Finally had my LBM!

kate_pixie

Hi Tom,

Just wanted to say well done on your LBM.

I had my LBM at 19 and even though it took a while to pay off (being a poor student for 3 years) I got clear of credit card and catalogue debt just under two years ago. Sadly still working on the Graduate Overdraft though, lol.

Being young and addressing your debt problems is the best way to do it. It means you'll be financially sound by your mid twenties and will be able to carry these lessons on for the rest of your life. It also means you have a smaller debt to repay in the grand scheme of things.

I have a lot of friends who in their mid twenties are still using credit cards and loans (even mortgages now we're a bit older) to support an extravagent lifestyle, getting consolidations and 0% offers to lower monthly payments and then spend more.

I'm thankful for the mistakes I made when I was younger, as now, surprisingly, I'm the least in debt of everyone I know. :j So good on you Tom!

Tom_sharples

Ruby Slipper,

yes your lovely when theres something in it for you! ha ha. Nah I love her to pieces and really couldnt get through this without her.

Love that program and the Radio 1 game "OH whats occuring!?"

No trust me ive spent months lurking about on this website building up the courage to join and finally done it so its taken a long time.

Tom

Tom_sharples

Kate_pixie,

thanks for the encouragement its really going to help me out. Just like my new debtbuster buddy Ruby Slipper is going to aswell. I know that I was stupid to get into this mess but also a little bit grateful as i've learned one of lifes most important lessons, the value of money

thanks
tom

rubyslipper

Tom_sharples wrote: »

Ruby Slipper,

yes your lovely when theres something in it for you! ha ha.
Tom

I'd be offended by that if it wasn't true

Tom_sharples

Ahh well.

Its a well known fact that guys couldnt cope if there weren't any women around.

urg123

Tom_sharples wrote: »

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 0
Monthly Income Details
Monthly income after tax................ 695
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 695
Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Hire Purchase (HP) repayments........... 0
Rent.................................... 60
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 35 Reduce this - call the provider. If you are out of your contract go on PAYG
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 0
Clothing................................ 0 You should budget a little for this even if it is £10 per month
Petrol/diesel........................... 60
Road tax................................ 10
Car Insurance........................... 130 This is high - shope around. Use a cash back site like Quidco
Car maintenance (including MOT)......... 0 You should put something aside for this to prevent massive shocks if/when something goes wrong.
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
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)...... 10
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0 A small amount here per month will help in case you have soemthing unexpected come up.
Total monthly expenses.................. 305

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 400
Other assets............................ 0
Total Assets............................ 400

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
Lloyds TSB CC..................1214.65...100.......27.9
Lloyds TSB overdraft...........1559.72...100.......0
Co-operative O/D...............200.......20........0
Total unsecured debts..........2974.37...220.......-

Monthly Budget Summary
Total monthly income.................... 695
Expenses (including HP & secured debts). 305
Available for debt repayments........... 390
Monthly UNsecured debt repayments....... 220
Amount left after debt repayments....... 170
Personal Balance Sheet Summary
Total assets (things you own)........... 400
Total HP & Secured debt................. -0
Total Unsecured debt.................... -2,974.37
Net Assets.............................. -2,574.37
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

There we go people. I still live at home with the parents thats why i have no utility bills or anything like that. This is what I would like my finances to be starting from the end of april. However not sure what Lloyds are going to be like regarding the CC an overdraft as both are over their limits.(i have added the charges onto them though) so guna get straight at the end of this month and then start at the end of April with this plan unless anybody can help me get out quicker?

Thanks
Tom

Hi Tom

Good luck with your DFW journey - I've made a few comments on your SOA.

My guess is that you don't have £170 per month at the end of the month . I suggest you start a spending diary and write down every single penny. You'll get a much better picture of where your money goes and having to write it down does make you think about how you are spending.

Other things for you to think about are ways to make you money:

• sell what you can on ebay/amazon/greenmetropolis
• get a better paying job (hard in this climate)
• use cash back sites when you do buy things
• join challenges on this site - No Spend Days is one that I like

Hope this helps

urg x x

Tom_sharples

Thanks For the help URG.

Yes im currently doing the No spending days one. although unofficially havent joined the thread yet. Havent spent anything yesterday and today

And yes I kno that isn't what I have but I really have no idea where it goes so the spending diary comes into play when pay day comes around.

rubyslipper

Tom_sharples wrote: »

I really have no idea where it goes quote]

Me neither! I'm convinced I'm the victim of an elaborate ongoing fraud where someone else empties my account every month. It's got nothing, repeat NOTHING to do with my galavanting about spending money on bottles of wine and clothes. Nothing at all... Ahem.

Tom_sharples

And mine has absolutely nothing to do with the pizzas that i buy most weekends and crisps and mainly junk food.

Right from now I'm eating healthy no more c**p!

Tom

kate_pixie

Haha Ruby and Tom you do make me laugh!

Urg The Wise gives excellent advice, just tried following some of it myself! I'm with Orange and just reduced my phone bill by £15 a month, yay. Only took 5 mins on the phone, maybe you could try that too.

Also I know the car insurance is a hefty wedge and there's not a lot you can do about that, but I've been playing with the Cashback tool on here for my own insurance (due to change in May) and have seen that some companies are giving away £75 cashback!! Makes it a little easier to hand over the premiums if you feel like you're getting something back.

Good luck! Hope you keep us updated