Get out of debt in 18months....

costaerer

First post of my debt free diary......my husband is starting to go crazy with me talkng about money and being debt free so i thought it might be better just to get it all out on here!!!

I hope when i actually write down my goals i may actually achieve them....

I currently have about 8k worth of debt, broken down as follows:

Loan: 5k
Barclaycard: 490
Capital One: 313
Vodafone: 820
Overdraft: 1000

Lloyds loan have offered F&F of 2.5k
Cap1 offered F&F of 220


I have just started a debt management plan with CCCS, i am paying 97 a month and if i continue with this it will take 7 years to be debt free :eek::eek::eek:!!!!

I will post SOA in next post.

I would love to be debt free in 18 months....i think it is just about possible, but more realistically in 3 years, when DH finishes uni. I am just so desperate to rebuild my credit rating......my dad was showing off last night with is 13k credit limit on his barclaycard platinum....!!!!!


I will admit to anyone i am a total addicted spender, as soon as a get a penny, ive spend a pound!! I left school at 16 and wanted to live a life of luxury so even though i was earning decent money i always wanted more and when i was 18 i managed to get 4 credit cards!!!!!!!:eek:
Last April i took out a loan with Lloyds to consolidate my credit cards , i paid them all off and was paying only 110pm to Lloyds......me, being the addicted stupid spender then maxed out all my credit cards and thats why im in debt now. (Im only 20).

I did pay off two credit cards last month F&F, Lloyds TSB CC for 421, and vanquis for 332.

Anyhowwww....thats enough of that rambling!!!

I am going away in 3 months abroad for a wedding, which is unavoidable, i need 1k in total, for spends, accom and car hire, i have 300pounds so far on a fairfx.com currency card (each week since i quit smoking i have been topping it up 30quid!!).

So if anyone has got any genius ideas of how to get debt free quicker they would be greatly appreciated!!:beer::beer:

costaerer

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household.........
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1000
Partners monthly income after tax....... 800
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1800
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 550
Management charge (leasehold property).. 0
Council tax............................. 50
Electricity............................. 45
Gas..................................... 20
Oil..................................... 0
Water rates............................. 39
Telephone (land line)................... 35
Mobile phone............................ 65
TV Licence.............................. 23
Satellite/Cable TV...................... 0
Internet Services....................... 10
Groceries etc. ......................... 300
Clothing................................ 0
Petrol/diesel........................... 80
Road tax................................ 10
Car Insurance........................... 120
Car maintenance (including MOT)......... 0
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...................... 22
Life assurance ......................... 0
Other insurance......................... 6
Presents (birthday, christmas etc)...... 15
Haircuts................................ 7
Entertainment........................... 20
Holiday................................. 120
Emergency fund.......................... 0
Total monthly expenses.................. 1537

Assets
Cash.................................... 1000
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 2000
Other assets............................ 0
Total Assets............................ 3000

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
loan...........................1500......140.......0
dmp with cccs..................8000......97........0
dh loan........................1800......50........8.9
dh cc lloyds...................387.......8.........19.9
Total unsecured debts..........11687.....295.......-

Monthly Budget Summary
Total monthly income.................... 1,800
Expenses (including HP & secured debts). 1,537
Available for debt repayments........... 263
Monthly UNsecured debt repayments....... 295
Amount short for making debt repayments. -32
Personal Balance Sheet Summary
Total assets (things you own)........... 3,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -11,687
Net Assets.............................. -8,687
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

costaerer

As you can see with are 32 pounds short, which isnt entirely true because i get money for looking after my grandfather which i havent put on my SOA because i dont guarantee how much i get. Last week i got 170pounds, some weeks i dont get anything....

The loan that im paying 140pcm is repaying someone for bailing us out of our council tax arrears. which i will have paid off in december.

I think the best thing for me to do, is to put 400 on fairfx card so holiday money is basically sorted, then pay DH CC because it has interest on it, where as my debts interest are frozen thanks to CCCS.

Oh, i forgot to add i paid my halifax cc off yesterday which was 280, i paid it in full and didnt put on dmp because i want it for vital vital emergencies (it only has 185 credit limit)

Fire_Fox

Do you really need £1000 for this wedding? Have you read round the articles on the main board about how to get cheap flights, could you reduce your idea of what is acceptable accommodation (after all you only really sleep there) or go self-catering? Do you definitely need to hire a car - how much is a coach or taxi from the airport to the accommodation, could you share a car with another couple?

costaerer

have already booked flights, they cost 270 each and that is a pretty reasonable amount for the destination where were going. in fact we are not paying for accomodation we are staying with people. car hire is approx 300pounds and i no its alot but for 8 days for me and dh were estimating 700pounds. this will include some bigger purchases i have planned to buy that i cant purchase in england.

the reason im hiring a car is because im the wedding car driver,SOUNDS INSANE I NO,LOL. so i have to hire a slightly bigger car in white :eek::eek:

costaerer

oh, am getting overtime throughout august at work. should be an 300 pounds in total...
and also were are going to reading for 2 nights in sept...have found a good deal at hilton reading,52 a night,still to book though,and will go through quidco to get cashback.

we dont EVER eat out , and basically dont spend any money on alcohol and entertainment through the year.(me and dh work in restaurant)

so we probs wont spend to much eating out when we go to reading.

Lemon_Tree

hi and welcome to the boards, you need to head to the OS board as you can really save a lot of money on your groceries, £300 is a lot if there's only two of you. i'm sure if you're driving your OH nuts with the constant chatter about debt free ( i know i drive my poor OH nuts with it) then you'll be determined to get there so will make whatever changes are necessary. Your mobile phone is pretty high as well, are you locked into your deal or can you look around for a better one?

costaerer

jeeeeeeez i have wayyy too much time on my hands at the weekend:eek::eek:

well i have a huge pile of ironing to delve into but my financial planning is far more important ;-)

i think my problem at the moment is im trying to run before i can walk. aim is to pay DH cc off before i go away in October...or mayb in 3 weeks if im really good. Going to pay 140 off it when a cheque clears into my account so his balance will be 250, then it should be managable 50pw for next 5 weeks. then i think i will do f&f settlement offers to cap1 in sept/oct,hopefully they will lower their offer.... then i think im guna try and save 2500 to offer to lloyds. i hope to save this by next july, will use some of dh student loan for it.

does anyone no if my vodafone debt will be able to make a f&f offer? its with direct legal dca??

costaerer

dietry requirements mean i really cant lower my shopping anymore. its virtually impossible. i do cook from scratch and me and OH work in restaraunt so we actually dont cook evening meals very often!! i have cut down on things like magazines and luxury fruits and veg which is good for me and also i started a spending diary this week which hopefully will help. i also shop in lidl and quality save when i can to buy bargains such as toilet roll and toiletrys. much cheaper there.

with regards to mob, im on a 20 a month tarriff, its not enough for me what i get and i can get more minutes texts for the same price but not for a nother two months as im tied into this deal. OH never ever ever ever goes over his 20pm tariff.

costaerer

OMG just spend thirty quid in tesco on...two tubs of way too expensive icecream, some chicken, a dvd and a computer mouse!!!!!!! i went in two mins before they shut and literally didnt have time to look for any thing cheaper

That is what i call unecessary luxury items!!

costaerer

been thinking about the positives of my debt....

im only 20, and ive been in debt basically since i was 18 and couldget credit.and ive learn alot from my mistakes. so i hope i will be debt free by the time im 23 ish. i guess this is a good think so basically by the time im 30 my credit history will be clear and hopefully be able to get a mortgage.

at lease ive seen what a vicious cycle debt is and i WILL NOT be getting caught up in it again....EVER....no matter what life throws at me!!:T