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  • FIRST POST
    • Lapua65
    • By Lapua65 11th Mar 18, 10:34 AM
    • 5Posts
    • 5Thanks
    Lapua65
    Help - A liitle lost
    • #1
    • 11th Mar 18, 10:34 AM
    Help - A liitle lost 11th Mar 18 at 10:34 AM
    Hi everyone.
    I have had mental health issues that go hand in hand with my debts. My situation currently is that I am starting to mount higher cc balances from 0 in October 2015 to about 12k today. I have nothing to show for it, but every month I am using a bit more credit to get by.
    I want to stop doing this (sounds pathetic, I am sorry) but I need a structured plan. There is so much information on here, but not sure where to start. I am currently earning, in theory enough to cover my current payments, but only if I stop behaving the way I do. I have been in and out of debt for 25 years and have managed to be debt free so many times, but just keep getting back on the carousel.
    I feel totally ridiculous porting this, but I do desperately want to stop myself from being so out of control with money.
Page 1
    • sleepyjones
    • By sleepyjones 11th Mar 18, 11:20 AM
    • 3,917 Posts
    • 302,577 Thanks
    sleepyjones
    • #2
    • 11th Mar 18, 11:20 AM
    • #2
    • 11th Mar 18, 11:20 AM
    I think you really need to sit down and do a budget of everything you spend per month and try and cut out unnecessary things so curtail your spending. When you have it all down on paper it makes you realise how much you are spending on stuff you don't want / need. It'll be hard for a few years, but worth it and will help with any anxieties you have to know that you are debt free.

    You can contact your credit card providers and explain the situation, they will probably disable your cards (but my first piece of advice would be to cut the cards up anyway) however, they may also freeze any interest and help you make an affordable repayment plan.

    You can talk to a charity like Step Change who will be able to help you.

    It'll be hard (it's like losing weight, it's easy to put on but hard to get rid of), so just get help (well done for doing that by posting here) stick with it and good luck.
    *Good Luck * Be Lucky * Stay Lucky*
    • Lapua65
    • By Lapua65 11th Mar 18, 12:43 PM
    • 5 Posts
    • 5 Thanks
    Lapua65
    • #3
    • 11th Mar 18, 12:43 PM
    • #3
    • 11th Mar 18, 12:43 PM
    Thank you very much. I intend to do the budget today and expect to find that I am flitting money away on thing not needed at a worrying rate.
    • fatbelly
    • By fatbelly 11th Mar 18, 12:53 PM
    • 12,247 Posts
    • 9,281 Thanks
    fatbelly
    • #4
    • 11th Mar 18, 12:53 PM
    • #4
    • 11th Mar 18, 12:53 PM
    Try using this, formatting for mse and posting the results. Then we can make constructive comments.

    http://www.stoozing.com/calculator/soa.php
    • Tarambor
    • By Tarambor 11th Mar 18, 1:32 PM
    • 2,857 Posts
    • 2,066 Thanks
    Tarambor
    • #5
    • 11th Mar 18, 1:32 PM
    • #5
    • 11th Mar 18, 1:32 PM
    Try using this, formatting for mse and posting the results. Then we can make constructive comments.

    http://www.stoozing.com/calculator/soa.php
    Originally posted by fatbelly
    And be honest with yourself about how much money you spend on stuff like a Costa Coffee or a Greggs or a chocolate bar from the local shop. Think about what you've done over the past week and what you've spent your money on. It is usually those "it's only a couple of quid, it doesn't matter" purchases that really add up rather than big ticket spending. Just a mere 3 a day on a Latte at Costa or a sandwich at Greggs put on that card would account for around 2900-3000 of the balance of your card once you've included interest at a typical 14.9%.
    Last edited by Tarambor; 11-03-2018 at 1:39 PM.
    • zippygeorgeandben
    • By zippygeorgeandben 11th Mar 18, 2:34 PM
    • 816 Posts
    • 1,049 Thanks
    zippygeorgeandben
    • #6
    • 11th Mar 18, 2:34 PM
    • #6
    • 11th Mar 18, 2:34 PM
    Don't feel ridiculous at all. You've recognised an issue and want to deal with it. You just need to make sure that you look at each post on your thread constructively and not emotionally. Everyone here will help you, support you, advise you. You realise you need to address it. Obviously you need to sort out your mental health issues but most people here will want to address the actual s and how they can help you get on track.
    Every time you log onto MSE, try and have your financial head on!
    End Sep 2016 End Apr 2018
    8236.57 0
    (Tesco 4.8%) 0pcm
    6185.75 0(Zopa 4.0%) 0pcm

    5344.50
    1630.04 (Sainsburys 0% until 06/19) 140pcm
    2000.00 [B]266.71/B] (Sister 0%) 133.33pcm

    Total debt
    19.766.82 1896.75 Original DFD May 2019.
    • Lapua65
    • By Lapua65 11th Mar 18, 6:23 PM
    • 5 Posts
    • 5 Thanks
    Lapua65
    • #7
    • 11th Mar 18, 6:23 PM
    • #7
    • 11th Mar 18, 6:23 PM
    Not sure if this formatted correctly.
    On a quick overview, this is where we are. It doesn't show the impulse spending, but I had a look on my paypal account and as much as I would like to say they were necessary expenses, they are not. I built up 800 between Amazon and Ebay. Typing this I suppose the answer is in that last sentence.





    Statement of Affairs & Personal Balance Sheet
    Summary
    Monthly Budget Summary
    Amount()
    Total monthly income
    4,800
    Monthly expenses (incl. HP & secured loans)
    3,817
    Available for debt repayments
    983
    UNsecured debt repayments
    654
    Amount left after debt repayments
    329

    Personal Balance Sheet Summary
    Amount()
    Total Assets (things you own)
    412,000
    Total Secured & HP Debt
    -195,000
    Total Unsecured Debt
    -40,000
    Net Assets
    177,000
    Household Information
    Number of adults in household
    2
    Number of children in household
    2
    Number of cars owned
    3
    Income, Expense, Debt & Asset Details
    Income
    Amount()
    Monthly income after tax
    3000
    Partners monthly income
    1800
    Benefits
    0
    Other income
    0
    Total monthly income
    4800

    Expenses
    Amount()
    Mortgage
    1547
    Secured/HP loan payments
    0
    Rent
    0
    Management charge (leasehold property)
    0
    Council tax
    147
    Electricity
    103
    Gas
    0
    Oil
    0
    Water Rates
    49
    Telephone (land line)
    51
    Mobile phone
    122
    TV Licence
    11
    Satellite/Cable TV
    83
    Internet services
    0
    Groceries etc.
    625
    Clothing
    0
    Petrol/diesel
    250
    Road tax
    24
    Car Insurance
    150
    Car maintenance (including MOT)
    25
    Car Parking
    0
    Other travel
    0
    Childcare/nursery
    0
    Other child related expenses
    50
    Medical (prescriptions, dentists, opticians etc.)
    120
    Pet Insurance/Vet bills
    50
    Buildings Insurance
    30
    Contents Insurance
    30
    Life Assurance
    80
    Other Insurance
    0
    Presents (birthday, christmas etc.)
    50
    Haircuts
    20
    Entertainment
    100
    Holiday
    100
    Emergency Fund
    0
    Total monthly expenses
    3817

    Secured & HP Debt Description
    Debt()
    Monthly()
    APR(%)
    Mortgage
    195000
    (1547)
    0
    Secured & HP Debt totals
    195000
    -
    -

    Unsecured Debt Description
    Debt()
    Monthly()
    APR(%)
    Car
    25000
    434
    4.4
    Credit Cards
    6000
    120
    0
    Credit Cards
    9000
    100
    NaN
    Unsecured Debt totals
    40000
    654
    -

    Asset Description
    Value ()
    Cash
    1000
    House Value (Gross)
    380000
    Shares and bonds
    3000
    Car(s)
    28000
    Other assets (e.g. endowments, jewellery etc)
    0
    Total Assets
    412000
    • sleepyjones
    • By sleepyjones 11th Mar 18, 6:39 PM
    • 3,917 Posts
    • 302,577 Thanks
    sleepyjones
    • #8
    • 11th Mar 18, 6:39 PM
    • #8
    • 11th Mar 18, 6:39 PM
    People will come along and offer you better, more in-depth / informative answers but in the meantime you could look at what you are spending and see if you can get it cheaper

    ie : Cutting Sky Movies (or whatever), shop around for cheaper energy / Phone / 0% Credit cards etc.

    Look at what you are spending money on and see if you can get a better deal by switching to a new supplier/provider ... just something to think about while someone comes back who actually know what they're talking about (I do not )
    *Good Luck * Be Lucky * Stay Lucky*
    • Mnd
    • By Mnd 11th Mar 18, 8:47 PM
    • 503 Posts
    • 607 Thanks
    Mnd
    • #9
    • 11th Mar 18, 8:47 PM
    • #9
    • 11th Mar 18, 8:47 PM
    A couple of quick points jump out for me
    Mobile phones that's 100 more than we pay
    Groceries I don't think we would spend 200 a month

    That's just a couple of suggestions you could look at, however you will get a lot more advice from others on here. Don't be afraid to keep coming back for help and advice

    Good luck
    • anna_1977
    • By anna_1977 12th Mar 18, 9:07 AM
    • 684 Posts
    • 938 Thanks
    anna_1977
    Not sure if this formatted correctly.
    On a quick overview, this is where we are. It doesn't show the impulse spending, but I had a look on my paypal account and as much as I would like to say they were necessary expenses, they are not. I built up 800 between Amazon and Ebay. Typing this I suppose the answer is in that last sentence.





    Statement of Affairs & Personal Balance Sheet
    Summary
    Monthly Budget Summary
    Amount()
    Total monthly income
    4,800
    Monthly expenses (incl. HP & secured loans)
    3,817
    Available for debt repayments
    983
    UNsecured debt repayments
    654
    Amount left after debt repayments
    329

    Personal Balance Sheet Summary
    Amount()
    Total Assets (things you own)
    412,000
    Total Secured & HP Debt
    -195,000
    Total Unsecured Debt
    -40,000
    Net Assets
    177,000
    Household Information
    Number of adults in household
    2
    Number of children in household
    2
    Number of cars owned
    3 just wondering why 3 cars, can you sell one?

    Income, Expense, Debt & Asset Details
    Income
    Amount()
    Monthly income after tax
    3000
    Partners monthly income
    1800
    Benefits
    0
    Other income
    0
    Total monthly income
    4800

    Expenses
    Amount()
    Mortgage
    1547
    Secured/HP loan payments
    0
    Rent
    0
    Management charge (leasehold property)
    0
    Council tax
    147 spread this over 12 months if not already done so
    Electricity
    103
    Gas
    0
    Oil
    0
    Water Rates
    49
    Telephone (land line)
    51this is HUGE for landline, even with BB
    Mobile phone
    122 again very expensive, cut to SIM only,
    don't worry about latest handsets etc

    TV Licence
    11this is actually 12.12
    Satellite/Cable TV
    83 cut out totally if not in contract
    Internet services
    0
    Groceries etc.
    625 a lot for a family of 4
    Clothing
    0 never with 2 kids?
    Petrol/diesel
    250
    Road tax
    24for 3 cars?
    Car Insurance
    150 very expensive
    Car maintenance (including MOT)
    25 is this accurate for 3 cars, unless all under 3 years seems small
    Car Parking
    0
    Other travel
    0
    Childcare/nursery
    0
    Other child related expenses
    50
    Medical (prescriptions, dentists, opticians etc.)
    120 what is this for ? 10.40 per mth for pre-paid prescription?
    Pet Insurance/Vet bills
    50
    Buildings Insurance
    30shop about 60 for 2 insurances is a lot
    Contents Insurance
    30
    Life Assurance
    80
    Other Insurance
    0
    Presents (birthday, christmas etc.)
    50
    Haircuts
    20
    Entertainment
    100 this is a lot too if you're struggling
    Holiday
    100
    Emergency Fund
    0
    Total monthly expenses
    3817

    Secured & HP Debt Description
    Debt()
    Monthly()
    APR(%)
    Mortgage
    195000
    (1547)
    0
    Secured & HP Debt totals
    195000
    -
    -

    Unsecured Debt Description
    Debt()
    Monthly()
    APR(%)
    Car
    25000
    434
    4.4
    Credit Cards
    6000
    120
    0
    Credit Cards
    9000
    100
    NaN
    Unsecured Debt totals
    40000
    654
    -

    Asset Description
    Value ()
    Cash
    1000
    House Value (Gross)
    380000
    Shares and bonds
    3000
    Car(s)
    28000
    Other assets (e.g. endowments, jewellery etc)
    0
    Total Assets
    412000
    Originally posted by Lapua65

    Hi, please see my comments in red - I think there are plenty of things you can cut down on - free up a few hundred pounds a month to throw at the debts.

    my main query is why 3 cars?

    Good luck
    • Mahsroh
    • By Mahsroh 12th Mar 18, 9:52 AM
    • 339 Posts
    • 330 Thanks
    Mahsroh
    The 3 cars is the absolute "stick out like a sore thumb" amongst all that. Particularly when you have 25000 of outstanding finance relating to your cars. Would 100% look to sell one of them.
    • Mumoffourkids
    • By Mumoffourkids 12th Mar 18, 11:02 AM
    • 618 Posts
    • 2,969 Thanks
    Mumoffourkids
    Welcome to the boards and well done on posting the budget. The main thing that sticks out to me is the groceries budget. I have six kids and spend 100 a week on food, toiletries and cleaning stuff and that includes nappies for two and packed lunches for four. I reckon you can definitely cut this down a bit.

    Also the buildings and contents insurance looks high at 60 per month. I pay 7.27 a month for just contents and this is me paying it monthly. Next time at renewal I will have enough saved to pay this outright.

    Also the mobile bills are huge. I pay 50 for three mobiles, two of which have unlimited data as they are for my two oldest girls. They get new phones for their birthdays/christmas which are bought outright (normally reconditioned models) so don't have the latest phones and it means I don't have to pay extra in their contracts.

    Good luck with your debt free journey.
    Total debt Dec 2017 23090.83
    Ma7 2018 4621.78 79.98% paid
    Emergency fund 100/600
    Total Savings 1258.62
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