Unsecured Debt Free by 2021

EmergencyNurse · 1 March 2018 at 7:54PM

Hello All. This is the start of my journey to becoming debt free (not including mortgage) by 2021.
No more loans, credit cards or catalogue purchases.

Smoking stopped, car sorn so no more tax or insurance. internet tv and magazine subscription cancelled.

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 1700
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1700

Monthly Expense Details
Mortgage................................ 468
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 90
Electricity............................. 70
Gas..................................... 70
Oil..................................... 0
Water rates............................. 54
Telephone (land line)................... 0
Mobile phone............................ 25
TV Licence.............................. 12
Satellite/Cable TV...................... 22.5
Internet Services....................... 21
Groceries etc. ......................... 50
Clothing................................ 0
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 41
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 14.5
Contents insurance...................... 14.5
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 952.5

Assets
Cash.................................... 0
House value (Gross)..................... 135000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 135000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 54462....(468)......0
Total secured & HP debts...... 54462.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Credit Card 1..................1291......33........0
Credit Card 2..................423.......0.........0
Loan 1.........................8188......263.......0
Catalogue......................685.......67........0
Credit Union...................647.......88........0
Overdraft......................350.......0.........0
Loan 3.........................3834......99........0
Loan 2.........................11288.....275.......0
Total unsecured debts..........26706.....825.......-

Monthly Budget Summary
Total monthly income.................... 1,700
Expenses (including HP & secured debts). 952.5
Available for debt repayments........... 747.5
Monthly UNsecured debt repayments....... 825
Amount short for making debt repayments. -77.5

Personal Balance Sheet Summary
Total assets (things you own)........... 135,000
Total HP & Secured debt................. -54,462
Total Unsecured debt.................... -26,706
Net Assets.............................. 53,832

Created using the SOA calculator
Reproduced on Moneysavingexpert with permission, using other browser.

EmergencyNurse · 1 March 2018 at 11:43PM

I was paid on Feb 26th and I’ve got £384 left. Still got loan payments of £99 and £268 mobile sim only pan still to pay along with a £32 minimum credit card payment to make. I’ll open my gas/ electric bill later…got to pace myself! Next payday 26th March. Counting down to payday already.

Months' Groceries.
ASDA Biscuit Assortment 700g !!!8232; ! 1x £0.80
ASDA Smart Price Mint Sauce 165g 1x £0.34
ASDA Smart Price Chopped Tomatoes in Tomato Juice 400g 10x £2.90
ASDA Smart Price Baked Beans in Tomato Sauce 410g 6x £1.38
ASDA Smart Price 15 Eggs 15pk 1x £1.19
ASDA Vegetable Oil 1l 1x £1.09
ASDA Smart Price Self Raising Flour 1.5kg 1x £0.45
ASDA Rich Roast Instant Coffee 200g 2x £3.58
ASDA Lentil Soup 400g 4x £1.80
ASDA Smart Price Concentrated Fabric Conditioner 42 Washes 1.47l 1x £0.66
ASDA Smart Price Sponge Scourers 8pk 1x £0.40
ASDA Beef & Vegetable Soup 400g 4x £1.56
ASDA Cream of Mushroom Soup 400g 4x £1.56
ASDA Leek & Potato Soup 400g 4x £1.80
ASDA Cream of Tomato Soup 400g 4x £1.56
ASDA Classic Pea & Ham Soup 400g 4x £1.80
ASDA Tomato Ketchup 500g 2x £0.76
ASDA Smart Price No Added Sugar Apple & Blackcurrant Squash 750ml 1x £0.42
ASDA Baker's Selection Square Cut Medium White Bread 800g 3x £1.65

Total £28.10 including delivery and carrier bags.
Lets see how far I get with this! I’m confident I can do it. So glad I’ve got some multi vitamin tablets lying around the house though, otherwise rickets and scurvy could be making a comeback. It’ll be fine, I’ll be creative with what I’ve got if I can be bothered. Cooking for one is such a faff. So long as I have enough calories it doesn’t really matter.

I’m on two weeks annual leave from work. So far I've had the pleasure of being snowed in, cigarette cravings and hunger!! On the plus side, its the first time Sky hasn't been affected by the snow. Happy Days.

Its going to be a very long three years, and there’s nothing left to cut back on is there?

groovychick69 · 1 March 2018 at 11:59PM

Glad it’s not just me waiting for the next payday.
Will you able to manage? Are the cards 0%

EmergencyNurse · 2 March 2018 at 12:08PM

The cards aren't 0% anymore unfortunately. Just before I cancelled my Experian subscription on Monday I checked to see whether I would be accepted for a balance transfer, the probability was only 10% of acceptance.

I'll manage somehow. I've got my health, food, warmth and a roof over my head. I just keep reminding myself that things could be worse.

fay66 · 2 March 2018 at 5:13PM

Good luck x Its hard on one income x

Moneywhizz · 2 March 2018 at 5:46PM

Looking at your SOA it doesn't seem as if this is sustainable for three years. The only thing that looks high is your Gas and Electricity. Does this include arrears or is there another reason why it is so high. Given the fact that you only have £50 for food I would say that you need to look at alternative ways of reducing the debt. Is a DMP an option? Have you contacted your creditors to see if you can make reduced payments for a while? Is there any way you can increase your income? It may just not be possible to have it paid off in three years but taking a slower route may allow you a little bit of life along the way. I don't think anyone could survive for three years on a £50 monthly food budget. As you pointed out it doesn't really allow you a balanced healthy diet. Just something for you to thing about and wishing you good luck with your journey anyway.

EmergencyNurse · 2 March 2018 at 6:52PM

Actually the gas and electric doesn't include arrears! I am being overcharged I'm sure. I sent a meter reading in in September and I didn't get another bill until i requested it last month. After requesting it I checked online and I was in credit by £100's. Yet in those two months since its crept up to over £200 in debt. I have previously asked them for a payment plan and all the would offer was a card meter. I'm not going down that root because for unknown reasons the charge is always higher per unit of fuel used.

I've been spending less than £50 a month for food for the last 2yrs, cupboard is full after just spending £28!

I received a DMP pack from StepChange yesterday, the bank account application pack they provided was with the bank i'm currently with so that seemed totally pointless.

My plan is to do overtime after the end of this financial year, i used to do additional agency shifts but HMRC kept changing my tax codes and I'd end up even worse off somehow.

System · 2 March 2018 at 7:18PM

Welcome and happy shiny new diary.
Be worth following up on the DMP option so that you can live a little and pay things back at a manageable rate. Have a read of the DMP sticky thread - you could do Stepchange or go self managed - and then you can choose which debt you hit down quickest etc, whereas with Stepchange everyone will get a % of whatever you can give. The NEDCAB website is an excellent resource to help you set things up.

Good luck. Will subscribe.

mej24 · 2 March 2018 at 7:36PM

Nothing to add, other than good luck with your journey :-)

beanielou · 2 March 2018 at 7:43PM

You could open a new basic bank account with a bankother than your main account.
Keep going & put posting

EmergencyNurse · 3 March 2018 at 2:33PM

Rather than go down the full DMP at this stage, I have decided to contact my credit card suppliers myself and ask if they'll stop adding interest to the outstanding balances.

Unsecured Debt Free by 2021

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