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  • FIRST POST
    • FullTimeAdult
    • By FullTimeAdult 12th Oct 16, 2:56 PM
    • 23Posts
    • 55Thanks
    FullTimeAdult
    I can do this / Arrrgghhh
    • #1
    • 12th Oct 16, 2:56 PM
    I can do this / Arrrgghhh 12th Oct 16 at 2:56 PM
    Okay so I've just added up my debts (loans, credit cards and overdrafts) - not including student debts.

    £5956.40

    I honestly thought it was about half that! But now I've got a figure, I'm going to make a plan to pay it off. My goal is to become debt free and get a mortgage (and a pension!) asap.

    I'm self employed and on a low income but otherwise happy!

    Wish me luck, I'm gonna need it
Page 1
    • EssexHebridean
    • By EssexHebridean 12th Oct 16, 3:36 PM
    • 6,338 Posts
    • 35,079 Thanks
    EssexHebridean
    • #2
    • 12th Oct 16, 3:36 PM
    • #2
    • 12th Oct 16, 3:36 PM
    Welcome to Diary World! The good news is that the hardest bit is done - the adding up and the "OMG" moment. Lightbulb moment sounds like it has been achieved so well done you!

    You know the steps? SOA (Statement Of Affairs) first - link is in a sticky post on the main DFW board. Get that filled in with all your outgoings, and if you want to post it up in here you'll get lots of help and input with where it might be possible to make savings from other folk who0've been there done that and found somewhere that the t-shirt can be had for free...
    Then snowball your debts to prioritise which one gets attacked first.

    You mention student debts - are you a recent graduate? If so if you bank account/overdraft is still a student one have your bank made any murmourings about you moving to a "regular" account? I only ask because there's been the odd case of them doing that and demanding OD's get paid back sharpish..something to be aware of, possibly, but not worry over much about I would suggest.

    Having just spent 6 years being Self Employed/low earner I can identify with the good bits and bad bits - I'm still a low earner but now happily employed - the lack of earnings is a choice thing for me, to a degree - quality of life over money in my case.
    MORTGAGE FREE 30/09/2016
    • FullTimeAdult
    • By FullTimeAdult 12th Oct 16, 4:50 PM
    • 23 Posts
    • 55 Thanks
    FullTimeAdult
    • #3
    • 12th Oct 16, 4:50 PM
    • #3
    • 12th Oct 16, 4:50 PM
    Hello! Thank you for the advice!

    I'm not actually a recent graduate, but still have my overdraft. They haven't asked me to repay it (graduated 2010) but I do pay between 30 and 35 a month in interest.

    My credit rating is very poor at the moment, having left a bad relationship/situation and having to start again this year. BUT I'm okay now and trying to build a better future for myself.

    I'll check out the things you mentioned, thanks again for your help
    Debts £5956.40 £5927.36
    • FullTimeAdult
    • By FullTimeAdult 14th Oct 16, 12:47 AM
    • 23 Posts
    • 55 Thanks
    FullTimeAdult
    • #4
    • 14th Oct 16, 12:47 AM
    • #4
    • 14th Oct 16, 12:47 AM
    I was due a phone upgrade today but instead of going for the shiny new phone I opted for a sim only on a 30 day rolling contract, saving £15 a month.

    I've been reading through the forums, looking for tips, and I'm going to try eBay. I'm already on the cheapest energy tariff and don't have any unnecessary subscriptions as far as I'm aware, but I'm going to go through my accounts with a fine tooth comb and see if I can make any more savings.
    Debts £5956.40 £5927.36
    • Kitten868
    • By Kitten868 14th Oct 16, 7:52 PM
    • 766 Posts
    • 1,364 Thanks
    Kitten868
    • #5
    • 14th Oct 16, 7:52 PM
    • #5
    • 14th Oct 16, 7:52 PM
    Hello lovely

    I know you say you have a bad credit rating but have you tried the mse eligibility tool? If you get a credit card from mbna, virgin or Tesco you can do a money transfer to get rid of your overdraft. I know we aren't supposed to encourage each other to borrow more but £35 a month is shocking. Or you could apply for the flex direct with nationwide and get 0% overdraft for a year?
    Just taking charge of your finances is a big step so youre on the right track xxx
    Loan 1 £8000/£8000
    Loan 2 £5800/£5800
    Total £13800/£13800
    • FullTimeAdult
    • By FullTimeAdult 16th Oct 16, 7:02 PM
    • 23 Posts
    • 55 Thanks
    FullTimeAdult
    • #6
    • 16th Oct 16, 7:02 PM
    • #6
    • 16th Oct 16, 7:02 PM
    Hi Kitten, thanks for your reply. Yes, I actually got a 0% card using MSE's eligibility tool, however within a week of moving in together my partner lost his job, so I've had to use all available credit to keep us afloat. Thankfully he now has a new job, so we're back to playing catch up!

    Another little blip this weekend. Received a summons for paying council tax late (twice). Going to ring first thing Monday and hope they'll let me continue with the plan. I'm currently only a week behind on my monthly payments so fingers crossed.

    Also, had to borrow on one of the credit cards to buy food this weekend. I could get down about it and beat myself up but that won't do any good.

    I'll recalculate tomorrow after I've paid myself. Luckily my little business is doing okay at the moment. Silver linings...
    Debts £5956.40 £5927.36
    • Purplemumof2
    • By Purplemumof2 16th Oct 16, 7:55 PM
    • 3,928 Posts
    • 11,538 Thanks
    Purplemumof2
    • #7
    • 16th Oct 16, 7:55 PM
    • #7
    • 16th Oct 16, 7:55 PM
    Hi FTA,

    Everyone has blips, you're doing good and good luck to your OH on his new job.
    Official DFW Nerd Club - Member no. 791 - Proud to be dealing with my debts
    BC: £8850.00 Overdraft: £2750.00

    15 NSD - 8/15, 10 LSD - 3/10, 15 AFD - 1/15, Lunches to work 9/20

    20p Savers 2016 £2 Savers 2016 50p Savers 2016 SPC 9 2016 #003
    • FullTimeAdult
    • By FullTimeAdult 16th Oct 16, 10:00 PM
    • 23 Posts
    • 55 Thanks
    FullTimeAdult
    • #8
    • 16th Oct 16, 10:00 PM
    • #8
    • 16th Oct 16, 10:00 PM
    Thank you! Feeling much more positive after joining this forum and reading peoples' DFDs
    Debts £5956.40 £5927.36
    • EssexHebridean
    • By EssexHebridean 17th Oct 16, 10:22 AM
    • 6,338 Posts
    • 35,079 Thanks
    EssexHebridean
    • #9
    • 17th Oct 16, 10:22 AM
    • #9
    • 17th Oct 16, 10:22 AM
    Once you've made your call regarding the Council tax thing get it set up on a direct debit going forward so you CAN'T be late paying it again - by far the safest way of doing things is to have your priority bills (Rent/Mortgage/Council Tax/Heat/Light/Water) on DD then you KNOW those are going out as they should.

    Well done on the decision on the phone too - remember to adjust the figures on your SOA!
    MORTGAGE FREE 30/09/2016
    • FullTimeAdult
    • By FullTimeAdult 17th Oct 16, 9:51 PM
    • 23 Posts
    • 55 Thanks
    FullTimeAdult
    Hey, thanks! I sat in a half hour queue to speak to someone on the phone and it turns out I'm not actually behind, they sent the letter before I'd caught up. But yes, I've set up a DD now.

    Excuse my ignorance but what is a SOA? I've done a budget but it's difficult not having a steady income. I seem to have a base level that I definitely make every month though, that's been consistent for a year or so now. So I guess I should count that as my income and anything else is more to pay off the debts.

    I think that makes sense.
    Debts £5956.40 £5927.36
    • FullTimeAdult
    • By FullTimeAdult 18th Oct 16, 10:14 PM
    • 23 Posts
    • 55 Thanks
    FullTimeAdult
    New total: £5894.24 (back up a little due to interest).

    Good things:
    Paid a big chunk of council tax, this month's water bill in full and a bit towards the TV licence. Almost up to date on all household bills now (I think only around £50 in total which I will pay over the next few days).
    Went to a local shopping centre with my best friend and managed not to buy anything! (This is very good for me, past me would have bought a basket full of Primark stuff and an expensive lunch!)

    Not so good
    I did a spreadsheet to work out how long my debts would take to pay off (yay, fun). Obviously by paying minimum payments and with the ridiculous interest rates it would be far too long.... So my plan is to keep prioritising the debts Payday Loan > Credit Card #1 > Credit Card #2 > Overdraft

    I've tried the eligibility calc for 0% balance transfers again and still no joy, so I'm going to wait until the start of next year, hopefully I'll have more luck then when the loan's paid off and I've cut down the rest of it a little.
    Debts £5956.40 £5927.36
    • FullTimeAdult
    • By FullTimeAdult 22nd Oct 16, 5:12 PM
    • 23 Posts
    • 55 Thanks
    FullTimeAdult
    Today's total: £5877.19
    Debts £5956.40 £5927.36
    • FullTimeAdult
    • By FullTimeAdult 26th Oct 16, 5:11 PM
    • 23 Posts
    • 55 Thanks
    FullTimeAdult
    Total's gone up again (interest added), haven't added it up yet.

    Spent the day debt collecting. I'm owed over £500 from various unpaid invoices, refunds etc so I've sent out emails/made phone calls. One debtor is sending me a cheque (about £140), which I'll use to pay towards a credit card.

    Feeling pretty down/bored, sucks having no money
    Debts £5956.40 £5927.36
    • FullTimeAdult
    • By FullTimeAdult 2nd Nov 16, 1:27 PM
    • 23 Posts
    • 55 Thanks
    FullTimeAdult
    Someone paid an invoice without me having to take them to court. Yay!

    Total went up to over 6k but today stands at £5927.36.

    Business did well last month so I'm up to date on all payments now and have paid a little extra off my debts wherever I could. Fingers crossed for another good month.
    Debts £5956.40 £5927.36
    • FullTimeAdult
    • By FullTimeAdult 10th Nov 16, 3:15 PM
    • 23 Posts
    • 55 Thanks
    FullTimeAdult
    £5885.30

    Feels like I'm paying it off but the interest is killing me!

    But it's still progress...
    Debts £5956.40 £5927.36
    • EssexHebridean
    • By EssexHebridean 10th Nov 16, 3:32 PM
    • 6,338 Posts
    • 35,079 Thanks
    EssexHebridean
    Hey, thanks! I sat in a half hour queue to speak to someone on the phone and it turns out I'm not actually behind, they sent the letter before I'd caught up. But yes, I've set up a DD now.

    Excuse my ignorance but what is a SOA? I've done a budget but it's difficult not having a steady income. I seem to have a base level that I definitely make every month though, that's been consistent for a year or so now. So I guess I should count that as my income and anything else is more to pay off the debts.

    I think that makes sense.
    Originally posted by FullTimeAdult
    So sorry FTA - only just spotted this!

    SOA = Statement of Affairs. Useful tool to get your budget and your debt figures all lined up in one place - also helps you to establish whether you are paying everything you should be, and if posted in here, means others can comment to make suggestions of where savings can be made. The link to the SOA calculator is on the main DFW board, in the "Sticky" post at the top of the board.

    On the self-employment front - you ARE remembering to segregate off the right amount of everything you get paid for tax/NI, aren't you? I also used to strip 25% of everything right off the top - for me that was an overestimation, meaning I had a nice little leftover bonus in the account after the tax bill was paid!
    Last edited by EssexHebridean; 10-11-2016 at 3:35 PM.
    MORTGAGE FREE 30/09/2016
    • Bobarella
    • By Bobarella 10th Nov 16, 5:36 PM
    • 7,999 Posts
    • 51,305 Thanks
    Bobarella
    Just keep going, you will get there!
    £790 to pay =70% repaid
    RR 2016 #2 December £0.75 2016-£55.16 2015- £84.20)
    Wombling Free 2016#5 £2,230.66 2015 £1027.20
    NST December
    PAYDBX #7 £1910.53/£2,700 (70%)
    • Farcasting
    • By Farcasting 10th Nov 16, 6:18 PM
    • 93 Posts
    • 82 Thanks
    Farcasting
    Goodluck, you can do it!!
    Highest Debt £16041 @ 24/07/2016 Amount O/S £13047 @ 16/11/2016
    • FullTimeAdult
    • By FullTimeAdult 15th Nov 16, 2:32 PM
    • 23 Posts
    • 55 Thanks
    FullTimeAdult
    So sorry FTA - only just spotted this!

    SOA = Statement of Affairs. Useful tool to get your budget and your debt figures all lined up in one place - also helps you to establish whether you are paying everything you should be, and if posted in here, means others can comment to make suggestions of where savings can be made. The link to the SOA calculator is on the main DFW board, in the "Sticky" post at the top of the board.

    On the self-employment front - you ARE remembering to segregate off the right amount of everything you get paid for tax/NI, aren't you? I also used to strip 25% of everything right off the top - for me that was an overestimation, meaning I had a nice little leftover bonus in the account after the tax bill was paid!
    Originally posted by EssexHebridean
    Hello, thanks for the reply! I did the SOA but don't feel comfortable posting so much info online.

    Oh yes, I'm well acquainted with HMRC, I've been self employed for years! I use this program called Quickbooks Self-Employed, it makes everything so much easier!
    Debts £5956.40 £5927.36
    • FullTimeAdult
    • By FullTimeAdult 15th Nov 16, 2:34 PM
    • 23 Posts
    • 55 Thanks
    FullTimeAdult
    Today's total £5766.03 and all bills up to date!
    Debts £5956.40 £5927.36
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