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  • FIRST POST
    • sheepy21
    • By sheepy21 14th Sep 18, 9:58 PM
    • 161Posts
    • 155Thanks
    sheepy21
    Keep getting in debt
    • #1
    • 14th Sep 18, 9:58 PM
    Keep getting in debt 14th Sep 18 at 9:58 PM
    So weíve had money problems for years, got into a huge amount of debt last year, but after an inheritance windfall we cleared it and used the rest for a house deposit. So debt free for about 8 months and it was great. Bought our house end of July and weíve had unexpected costs like our fridge/freezer packing up. That and general expense has now lead to being in some debt again. I feel totally freaked
    Iíve done an SOA and on paper it all looks fine, but this month we havenít managed to clear any debt and we now have £18 in our bank account that should technically last the next 12 days. Iím trying to sell stuff to get us through the next 12 days without using anymore credit or using the meagre £100 we have in savings. atm we arenít putting into my husbands pension so ideally that would be another £150 we wonít have to spend, also want to start putting money away for car stuff, Christmas etc
    Iím not able to work as our son has disabilities, so no scope for extra income.
    Anyway just nice to have a rant and perhaps get some pearls of wisdom on how to get a firm handle on our finances

    Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 2
    Number of children in household......... 1
    Number of cars owned.................... 2

    Monthly Income Details

    Monthly income after tax................ 0
    Partners monthly income after tax....... 1692
    Benefits................................ 811
    Other income............................ 0
    Total monthly income.................... 2503


    Monthly Expense Details

    Mortgage................................ 557
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 100
    Electricity............................. 69
    Gas..................................... 0
    Oil..................................... 0
    Water rates............................. 37
    Telephone (land line)................... 19
    Mobile phone............................ 37
    TV Licence.............................. 13
    Satellite/Cable TV...................... 27
    Internet Services....................... 11
    Groceries etc. ......................... 350
    Clothing................................ 20
    Petrol/diesel........................... 155
    Road tax................................ 36
    Car Insurance........................... 70
    Car maintenance (including MOT)......... 0
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 80
    Medical (prescriptions, dentist etc).... 24
    Pet insurance/vet bills................. 15
    Buildings insurance..................... 17
    Contents insurance...................... 0
    Life assurance ......................... 15
    Other insurance......................... 20
    Presents (birthday, christmas etc)...... 0
    Haircuts................................ 0
    Entertainment........................... 0
    Holiday................................. 0
    Emergency fund.......................... 100
    Total monthly expenses.................. 1772



    Assets

    Cash.................................... 100
    House value (Gross)..................... 200000
    Shares and bonds........................ 0
    Car(s).................................. 4000
    Other assets............................ 0
    Total Assets............................ 204100



    Secured & HP Debts

    Description....................Debt......Monthly.. .APR
    Mortgage...................... 148637...(557)......2.79
    Total secured & HP debts...... 148637....-.........-


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    Loan...........................13250.....225...... .0
    Tesco..........................1629......155...... .0
    Overdraft......................200.......20....... .0
    Total unsecured debts..........15079.....400.......-



    Monthly Budget Summary

    Total monthly income.................... 2,503
    Expenses (including HP & secured debts). 1,772
    Available for debt repayments........... 731
    Monthly UNsecured debt repayments....... 400
    Amount left after debt repayments....... 331


    Personal Balance Sheet Summary
    Total assets (things you own)........... 204,100
    Total HP & Secured debt................. -148,637
    Total Unsecured debt.................... -15,079
    Net Assets.............................. 40,384


    Created using the SOA calculator at www.stoozing.com.
    Reproduced on Moneysavingexpert with permission, using other browser.
Page 1
    • venison
    • By venison 14th Sep 18, 10:51 PM
    • 2,340 Posts
    • 2,565 Thanks
    venison
    • #2
    • 14th Sep 18, 10:51 PM
    • #2
    • 14th Sep 18, 10:51 PM
    OP does your son get DLA? at mid or high rate care and if so have you claimed carers allowance?
    Former Board Guide
    • sheepy21
    • By sheepy21 15th Sep 18, 12:05 AM
    • 161 Posts
    • 155 Thanks
    sheepy21
    • #3
    • 15th Sep 18, 12:05 AM
    • #3
    • 15th Sep 18, 12:05 AM
    OP does your son get DLA? at mid or high rate care and if so have you claimed carers allowance?
    Originally posted by venison
    Yes my income is his dla, carers and tax credits
    • elsien
    • By elsien 15th Sep 18, 12:11 AM
    • 17,122 Posts
    • 43,153 Thanks
    elsien
    • #4
    • 15th Sep 18, 12:11 AM
    • #4
    • 15th Sep 18, 12:11 AM
    You've got nothing in there for presents, haircuts and entertainment. I'm guessing you do some of those things some of the time, so is that where some of the surplus is going?
    If you've got less left over than your budget says you should have, you need to work out where it's going.
    All shall be well, and all shall be well, and all manner of things shall be well.

    Pedant alert - it's could have, not could of.
    • Happier Me
    • By Happier Me 15th Sep 18, 11:12 AM
    • 444 Posts
    • 986 Thanks
    Happier Me
    • #5
    • 15th Sep 18, 11:12 AM
    • #5
    • 15th Sep 18, 11:12 AM
    I'm sure someone will be along with a detailed review of your SOA but my initial thoughts are you should be able to knock a fair amount off your food bill, could you consider losing paid for TV? and your car insurance costs are high.

    You need to make every penny work as hard as possible for you so make sure everything is on the best deal possible.

    Your food bill could be reduced by batch cooking, buying own brands, switching stores etc. I would use some of the savings you make to create an entertainment pot as I expect this is where your 'spare' money is going.

    A spending diary will help you both understand where your money is going and where you need to cut back.
    • enthusiasticsaver
    • By enthusiasticsaver 15th Sep 18, 12:00 PM
    • 7,038 Posts
    • 15,215 Thanks
    enthusiasticsaver
    • #6
    • 15th Sep 18, 12:00 PM
    • #6
    • 15th Sep 18, 12:00 PM
    In theory you should be able to manage ok as your mortgage is quite low in comparison to your income but I would imagine the problems are spending thoughtlessly. Your groceries bill is way too high for three people and if you shop at Lidls or Aldis, meal planned and batch cooked this would bring it down. A spending diary would help pinpoint where your money is going. Lots of people find that drawing cash out constantly and frittering on coffees out, magazines, etc etc comes to higher than they think over a month. If your husband buys lunches out that may come to quite a lot. Do either of you smoke or drink? Pets are often a cause of money being spent and not accounted for. As others have said entertainment, haircuts, birthdays etc are not accounted for and even the odd take away adds up.
    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
    • -taff
    • By -taff 15th Sep 18, 12:07 PM
    • 7,750 Posts
    • 6,101 Thanks
    -taff
    • #7
    • 15th Sep 18, 12:07 PM
    • #7
    • 15th Sep 18, 12:07 PM
    You are spending an awful lot on your car, if neither of you work, can you cut down on these trips? Can you get a chepaer more economical car?

    You can knock about a hundred easily off your food bill if you start shopping in Lidl Alsi etc, and as above, batch cook and meal plan.


    Your internet services/phone and tv accountis nearly a 100 pounds a month, can you get netflix instead of the tv package? Can you switch providers?


    Go through your staements from last month to see exactly where you are spending this money and how. If you're using a lot fo cash purchases, what are you spending them on? If you are using a card a lot, where are you spending it? Usualy, if there's overspending, you haven't got a clue where it's going until you add up all the little impulse buys and sundries.
    • sheepy21
    • By sheepy21 15th Sep 18, 1:09 PM
    • 161 Posts
    • 155 Thanks
    sheepy21
    • #8
    • 15th Sep 18, 1:09 PM
    • #8
    • 15th Sep 18, 1:09 PM
    Ok, food bill canít really be reduced, a huge amount of that is my sons food as he has special dietary requirements, so about £120+ of that a month is just for him.
    We donít smoke, drink or gamble.
    Haircuts we donít have as I do it for us all.
    Car insurance is £55 for both cars which is cheap, the £70 includes breakdown cover too.
    Someone said about neither of us working, my husband works full time so needs a car and I need a car for me and my son, so losing a car really isnít possible.
    We donít want to get rid of our sky tv as we donít go out and do anything so thatís really our only entertainment we did recently move my husband to a cheap sim only deal but my phone is still in contract.

    I didnít put anything in presents and entertainment as Iím not sure what to put, soa shows us having £330 left as things stand with essentials paid, but then we need to deduct £150 for pension, Iím guessing £35 a month for presents, would like to do £30 a month for our annual holiday and entertainment I guess ideally weíd have about £50 each to spend as we want and Iíd like to put £35 a month towards car repairs and MOTs. With current debt repayments those amounts would make us £20 short each month. Iíve tried to trim things down, just not sure I can anymore
    • -taff
    • By -taff 15th Sep 18, 3:07 PM
    • 7,750 Posts
    • 6,101 Thanks
    -taff
    • #9
    • 15th Sep 18, 3:07 PM
    • #9
    • 15th Sep 18, 3:07 PM
    Sorry, I read it wrong where you said about the dla...
    • Clouds88
    • By Clouds88 15th Sep 18, 3:14 PM
    • 57 Posts
    • 25 Thanks
    Clouds88
    You say you can’t live with one car, I would have said the same until we needed to sell one of ours. We are in a dire financial position atm, we have one car, my husband is going back to work 4 days a week in a few days he is going to commute bike or bus/train. I am going to get the bus when I have work on days (I do part time) or I can use the car for night shifts. We have made it work and means we are both getting more exercise now. Unfortunately we need the car for rural school run, so who ever is at home with the kids gets the car. Not sure if this could fit in with your lifestyle? Otherwise not much you can cut back on I don’t think.
    • Whitterbod
    • By Whitterbod 15th Sep 18, 3:38 PM
    • 12 Posts
    • 3 Thanks
    Whitterbod
    hi you could switch sky for netfix or amazon for cheaper entertainment . amazon is even cheaper if you have a student email address
    Last edited by Whitterbod; 15-09-2018 at 3:41 PM.
    Thats a good idea thanks muchly..
    • sheepy21
    • By sheepy21 15th Sep 18, 5:02 PM
    • 161 Posts
    • 155 Thanks
    sheepy21
    Sorry, I read it wrong where you said about the dla...
    Originally posted by -taff
    No worries
    • sheepy21
    • By sheepy21 15th Sep 18, 5:06 PM
    • 161 Posts
    • 155 Thanks
    sheepy21
    You say you canít live with one car, I would have said the same until we needed to sell one of ours. We are in a dire financial position atm, we have one car, my husband is going back to work 4 days a week in a few days he is going to commute bike or bus/train. I am going to get the bus when I have work on days (I do part time) or I can use the car for night shifts. We have made it work and means we are both getting more exercise now. Unfortunately we need the car for rural school run, so who ever is at home with the kids gets the car. Not sure if this could fit in with your lifestyle? Otherwise not much you can cut back on I donít think.
    Originally posted by Clouds88
    Honestly with where we live and my sons disabilities thereís no way I could be without a car. Iíd be house bound, unable to get to family or go out at all itís a real pain, I know obviously extra car is an added expense but have to have some quality of life and I couldnít take my son on public transport as things stand with him
    Wish I was a millionaire
    • theoretica
    • By theoretica 15th Sep 18, 6:42 PM
    • 5,325 Posts
    • 6,637 Thanks
    theoretica
    Ok, food bill canít really be reduced, a huge amount of that is my sons food as he has special dietary requirements, so about £120+ of that a month is just for him.


    So £120 for him and £230 for the two of you? That £230 could be cut.


    I didnít put anything in presents and entertainment as Iím not sure what to put, soa shows us having £330 left as things stand with essentials paid, but then we need to deduct £150 for pension, Iím guessing £35 a month for presents, would like to do £30 a month for our annual holiday and entertainment I guess ideally weíd have about £50 each to spend as we want and Iíd like to put £35 a month towards car repairs and MOTs. With current debt repayments those amounts would make us £20 short each month. Iíve tried to trim things down, just not sure I can anymore
    Originally posted by sheepy21

    I think you need to stop looking at what you want - look at what you have, and decide how to divide it up, especially including paying off that debt. If anything at all comes up that is not in your budget work out where that money is coming from before spending it. That you are down to £12 proves you have spent more than your essentials budget shows. Do you know exactly what you spent it on? You need to know all about your money to stop it just getting spent.



    A fridge/freezer dying is only unexpected in happening that week, not that it happens at all. What is your plan for next time it happens? And the boiler (and boiler servicing). You have two cars, they will inevitably die sometime too.
    But a banker, engaged at enormous expense,
    Had the whole of their cash in his care.
    Lewis Carroll
    • Mobeer
    • By Mobeer 15th Sep 18, 6:54 PM
    • 1,725 Posts
    • 4,407 Thanks
    Mobeer
    If your SOA shows a surplus and your real month shows a deficit then as a first\early step I would check where the difference is. Changing SOA numbers up or down won't help you if they don't match your actual spending.
    • nrsql
    • By nrsql 15th Sep 18, 8:45 PM
    • 1,799 Posts
    • 608 Thanks
    nrsql
    First thought.
    You have £331 per month left over. What’s been happening to that.

    If you are frugal and committed for a couple of months you will have a £500 emergency fund or know what’s wrong. Keep a record of everything you spend and everything you commit to.
    For the next 12 days I would use the £100 if necessary, that’s what it’s for. Everything you spend on yourselves is up for grabs and see what savings you can make catering for your son.

    I can remember my father telling me later what they did when mortgage rates went up. Neither my brother nor myself noticed anything except that paperwork got strewn around tables when it was time for bed.
    • Niv
    • By Niv 17th Sep 18, 9:03 AM
    • 1,661 Posts
    • 1,438 Thanks
    Niv
    How long ago were you debt free? Since July 2018? You mention a fridge going wrong then post up £15k of debt. You need to be honest with yourself on how this happened, cutting back from your SOA will do nothing if you do not face up to where that 15K debt has come from.
    YNWA

    Target: Mortgage free by 58.
    • Years of debt
    • By Years of debt 17th Sep 18, 9:16 AM
    • 32 Posts
    • 12 Thanks
    Years of debt
    Anyone can sit here and point out the flaws in this lady’s life.
    Why don’t we do something constructive..
    Ring StepChange Charity be honest with them, it may be that a DMP or similar might work do you, freezing all interest and just paying 1 lump sum a month. Give them a ring today if you have an hour. It’s the best thing I did. Anyone can sit here and tel you to “do this and do that” but they aren’t in your position.
    Best bet is to ring the experts and let the keyboard warriors make themselves feel good whilst trying to give you “constructive” advice.
    • Money maker
    • By Money maker 17th Sep 18, 9:31 AM
    • 5,070 Posts
    • 11,539 Thanks
    Money maker
    Ringing stepchange is a good idea but pointing out the flaws in this lady's life will stop her slipping into debt for a third time. It's all well and good resolving things in the meantime but she needs to explore how and why she is overspending or it will just continue as a vicious circle. Like Niv said, all debts cleared last year so where has the 15K of debt come from, possibly taken out after house purchase (so recently) rather than before?
    Please do not quote spam as this enables it to 'live on' once the spam post is removed.

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    Declutterers of the world - unite!
    • Dobbibill
    • By Dobbibill 17th Sep 18, 9:32 AM
    • 3,300 Posts
    • 4,225 Thanks
    Dobbibill
    So weíve had money problems for years, got into a huge amount of debt last year, but after an inheritance windfall we cleared it and used the rest for a house deposit. So debt free for about 8 months and it was great.

    Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 2
    Number of children in household......... 1
    Number of cars owned.................... 2

    Monthly Income Details

    Monthly income after tax................ 0
    Partners monthly income after tax....... 1692
    Benefits................................ 811
    Other income............................ 0
    Total monthly income.................... 2503


    Monthly Expense Details

    Mortgage................................ 557
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 100 is this paid over the standard 10 months - if so change it to 12
    Electricity............................. 69 have you done a comparison lately - this is good but could it be better?
    Gas..................................... 0
    Oil..................................... 0
    Water rates............................. 37 as above with the council tax, this could also be spread over 12 months
    Telephone (land line)................... 19
    Mobile phone............................ 37 as soon as you are out of contract change yours to SIMO too
    TV Licence.............................. 13
    Satellite/Cable TV...................... 27 I get what you say about this being your only entertainment but give them a ring and see if they have a better deal - it never hurts to ask
    Internet Services....................... 11
    Groceries etc. ......................... 350 even with the special dietry requirements, this could be cut a little
    Clothing................................ 20
    Petrol/diesel........................... 155
    Road tax................................ 36
    Car Insurance........................... 70
    Car maintenance (including MOT)......... 0 there needs to be something in here especially for 2 cars
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 80
    Medical (prescriptions, dentist etc).... 24
    Pet insurance/vet bills................. 15
    Buildings insurance..................... 17 at renewal check out cashback sites like TCB or Quidco to make a net saving
    Contents insurance...................... 0
    Life assurance ......................... 15
    Other insurance......................... 20 what's this?
    Presents (birthday, christmas etc)...... 0 never?
    Haircuts................................ 0
    Entertainment........................... 0
    Holiday................................. 0 don't fund this until you are debt free, it will give you an incentive
    Emergency fund.......................... 100 is this something you have just started this month given the total cash figure below? Make sure this is realistic, you don't want to put it away on payday and dip into it a week later because you've made it unrealistic
    Total monthly expenses.................. 1772



    Assets

    Cash.................................... 100
    House value (Gross)..................... 200000
    Shares and bonds........................ 0
    Car(s).................................. 4000
    Other assets............................ 0
    Total Assets............................ 204100



    Secured & HP Debts

    Description....................Debt......Monthly.. .APR
    Mortgage...................... 148637...(557)......2.79
    Total secured & HP debts...... 148637....-.........-


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    Loan...........................13250.....225...... .0
    Tesco..........................1629......155...... .0
    Overdraft......................200.......20....... .0
    Total unsecured debts..........15079.....400.......- you need to find out what your APRs are - this will help you to create a plan of action



    Monthly Budget Summary

    Total monthly income.................... 2,503
    Expenses (including HP & secured debts). 1,772
    Available for debt repayments........... 731
    Monthly UNsecured debt repayments....... 400
    Amount left after debt repayments....... 331 where is this? keep a spending diary to see why you haven't got this left.


    Personal Balance Sheet Summary
    Total assets (things you own)........... 204,100
    Total HP & Secured debt................. -148,637
    Total Unsecured debt.................... -15,079
    Net Assets.............................. 40,384


    Created using the SOA calculator at www.stoozing.com.
    Reproduced on Moneysavingexpert with permission, using other browser.
    Originally posted by sheepy21

    A few things highlighted in red from me.

    A spending diary is a must to find out where you are losing over £300 a month. Once you've found it, a few tweaks to your SOA should see you debt busting.

    All the best.
    I'm a Board Guide on the Energy, Student Money Saving, UK Armed Forces and
    Local Money Saving - Wales boards. I'm a volunteer to help the boards run smoothly, and I can move and merge posts there.
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.


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