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    • chelseablue
    • By chelseablue 1st Aug 17, 3:31 PM
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    chelseablue
    Journey to £0 by 2020, with a few bumps along the way
    • #1
    • 1st Aug 17, 3:31 PM
    Journey to £0 by 2020, with a few bumps along the way 1st Aug 17 at 3:31 PM
    Hi everyone!

    Just been reading some diaries on here and thought I need to add my own. Hopefully I will get some encouragement or just stop myself going insane

    A bit about me; I'm 34 and live in Berkshire with my partner and our 3 year old son.

    We are getting married next year so am saving towards that, plus we have a lease car that goes back in April so need to get another car. So am saving for that.

    Oh and we are going on holiday next December to Australia so need to save for that too!

    2018 is looking to be expensive

    Onto the reason I'm here: DEBT

    We owe the following:

    Lloyds credit card: £3,219
    Sainsbury's credit card £1,392

    Oh and a mortgage of £221,000 (!)

    The credit cards are 0% until 2020 so everything I send to those comes off the total.

    Currently the DD to Sainsbury's is £40, which will clear it by 2020 so I just leave that for now.
    The DD to Lloyds is also £40 so I need to concentrate my efforts here otherwise the balance will still be about £2,000 when the 0% ends.
    Determined not to have to transfer it on to another 0% deal!

    We earn £63,000 between us so am sure we can do it.

    Hopefully I've just paid the last £850 a month childcare invoice as our son is 3 now so is eligible for the Government funded hours from September.

    Will post our SOA shortly

    If you've read this far well done and thank you!!
    Mortgage starting balance 26.02.16 £231,294
    Mortgage after Year 1 £225,078
Page 2
    • chelseablue
    • By chelseablue 10th Aug 17, 11:14 AM
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    chelseablue
    A rather spending day yesterday. £230 on getting the car serviced.
    It also needs 2 new tyres that are being done next week

    At least it was something needed and not frivolous spend.

    I paid it on my credit card, but only for the cashback, I then transferred the money from savings straight to the card.

    Will be spending again today at lunchtime but only for shampoo and conditioner. Cant cut those out
    Mortgage starting balance 26.02.16 £231,294
    Mortgage after Year 1 £225,078
    • chelseablue
    • By chelseablue 16th Aug 17, 12:50 PM
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    chelseablue
    Still plodding along. When hubby's car was serviced last week we were told it needs 2 new tyres.


    Been going to the garage for years and the guy knows my Dad so I know it actually does need them and they're not conning us


    £57 each including the fitting so that'll be £114 getting spent out next week.


    Then my car has the MOT due in October but they only charge me £30 for that. Fingers crossed it doesn't need anything else doing!


    DEBT as at today:


    Lloyds: £3,208 (Going to see if I can get this under £3k in September)
    Sainsburys: £1,352
    Mortgage starting balance 26.02.16 £231,294
    Mortgage after Year 1 £225,078
    • chelseablue
    • By chelseablue 21st Aug 17, 3:26 PM
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    chelseablue
    £12.84 paid to Lloyds credit card today, balance will update overnight so tomorrow will be £3,187.16

    Sent £500 to wedding savings today and still have £650 to last until payday on Friday.

    But need to pay for new tyres tomorrow that's £114, plus £120 to NEXT (I clear the balance in full if I ever order from them).

    Plus £120 to Barclaycard (this is the only actual physical card I have and pay it off in full if I ever use it).

    So that will leave £296. Not sure whether to transfer this to savings or pay it off a card??

    DEBT

    Lloyds: £3,187
    Sainsburys: £1,352
    Mortgage starting balance 26.02.16 £231,294
    Mortgage after Year 1 £225,078
    • chelseablue
    • By chelseablue 23rd Aug 17, 11:47 AM
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    chelseablue
    New tyres done yesterday, £114

    Next account paid off, £120. Balance now £0

    How sad is this but I'm eagerly awaiting the invoice from the Nursery for September (never thought I'd be saying that!)

    We are now eligible for the 30 hours a week from the Government so going forward we'll be paying less than the £850 a month we were.

    Payment is due by the 1st so invoice should be any time now. I'm sure we wont be as better off as I think but we'll see
    Mortgage starting balance 26.02.16 £231,294
    Mortgage after Year 1 £225,078
    • chelseablue
    • By chelseablue 29th Aug 17, 4:11 PM
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    chelseablue
    Invoice from the nursery received! Gone from paying £850 a month to....... £472

    So the childcare bill is now cheaper than the mortgage payment for the first time!

    Might blow some money on a Chinese tonight to celebrate
    Mortgage starting balance 26.02.16 £231,294
    Mortgage after Year 1 £225,078
    • enthusiasticsaver
    • By enthusiasticsaver 29th Aug 17, 9:23 PM
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    enthusiasticsaver
    Excellent news that childcare bill dropped by so much and that will help with your savings pots. I think as you have a lot of expenses next year and the cards are at 0% I would stop spending on them and pay enough every month to clear within the interest free period. Once your savings are at a high enough level to cover your wedding, holiday and car then redirect to the cards.

    How did the debt accrue in the first place?
    Countdown to early retirement on 21.12.17 3 months to go.
    • enthusiasticsaver
    • By enthusiasticsaver 29th Aug 17, 9:26 PM
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    enthusiasticsaver
    Why have you not put anything on the holiday or car maintenance category in your soa? How much do you need to save for wedding, car and holiday?
    Countdown to early retirement on 21.12.17 3 months to go.
    • enthusiasticsaver
    • By enthusiasticsaver 29th Aug 17, 9:37 PM
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    enthusiasticsaver
    It looks like around £90 a month would clear the Lloyds card by 2020 depending on what time of year the deal expires. I think I would increase the direct debit to £90 as you have plenty of disposable income and then hit both cards hard in 2019 after your expensive year.

    We have separate funds for car, home improvements and holiday. It forces us to budget and divide the cost by 12 so it is less of an issue when they need paying for. We factor in car depreciation, white good depreciation and decorating to the home and car funds. This might be worth considering for you. I would not touch your s and s isa. Saving for the future is important too and the earlier you start the better. If you have £1600 spare every month now the child care is reduced that is an extra £50 to LLoyds and £1550 to savings. You don't seem to have put your £25 a month into your isa on the soa so I am guessing you do not normally have the £1222 spare each month? Have you left off insurances or are they included in mortgage payment?
    Countdown to early retirement on 21.12.17 3 months to go.
    • chelseablue
    • By chelseablue 30th Aug 17, 9:12 AM
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    chelseablue
    Excellent news that childcare bill dropped by so much and that will help with your savings pots. I think as you have a lot of expenses next year and the cards are at 0% I would stop spending on them and pay enough every month to clear within the interest free period. Once your savings are at a high enough level to cover your wedding, holiday and car then redirect to the cards.

    How did the debt accrue in the first place?
    Originally posted by enthusiasticsaver
    Yes that's the plan.
    The Sainsbury's card of £1,300 is when my partner went through a total idiot phase and basically lived way above his means. It was originally on a Capital One card that was about 20% interest (!).
    So we BT'd it over to Sainsbury's 0% for 40 months, the card was destroyed as soon as it arrived.
    Also my partner now does not have a credit card at all

    The Lloyds one is from when we first moved into our house last year, we had to have some work done on the roof (I did used to have £40,000 in the bank but put it down on the house as a deposit)

    Before last year the most I've ever owed (not including mortgage) is about £500 so this £4k plays on my mind all the time!

    Why have you not put anything on the holiday or car maintenance category in your soa? How much do you need to save for wedding, car and holiday?
    Originally posted by enthusiasticsaver
    What I do is whatever is left the day before payday gets put into one savings pot and I pay anything for the car etc out of that.

    For the wedding we still need £6,000. But £2,400 is coming from my Dad and £1,000 is coming from mother in law.
    So we need to save £2,600. Should have that done before Christmas and the wedding is in June.

    Need to save about £5,000 for a car. Partner gets his bonus in February and I get mine in March, both together will be about £5k (unfortunately tax and NI gets taken off!)

    It looks like around £90 a month would clear the Lloyds card by 2020 depending on what time of year the deal expires. I think I would increase the direct debit to £90 as you have plenty of disposable income and then hit both cards hard in 2019 after your expensive year.

    We have separate funds for car, home improvements and holiday. It forces us to budget and divide the cost by 12 so it is less of an issue when they need paying for. We factor in car depreciation, white good depreciation and decorating to the home and car funds. This might be worth considering for you. I would not touch your s and s isa. Saving for the future is important too and the earlier you start the better. If you have £1600 spare every month now the child care is reduced that is an extra £50 to LLoyds and £1550 to savings. You don't seem to have put your £25 a month into your isa on the soa so I am guessing you do not normally have the £1222 spare each month? Have you left off insurances or are they included in mortgage payment?
    Originally posted by enthusiasticsaver
    Lloyds ends in February 2020, you have hit the nail on the head with regards to increasing the direct debit. I will increase it to £90 today.
    At least then I'll know it will be cleared by 2020 and by the time 2018 is over I'll be able to pay them off quickly

    The buildings insurance I paid in full in February, life insurance we have through work.

    I really need to update my SOA.

    Thank you enthusiasticsaver for your advice
    Mortgage starting balance 26.02.16 £231,294
    Mortgage after Year 1 £225,078
    • chelseablue
    • By chelseablue 30th Aug 17, 9:44 AM
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    chelseablue
    Well I've done it just gone online and changed the direct debit to the Lloyds card.

    And instead of £90 I've increased it to £110 a month

    That way coupled with the £40 to Sainsbury's I'm paying a nice round £150 a month off
    Mortgage starting balance 26.02.16 £231,294
    Mortgage after Year 1 £225,078
    • chelseablue
    • By chelseablue 1st Sep 17, 1:16 PM
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    chelseablue
    I started a new job in January and they have at last set up a Childcare Voucher Scheme, so from this month will be paying £243 of the nursery bill with the vouchers.

    I've already started looking up the cost of local after school clubs for September 2018 when my son starts school
    Mortgage starting balance 26.02.16 £231,294
    Mortgage after Year 1 £225,078
    • chelseablue
    • By chelseablue 1st Sep 17, 1:33 PM
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    chelseablue
    New SOA below

    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.................... 1 We have 2 cars but only own 1 of them (other is leased)

    Monthly Income Details[/b]
    Monthly income after tax................ 1974 Gone down a bit due to now receiving childcare vouchers
    Partners monthly income after tax....... 1750
    Benefits................................ 82.8
    Other income............................ 0
    Total monthly income.................... 3806.8


    Monthly Expense Details

    Mortgage................................ 720
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 154
    Electricity............................. 24
    Gas..................................... 24
    Oil..................................... 0
    Water rates............................. 20
    Telephone (land line)................... 0
    Mobile phone............................ 28 For 2 phones
    TV Licence.............................. 12.12
    Satellite/Cable TV...................... 35
    Internet Services....................... 35
    Groceries etc. ......................... 200
    Clothing................................ 0
    Petrol/diesel........................... 150
    Road tax................................ 19.25
    Car Insurance........................... 43
    Car maintenance (including MOT)......... 0
    Car parking............................. 0
    Other travel............................ 130 Lease car
    Childcare/nursery....................... 229 This is the amount I will need to transfer from the bank after using the £243 of vouchers
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 0 Already paid in full for this year
    Contents insurance...................... 0
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 50
    Haircuts................................ 20
    Entertainment........................... 120
    Holiday................................. 0
    Emergency fund.......................... 0
    S&S ISA.......................................25
    Total monthly expenses.................. 2038.37[/b]


    Assets

    Cash.................................... 9600
    House value (Gross)..................... 430000
    Shares and bonds........................ 5116
    Car(s).................................. 1500
    Other assets............................ 0
    Total Assets............................ 446216



    Secured & HP Debts

    Description....................Debt......Monthly.. .APR
    Mortgage...................... 221680...(720)......1.49
    Total secured & HP debts...... 221680....-.........-


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    Lloyds ........................3182......110.......0
    Sainsbury's ...................1352......40........0
    Total unsecured debts..........4534......150.......-



    Monthly Budget Summary

    Total monthly income.................... 3,806.8
    Expenses (including HP & secured debts). 2,013.37
    Available for debt repayments........... 1,793.43
    Monthly Unsecured debt repayments....... 150
    Amount left after debt repayments....... 1,618.43


    Personal Balance Sheet Summary
    Total assets (things you own)........... 446,216
    Total HP & Secured debt................. -221,680
    Total Unsecured debt.................... -4,534
    Net Assets.............................. 220,002


    Created using the SOA calculator at www.stoozing.com.
    Reproduced on Moneysavingexpert with permission, using other browser.
    Mortgage starting balance 26.02.16 £231,294
    Mortgage after Year 1 £225,078
    • chelseablue
    • By chelseablue 6th Sep 17, 9:00 AM
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    chelseablue
    £40 direct debit went to Sainsbury's card yesterday, balances now are:

    Sainsbury's: £1,312
    Lloyds: £3,182
    Mortgage starting balance 26.02.16 £231,294
    Mortgage after Year 1 £225,078
    • chelseablue
    • By chelseablue 11th Sep 17, 8:49 AM
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    chelseablue
    Bit of a spendy weekend

    My car needed 3 new tyres, so that was £111, but £37 each tyre isn't too bad I guess.
    Need to book in for its MOT this week so that'll be another £30

    I hope now that I've lavished it with 3 new tyres it'll say thank you by passing

    On the plus side child benefit was paid today so that's £82 into the account
    Mortgage starting balance 26.02.16 £231,294
    Mortgage after Year 1 £225,078
    • chelseablue
    • By chelseablue 14th Sep 17, 8:43 AM
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    chelseablue
    Not sure if any one actually reads my diary but I'll ramble on anyway.

    Partner was cooking a curry last night for dinner but it ended up being WAY to spicy to eat.
    I suggested I make beans on toast but that idea didn't go down well so ended up spending £18 on a Chinese

    My car is booked in for its MOT on Monday that'll cost £30. Hopefully doesn't need any work

    Debt
    Lloyds card: £3,182
    Sainsbury's card: £1,312

    Savings
    Wedding account: £9,000
    S&S ISA: £5,126

    I'm always so tempted to use the S&S ISA money to pay off the debt!
    Then the £150 a month that goes to the cards I would just send to the ISA
    What stops me is the cards are both 0% plus £150 a month would take about 3 years to build the ISA back up to what it is now
    Mortgage starting balance 26.02.16 £231,294
    Mortgage after Year 1 £225,078
    • ChasingSunshine
    • By ChasingSunshine 14th Sep 17, 12:20 PM
    • 92 Posts
    • 740 Thanks
    ChasingSunshine
    Hi just read through and sounds like you are doing great. Fingers crossed the car sails through the MOT.
    • Purplemumof2
    • By Purplemumof2 14th Sep 17, 1:08 PM
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    Purplemumof2
    You're doing really well hun.

    Fingers crossed your car behaves and it sails through the MOT with flying colours
    Official DFW Nerd Club - Member no. 791 - Proud to be dealing with my debts
    MBNA: £7400.00 Cap 1: £562.23 BC: £4577.81 Overdraft: £2750.00

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    • chelseablue
    • By chelseablue 14th Sep 17, 2:32 PM
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    chelseablue
    Thank you both, I hope so too!
    Mortgage starting balance 26.02.16 £231,294
    Mortgage after Year 1 £225,078
    • chelseablue
    • By chelseablue 19th Sep 17, 1:46 PM
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    chelseablue
    Car passed its MOT yesterday! So that's it for another year.

    It's pay day on Monday and still have £1,562 left, that's the best month we've had in about 2 years!

    All bills have been paid except £110 direct debit to the Lloyds card which will be taken Thursday.
    Also its our anniversary on Saturday so might go for a meal. Celebrating 5 very long years together
    Mortgage starting balance 26.02.16 £231,294
    Mortgage after Year 1 £225,078
    • enthusiasticsaver
    • By enthusiasticsaver 19th Sep 17, 2:15 PM
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    enthusiasticsaver
    Well done on increasing direct debit to Lloyds. These cards are so much easier to clear if the monthly payment is calculated to clear within the interest free deal and no further spending is done on them. You can then just leave them to run knowing no interest will be paid.

    I would say on the buildings insurance even though you have paid in full this year if you put money aside for it monthly it will be waiting there ready to pay next years bill when it falls due. We have a separate account for annual expenses like holidays, presents,xmas, insurances, car maintenance, boiler services etc etc. I guess when your savings pot reaches £11600 for your wedding and the bonuses are for the car then all your savings next year are for Australia?

    I do not think you should cash in your s and s isa. You have no real debt apart from the mortgage and long term savings are important (the only reason I and my husband retired early at 58 is because we made pensions and long term savings a priority even in our 20s and 30s).

    Overall though I am impressed at the way you have arranged your finances in spite of high cost child care and living in the south east. Yes you could say £63k is a high income but I know of people who earn more and have much more debt than you. Well done for not succumbing to borrowing for these large expenses you have.
    Countdown to early retirement on 21.12.17 3 months to go.
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