Andrew's Debt Free Diary

andreweduk

Ok, so a few of you may have seen my posts asking about DMPs and generally looking for advice about my debt problem.

Basically, I live with my OH, I owe her some money, I owe banks/credit cards money too. I'm at the point where it just cannot go on any longer. With bank charges/interest/all the payments I have to make each month, even if I spent £0 on anything, I'd still be worse off at the end of the month, than at the start. I've been paying £50-£150 a month bank charges on my HSBC account and then there's my loan (£4k), two CCs (£4400 & £1700) and a couple of store cards. HSBC have threatened to withdraw my overdraft facility and rather than do my usual thing of ignoring it all and hoping it'll all go away, I thought, I've got to do something about this!

I've been struggling now with debt for over 3 years and it's just got me feeling so low and like there's no way out.

Anyway, I filled in the Debt Remedy on CCCSs website and it suggested a DMP as a suitable course of action, so on Monday, I filled in my details on there and I'm waiting to hear back. I also last Friday opened a new bank account with Nat West which I hope will be up and running in time to pay my wages in at the end of this month.

I'm trying to face these problems I've got and get out of Debt as fast as I can! I've read about reclaiming bank & CC charges and I'm going to try and persue this aswell

Also wanted to say a MASSIVE THANK YOU to this website and everyone who posts on it for their invaluable advice!! Anyway, ask me anything you like, encourage me and I'll try and keep you up to date, hoping this diary helps me to keep track

Midnight_Sky_2

Hi Andrew,

Welcome and good luck with your new diary. I find it's an excellent way to keep focused and keep on track of what I'm doing.

You sound pretty much on top of things, but why not post an SOA - there might be something that we can help with.

I'm looking forward to following your progress.

Midnight x

Miss_Piggy_2

Hi again Andrew
Well done on getting started on this. Been thinking about doing my own diary ...will see if I have time.
Good luck

Miss P
xx

andreweduk

Ok, so here's my SOA. This probably doesn't reflect where I am at the moment, but where I hope to be if I do a DMP. Eg. I don't spend anything on clothing or things at the moment, but I need to budget for these in my debt remedy, so thats how they are on here. What this doesn't show, are the bank charges I have every month, or the £100pm I'm paying back to my OH (basically through paying more of the bills).

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 1067
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1067

Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Rent.................................... 250
Management charge (leasehold property).. 0
Council tax............................. 50
Electricity............................. 20
Gas..................................... 20
Oil..................................... 0
Water rates............................. 15
Telephone (land line)................... 10
Mobile phone............................ 35
TV Licence.............................. 15
Satellite/Cable TV...................... 10
Internet Services....................... 10
Groceries etc. ......................... 130
Clothing................................ 20
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 75
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 10
Buildings insurance..................... 0
Contents insurance...................... 12
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 12
Haircuts................................ 10
Entertainment........................... 40
Holiday................................. 15
Emergency fund.......................... 10
Total monthly expenses.................. 769

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

No Secured Debt

Unsecured Debts
Description....................Debt......Monthly.. .APR
HSBC Credit Card...............4400......125.......18
Beneficial Credit Car..........1700......35........25
HMV Card (Style)...............250.......15........30
HSBC Loan......................4000......125.......9
HSBC Overdraft.................1600......0.........10
GE Money Store Card............200.......8.........30
Total unsecured debts..........12150.....308.......-

Monthly Budget Summary
Total monthly income.................... 1,067
Expenses (including secured debts)....... 769
Available for debt repayments........... 298
Monthly UNsecured debt repayments....... 308
Surplus(deficit if negative)............ -10

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total Secured debt...................... -0
Total Unsecured debt.................... -12,150
Net Assets.............................. -12,150

andreweduk

Miss_Piggy wrote: »

Hi again Andrew
Well done on getting started on this. Been thinking about doing my own diary ...will see if I have time.
Good luck

Miss P
xx

I know, I'm a bit worried about time to do it, but I get online a couple of hours a day at work, so hoping to find time to do it at work!!

Harrybrattbakk

! thing you could do is transfer your CC debit to an interest free card for 12 months plus which could help. I did that with Tescos and after the initial 12 months i then phoned them up to asked about any promotions and they offered me an additional 6 months interest free (so 18 months total) or 6.9% APR for the lifetime of the balance which is alot better than 18%

Pippilongstocking

Just wanted to say goodluck and look forward to the diary, seems to help alot of folk - maybe I need one too instead of emptying my head into the 'what small things thread....'

Not being rude or anything I did one of these and some folk suggested some things -

If you ditched the entertainment (40), clothing (20), you could get rid of the 30% card in a couple months - or even a few other things like haircuts, presents, internet? if you have it at work anyway etc for just two months you'd have enough to pay the balance off and then save £8 a month from that card.

Did a SOA a bit back and just cutting out entertainment and some other bits we saved over 100 a month - we know its short term so it was a bit easier to make the ditch. Now if we do have a treat its out of my grocery budget - so I find myself eating more efficiently out of the cupboards to allow us the odd takeaway etc

But hey - good luck with it all - not in any way a critisim just a freindly observation xx

debtmuncher

thats fab! i am glad you have come to a final decision.

just a wee warning on changing credit cards....that could be seen as taking on more credit in cccs eyes so best not to change cards. if all your details have gone (think you have done this) then best to leave it all as it is.

debtmuncher

fayjmck wrote: »

Just wanted to say goodluck and look forward to the diary, seems to help alot of folk - maybe I need one too instead of emptying my head into the 'what small things thread....'

Not being rude or anything I did one of these and some folk suggested some things -

If you ditched the entertainment (40), clothing (20), you could get rid of the 30% card in a couple months - or even a few other things like haircuts, presents, internet? if you have it at work anyway etc for just two months you'd have enough to pay the balance off and then save £8 a month from that card.

Did a SOA a bit back and just cutting out entertainment and some other bits we saved over 100 a month - we know its short term so it was a bit easier to make the ditch. Now if we do have a treat its out of my grocery budget - so I find myself eating more efficiently out of the cupboards to allow us the odd takeaway etc

But hey - good luck with it all - not in any way a critisim just a freindly observation xx

its probably best to have those amounts of money set aside in a savings jar/tin/box/under the mattress because whilst you might not need it this month you might need some clothes next month thats going to cost more than £20

halight

Hi mate,
Glad tp hear you are getting it sorted. Iv been a a DMP now for 5 years and im now coming to the end were i will be free of the debts!!!!!!
Its well worth it mate in the end. While you are on the plan mate try and build up some savings too Iv been able to build some up and it feels great to have some money in the bank.
Good luck mate
Good luck

debtmuncher

halight wrote: »

Hi mate,
Glad tp hear you are getting it sorted. Iv been a a DMP now for 5 years and im now coming to the end were i will be free of the debts!!!!!!
Its well worth it mate in the end. While you are on the plan mate try and build up some savings too Iv been able to build some up and it feels great to have some money in the bank.
Good luck mate
Good luck

that is fantastic news!! we are estimated to be debt free in 2012 so quite a long time away!