Debt Free by December 2009!

crapwithcash82

Hi All,

I've been considering posting a "Debt Free Diary" on here for quite some time, so have decided to take the plunge and go for it. I think it will encourage me to keep at it and even if there aren't any readers or comments it will be somewhere for me to look back on my progress!

As you can see from my signature I have around £16k of debt, and I earn approx £21k per year with an annual review and rise each July backdated to March so the extra will just be chipped against the debt. I pay £308 via a debt management company who then pay my four creditors on my behalf.

I also have £947 coming my way in April 2009 for student fee's I have had to pay out. My studies are sponsored by my employers but they only pay 50% upfront and I had to pay the other half then claim it back in April when the course is complete so that will just be chucked towards the debt too.

After Christmas time I also plan to go to car boot sales etc, and I do list stuff on ebay too. I have almost done my Christmas shopping this year so hope to make a headstart on clearing my debts this year. I'm already using Qudico - which I love!.. and have a huge box of CDs to go through for Music Magpie. My birthday is in December and I'm getting an iPod from my OH and my daughter so once I have that I can get rid of the CDs!!

Sorry this is long winded, but any encouragement or suggestions are greatly appreciated!!

beanielou

You would be best to go to a non fee paying company so more of your money goes to paying of your debt.
Someone will be along with a link soon.

savingholmes

Good luck on your journey - Are you up for posting an SOA so we can comment on specifics? Have you joined the £10 a day challenge - I highly recommend it?

What are you doing to help you stay on track with Christmas spends? Look at the finished baskets thread for ideas on the Special Occasions Board - there is a photos only one...

savingholmes

http://www.moneysavingexpert.com/loans/debt-help-plan#help

You should be using a free debt management company otherwise you are probably being ripped off! See Martin's list of free debt counsellors above!

crapwithcash82

savingholmes wrote: »

http://www.moneysavingexpert.com/loans/debt-help-plan#help

You should be using a free debt management company otherwise you are probably being ripped off! See Martin's list of free debt counsellors above!

Thanks for this savingholmes, I will have a look at the list. The company I use seemed to just take one months payment as their fee, which was £308. If this was the case (and I'll need to check) would this be something I'd be able to claim back? Every little helps I guess!

crapwithcash82

Oh, one more thing, where do I find the SOA form?

crapwithcash82

Ahhhh!! I wrote a long post on here with my plans for the next two months and for some reason I got signed out!!

So my plan is as follows; I have a Next Account, a Credit Card and some stuff on my mums Debenhams Account which I need to clear before I look at additional payments to my debts. Also, my OH and I need a holiday this year, I've not been away since 2002 so we feel like we need a break. We have a relative who is in Dubai and are planning to go and stay there for a break. Anyway, I'm getting off the subject - my plan to pay these three small accounts are as follows:

Next Account is at £309.84, Credit Card is at £354.62 and Debs card has around £350 on it. I've paid minimum payments in December for them all but my plan is to clear them all by end of Feb. I want to pay the Debenhams account first as it is my mums, so I have £67 expenses coming from work in January and my Child Benefit £75.50 in about 10 days which will take the Debs account down to £207.50. I have a surplus of around £339 each month so when I'm paid in January I will pay off the £207.50. I will pay the minumum payment for Next (£32.25) The remaining £99.25 from my surplus of wages will go towards my credit card so the balance of that will be £255.37 as of 25th Jan.

I will then have my February Child Care payment (£75.50) which I'll use for the credit card making the balance of that £179.87. With my £339 surplus in February I'll pay off the credit card and then use £159.13 towards my next account which will take that balance down to £118.46. I'm hoping that between now and the end of February I will have sold enough bits and pieces on ebay and with things I have to car boot sale plus any quidco payments to pay off the Next Account.

Sorry its a long and boring post, but I feel like if I have written this on my diary here then I HAVE to follow it through!!

Also, any ideas to raise more money will be greatfully received! xxx

crapwithcash82

In addition to my HUGE post above, I've decided to aim to get rid of 2 of my debtors by the end of the year. I don't want to become obsessed with clearing my debts and want to have a bit of a life at the same time. My creditors are currently happy with my monthly payments so I'm happy if they are happy - to half the number of creditors I have by the end of 2009 would be fantastic. I'm currently studying to get my degree so that will get me a raise at work which will help if I still have these evil debts when I graduate!!

crapwithcash82

Okay, I have done my SOA - there are loads of 0's because my partner pays the mortgage (£800) plus council tax, gas, electricity, TV licence, Sky etc etc, I've not included his income as he is being extremely supportive by only accepting £200 per month for our outgoings which are around £1200 in total.

I also have £180 tuition fees each month until June for my degree course, which I will be able to claim back from work and I pay my parents £100 a month for previous debts they paid for me and also £50 per month to my Gran/Uncle who helped me buy my car. I have no phone costs because my OH pays the landline bill and I have a company mobile which I use. I don't really have much room for negotiations but any suggestions are welcome!!



Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 2 - only 1 is road taxed etc, other is my OHs pride and joy and tucked away safely in the garage for him to go and gaze at now and again!!
Monthly Income Details
Monthly income after tax................ 1302
Partners monthly income after tax....... 0
Benefits................................ 76.5
Other income............................ 0
Total monthly income.................... 1378.5
Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Rent.................................... 200
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 0
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 100
Clothing................................ 0
Petrol/diesel........................... 60
Road tax................................ 5
Car Insurance........................... 21
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 200
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 606

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 4000
Other assets............................ 0
Total Assets............................ 4000

No Secured Debt
Unsecured Debts
Description....................Debt......Monthly...APR
Consolidated Debt..............15366.....308.......0
Total unsecured debts..........15366.....308.......-

Monthly Budget Summary
Total monthly income.................... 1,378.5
Expenses (including secured debts)...... 606
Available for debt repayments........... 772.5
Monthly UNsecured debt repayments....... 308
Amount left after debt repayments....... 464.5
Personal Balance Sheet Summary
Total assets (things you own)........... 4,000
Total Secured debt...................... -0
Total Unsecured debt.................... -15,366
Net Assets.............................. -11,366
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.

crapwithcash82

New Spring/Summer 09 Next Directory has arrived..... and I've not even opened it - that is will power for me as I LOVE my next directory!!

crapwithcash82

Have just realised I have a quidco payment pending in January so this can go towards my plan, as per below, meaning I can well and truly clear these by the end of Feb!!


Debenhams Account £372
Payments for Dec/Jan Minimums £46
Quidco £45
Child Benefit Money £75
Expenses £67
Jan Pay £139 (Leaving £200 suplus)
Debs Paid!!

Credit Card £354.62
Min for Jan £9.45
Surplus from Jan Pay £200
Child Benefit Money £75
Feb pay surplus £90.17 (leaving £268.83)
Credit Card Paid!!

Next £309.84
Mins for Jan/Feb £ 64.50
Feb Pay surplus £245.34 (leaving surplus £23.49)
Next Paid!!

Which means my child benefit for Feb, along with my surplus of £23.49 PLUS anything made from Ebay can go straight into the savings/towards either our holiday or getting rid of an evil creditor!!