My SOA, I'm trying but VERY impatient

Accountant_Kerry

Hi Everyone, I have been lurking for ages and trying to get myself sorted, however I am Soooooo impatient I want my debt gone NOW. I have worked and studied for years to become an accountant and now I am I just can't reap the benefits because of my horrible debts!! Entertainment, commonly known as going out and getting drunk with my friends is my only vice and I am trying to cut this down, but it is my lifestyle no excuses I know. Please let me know what you think?

Apart from the entertainment I think its at the bare bone????

My flat is in negative equity as I bought at the high of the market and borrowed the deposit from a friend and a CC!! Stupid or what!

I have promised to pay back my friend the £3150 still owe him by december which is doable and I have an option to take redundancy in Jan which would\give me about £10k, but of course I would need to find another job as I am the main earner.

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 2570
Partners monthly income after tax....... 750
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 3320

Monthly Expense Details
Mortgage................................ 457
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 30
Council tax............................. 103
Electricity............................. 25
Gas..................................... 28
Oil..................................... 0
Water rates............................. 25
Telephone (land line)................... 0
Mobile phone............................ 5
TV Licence.............................. 0
Satellite/Cable TV...................... 21
Internet Services....................... 0
Groceries etc. ......................... 160
Clothing................................ 20
Petrol/diesel........................... 40
Road tax................................ 10
Car Insurance........................... 33
Car maintenance (including MOT)......... 15
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 10
Buildings insurance..................... 0
Contents insurance...................... 6
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 30
Entertainment........................... 400
Holiday................................. 75
Emergency fund.......................... 0
Total monthly expenses.................. 1503


Assets
Cash.................................... 0
House value (Gross)..................... 97000
Shares and bonds........................ 0
Car(s).................................. 400
Other assets............................ 0
Total Assets............................ 97400


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 99000....(457)......5.49
Total secured & HP debts...... 99000.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Capital one....................5500......160.......12.9
mint...........................400.......10........16.9
capital one....................6800......210.......8.9
o/d............................2000......0.........5
friend.........................3150......0.........1
natwest cc.....................1500......30........5.9
cahoot loan....................5600......146.......9.9
egg loan.......................3700......240.......7.9
halifax cc.....................12000.....120.......6.9
Total unsecured debts..........40650.....916.......-


Monthly Budget Summary
Total monthly income.................... 3,320
Expenses (including HP & secured debts). 1,503
Available for debt repayments........... 1,817
Monthly UNsecured debt repayments....... 916
Amount left after debt repayments....... 901

Personal Balance Sheet Summary
Total assets (things you own)........... 97,400
Total HP & Secured debt................. -99,000
Total Unsecured debt.................... -40,650
Net Assets.............................. -42,250

spykey_uk

Hi there,

I can sympathise, I'm a trainee solicitor and will be paying mine off long after I qualify, and all I want to do is enjoy the benefits of 6 years of student living, being poor and hard work.

I'm sure some more helpful people will be on here shortly, but in the meantime, I just wanted to say well done for posting! :T

The only things that shine out at me straight away are the groceries could come down a bit (I manage on £100 for 2 of us and that could be cut back more if I tried - using batch cooking, check out the OS board for some tips). The entertainment also seems quite high to me, I think our budget is around £100-150 a month and most months we don't spend all of it. Is there something particular you do that costs a lot?

Hope this helps!

Sarah

Deep_In_Debt

Just echo above poster - your entertainment is very high. Can you cut it out for a while or at least cut it down.

Also, haircuts are a lot - can you cut that down or out for a while?

euronorris

Hi there and welcome. Firstly, well done on posting and doing your SOA. It's a scary first step, but one of the most important, so well done.

Now, 400 for entertainment each month is a lot of money. There are plenty of things you can with your friends, that are still fun, but far cheaper! Have them round for dinner, go to the cinema, go out for the day (beach for example) etc etc. So start thinking about that now and get some ideas together for cheaper entertainment.

Secondly, according to your SOA, you have 1817 left each month for debt repayments. Firstly....do you find you actually have this left, or do you still run out of money each month? If so, try a spending diary. Literally write down everything you buy, no matter how cheap or expensive. You will quickly see where the money is going then and start adjusting your habits.

Next, if you do have that amount left over than great! You could clear this debt very quickly! In the first month alone, you could clear the mint card and make a substantial payment to your friend.

You are lucky in that you still have a rather large amount of disposable income so this is very doable for you, once you have changed a few habits. It's difficult to start with, but it does get easier.

Good luck!

McKneff

£475 a month for entertainment and holidays - give over man
thats nearly 6k a year. Some people have less than that to live on for a year.

Invite people round, tell them to bring a bottle, have Trivial Pursuit nights
Football nights, ask them for ideas. You dont have to go out to have a good time with friends.

Throw the diffeence at your debts if your that impatient they will be gone that much quicker.

urg123

Accountant_Kerry wrote: »

Hi Everyone, I have been lurking for ages and trying to get myself sorted, however I am Soooooo impatient I want my debt gone NOW. I have worked and studied for years to become an accountant and now I am I just can't reap the benefits because of my horrible debts!! Entertainment, commonly known as going out and getting drunk with my friends is my only vice and I am trying to cut this down, but it is my lifestyle no excuses I know. Please let me know what you think?

Apart from the entertainment I think its at the bare bone????

My flat is in negative equity as I bought at the high of the market and borrowed the deposit from a friend and a CC!! Stupid or what!

I have promised to pay back my friend the £3150 still owe him by december which is doable and I have an option to take redundancy in Jan which would\give me about £10k, but of course I would need to find another job as I am the main earner.

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 2570
Partners monthly income after tax....... 750
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 3320

Monthly Expense Details
Mortgage................................ 457
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 30
Council tax............................. 103
Electricity............................. 25
Gas..................................... 28
Oil..................................... 0
Water rates............................. 25
Telephone (land line)................... 0
Mobile phone............................ 5
TV Licence.............................. 0
Satellite/Cable TV...................... 21
Internet Services....................... 0
Groceries etc. ......................... 160 You can reduce this - cut down by cooking from scratch, batch cooking and freezing, taking lunch in etc
Clothing................................ 20
Petrol/diesel........................... 40
Road tax................................ 10
Car Insurance........................... 33
Car maintenance (including MOT)......... 15
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0 Put aside a small amount for your bi/annual dental check; eye check; odd prescriptions etc
Pet insurance/vet bills................. 10
Buildings insurance..................... 0 You should have this if you have a mortgage.
Contents insurance...................... 6
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 30 This is quite high - reduce this by getting your hair done less often or going to a local college.
Entertainment........................... 400 This is really high - look at different ways of brining this down. Invite your friends over instead of going out. Start off by bringing this down to £300 then to £200 then to £100 etc
Holiday................................. 75 This is high - while you can afford it - you may wish to forgo this for a year.
Emergency fund.......................... 0
Total monthly expenses.................. 1503


Assets
Cash.................................... 0
House value (Gross)..................... 97000
Shares and bonds........................ 0
Car(s).................................. 400
Other assets............................ 0
Total Assets............................ 97400


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 99000....(457)......5.49
Total secured & HP debts...... 99000.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Capital one....................5500......160.......12.9
mint...........................400.......10........16.9
capital one....................6800......210.......8.9
o/d............................2000......0.........5
friend.........................3150......0.........1
natwest cc.....................1500......30........5.9
cahoot loan....................5600......146.......9.9
egg loan.......................3700......240.......7.9
halifax cc.....................12000.....120.......6.9
Total unsecured debts..........40650.....916.......-


Monthly Budget Summary
Total monthly income.................... 3,320
Expenses (including HP & secured debts). 1,503
Available for debt repayments........... 1,817
Monthly UNsecured debt repayments....... 916
Amount left after debt repayments....... 901

Personal Balance Sheet Summary
Total assets (things you own)........... 97,400
Total HP & Secured debt................. -99,000
Total Unsecured debt.................... -40,650
Net Assets.............................. -42,250

Hi,

I know the feeling of wanting to become debt free is immense but you can do this. With a few tweaks here and there you could round up your debt repaymments to £2000 which is great. This means you can be debt free in less than 2 years (if you are able to remain employed).

I think you need to look at whether you would be able to make your debt repayments if you were made redundent and how you would cope.

Look at other ways of making money - selling your things that you no longer need/use and look at other ways of making money.

Good luck

urg x x

Pooky

So if you could find another job for January and take the £10k, and throw all other money at it between now and then you could half your debts....it wouldn't be easy but what a challenge.

£10 k redundancy

£916 currently spending per month on debt
£901 currently spare according to SOA each month
£400 entertainment budget
£ 75 holiday budget

= £2292 per month

Aug - Jan = 6 months = £13752 + £10000 = £23752 you could potentially clear.

Worth a thought.

Accountant_Kerry

Thanks guys, the £400 entertainment is basically down the pub. I know this is rubbish and i need to cut back but i just cant seem to go out without getting hammered, at my age (30) i should have grown out of this I know.

Holiday is I usually try and get away in Jan when its cheap, usually £300 for a weeks accommodation and flight plus spending money. I know I shouldn't but my job is mega stressful and I do usually sell a weeks annual leave to pay for this so doesn't really coem out of my monthly budget, I have had a spending diary for a few weeks and it is mostly beer and takeaways! I really need to grow up!!

My mobile bill is nothing as I have a work mobile and my OH is PAYG.

Sorry to whinge as i know loads of people are worse off than me but it gets me down just looking at my DFD.

Need to cut the beer and takeaways and it will be a lot sooner, maybe getting the OH to get FT job would help!

I didnt even include my bonus which is about £750 every 3 months.

I shouldn;t have got that creidt card the day before my 18th Bday, its a spiral. Its just crap because as an accountant I should be good at this!! xx

Chell

Accountant_Kerry wrote: »

,,,,,,,I know this is rubbish and i need to cut back but i just cant seem to go out without getting hammered, at my age (30) i should have grown out of this I know.

Well don't go to the pub, problem solved. :rotfl:

Deep_In_Debt

If you need to get hammered, it's cheaper to do it at home and invite friends who will probably bring a bottle or two and it's not so far to stagger or crawl!

spykey_uk

That's not really fair VanillaDelia, the OP knows they shouldn't be spending that much money in the pub and is trying to do something about their debts. This board is for anyone who has debts and wants to become debt-free, whatever their income. Remember Martin's mantra "Please be nice to all MoneySavers".

Kerry, you're in the right place, keep coming back and you will get focused. It is really hard at first, but it becomes a habit, and the more you cut back/save, the quicker you'll get to your DFD!

I would throw all bonuses at debt as well, and you'll soon be surprised at how quickly the debt starts to fade! x