Make Sense of Cards - sick of worrying about money!

09. Sep 2010 at 14:46

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sick of worrying about money! (Read 652 times)

acejen18

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sick of worrying about money!
14. Dec 2008 at 09:50

Statement of Affairs and Personal Balance Sheet Monthly Income Details Monthly income after tax................ 1050 Partners monthly income after tax....... 2200 Benefits................................ 0 Other income............................ 65 Total monthly income.................... 3315 Monthly Expense Details Mortgage................................ 591 Secured loan repayments................. 0 Rent.................................... 0 Management charge (leasehold property).. 0 Council tax............................. 80 Electricity............................. 50 Gas..................................... 50 Oil..................................... 0 Water rates............................. 35 Telephone (land line)................... 35 Mobile phone............................ 100 TV Licence.............................. 12 Satellite/Cable TV...................... 50 Internet Services....................... 0 Groceries etc. ......................... 150 Clothing................................ 50 Petrol/diesel........................... 100 Road tax................................ 20 Car Insurance........................... 50 Car maintenance (including MOT)......... 20 Car parking............................. 0 Other travel............................ 0 Childcare/nursery....................... 160 Other child related expenses............ 40 Medical (prescriptions, dentist etc).... 0 Pet insurance/vet bills................. 0 Buildings insurance..................... 56 Contents insurance...................... 20 Life assurance ......................... 16 Other insurance......................... 20 Presents (birthday, christmas etc)...... 25 Haircuts................................ 10 Entertainment........................... 50 Holiday................................. 0 Emergency fund.......................... 0 Total monthly expenses.................. 1790 Assets Cash.................................... 0 House value (Gross)..................... 150000 Shares and bonds........................ 0 Car(s).................................. 20000 Other assets............................ 0 Total Assets............................ 170000 Secured Debts Description....................Debt......Monthly...APR Mortgage...................... 137500...(591)......3.45 Total secured debts........... 137500....-.........- Unsecured Debts Description....................Debt......Monthly...APR loan...........................18000.....256.......0 car............................13000.....278.......0 egg............................950.......20........0 car............................8000......140.......0 next...........................400.......50........0 jen o/d........................500.......25........0 all o/d........................450.......10........0 o/d spends.....................1400......50........0 o/d bills......................2500......50........0 jjb............................1000......25........0 mbna...........................850.......25........0 Total unsecured debts..........47050.....929.......- Monthly Budget Summary Total monthly income.................... 3,315 Expenses (including secured debts)...... 1,790 Available for debt repayments........... 1,525 Monthly UNsecured debt repayments....... 929 Surplus(deficit if negative)............ 596 Personal Balance Sheet Summary Total assets (things you own)........... 170,000 Total Secured debt...................... -137,500 Total Unsecured debt.................... -47,050 Net Assets.............................. -14,550 Embarrassed

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Stooz

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Re: sick of worrying about money!
Reply #1 - 14. Dec 2008 at 16:32

Unsecured Debts
Description....................Debt......Monthly...APR
loan...........................18000.....256.......0
car............................13000.....278.......0
egg............................950.......20........0
car............................8000......140.......0
next...........................400.......50........0
jen o/d........................500.......25........0
all o/d........................450.......10........0
o/d spends.....................1400......50........0
o/d bills......................2500......50........0
jjb............................1000......25........0
mbna...........................850.......25........0
Total unsecured debts..........47050.....929.......-

Monthly Budget Summary
Total monthly income.................... 3,315
Expenses (including secured debts)...... 1,790
Available for debt repayments........... 1,525
Monthly UNsecured debt repayments....... 929
Surplus(deficit if negative)............ 596

Thats a fair amount of debt to be hanging over you, but it does show £600 a month surplus. thats a healthy amount. That suggests you could clear the o/d's in a month each.

Have you tracked all your spending? if not try and keep a diary of where it ALL goes, then post an update.

Your next bet is to collect and fill in those APR's I doubt they are all 0%? Start by hitting the largest first, that will snowball and clear the debt quicker.

some of the store cards are probably high APR's try switching to a 0% or just a life of balance deal. there are some good tables on the main site pages here. that will lower the payments and reduce the amount that goes to interest, again, lowering the total amount you pay back = clear it quicker.

Take a look at your spending. rather than worry about debts, try and see if you really need a £100 mobile phone bill and a £50 TV package. the home phone bill can be reduced as well - talk talk offer broadband and free home phone calls for £20 a month, and frankly I hate sky TV! childrens chanels are good enough on freeview (or freesat if you dont have the coverage)

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clariman

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Re: sick of worrying about money!
Reply #2 - 14. Dec 2008 at 16:32

Hi Acejen and welcome to the site. Well done for posting your SOA. What is it that is making you feel "sick" with worry about money?

Looking at your SOA, you have a fair chunk of debt but you also have decent incomes and your SOA (if accurate) gives you a monthly surplus of nearly £600 so you should be able to meet all your monthly payments comfortably. Is that the case? If not, then it would suggest that your monthly spending is somewhat larger than what your SOA shows, so I'd suggest keeping a spending diary to find out exactly where the money is going.

If you can make the payments OK and the SOA is an accurate reflection of your monthly spending, then you can make some real headway to paying off those debts with that spare £600. However, looking at your SOA, there are a couple of areas where you could trim down things further I'd suggest: notably mobile phone at £100 pm and Sat TV at £50 pm. Perhaps also some scope for savings in Building insurance - £56 per month is a lot. Have you shopped around for insurance lately?

Between those you ought to be able to free up another £100 per month which would give you £700 per month to throw at the debts i.e £8,400 per year!

However, looking at your debts, my guess is that you are spending a lot more than your monthly SOA would suggest, so I'd take a really close look at what you are actually spending.

To reduce your debts more quickly, do you have any assets that you could sell? For example, you appear to have 2 car loans which I presume means 2 cars. Could you sell the more expensive one and free up perhaps £12,000 (???) to throw at your debts? Could you even sell both and use public transport.

What was the £18,000 loan for? Was that to buy an asset that you might be able to sell or was it a consolidation loan to mop up other smaller debts?

Stick with it. You've taken the really important first step of getting it down on paper.

Clariman

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manz

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Re: sick of worrying about money!
Reply #3 - 14. Dec 2008 at 16:44

Other income............................ 65 is this child benefit? are you not getting child tax credit?

Mobile phone............................ 100 wow! downsize your contracts. Never send pics. Dont surf or check your emails - for two of you even £50 is a lot - you are spending £1200 a year on this!

Satellite/Cable TV...................... 50 I know this is a pckage which incldes your broadband - but broad band only costs £15 a month - so cancel sky/cable and its another £35 a month to pay off your debts

Groceries etc. ......................... 150 are you SURE? it can be done for 3 people, but unless you are careful, you are probably spending more than this without realising it. You and your partner should both keep a detailed spending diary for a couple o months to find where all the money leaks away to

Car Insurance........................... 50 is this one or two cars? if two, find ways to manage with just one, and save the monthly costs. If one, have you checked to see if you can get this chepaer?

Childcare/nursery....................... 160 how long till this ends?

Buildings insurance..................... 56
Contents insurance...................... 20 have you checked - it is often cheaper to get these two together. £76 is a LOT to be paying for these

Emergency fund.......................... 0 this you need to budget for, otherwise you will just end up reaching for the plastic. Say £30 a month for a car and house owner

Car(s).................................. 20000 wow, is that one or two cars? if just one, consider selling (and I know the second hand car prices are rubbish) and buying something much cheaper - 5 year+ Japanese. Even a few thousand realised here will let you clear some of the small debts

Surplus(deficit if negative)............ 596
my guess is that you dont have c £600 left at the end of every month - money is vanishing somehwere you haven't written on your SoA. You need to plug this leak!

Also you need to find the annual (not monthly) interest rates on all your debts, so when you do have some spare money you can use it LL to pay off the highest interest rate debt - this is the fastest way to get your debts down.

manz

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