110K+ in debt

GettingThingsDone

Hi Ab16 and welcome to DFW.

It's a bit scary when you tot up all the figures and have your LBM, so thanks for sharing your SOA. The best thing is that now you've confronted your debt you can take charge in getting rid of it - it will take time, but it can be done. Is there any particular reason you've racked up the debts, as your outgoings look quite reasonable for someone earning what you do?

Do you have anything around the house/garage that you can sell? Just making some headway into those credit card debts could help bring you into a positive monthly balance, which will stop you from going backwards.

One of the things that really helped me was the whatsthecost credit card snowballer and playing around with the figures in there - the key thing it made me realise is that every £ does actually make a difference. My OH and I try and stick to the 'use or ornament' rule - everything else goes on ebay, to a charity shop or to the tip. Every £ can then go towards paying off debt, which in turn means less interest being paid out.

Anyway, good luck and keep posting!

gtd

withabix

shadydaz wrote: »

When do you get your bonus? I expect you would get about £10k after deductions..

20% of £64000 = £12800

I'd like to know where you pay your taxes :rolleyes: You seem to be forgetting the 40% band and the extended NI band.

Deduct Tax and NI off this and the OP will end up with less than £7000.

shadydaz

withabix wrote: »

20% of £64000 = £12800

I'd like to know where you pay your taxes :rolleyes: You seem to be forgetting the 40% band and the extended NI band.

Deduct Tax and NI off this and the OP will end up with less than £7000.

i do seem to be forgetting that don't I. having never entered the higher tax band on my wages it is not somehting i often think about..

ad9898_3

Sell your house, pay off all your debts, move into renting for 3 years, save like there is no tomorrow. Doing this while house prices are falling through the floor should put you in a good position in 3 years time.

You could save nearly 2k per month looking at your SOA, this could give you a deposit of 72k in 3 years and that is not including your bonus.

House prices are like to fall 35% from peak over the next 2-3 years, this means you could 'buy back' a similar house that you have now with a 70k mortgage in 3 years time.

An easy way to remove your 102k debt and put you back in where you are now, minus the debt obviously