Spykey_uk's LBM - I am inspired to have a positive, debt-free life!

spykey_uk

Over Christmas my dad bought me a book called The Guide. It was incrediable, and really opened my eyes to all of the ways I had been holding myself back in life. It is all about the power of positive thought and how much we can achieve when we put our minds to it.

So, this is my fresh start. I'm 26 years old and am marrying the man I love this year. The wedding is almost paid for and once it has been that will free up a bit extra income every month for debt repayments. Most of the debts have been accumulated through studying (I was relieved to read in my profession's magazine yesterday that most people in the law career qualify with at least £10,000 worth of debt - my share = £8,000 so I'm under average! :rotfl:).

So, this is the year I sort this mess out. We are around £17,000 in debt and it is time to bring this down a bit. There are loads of things we want to do with our lives once we're married (including a holiday to Vegas, buying a house and having kids) but we know that none of these things can be done until the debts are cleared!

I thought if I keep a diary it will inspire me to do more to pay off my debts! So sorry if I'm waffling on a bit!

There are definitely some areas that can be improved on our SOA but for now, here it is: -

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................ 1278
Partners monthly income after tax....... 1400
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2678
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 775
Management charge (leasehold property).. 0
Council tax............................. 140 (over 10 months so 2 months we save this money and put towards debt repayment)
Electricity............................. 28
Gas..................................... 38
Oil..................................... 0
Water rates............................. 30
Telephone (land line)................... 0
Mobile phone............................ 70 I know this is high, it's £35 each but we get unlimited minutes, texts and internet use so we don't need landline.
TV Licence.............................. 11.25
Satellite/Cable TV...................... 40 Again, I know this is high, but the signal is so bad in our area that freeview/terrestrial doesn't work, so it was a choice of sky or virgin!
Internet Services....................... 5
Groceries etc. ......................... 150 Trying to reduce this
Clothing................................ 0
Petrol/diesel........................... 70 OH uses the car to commute so can't lower
Road tax................................ 13.75
Car Insurance........................... 32
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 11.67
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 30
Haircuts................................ 10 I get cut once every 2 months or so by a friend who charges £20
Entertainment........................... 50
Holiday................................. 0
Emergency fund.......................... 0
Wedding Savings......................... 200 I KNOW I'm going to get grief for this but we've paid so much in deposits for the wedding now that there's no point pulling out. We've only got a couple more months to save and then it will all be paid for and we can concentrate on debts.
Opticians............................... 30 OH & I both wear lenses
Gym..................................... 60 Ok, this is an extravagence - this is for both of us.
DVD Rental.............................. 8
Total monthly expenses.................. 1822.67

Assets
Cash.................................... 6500 Wedding savings - no we can't touch them
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 2500
Other assets............................ 0
Total Assets............................ 9000

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
Halifax Credit Card............1323.9....30........15.9
Abbey Credit Card..............2679.39...30........0
Natwest Loan...................2498.11...157.6.....8
Tesco Credit Card..............1719.58...50........16.4
Natwest Loan...................1544.53...0.........140
Barclaycard....................4474.98...50........0
Natwest Credit Card............1999.99...50........0
Natwest Overdraft..............887.88....0.........29.6
Total unsecured debts..........17128.36..367.6.....-

Monthly Budget Summary
Total monthly income.................... 2,678
Expenses (including HP & secured debts). 1,822.67
Available for debt repayments........... 855.33
Monthly UNsecured debt repayments....... 367.6
Amount left after debt repayments....... 487.73
Personal Balance Sheet Summary
Total assets (things you own)........... 9,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -17,128.36
Net Assets.............................. -8,128.36
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

Thanks for listening!

spykey_uk

I know the SOA looks like we have a lot of spare income but we both make around £200 in CC payments a month over our minimum payments as well, so there's not THAT much spare.

First goal, get the debts below £17,000!

spykey_uk

Sooo, Day One!

There are main areas of my life that need improving at the moment, and here's how I intend to tackle them: -

Finances

As above really, we have £17,150 (ish) worth of debts between us as a couple and I want to work on bringing that down. We also have a small amount still to save for the wedding. I am going to really cut back on my spending, continue to do surveys and selling things on ebay, but may also pick up my free scratchcards again.

House

To be honest, its a mess. Every room needs gutting, reorganising and thoroughly cleaning. And I don't know where to start...so I keep putting it off. I think this weekend I will try and take one room and make sure it is done from top to bottom, and I think I will start with the lounge (as that's where we spend most of our time). A good declutter may even bring in more stuff to sell, which will help with Finances!

Health

I want to lose a bit of weight for the wedding (I'm 12'2 at the moment, would like to be around 11'7). I am following the Paul McKenna I Can Make You Thin regime (just reading the book - not costing me anything) and I am only eating when I'm absolutely hungry, choosing what I want to eat, enjoying every bite and stopping when full. Sounds simple, but the stopping when full bit seems to be my problem! :rotfl:

I need to get back into my skin routine (cleanse, tone, moisturise) and looking after my nails etc, especially with the wedding coming up this year. And I need to get back to taking my vitamins regularly!

Relationship

Mostly this is pretty perfect, but I know that I take my OH for granted, he does so much around the house, so this year my intention is to start pulling my weight. We also need to try and sit together at the table more and having dinner without the tv on - and really catch up with each other.