Have it all worked out

abby1234519

Well.. I posted a couple of weeks ago asking for help with my debt.

Since then I've done a barebones budget for every month for the next year.
My intention is to stick to it, I thought if I had a year's budget in my note book then I'd stick to it. So on each page I've listed things like Rent, Dog food etc. And how much I have budgeted for that. Then I've added up things like food (non-direct debits) and intend to transfer them at the start of each month, well the total amount, to my Natwest Cashcard, Step account, and can only spend what is on that card. It will vary for the next 3 months as I am going on holiday in Jan and need to spend nothing to be able to go.

I am also paying off the 1monthloan (s) this month (412.50 in total), I've paid £100 already off one, and we are getting a rebate of £122.45 from scottish power to put towards it. I think G will also give me £50 as that is how much I am short by. That will leave me with hardly ANY money at all, throughout November I won't be going anywhere nice! But thats fine, I'll take the month to focus on sorting the house out and also maybe earning some cashback online for free. Also I've had a couple of interviews for some part time bar work so if I do get a job I can see that bringing in maybe an extra £60 a week. Which I would use a bit of to treat myself to the occasional Freddo! But then I'd save the rest for the holiday.

Ooops went off subject! So...having paid off those loans.
Obviously everymonth I will still pay my £136.09 to Welcome Finance, I am including this in my household expenses for the time being. So I will pay Littlewoods, Capitalone and Additions £25 a month till February. I can't afford to pay them more till then. Actually I only owe Additions about £55 so I can sort that out before the end of the year. Anyway come Feb time I shall be able to have a less restricted budget, so can go to cinema once a month if I like, I've budgeted £20 for clothes as I am losing weight and it will probably be essential to buy smaller trousers! At this point every month I intend to transfer £125 to my cash card and that is my monthly spending. (I pay OH £350 a month which covers bills and food) I then can pay off £123 to Capital one and £123 to Littlewoods. I just thought that sum would bring the interest down a bit.. Then on till end of May I will pay £50 to Capitail One and about £250 to Littlewoods till that debt is paid (end of May), then have worked out I'll probably need another 2 months to pay capitalone off, will have about £300 left after my bills and that £125 you see. But I am accounting for a bit of interest.
Once I have paid that off, I am going to pay my usual direct debit of £136.09 to Welcome Finance. Now..I don't know whether to pay of an extra £200 a month, which would mean it paid if December (10 months ahead of schedule if I work out what the total is by 24 x 136.09). I don't know whether this would reduce interest or what the best way to do it is.

But I should be debt free by December 09.
HOWEVER, I also can earn bonuses at work. £250 for meeting company target, and another £250 for meeting my personal target with Sarah my other sales team member. So I can potentially earn another £500 well whatever that is after tax when added to my wages. That takes my salary up per year by another 6 grand, and that is a big incentive to work hard, because if I get a bonus and after tax it would be just under £350 extra, then I can keep a bit back for emergencies (although the other half says to let him worry about emergencies but still, I own the dog not him so.) and then pay debt off. I mean even if I only got 3 bonuses (which is unlikely as the company bonus is easy to get) a year that reduces my debt significantly!

Although, once I've paid everything off, possibly by middle of next year, which is good for 5 grand then what do I do with all my spare money!!!!!

Abi xx

bigbeff

You are lucky to have someone supporting you with this! I aim to be debt free by next december too (except mortgage!). Don't have quite as much as you to pay off, but then do pay mortgage £612 by myself!! Good luck with all the budgeting - I may do a similar idea

abby1234519

Hi

Well I use my HSBC account for my main things, I have it because OH also uses HSBC so its easier to send him money. Although what with this Faster payments thing, once I am out of debt I can probably look at a better account. I've also got an existing overdraft which needs paying off as its a student one and I dropped out of Uni before it even started

I just have no self control, I can't emphasise it enough so this will be a mountain of a struggle.
I am thinking once I am out of debt I'll be putting my volumes of extra money in isas and things to save for when we decide to move that way we'll have an even bigger start on the house. But thats not till 2010 at least

GeorgeUK

Hi abby, looks like quite a plan. Didn't follow it all, but one thing i noticed was you were paying amounts to debts that didn't seem to be the minimum.

If you have a look at the snowball calculator, it will show you how much interest you can save by paying the minimum to all debts and throwing everything else at the highest APR. Not sure if this will bring your debt free date forward, but possibly worth considering.

https://www.whatsthecost.com/snowball.aspx

Also you may be able to take advantage of balance transfer offers with your existing cards if you get a nil blance - possibly 0% for 6 months or a low interest life of balance that wil lhelp reduce some of the interest.

abby1234519

I only have one card, Capital One, and I think I need to pay Littlewoods back first as otherwise its off to the debt collection agency.