My 3 step challenge!!

toolittletime

I've been on these forums for a while but having recommended this site to so many people I was worried 'real life' people were finding out more about me than I wanted them to IYKWIM! So I've changed my login and this has also been my wake up call as I don't want to feel embarassed about my financial situation anymore.

So onto my 3 step challenge! In a perfect world, by Christmas, I would love to be debt free, a size 8 and have a completely organised and tidy house!:rotfl::rotfl:
However I know I live in the real world so will settle for:
1) less than 5k debt (Debt are approx 9000 at the mo- will try to get my exact figures when the children go to bed)
2) A size 12-14 -am currently still trying to shift my babyweight from no3 but she's 8 months now so need to stop making excuses.
3) An organised and tidy house - with 3 children, a dog and a messy OH this isn't always easy!

Right will be back later to fill in a bit more background as to how I got into this mess but really need to take the children to the park before they drive me mad lol!!!

toolittletime

Children are eating so I've got a bit of time to fill in on a bit of background. I'm married with 3 children, OH works full time and I work 2 days a week. We have had debts before but had paid them off - one of the reasons I'm so cross for geting in this mess again.

Earlier this year, while I was on maternity leave OH had all of his overtime cut and went down to a 4 day week. This happened at the same time as my wages went down to SMP. This gave us a drop of about 1200 a month. Although we made some cut backs we didn't make enough and now have rather a lot on credit card. On the plus side I'm now back at work so being paid again and OH has gone back to a 5 day week with limited overtime. so I've decided that I'm going to make a real effort to get them paid off.

I've just had to turn down 2 girls weekends away as I just can't afford to go and I'd feel awful spending money when we've got debts to pay. Anyway, next year we've got at least 2 weddings (read hen/stag do's) and I don't want to be the party pooper that can't afford to go.

Also the kids are getting older and want to do more things and while I don't want to spoil them, I do want them to have lots of opportunities. So the only way I can make this happen is to get motivated and start doing it!

So hopefully this is the start of saying good bye to my debt!!

toolittletime

Morning!
Going to try to update this regularly as a way of keeping on track!!
Have made a 20.00 payment to my next account this morning - not a lot but every little helps.
I made a load of jam at the weekend with fruit from the garden and the children have just decided that their favourite breakfast is now porridge with a dollop of jam in - perfect! Should help save me a fortune!

Off to the park today to meet some friends. Going to go loaded up with plenty of drinks and snacks so hopefully shouldn't cost much more than an ice cream! These school holidays are flippin' expensive!!

toolittletime

Right after getting completely drenched at the park this morning the children are settled in front of a dvd and I've had a bit of time to get out some paperwork and the results are not pretty:mad::mad:

So the total debt on various credit cards, overdraft and family is :10581.83:eek::eek::eek:

So I managed to underestimate my debt by about 1500!

This really has given me the kick up the backside I really need. Our mortgage is up for renenwal about Easter time next year and if we have any debts I know OH will just say 'put it on the mortgage, there's plenty of equity in the house!' But I really don't want to do this so I've had a play about with the snowball calculator and come up with some figures:

8 months - 1358.73
10 months - 1095.37
12 months - 919.95

Very scarey stuff! 8 months is impossible but somewhere between 10 and 12 months may be doable! With a lot of imagination and hard work! I know this won't make us debt free by the time our mortgage gets renewed but it could be so that whatever is left is interest free.

Right off to trawl the boards - any hints, tips and advice VERY gratefully received!

epsilondraconis

Hi Toolittletime,

Sorry to hear that your debts are larger than you initially anticipated - isn't that always the case...

Why not post your statement of affairs as people may be able to help you reduce some of your overheads.

http://www.makesenseofcards.com/soacalc.html

Good luck with your debt-free journey.

Mum22boys

Hi Toolittletime,

I would also like to have a clean and tidyhouse, but soething else always gets in the way!:rolleyes:

Will follow your diary to see how things are going.

Lemon_Tree

hi and welcome to the boards, i'm also tackling my debt so that when we need to remortgage and fingers crossed move up to a bigger house we'll be in a much stonger position.
despite the total of your debt being more than you expected at least now you know what the most is and that's the worst you need to tackle and it can only get better. I've always been an advocate of knowing the whole thing i'm facing no matter how bad it is and then i can just try and get on with it.

toolittletime

Right - I've had a go at my SOA - sure I've made lots of mistakes - will try to explain a bit more at the bottom.
Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 3
Number of cars owned.................... 3
Monthly Income Details
Monthly income after tax................ 858
Partners monthly income after tax....... 2100
Benefits................................ 210
Other income............................ 0
Total monthly income.................... 3168
Monthly Expense Details
Mortgage................................ 1332
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 212
Electricity............................. 82
Gas..................................... 0
Oil..................................... 15
Water rates............................. 19.91
Telephone (land line)................... 35.5
Mobile phone............................ 40
TV Licence.............................. 10.14
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 320
Clothing................................ 40
Petrol/diesel........................... 150
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 40
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 20.09
Buildings insurance..................... 24.91
Contents insurance...................... 0
Life assurance ......................... 21.47
Other insurance......................... 0
Presents (birthday, christmas etc)...... 15
Haircuts................................ 15
Entertainment........................... 80
Holiday................................. 50
Emergency fund.......................... 0
endowment............................... 50.6
gym..................................... 113
Total monthly expenses.................. 2686.62

Assets
Cash.................................... 0
House value (Gross)..................... 475000
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................ 0
Total Assets............................ 476000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 199000...(1332).....4.9
Total secured & HP debts...... 199000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
debenhams......................4445.84...165.6.....18.32
cahoot overdraft...............495.......0.........6.5
next...........................154.86....16.51.....26.49
mum and dad....................1145.86...0.........0
lloyds tsb.....................2544.28...50.89.....18.32
barclay........................1795.99...41.33.....0
Total unsecured debts..........10581.83..274.33....-

Monthly Budget Summary
Total monthly income.................... 3,168
Expenses (including HP & secured debts). 2,686.62
Available for debt repayments........... 481.38
Monthly UNsecured debt repayments....... 274.33
Amount left after debt repayments....... 207.05
Personal Balance Sheet Summary
Total assets (things you own)........... 476,000
Total HP & Secured debt................. -199,000
Total Unsecured debt.................... -10,581.83
Net Assets.............................. 266,418.17
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

There are no additional car costs as these are taken from OHs wages before we see them as we lease ours through his work scheme . We've got 3 cars listed but they are all OHs projects that are currently on hold but we don't pay tax etc as they are currently off road.

The gym is high I know - this is for 5 of us, includes lots of exercise classes, football, soft play and creche for the kids and we try to go 3 times a week.

I should be getting an additional 30 a month from next month and OH's wages should be increasing as his hours have increased and he is getting more overtime. (He used to get approx 400 more a month but think it will be a while til they go right back up)

Entertainment etc is all guesswork I'm afraid and think this is why we've never got the right amount left over.

Think I need to use this diary as a spending diary etc so I can see where the money is actually going.

Any advice/ suggestions etc gratefully received!

toolittletime

Thanks epsilondraconis - I've used your link - what do you think?

Mum22boys - you're so right - there's always something getting in the way!

Thanks for the encouragement Lemon Tree - as much as it's depressing, you're so right about needing to know the whole picture!

toolittletime

Have just applied for a 0% card to transfer OH's Lloyds TSB card to. If this happens I will then be able to transfer Debenhams to TSB on the 0% offer they've just sent through.
I also need to chase up our pet insurance claim for about 400 for the dogs op last month as this went on the credit card and then I can pay it off.
Think that's all for now!

Buffythedebtslayer

Hello, really like your diary, sounds like you have a plan lots of luck I shall keep reading! xxxx