New Baby, New Start, BIGGG debts!! 26 April 2009 at 11:37AM edited 5 June 2009 at 7:50PM in Debt free diaries 147 replies 6.3K views

talisker78

I haven't been on this site for very long (newbiie!) but I saw this particular thread and thought what a great idea - a debt diary.

For me it will be a great to look back when I'm debt free (BIG aspiration!) and see how the hell I managed it, cause frankly, right now, it just doesn't seem possible.

Current debts are:

Tesco Loan - 24,800. 5.8% (7 years to go)
Capital One Card - £6,800. 9.1%
Bank of Scotland - £8,700. 15.9%
Barclaycard - £6,400. 6.9%
Sainsbury's Card - £2,500. 6.9%
HSBC - £1,800. 22% :mad:

Total: £50,000 (ouch)

Its horrible even looking at that figure. I mean, £50,000 - thats a third of the value of our house. Its mad to think i've racked that up.

I'm trying to 'snowball' - I think thats the term - all my cards. Next on the list is HSBC with a shocking rate of 22%. No idea how they can justify that given that I'm also an HSBC account holder and Mortgage holder - what a cheek! Banks.... what a bunch of gits..... :mad:

About the only thing keeping me going is the impending arrival of our first child. It has kicked me into shape big-time and got me to face up to my debts. My wife is due on 13th June. After that date, money is going to be harder to find than a good Van Damme film.

My credit rating is good, despite the mess I'm in. Its taken so much work to keep it good and god knows how I've managed it frankly. No-one will give me anymore lending (consolodation etc.) as my unsecured debt is too high. I can't get anymore 0% cards either so I'm stuck with what I've got. Can't blame them really!!

I have one last hope and that is promotion. I have a job interview in two weeks time - if I get it, I have some breathing space. If not.... DMP here we come. It just annoys me, I've busted my butt this past year trying to keep my rating good (got rid of two store cards and a mastercard in the process - total of £3000 paid off) and I just feel it'll all be for nothing if I get a DMP.

However, I have to think what it important, and that is my family. I can't have them going without just to preserve my 'good name' on a piece of paper that, in 6 years, will be completely different anyway. Credit ratings.... what a bunch of gits.... :mad:

So. The next few months will be very interesting for me and depending on the outcome of the job interview things may be ok, things may not. See how we go.

Got a maternity class to attend tomorrow. Topic: Pain during birth. I only wonder if they will tell you how to re-knit the bones in your hand after they've been crushed . Only kidding! Can't wait to be a dad, although I'm still 25% excited, 75% terrified. Got to go re-paint the living room now.... woo hoo.....

Keeping_Positive

Have you done a SOA ?http://www.makesenseofcards.com/soacalc.html

Better still fill in the snowball calculator and it then lets you download the info into the SOA so two steps in one.

http://www.whatsthecost.com/snowball.aspx

chazsucks

Aww good luck, I'm in a similar position - baby due in 2 weeks exactly :O but not quite as much debt. I lost my job and now I'm ebaying and car booting my life away
You'll be fine in the end, I wish you the best of luck xox

talisker78

Thank you for your support! Good luck with your new arrival too!

I'm not sure whats scarier just now - babies or debt! Unfortunately, in the long run, I'm sure it will debt!

My SOA is as follows:

Household Information
Number of adults in household ...................... 2
Number of children in household (soon to be)... 1
Number of cars owned .................................2

Monthly Income Details
Monthly income after tax ............................ c.1870 (inc. overtime)
Partners monthly income after tax ................ 400 (SSP)
Benefits ................................................... 0 (need to check out tax credits)
Other income ............................................ 20 (mystery shopping – its great fun!)

Total monthly income 2290

Monthly Expense Details
Mortgage.............................................. 385.93
Secured/HP loan repayments ................... 0
Rent ................................................... 304.19
Management charge (leasehold property) - included in rent
Council tax .......................................... 131
Electricity ............................................ 59
Gas ..................................................... 25
Oil ....................................................... 0
Water rates .......................................... 11.07
Telephone (land line) .............................. 30 (inc. Internet)
Mobile phone ......................................... 15
TV Licence ............................................ 11.61
Satellite/Cable TV.................................... 0
Internet Services .................................... (as above)
Groceries etc .......................................... 60 (I budget HARD!)
Clothing ................................................. 0
Petrol/diesel ........................................... 200 (long way to work)
Road tax ................................................ 10
Car Insurance .......................................... 55 (both cars – admiral multicar )
Car maintenance (including MOT) ................. 20
Car parking ............................................... 0
Other travel .............................................. 0
Childcare/nursery ....................................... 0
Other child related expenses ........................ 0 (yet!)
Medical (prescriptions, dentist etc)................ 0
Pet insurance/vet bills ................................ 0
Buildings insurance ..................................... 6
Contents insurance .................................... 4
Life assurance .......................................... 30 (for both)
Other insurance ......................................... 0
Presents (birthday, christmas etc) .................0 (usually goes on cards – sorry)
Haircuts ................................................... 10
Entertainment............................................. 0 (we are very boring)
Holiday ..................................................... 0 (are you kidding?!)
Emergency fund .......................................... 0

Total monthly expenses 1367.80

Assets
Cash ................................... 0
House value (Gross) .............. 160,000 (50% equity share, so only £80,000)
Shares and bonds .................. 0
Car(s) ................................ 5000 (maybe?)
Other assets ....................... 0
Total Assets ........................ 85000

Secured & HP Debts
Description....................Debt......Monthly.. .APR
Mortgage...................... 75400...(358).....5.75 (fixed to Jan 2010)


Unsecured Debts
Description .............. Debt ............. Monthly ......... APR

Tesco Loan .............20800 ........... 283.97 ...........5.7 (7 years)
Capital One Card .......6800................205................ 9.1
Bank of Scotland Card.8800...............120................ 15.9
Barclaycard.............. 6400 ..............147 ................ 6.9
Sainsburys ...............2500.............. 55...................6.9
HSBC ......................1800............... 49...................22

Monthly Budget Summary
Total monthly income.................... 2290
Expenses (including HP & secured debts). 1367.80
Available for debt repayments........... 922.20
Monthly UNsecured debt repayments....... 860
Amount left after debt repayments....... 62.20

Personal Balance Sheet Summary
Total assets (things you own)........... 85,000
Total HP & Secured debt................. -75,400
Total Unsecured debt.................... -47,000
Net Assets.............................. -37,400

Thanks

JoKay_2

Good luck on both your journeys talisker - fatherhood and debtbusting!

Lemon_Tree

do you usually see the £62 at the end of the month? if not then you need to start a spending diary and write everything down.
you need to hit cards in order of the interest rate, but you probably already know this.
good luck with your dfw journey and your job interview

talisker78

I rarely if ever see the £62 at the end of the month! There is always something else to pay.

Well done for clearing your debt down from £48K to £29K. It definitely gives me hope that it can be done.

Yeah I'm trying to hit the HSBC card first. I phoned them yesterday to negotiate my interest rate which is currently 22%. I've got a bank account and mortgage with them and they still refused :mad:. They said if I signed up for the 'Plus' account (at an extra £12.95 a month :rotfl:) they would consider dropping it to 19% - yeah right! That bloody bank gets enough money out of me, !!!!!!ed if I'm giving them more. I can't wait to clear that card and ditch it - can't beleive they want even more money out of money - banks.... grrrrr.....

Lemon_Tree

they are nothing if not vulchers!
It's taken me 3 years to get this far, and it feels that recently i've had more available funds to throw debts way, but that's probably because there's now two incomes in the home. I'm chuffed not only because i've cleared so much, but also because i've done it on my own, and during that time i've gotten married, done up the flat, got a new bathroom and about to replace the porch all with cash. It is possible, even if it seems endless. Where i first looked at my debt free debt it was in excess of 2013, and i've always been determined it would be during 2011. My figures now say i'll be debt free on new years eve 2011. Now i just have to achieve it and try and improve on that figure.

bobblebot

Hi,
I was in a similar position to you, except I had got divorced and landed stupidly with 40k debt and had 4children to look after. After struggling on a 37K income 2 balance mortgage, living and debt I decided to go BR. I was terrified but i can say it is the bestthing I ever did. I lost my home, I did this voluntary as house market was nosediving and i was risking negatve equity and being stuck in a too small house.

IT WAS THE BEST THING EVER AS I GOT A FRESH START. The day of BR was much better than I ever thought and quick, I got nothing taken from me, all debt dissapeared, not ut in local paper and discharged with no payents taken off me.

I Now live in a brand new private rented 5 bedroom, s bathroom, 3 storey house with huge gardens. I can afford to only work PT and we are very happy. 2 years have flown by, I don't have credit but I don't miss it and I have more spare cash than ever, we have holidays, an 7 year old car bought cash and savings. 4 years from now it will be wiped and i can rebuild my credit rating.

Now I am not saying it is for you, but it is not the aweful thing people think and when banks do not help by reducing their idiotic intererest to help it is no wonder people do it.

You are likely not to lose your home because there is not enough equity in it, so you could retain your hiome but lose your debts.

Good luck with yur new baby.

lucielle

Good luck with the debt busting and impeding new arrival.
L

talisker78

Anyone heard of Zopa loans?

Any good?

I'm still looking at anything that would help me consolidate with a lower rate. Any suggestions??