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    Starting again - my new debt free diary!
    • #1
    • 31st Jan 09, 10:58 PM
    Starting again - my new debt free diary! 31st Jan 09 at 10:58 PM
    Hi All

    Been a bit quiet on the debt busting front recently, had a rough time with life at home and fell off the wagon a bit but with my wedding just 5 months away, I am now more determined than ever to stop wasting money on things I don't need and getting a healthy savings balance to pay for the wedding, and then clearing the debts as soon as possible after that.

    Its been 13 months since I had my lightbulb moment, and whilst my debt hasn't drastically reduced since then, my attitude towards spending has for the better, and what I have learnt on these forums will be with me for life.

    My soa is as follows:

    My Income: £1,397.34
    OH Income: £1,333.35

    Total Income: £2,730.69

    Monthly Commitments:
    Barclays loan: £274.37
    Egg Loan: £102.54
    Halifax loan: £192.23
    CC's (minimum): £65
    Mortgage: 521.31
    Council Tax: £83
    Home Insurance: £33.34

    Life insurance: £11.39
    Sofas: £54.77
    Sky: £18.50
    Internet: £7.50
    Mobile phones: £44
    Water rates: £23.00
    TV licence: £11.31
    Gas: £22
    Electric: £28

    BT Phone bill: £24.50
    Garage rent: £27.65

    Total: £1,544.48

    That leaves a surplus after standing orders/direct debits of £1,186.21.

    Obviously the above does not include any amounts in relation to everything else, such as shopping, fuel, going out etc, but the plan is from this month onwards that we will have £100 a week 'spends' which will cover everything, as we don't do much, I cannot envisage us struggling on this amount. Our shopping bill for 3 weeks out of 4 is very small, usually around £15-£20 as we have one big shop a month where we stock up and fill the freezer etc for the rest of the month. That big shop is normally around £60.

    Spending only £100 a week leaves us with a spare £750 a month.
    Until July, this is being placed in the savings account for the wedding, after July, this will be used to pay off our credit card debts, after that, the loans, depending on early redemption penalties etc. Only one of the loans, as far as I am aware, is front loaded and that is the smallest one which only runs until Feb 2010 anyway.

    The credit card balances are:

    Virgin: £3,770
    Tesco: £1,646

    These are both interest free, the Virgin one until Feb 2010 and the Tesco one until around March 2010. We should have enough to pay these off before they are interest bearing. However, in the short term, the tesco balance will increase by anything upto £600, this is to pay for my OH and dad to go to the British Grand Prix, whilst this may seem 'stupid' on the face of it, its to reward them for being absolute rocks over the last few months when I've been going through a tough time and we would be able to afford it from a normal months wage but would rather spread the cost seen as its interest free.

    The loan balances come to approx £13,500 and if we don't pay them off sooner, the last payments will be in Feb 2010, Nov 2010 and then Nov 2011 (I think). Sooner these are gone, the better, as they drain a large part of our monthly income.

    Our current savings balance sits at just a shade under £2,200 and we want to double that before the wedding which is certainly achieveable, we will probably end up with more than what we need.

    OH will find out what his annual pay rise will be soon, last year it was 5% and expect something similar this year, plus his income will increase by approx £50 as he has finished paying his student loan but they are still taking deductions, so after the tax year ends, we will be due around £200ish back from the student loan company too.

    I have just had a large payrise, and I am expecting for my pay to go up another £6k in July which will increase the surplus even further. Hopefully this means that we can be debt free by the end of 2010 which would be lovely!

    Anyway, thats an update on me, I hope that my nice new fresh diary can provide me with the motivation and support I need, in what will a tough few months as we plough all efforts into not spending!

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