......100...... .0
    MBNA...........................9283......100...... .0
    Barclaycard....................2630......60....... .0
    Next...........................176.......11....... .22.9
    Clydesdale Bank................255.......5.........0
    Total unsecured debts..........17636.....276.......-



    Monthly Budget Summary

    Total monthly income.................... 3,856
    Expenses (including HP & secured debts). 3,450
    Available for debt repayments........... 406
    Monthly UNsecured debt repayments....... 276
    Amount left after debt repayments....... 130


    Personal Balance Sheet Summary
    Total assets (things you own)........... 0
    Total HP & Secured debt................. -75,151
    Total Unsecured debt.................... -17,636
    Net Assets.............................. -92,787


    [/tt]
    • Akd1961
    • By Akd1961 12th Jan 18, 1:58 PM
    • 10 Posts
    • 0 Thanks
    Akd1961
    • #9
    • 12th Jan 18, 1:58 PM
    Switch Sites
    • #9
    • 12th Jan 18, 1:58 PM
    I do compaare gas and elec, mine not due to change till march always check comparison sites for all insurances including pet.

    We do walk the dogs as well, I have since cancelled my gym and doing at home.

    Our internet because of our location is the cheapest we can get but will review again when up in May, Most thins I am worried about is the credit cards, as the 0% running out soon and can't get anymore also my partner was bankrupt so he is no help
    • MallyGirl
    • By MallyGirl 12th Jan 18, 2:40 PM
    • 2,733 Posts
    • 7,743 Thanks
    MallyGirl
    Having a few frugal months on groceries and reining back the present buying for a year would make massive inroads into the CC debt whilst it is still 0%
    • cms-help
    • By cms-help 12th Jan 18, 5:50 PM
    • 175 Posts
    • 161 Thanks
    cms-help
    I do compaare gas and elec, mine not due to change till march always check comparison sites for all insurances including pet.

    We do walk the dogs as well, I have since cancelled my gym and doing at home.

    Our internet because of our location is the cheapest we can get but will review again when up in May, Most thins I am worried about is the credit cards, as the 0% running out soon and can't get anymore also my partner was bankrupt so he is no help
    Originally posted by Akd1961
    If you've cancelled the gym membership, it's still showing on your SOA so you should have an extra £60 a month surplus.

    So you've £130 surplus left every month, plus £60 from the cancelled gym membership is £190. Half the groceries and presents and that's another £450 a month to throw at your debts. £640 a month to throw at your debts. That will clear next and clydesdale in just one month. With next alone for every £11 you're paying you're probably only clearing £7/£8 of the debt due to interest. You might argue that's not a lot but why do you need to give them money when it could be cleared in a month?

    These cutbacks are somewhat imperative if you're expecting your income to drop due to having to take sickness absence. If you don't then it sounds like you'll be looking at a shortfall every month rather than a surplus.

    Assuming your MBNA card switches to something like a 20% rate at the end of the 0% period then you're looking at the interest exceeding the amounts you will repay over the course of a year if you repay at £100 per month. A sobering thought.
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