Mrs Js Debt blog

Mrs_J_3

Hi All,

I've been lurking for a bit, but have decided to join in. I'm in debt, but I have a regular income and a solvent partner, so with some hard work and a few sacrifices I should have it cleared some time in 2008.

It's just really frustrating being in debt, with my income (which isn't huge) I should be able to go out at least once a week for a meal or something, drive a nice car, buy new clothes and have nice holidays. In reality I'm chasing my tail trying to clear debts. My partner has been great, and I know if the world crashed in around me there are people who could financially bail me out (I pray I never need this). I dont have a full SOA, I've been streamlining for so long it keeps changing, but here are the debts:

Student Loan - £1750 (pay at £84 per month)
Credit Card 1 - £3155 (0% till mid Feb 07, then 12.9)
Credit Card 2 - £2800 (4.9%)
Sofa - £350 due mid Sep 06

Total - £8054.67

It looks horrendous when you add it up, but hell, I spent it, so I have to pay it back. I've tried on previous occasions to get the debt sorted and failed so fingers crossed this is the time I succeed

foreverskint

Good luck mrs j. Some great peeps on here to support you:j

bluezone

Good luck Mrs J. As soon as you can post a SOA to see if aany of us can help you at all and keep us up to date with your progress.

xx

Mrs_J_3

Here goes,


Monthly Incomings:

My salary - £1,360.34

Monthly Outgoings (N.B. household bills are split 50:50 with partner):
Household

Mortgage - £337.50
Council Tax - £70
Gas - £12
Electric - £10
TV Licence - £6
Phone - £10 (quarterly billing so a slight overestimate here)
Food - £80-100 (trying to get OH to spend less on food, but it's one of our hobbies)
Factors - £20

Personal
Car Insurance - £25 (paid in lump sum in December)
Petrol - £70 (try to fill up mo more htan twice a month)
Mobile - ~£30 (I get £15 pound rebate for another 7 months and then I'll swirth)
Ponies - £40 (my hobby, and this is the cheapest way to do it)
Riding lessons - £20 (applies to summer months only)
Savings - £75 (quite often used to top up cc payments)
Stock options at work - £40
Credit cards - £350
Student Loan - £84 (fixed payment)

Total: £1155.50
Remainder: ~£200 per month.

Debts
Barclaycard – Balance £722.22 (limit £5,500) APR 19.9% - transfer to MacMillan hopefully going through soon.

HBOS Macmillan card - Balance £2,632.45 (limit £7000) APR 0% til Feb 07, then 12.9%

AMEX - Balance £2800 (limit £7000) APR 4.9%

Student Loan - Balance ~£1750 (I get an annual statment, so this is an educated guess)

I save £75 a month for things like birthdays etc so that there is always cash to spend on them rather than plastic. I am also taking advantage of my company pension (I pay 5% and they match it) aswell as some stock options (about £40 a month). I'm fairly paranoid about how I'll fund my old age so these are two items I wont change. I've changed a lot of stuff over the past few weeks by reading this site so I'm in better shape than I was, but feel free to pick at it (I know you all will:p )

tired_mum

good luck and you have come to the right place so welcome

Mrs_A.

hello and welcome
i am not an expert but you seem to have it figured out not too bad
good luck
you will get there
regards
mrs a

bluezone

your SOA is looking quite good from where I'm standing x

david_hellier

Welcome. I assume there is only one income? Using your figures, according to my calculations you have £65.97 per week to spend an anything INCLUDING food. That's between the two of you by the way (only one income). It also excludes the £75 savings. You cannot afford to save. Stop.

If you write down in a little book each Monday £65.97 and keep track (by deducting)what you both spend you will have stopped overspending. Carry forward any you have left and use for luxuries Get into this habit before changing any products. There are plenty on this website. Stop using credit cards for any more purchases or your overspending will continue. Good luck!
income weekly monthly
self 1360.34
partner







total 0.00 1360.34
313.93 divided by 4.33

313.93 total weekly income

spend weekly monthly
rent/mortgage 337.50
council tax 70.00
elec 10.00
gas 12.00
water
secured loans
TV licence 6.00
fines
factors 20.00
car ins 25.00
petrol 70.00
mob 30.00
ponies 40.00
riding 20.00
cc 350.00
s loan 84.00














total 0.00 1074.50
247.96 divided by 4.33

247.96 total weekly spend

Start= income - spend = 65.97 per week

Mrs_J_3

Thanks guys.

There are two incomes but my SOA only accounts for my income and my share of the bills (we split household stuff 50:50 including food), so any money left over is mines alone. If theres is spare and I've not spent the £75 savings at the end of the month I put the money toward a debt, so I'm not saving as such (I hope that made sense). I feel a lot more comfortable with a small cash cushion for emergencies.
As for the book idea, I know its a great idea, but I'm pretty lazy/forgetful with that kind of thing, any tips to keep motivated?

gallygirl

Put your purse in a little bag within your handbag, with the debt diary in it, then you'll see it every time. Course, if you're really lazy you just might stop spending instead!!!!!

You're in pretty good shape considering! You haven't said what your minimum payments on each of the cards are. However, I assume the sofa is interest free then extortianate if you don't pay off? Also, I know with some furniture companies even if you are only a day late paying you're liable for all loan period interest. That being the case, I'd make minimum payments on all cards until you have enough to pay off, then pay it, even if a month early - it will then be gone & will be 1 less to worry about.

Next - is AMEX life of balance? How is your credit rating? Will you be able to go for another interest free card next year? Your best bet is to lump all info into this:

http://www.whatsthecost.com/snowball.aspx - with minimum payments and interest rates it will prioritise your payments.

Good luck.