SazM's loan busting mission

SazM030306

Ok, after busting my overdraft I thought I'd have a blast at the loan.
We took out a £20000 loan in January 2007 (LBM followed shortly afterwards!)
Payments are £229.46 each month, and there are now 8 years left on the loan.
What we could do with an extra £229.46 a month!
So, I have an offset mortgage with a connected current account, currently at zero. The plan is to put every spare penny into this account until we have a sizable chunk to pay towards the loan. I have set up a standing order for the £125 that was going into the ISA to go into the new shiny loan account each month on the 16th. We haven't made any over-payments as yet, but that will soon change!
Encouragement very welcome :-)

Here goes!
xxx

SazM030306

My first payment of £5 has gone in to get me started!

lunar

Well done on your first payment and good luck in paying off your loan early. Im sure you will have many more £5's to add to it soon enough.

doodledo_2

Well done on clearing your overdraft and that first payment. Like Lunar says those odd £5 will soon add up

lunar

Why dont you come join us on dooyoo, its a good but addictive way to get some extra pennies.

SazM030306

Thanks lunar, I've heard of dooyoo, I'll have to have a look!
x

SazM030306

I've just done myself a new SOA:

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 476
Partners monthly income after tax....... 1087
Benefits................................ 517.8
Other income............................ 0
Total monthly income.................... 2080.8

Monthly Expense Details
Mortgage................................ 250
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 90
Electricity............................. 35
Gas..................................... 50
Oil..................................... 0
Water rates............................. 20.2
Telephone (land line)................... 0 - package
Mobile phone............................ 20 - for2
TV Licence.............................. 11.95
Satellite/Cable TV...................... 38 - package
Internet Services....................... 0 - package
Groceries etc. ......................... 325
Clothing................................ 0
Petrol/diesel........................... 130
Road tax................................ 26.25
Car Insurance........................... 50
Car maintenance (including MOT)......... 29.99
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 130.91
Medical (prescriptions, dentist etc).... 16.9
Pet insurance/vet bills................. 0
Buildings insurance..................... 13.1 - package
Contents insurance...................... 0 - package
Life assurance ......................... 19.04
Other insurance......................... 24.92
Presents (birthday, christmas etc)...... 20
Haircuts................................ 10
Entertainment........................... 151.66 - fags
Holiday................................. 0
Emergency fund.......................... 125 - loan bustingDD
Total monthly expenses.................. 1587.92


Assets
Cash.................................... 400
House value (Gross)..................... 80000
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................ 0
Total Assets............................ 81400


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 43000....(250)......1.09
Total secured & HP debts...... 43000.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
N Rock.........................20000.....229.4.....6.9
Total unsecured debts..........20000.....229.4.....-


Monthly Budget Summary
Total monthly income.................... 2,080.8
Expenses (including HP & secured debts). 1,587.92
Available for debt repayments........... 492.88
Monthly UNsecured debt repayments....... 229.4
Amount left after debt repayments....... 263.48 =£60 a week for pub, meals, clothes for adults, snacks, etc then loan busting if any left.

Personal Balance Sheet Summary
Total assets (things you own)........... 81,400
Total HP & Secured debt................. -43,000
Total Unsecured debt.................... -20,000
Net Assets.............................. 18,400

Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using Firefox browser.

SazM030306

Wow I'm getting organised!
I've also set up a spending diary - in an actual paper diary - where we will write in everything we've spent over what's already accounted for. So we don't need to write in petrol, kids stuff, fags, presents etc.
Things we will write in will be pub, meals out, adults clothes, snacks, tools, petrol over £15/wk etc.
Then I will add up the total for the week and any left from the £60 will go straight into the loan busting account!

I shall present it to DH tonight!!! I bet I have to keep reminding him to fill it in LOL though I'm sure he'll be please he doesn't have to report every fag packet to me LOL.

I'm feeling that it's all under control!
xxx

SazM030306

Luckily DH thinks it's a good idea keeping a spending diary.
We've been out tonight for a friends birthday and spent about £55! DH spent nearly a fiver today out with the kids, so that's this week's £60 gone. It's a shame I can't put any leftovers in the pot, but we won't be going out every week.
How sad when I'd rather stay in to make sure I can put extra pennies in the loan busting pot! LOL
xxx

Fire_Fox

Do you realise you are spending 8% of your income on cigarettes? Or over £1800 a year? :eek: Maybe more as most people underestimate their habit. The NHS now offer counselling as well as medication to quit, and it's been proven to be twice as effective as going cold turkey.

SazM030306

I shall pass that message on to my DH, thank you!
Filthy habit I agree completely.
xxx