Hypno's recession busting debt diary.....

hypno06

benbenandme wrote: »

Is that based on what you're already paying off your debts Hypno? Or if not, how much do you already have towards the debts and how much do you need to find if that makes sense?

Ok, a bit of a breakdown of numbers then.....sort of!

My minimum payments each month are £1440.43........that would give a DFD of 43 months or March 2012. Out of that, interest each month is anything up to £445.94, so in real terms the debt decreases by about £1000 a month provided minimums are met.

However, I have been working on the basis of paying £2750 a month (yes, I know, bloody daft) which is working well so far (!) and will continue to do so provided I have all the extra MSE stuff coming in the same way as it has so far.........which brings my DFD down to 20 months or April 2010. Interest each month is anything up to £328.80 meaning that the capital comes down by £2421 or there abouts each month.

(there seems to be a big difference in the interest figures, but that is what the snowball calculator tells me so that is what I am basing things on!)

So, in order to pay off the whole amount in 20 months (600 days) I need to pay a total of £85.90 a day (or equivalent) off the capital in order to stay on track. Interest will obviously be extra but will change month on month depending on how much is outstanding at the time.

Confused yet? I certainly am!!!

I can't even remember what the question was!

pandapaws

That's a really great way of looking at it Hypno

*Panda scurries off to divide £84,000 by 20, then turns rather pale, then remembers it's 20 months, not 20 days, re-divides 84k by 60 and turns just as pale again!*

What are the coloured squares?

pania

oooh thats a good game....

23555 divided by 365 = £64.53!!!!!!!:eek:

hypno06

Coloured squares......

I have over £50000 of debt to pay, and want to move house so will need at least another £50000 saved up for a deposit.

So, that is £100000 i need to find before I can consider moving.

So breaking it down into "squares of £50 each" that means I have to fill in 2000 squares before I can move.

2000 lots of £50 sounded lots more manageable than £100000!

So I made a grid on A4 paper - the nearest I could easily get to 2000 squares was 45x45 = 2025 squares.

Every time I pay off £50 capital, or save £50 (yeah right) I get to colour in a square and I am one step closer to moving house!

But with only 78 coloured in, I have a way to go :rotfl:

Snaggles

*reads Hypno's post*

*goes to take some paracetamols*

*comes back and re-reads it*


Yes, that all seems to make sense - that's a huge overpayment so I can see why things are very tight for you, and it's a tribute to how determined you are that you have kept going the way you have.

£85 a day sounds like a lot, but you have already been doing it, so it does look achievable, although challenging. Twenty months - that would really be fantastic!

pandapaws

Another good idea I might steal - I should come here more often!

redsquirrel80

pania wrote: »

oooh whats this "making up for the loss of the 10p rate? i am already slightly better off as a result of the loss of the 10p and not seen anything suggested that makes up for it?

They announced it a few months back - £60 payment in September then £10 a month for the next six months for everyone on basic tax level. With the loss of the 10p tax rate, the change in NI and a change in my pension payments I ended up...... 30p better off a month :rotfl:

The squares idea sounds great Hypno, very motivating :j

gailey_2

That sounds like a very high amount hypno good luck with it as £2750 is more money than hubbys net income of £34grand +bonus
Is that taking into account your wages or hubby as well?
Also within that£2750 is morgage and bills included? Or is that separate on top?
As our rent of £650+bills utilities, insurance, council tax comes to 1000 a month just by itself

Does your job pay super good or are you relying on other things like pigsback,quido, suveys, mystery shops, ebay, comps, gambling ect?

Also there may be months when you need money for other things like holidays, birthdays and unexpected car costs.Or do you have separate saved funds for that?

We are having probs with petrol latly and only run one car!Hubby mainly uses it for work, supermarket or local shopping approx 400miles a month and flat rate is 150 petrol but once a month we have step son so have to pay petrol to wales and bridge cost, just got back from wales for mams wedding so blow our petrol latly.Luckily bikes ok 4 petrol as never go far.


I need serious chat with hubby about debt repayments as its not going down and livings more expensive!

Snaggles

This might be a silly question, but would you need to save the full £50k to move house? I'm just thinking that you would receive a deposit from whoever bought your house - wouldn't that count towards the £50k? Or would you need £50k in addition to that?

Sorry if you've said before.

hypno06

Hi gailey, the best thing to do is to nip back to the first page of this diary as it explains everything.

But, yes, I earn less than your hubby......and my OH earns much much less than me......so most of it has to come from "extras"

Snaggles, I would need another £50000......on top of whatever equity we have to make it even worth considering - that is also a bit of an underestimate really, considering where I want to move to!