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Original poster

This is how I’m organising my money - can any experts take a look for me?

118 replies

StickyShoess · 01/03/2019 13:40

I’m quite new in taking control of our finances, we were in a mess we had no idea what we had coming in and going out, direct debits were being missed and charges added on, we were living in our overdraft being charged daily for it and I held my breath at the checkout every single time, it was awful
Then we had an unexpected fourth baby and had to extend our house
So we are in a lot of debt

Finally about a year ago I said this is ridiculous and started trying to sort it out, after a lot of trial and error this is my current system -

DPs wages cover all bills and minimum debt payments - all DDs & SOs go out on the first of every month
Every week we get £118 tax credits, £110 of this gets transferred by SO to a separate bank account and this is our groceries & petrol money for the week
Every 4 weeks we get £247 child benefit, £100 goes by SO to our ‘occasions’ bank account and £100 goes to our ‘spending’ bank account
Then on the day before payday each month I take whatever is leftover in the main bank account and send it to debt and start on payday from scratch

I feel like this is the best system I’ve come up with so far but I just feel like it’s so slow moving and I’m never going to pay off our debt
What do you all think? Anything glaringly obvious that I can change?
TIA

OP posts:
caughtinanet · 01/03/2019 16:45

There's a lot there you can still cut back on to get out of debt more quickly, your car insurance is a lot, Virgin is way too much, don't spend on weddings and Christenings and tell your DP to stop acting like a child, what kind of adult spends money they don't have because on instagram?

A 0% credit card probably isn't possible for someone already in big debt.

Original poster
StickyShoess · 01/03/2019 16:50

I agree with you all about nursery, it’s only the 3 year old that goes and he’s started before I found out I was pregnant again, he has been a very difficult child and nursery was brilliant for him and he also seen a speech therapist there which he really needed and DP refused to take him out
He goes to proper primary school nursery in September so he’s finishing this one in July for the summer hols so not many payments left
The £148 is with funded hours, it was £356 until he was 3 Shock

I will definitely look at the virgin, that was pains me every month it feels like a huge payment for the kids to watch people open shit on YouTube 🙄

OP posts:
Original poster
StickyShoess · 01/03/2019 16:51

Thankyou for all the links Liz I will have a look properly later

Don’t worry Iggy I have no intention of getting rid of the dog Shock

OP posts:
Original poster
StickyShoess · 01/03/2019 16:53

MyDCareMarvel I didn’t know I could get rid of tv licence, what can we still watch without a licence then? Just all the catch up stuff? I don’t think we ever watch live tv anyway

OP posts:
Hollowvictory · 01/03/2019 16:54

No nursery
No virgin
How are you paying rent but also paid for a house extension?

LizB62A · 01/03/2019 16:59

You're welcome @StickyShoess (I hope this tag works - I've never tagged anyone before!)

And, as a fellow pet owner, I wouldn't suggest you get rid of your dog, just maybe shop around for their food Smile
I buy massive packs of cat food online every few months - it works out much cheaper but obviously it's a big outlay in one go - which isn't possible for everyone

Longdistance · 01/03/2019 17:03

I agree about the Virgin. Get on the phone now and either cancel or negotiate a better package. I was looking at the nursery fees, and you’d save loads there. Just with those two things it’s £200+ If you get 10 x £20 notes, seeing that alone is a shocker, and a reality check.

I think a lot of people see figures when they’re in debt, but when you actually see the cash in real life it is a kind of shock. I used to work in a bank, and a colleague was talking about a small debt she accrued. I showed her it in cash when we were in the safe room, and it brought it home to her.

Gingerkittykat · 01/03/2019 17:06

Without a TV license you can watch all catch up except BBC iplayer.

We have not watched live TV for years, just use Netflix and catch up. I used to watch Eastenders till they changed the rules and you needed to play for BBC catch up but not worth the money.

HollowTalk · 01/03/2019 17:07

Netflix would be far better than Virgin.

Original poster
StickyShoess · 01/03/2019 17:21

Virgin has recently been renegotiated, we were paying £93! So I doubt they will go any lower, we’ll have to switch, that’s the poa of the weekend, and tv licence - we’ve just got rid of Netflix (and prime, why did we have 3 separate ways to watch tv 🤦🏻‍♀️) so maybe get rid of licence & virgin, get cheaper internet and get Netflix back is the way to go
Thankyou Grin ... now to persuade DP

OP posts:
MyDcAreMarvel · 01/03/2019 17:26

Sticky with no tv license you can watch all catch up services except iplayer. You can’t watch live tv any channels. Most programmes are on catch up within the hour.

Linguaphile · 01/03/2019 18:26

You’ve said about Dave Ramsey. If you listen to his talk show (loads of YouTube clips), one of the first things he always has people do is get rid of their fancy cars with repayments and buy the cheapest car that will keep you on the road safely until the debt is paid off. And unless you both work the sort of jobs that require use of a car all day, go down to one car. Maybe one of you can drop off and collect the other at work if you live far away from public transport. Just going down to one car would save you a ton of money in petrol, repayments, maintenance and insurance.

Linguaphile · 01/03/2019 18:31

Ah sorry, just reread your op, thought you said had said you had 2 cars on finance when actually you just have one! Apologies!

Still, maybe selling the car and getting a banger for a few years would help?

Villanellesproudmum · 01/03/2019 18:40

Do you k ow the interest rates on your credit card and the other items you mentioned? Also do you know what your credit rating is?

You extended a house you’re renting, that will put the value up, presume they are going to sell it to you at pre works cost Shock otherwise you’ve done it the wrong way round.

Hotterthanahotthing · 01/03/2019 19:02

Paying off your fuel debt then you can change to a cheaper tarrif.Im not even sure you can't change if you owe but you have to have a plan to pay back what you owe.
I hope the cuts you areaking help but feel sad that you seem to be doing it on your own with you DH,maybe,with his head Inthe sand.

badwedding · 01/03/2019 19:08

How come your car insurance is so high? I've just renegotiated our 2 cars and paying £366 for the year for both... that's for a 2yr old BMW and an older Golf.

Admittedly we have 21 and 3yrs NCB between us and we park in a drive.

I know there are loads of variables but £95 car insurance per month seems really high...

ivykaty44 · 01/03/2019 19:25

Every week we get £118 tax credits, £110 of this gets transferred by SO to a separate bank account and this is our groceries & petrol money for the week reduce this SO by £10 this month & £10 next month & send the money to your largest debt - £80 in 4 weeks, that’s £1040 paid off over 1 year
Every 4 weeks we get £247 child benefit, £100 goes by SO to our ‘occasions’ bank account shave £20 off this account & pay off debts that’s £ 260 and £100 goes to our ‘spending’ bank account shave £10 here and pay £130 of debts
Then on the day before payday each month I take whatever is leftover in the main bank account and send it to debt and start on payday from scratch

shaving off your spending will send an extra £1400

Then join the make £10 per day thread to look at making more money

ivykaty44 · 01/03/2019 19:48

Car are sat on tarmac going nowhere for 90% if the week. If you have an hour commute by car your car is likely to be stationary for 22 hours of the day, 154 hours of the week.

Over 50% of journeys are less than 2 miles

The average car costs £12 per day to own, before fuel

pinknsparkly · 01/03/2019 19:54

I second Liz's excellent suggestion that you head over to the Debt Free Wannabe section of the Money Saving Expert website. You'll get soooooooo much help and support over there. It feels like a complete mountain to climb, but in this situation every penny really does help.

I see you've already decided to get rid of Virgin and I'd never suggest to anyone they get rid of pets unless absolutely necessary but can you find some ways to cut pet costs? Buy food in bulk that works out cheaper? We feed our pedigree cat premium dry food as he has quite specific dietary needs but as we buy his food in bulk we get a years worth of food for £50. As IvyKaty suggests, shaving even £10/£20 here and there off your food budget, spending budget or occasions budget will really help. It's generally better to save at the start than save what's left at the end (as it's far too easy to spend the leftovers). I try to run our finances such that we have £0 left in our bank account at the end of the month (payday). I keep a "slush fund" of emergency money in an easy access savings account attached to our current account. That way, if absolutely necessary I can move some money back into the main account, but as it's not physically in the current account, I try to avoid needing any top ups.

Also, can you sell anything lying around the house? Can you make any money from the house? There are loads of threads on here and on Money Saving Expert about making £10 a day, and other ways to make some money from home.

pinknsparkly · 01/03/2019 19:55

My post should have said:

It's generally better to save at the start OF THE WEEK/MONTH than save what's left at the end (as it's far too easy to spend the leftovers)

ivykaty44 · 01/03/2019 20:39

Pinksparkly-spot on, save at the start and pay off the debts weekly to keep reducing the debt, it saves interest

KanielOutis · 01/03/2019 21:30

Have you done a thorough means enquiry? List all of your income and outgoings. Every single penny. Pull up credit report and bank statement and go through them with a fine comb. It's only when you know where your money is going that you can be on top of it.

Mumoftwoyoungkids · 01/03/2019 21:33

The trouble is that all of this is a bit “turning the tap off in the Titanic” unless your husband gets onboard.

But assuming he does........

Is there any way you can cut down the nursery? To just the 15 hours? Or just one less morning or afternoon?

A mad week of eating stuff out of the freezer and you can use some grocery money for debts?

leigh39 · 01/03/2019 21:38

Go to any local
Voluntary advice agency such as CAB they can assist with debts and repayment offering a whole other options also

combatbarbie · 01/03/2019 22:33

Get the credit cards swopped to 0%. Cancel virgin.

in the nicest possible way the nursery bill is not really justified....it's a bit like when people say AIBU to get a cleaner....consensus is if you can afford it why not, with £25k debt you can't afford it.

If you don't want to go IVA have you looked at what a consolidated loan will cost? In that you can wipe the utility debt and switch. Cut up the cards and anything left after all payments is spending/food.