I am a Debt Free Wannabe...so where do i start

kirstenc

So I have decided to start my own thread, so that I have one main port of call when I am either bragging or crying over my escapades. So realistically, I can safely say that I have had my lightbulb moment about a week ago, and am desperate to get this malarkey all done and dusted!!

I have been lurking for a while and have been trying out some of the hints and tips, but without actually having anywhere to go, Ive been losing focus a bit. So, Hi!! Im Kirstenc, :beer:

So I have around 14500 debt :mad: , and am currently aiming high on the debt free in 2009 thread.

I hope I make it, i can only imagine how easier my life will be once all these bills stop coming outta my account, so rather than the school chasing me for dinner money cos I couldnt scrape it, or New Look phoning asking why my min payment didnt come out, I can look forward to having the means to live comfortably and much more happily. :rotfl:

The year has started well so far, I have just made £140 on ebay, with tons of other stuff to sell.
Recycled an old phone for £25.
(they only offered me 85p for the other, i think i'll send it to Tesco for the points, cos I can use them for deals!)
have done 3 surveys and have around £8 saved on the survey site, although I cant cash it just yet, I can see that this will come in handy!

So january, all in all not too bad, all the money that I have brought in has gone to my provident loan, cos thats the one with supremely massive interest, and theyre chasing me for it!

im a little worried that it may slow down, and will be muchly appreciative of any tips that you have, or challenges that you think would be helpful to join, so that I can reach my goal...to be free of debt in 2009!! :T

beanielou

Hi & welcome.
A LOVELY SHINY NEW DIARY
If I was you I think I would target Provident first ~best of Scottish

paybacktime2008

You probably know the drill....post an SOA and we can all give you advice where to cut back /save etc.

shazzer22

Hello and welcome, glad to see you!

paybacktime2008

yea aplologies ..........A big welcome!

nattypants

Hi Kirstenc:hello:

I just wanted to wish you the very best of luck from one lurker to another - oh and also you're from my neck of the Scottish woods so I will definitely visit your diary (if ok with you) to see you kicking the debtass to teeny-tiny smithereens;)

NP:cheesy:

kirstenc

THanks very much for the words of welcome, tis much appreciated. And your right about kicking the provident...HUGE APR!!
I have used that snazzy SOA calculator, so here it is...


Household Information[/b]
Number of adults in household........... 1
Number of children in household......... 1

Monthly Income Details[/b]
Monthly income after tax................ 1055

Benefits................................ 952

Total monthly income.................... 2007
Monthly Expense Details[/b]
Mortgage................................ 724
Secured loan repayments................. 226



Council tax............................. 120 (includes water rates in Scotland)
Electricity............................. 35
Gas..................................... 45


Mobile phone............................ 30
TV Licence.............................. 12
Satellite/Cable TV...................... 69 (home phone and internet together with this)
Groceries etc. ......................... 210


Childcare/nursery....................... 65
Other child related expenses............ 43.3
Medical (prescriptions, dentist etc).... 17.90
Pet insurance/vet bills................. 5.06
Buildings insurance..................... 25
Contents insurance...................... 20
Life assurance ......................... 5
Other insurance......................... 50


Emergency fund.......................... 100
Total monthly expenses.................. 1824.36[/b]

Assets
Cash.................................... 2000
House value (Gross)..................... 105000

Total Assets............................ 107000[/b]

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 108000...(724)......6.9
Secured Debt.................. 10000....(226)......8.2
Total secured & HP debts...... 118000

Unsecured Debts
Description....................Debt......Monthly...APR
Tesco Credit Card..............1150......30........16.9
New look card..................70........5.........18.9
provident......................400.......20........365.1
RBS overdraft #2...............2362......0.........20
RBS overdraft #1 ..............420.......0.........19.9
Total unsecured debts..........4402......55........

Monthly Budget Summary[/b]
Total monthly income.................... 2,007
Expenses (including HP & secured debts). 1,824.36
Available for debt repayments........... 182.64
Monthly UNsecured debt repayments....... 55
Amount left after debt repayments....... 127.64

Personal Balance Sheet Summary[/b]
Total assets (things you own)........... 107,000
Total HP & Secured debt................. -118,000
Total Unsecured debt.................... -4,402
Net Assets.............................. -15,402

broken down like that, it scares me, quite alot!!

this is prior to any payments this month, so technically the provident is £340 less than that, but the payment hasnt cleared yet!!

it says that I have money left at the end of the month, but it really doesnt feel like that.

Anyway, there you have it, out in the open!!! any help and tips as to where to start would be fantastic!!!

marfan_not_martian

Welcome Kirstenc
Good luck with your journey I look forward to reading about your ups and downs.

Everyone on MSE is lovely and offer great advice and are very supportive.

xxxx MSM

moo2moo

I know Provident are money grabbing systers but 365.1% Apr ? I guess thats a typo. Your surplus looks quite healthy but it will doesn't take into account the amount your bank adds in interest on your overdraft.

Your assets include £2000 cash. Is this accessible? Can you use it to clear Provident freeing up £20 a month. This would leave you with £1600 cash which would clear New Look freeing up another £5 a month. The remaining £1530 would then clear the smaller RBS overdraft and reduce the larger one by £1110 to 1252.

Then your debts would look more like :

Tesco Credit Card..............1150......30........16.9
New look card......................0...........0.........0
provident...............................0...........0....... .0
RBS overdraft #2...............1252........0.........20
RBS overdraft #1 .................0...........0.........0
Total unsecured debts..........2402......0........

You could then put the £25 a month from the zeroed accounts into the overdraft to reduce that, although with an APR of 20% it would take until 2017 to clear.

Your Tesco bill concerns me though. Of the £30 a month in repayments 50% of this is paying the monthly interest. It will take until July 2012 to clear.

You do appear to have a monthly surplus, at least on paper. Does this actually exist?

pixiechick99

Hi Kirstenc,
Just wanted to say hello too... Good luck with your dfw mission, you seem to have made a fab start in jan:D
Keep posting on your diary - I find it great for keeping me on track and focussed (even if I think I'm rambling to myself sometimes;) ) And it's fantastic to read back through it!

kirstenc

savings are not accessable unfortunately, although I wish they were!!! There are some family medical issues, which require occasional travel to and from medical centres, and hotel bills/cost of living for myself, I like having that available so that I can be nearby when required, rather that hitting the credit card again!

Hehe, thats just making things a bit more awkward, and I have considered if I can even dip into it, but in all honesty I dont know if I can risk it!

like I said though, I have paid £340 onto the provident, so theres really only a £60 balance on it now.

The surplus is confusing me, I dont know where it goes, but I am going to keep an eye on that. most of my payments come in weekly, so anything I have left on the day before payday, I am now going to put towards first provident and new look, and then the bigger chunks of debt!!