Bang...and the debt is gone! (Hopefully!)

miggy

I've just had a look through the SOA which you posted last month although I'm not much good at SOAs. I can see things have moved on in several areas, though.

You haven't had much feedback but I wonder if newcomers to your thread saw the one you posted a year ago and that's why they haven't replied? It might help to do a new version bringing it bang up to date and start a new thread to attract feedback.

Just a couple of things I noticed: some nasty APRs in there and you are snowballing... now that one or two more debts have gone, could you give an idea of how you will prioritise? Also, are you making minimum payments? Can you adjust at all once the other money becomes available, so you are paying off at least a little more on these?

Also I think there's a typo as in one place you say you owe your friend £2,500 but in your SOA it's £250.

Entertainment was highish, presents you weren't sure about and clothing was based on that month's spends... any way you can tighten up on entertainment and keep a track of presents/clothes so you get a real figure to base your budget on?

Your food shopping sounds great, by the way! That market is a real asset.

MissShoes

miggy wrote: »

I've just had a look through the SOA which you posted last month although I'm not much good at SOAs. I can see things have moved on in several areas, though.

You haven't had much feedback but I wonder if newcomers to your thread saw the one you posted a year ago and that's why they haven't replied? It might help to do a new version bringing it bang up to date and start a new thread to attract feedback.

Just a couple of things I noticed: some nasty APRs in there and you are snowballing... now that one or two more debts have gone, could you give an idea of how you will prioritise? Also, are you making minimum payments? Can you adjust at all once the other money becomes available, so you are paying off at least a little more on these?

Also I think there's a typo as in one place you say you owe your friend £2,500 but in your SOA it's £250.

Entertainment was highish, presents you weren't sure about and clothing was based on that month's spends... any way you can tighten up on entertainment and keep a track of presents/clothes so you get a real figure to base your budget on?

Your food shopping sounds great, by the way! That market is a real asset.

Hey Miggy, thanks for posting. And thanks for cheering me on!

There are a few reasons I'm feeling down:

1) the mess!- I am SO much happier and motivated when in an organised/clean/tidy/inviting place. This will be achieved today!

2) work!- but only 2 more weeks to go until I get some freedom

3) my weight!- I have 6 stone to lose. Saw video footage and CCTV footage of me this week- not a pretty sight I'm afraid.

4) lack of money- it'll be down to the pennies this month. I have a few social commitments too which will be the main expense- if I didn't have those I'd be fine. Only 16 days to payday and I'm looking at £2 a day spends. Do-able but exhausting.

But, there are also huge positives.

1) I panicked when you said there was a typo in what I owed my friend £250/£2500 and assumed my debt was a lot higher than I calculated! There were 4 friends who let me use their money to make some of my debt 0%:

Friend a- owed £1200- now owe £0! :T (This last payment was £250- which I think you mixed up with the £2500 friend)
Friend b- owed £500- now owe £0! :T
Friend c- owed £6000- now owe £504
Friend d- owed £2500- still owe £2500- they have insisted I pay every penny to every creditor before they will even think about letting me pay them back. I know, wow!

2) I can tweek my budget to join a gym. There are lots close to me but not great. There's one a few miles away but it has great facilities, a big pool (great for rehabilitating my injury), parking, and is near a supermarket which I could use after workouts to pick up whoopsies- would be just the right time! It's an expense but I need to invest in me.I can cut other areas of my budget to cover it. They are currently offering a free 5 day trial- I'm going to use this when I get back from hols as it leads up to my payday and then join if I do like it.

3) I'm ready to start my lifestyle change- I'm up bright and early and energised. I weighed myself- I have a starting point.

4) I have at least 1 creditor being paid off every month until Christmas- great psychologically for the debt-busting!

5) I love my OH. He's a pain sometimes but we just need to work out how to live together better- we have started this process and hopefully it will help.

6) I am snowballing- any spare pennies go to the highest APR. My highest payments actually go to interest free debts but that is as they are set payments (which finish within 3 months) and also one is my friend c who will be paid in 2 months. After these have gone, my cash surplus will go to my highest debts and my car saving pot.

7) My take home pay will increase by at least £250 per month from November's pay- I am looking forward to that boost of money before xmas.

8) My friend gave me some really good advice when we talked through both of our lives' issues- she said something which gave me a lot of clarity and perspective and reminded me of something important- this has been a factor in jumpstarting me and lifting my mood.

9) I am progressing well in my MA. Got a lot of writing to do over summer but it's doable. On track for completing at end of 2012.

10) I have had a huge great financial fortune for the next step of my life- more than 3 times my total debt. It can't be used for that- but will make the next stage of my journey achievable at some point in the future (buying a house).

Thanks Miggy- your posts have made me think and got me galvanised for action first thing on a Saturday morning. :A

Shoes xx

MissShoes

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................ 2225
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 250 (this is my partner's half of bills and rent)
Total monthly income.................... 2475

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 400
Management charge (leasehold property).. 0
Council tax............................. 109
Electricity............................. 44 (this is for gas and electricity for a one bed flat with 2 occupants)
Gas..................................... 0
Oil..................................... 0
Water rates............................. 16
Telephone (land line)................... 0
Mobile phone............................ 75 (this is for 2 contracts. They are being reduced as and when the companies allow- I will switch to PAYG/very cheap contract once these have ended. 1 contract will be closed)
TV Licence.............................. 12
Satellite/Cable TV...................... 34 (this is for broadband and sky tv)
Internet Services....................... 0
Groceries etc. ......................... 100 (this is my half- OH contibutes a similar amount)
Clothing................................ 50 (there are times when I spend nothing and times when I need to invest in things for work)
Petrol/diesel........................... 50
Road tax................................ 10
Car Insurance........................... 48
Car maintenance (including MOT)......... 20
Car parking............................. 2
Other travel............................ 15
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 20 (dentist, opticians, doctor)
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 20
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 25
Haircuts................................ 10
Entertainment........................... 100
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1160


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 750
Other assets............................ 750
Total Assets............................ 1500

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Friend c (Family)..............500.......250.......0
Friend d.......................2500......0.........0
Wonga..........................200.......200.......0
NW Overdraft...................2000......25........0
Ikea Card......................420.......15........20
Dorothy Perkins Card...........240.......8.........29.9
Barclaycard....................550.......15........26.9
Vanquis Credit Card............300.......30........47.9
LPF Credit Card................250.......15........27.9
BCW............................198.......75........0
Total unsecured debts..........7158......633.......-


Monthly Budget Summary
Total monthly income.................... 2,475
Expenses (including HP & secured debts). 1,160
Available for debt repayments........... 1,315
Monthly UNsecured debt repayments....... 633
Amount left after debt repayments....... 682

Personal Balance Sheet Summary
Total assets (things you own)........... 1,500
Total HP & Secured debt................. -0
Total Unsecured debt.................... -7,158
Net Assets.............................. -5,658

Notes on SOA

I live with my OH- he earns £1250 a month and has no debt. We split rent and bills proportionately relating to income. We're lucky with our monthly rent- keyworker flat- which is now fixed price for another year.

I have a 4 month garnish on my wage of £225 left to run

I am snowballing my debts. The friend who I owe £2500 to has insisted on me being debt-free completely before they'll accept me repaying them. I'm very lucky!

The monthly payments to my family member and other friend are non-negotiable.

As you can see, I have many high-amount payments ending soon:


Wonga £200 a month- finishes on July payday
Family £250 a month- finishes on August payday
BCW £75 a month- finishes on September payday (might pay a double payment in August to speed this up).

Then the freed up money from not making these payments will go off other debts.

I am starting payments to the OD this month as it is my biggest debt and has pretty much been at £2000 for years. They have started charging interest so I want rid. I am paying a nominal amount monthly until credit/storecard debt is gone- then I'll tackle this with all my surplus money.

Please rip this apart as you see necessary- open to all suggestions.

Shoes xxx

miggy

Hello Shoes

Wow, thanks for such thorough posts! Things are indeed looking up. Your SOA has moved on, hasn't it? Sorry if I caused a panic over the £250/2500 thing, I understand it better now (and what a nice friend you have!)

Good luck with the tidying up. I should be doing some here instead of typing... ha! you had better hold me accountable. My excuse is that I work nights and am in a zombie-like state in between but I've had a good night's sleep and all my children are away on various adventures this weekend so I've now no real excuse.

Holiday and gym... what a great kickstart to your future! You will feel better and have more energy for other things. I can see it's a good investment!

I will have a proper look through your SOA later, though after a quick look I haven't seen much I can comment on. I think it's been a good idea to bring it right up to date, though, because of the progress you've already made. It's a different picture from a year ago.

MissShoes

This weekend I have:

1) done ALL the laundry- the flat now resembles a launderette, now must put it all away when dry tomorrow.

2) cooked dinner for OH tonight (spag bol) and have two portions for his tea on Mon and Tues

3) OH sandwiches made for Mon/Tues/Wed and my lunches made for all week

4) tomatoes that were on the edge of turning have been sliced and 'sun-dried' in the oven, will leave them there overnight to dry out even more and see how they've turned out

5) cleaned the whole flat with OH- we'll be doing 15 minutes a day together each day this week (or trying to) to maintain this

6) changed the bed

7) checked savings pots with ING- grand total of £35.02- it's a very small start

8) won some shorts on ebay for less than a fiver for my hols- determined not to go overboard with clothes. Just a couple of dresses, sunnies, swimming costumes and tops- all will be from ebay/primark

9) checked online banking. Got £35 to last me 2 weeks- had 2 NSDs this weekend

10) OH told me he thought I'd lost weight today- made me smile

11) cancelled a meal out to save money

12) got WW meals for dinners this week, not very fresh but calorie-controlled, easy and no washing up.

13) noticed my money-plant has started growing

I need to:

1) go over the budget for the rest of the calendar year (get holiday money budgeted and organised)

2) paperwork for work

3) rearrange two appointments

4) find time for a 3rd appointment with the Dr to get a certificate filled in

5) await test results

6) stick to diet

Shoes xx

miggy

MissShoes wrote: »

13) noticed my money-plant has started growing

:rotfl:I have one of those - so that's where my money went! (Apparently they are also known as Jade Plant - no we haven't any jade - and friendship tree, though the friend who gave it as a token of frindship now has nothing to do with us. )

I think I'm saying enjoy the plant for its own sake, based on my experience: I like mine very much.

miggy

I'm well impressed with your weekend! You have done such a lot... and it's brilliant you and your OH are working together on the flat. What a difference a few days makes, huh?

You have just reminded me of a useful thing I heard and had completely forgotten: Wait three days. The idea is, however good or bad the situation, in three days' time you won't feel the same. It helped get me through a few difficult patches.

Well, in three days you will have lost a little more weight, have more money than you would have had without all your efforts, and still have clean laundry and a stack of sandwiches. Not bad at all. :T:T:T

I still haven't scaled the laundry mountain. I'm not at work till 9 tonight so I suppose now would be a good time. After I've caught up on diaries, played on Facebook, hung the washing out, tidied the kitchen, polished the goldfish, dusted the ceiling and a few more essentials.

Keep up the good work, I wish I had a list like that to show.

MissShoes

miggy wrote: »

I'm well impressed with your weekend! You have done such a lot... and it's brilliant you and your OH are working together on the flat. What a difference a few days makes, huh?

You have just reminded me of a useful thing I heard and had completely forgotten: Wait three days. The idea is, however good or bad the situation, in three days' time you won't feel the same. It helped get me through a few difficult patches.

Well, in three days you will have lost a little more weight, have more money than you would have had without all your efforts, and still have clean laundry and a stack of sandwiches. Not bad at all. :T:T:T

I still haven't scaled the laundry mountain. I'm not at work till 9 tonight so I suppose now would be a good time. After I've caught up on diaries, played on Facebook, hung the washing out, tidied the kitchen, polished the goldfish, dusted the ceiling and a few more essentials.

Keep up the good work, I wish I had a list like that to show.

Hey Miggy, I love that 3 day idea. Will apply it to different situations in my life (work/friends/financial decisions/relationship stuff) and see how I get on.

I am now in a laundry tsunami- can you sense I'm kind of all or nothing in my housework approach?!

MissShoes

Back after a couple of weeks of not posting.

Financially ticking along. I do really need to do a detailed July payday to August payday budget as I've got lots of things happening that are not monthly occurrences and I want to be prepared and not despairing towards the end of the month.

Looking forward to some pampering at the weekend, a lie in on Sunday and writing lots of to do lists for the different areas of my life! I am always writing to do lists. Got SO much to do in next 3 days but I am already visualising that lie in and how good I will feel once I've got it all done.

OHs cleaning efforts did not last- surprise surprise- so he's paying half towards a cleaner. It's an extravagance, but with working fulltime/studying and having a life I'm not prepared to have my evenings and weekends organised around cleaning up after him. We shall see if this way works. She comes on Saturday to meet me then every Friday.

Diet wise I am no further forward. I will be- I'm just living for convenience at the minute so not exactly the best choices. Time is of the essence though.

Will be back later.

Shoes x

miggy

Nice to have you back! You sound a bit snowed under right now but at least the end's in sight. Once you have a bit of time you can start getting together a structure for the longer term. Don't lose track of the power of small good decisions, though (easier said than done of course - you should see me when faced with chocolate ).

If you need a cleaner in order to be able to get on with your home and each other, then you need one. Feeling good about your environment is going to be empowering, so it should encourage you with money, diet and anything else. Also I just had a look at your sig - it's looking healthy! You've come a long way this year.