Free in 2012

GoalDebtFree

Hello there - my goal like everyone else is to get rid of debt once and for all. I have done up a SOA but the suprlus money section looks too healthy! I definitely don't have that amount of surplus money each month but I'm not sure where it all goes.

I think I shoud keep a diary to record where its going. But my question to anyone out there is re: Payment Protection. Should I have it? I did have it on the Halifax card but have just done the large £6000 balance transfer for a lifetime rate of 3.94% and when I realised PPI would now cost about £50 per month I cancelled it as it seemed extortionate!

Should I have kept it, should I have it at all? And as my current job contract expires in July 2010 would I even be eligible for a payout since I have this info in advance? Any help greatly appreciated!

Statement of Affairs and Personal Balance Sheet
Monthly Income Details
Monthly income after tax................ 1158.79
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1158.79
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 282
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 25
Gas..................................... 0
Oil..................................... 25
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 22
TV Licence.............................. 12.29
Satellite/Cable TV...................... 20
Internet Services....................... 0
Groceries etc. ......................... 80
Clothing................................ 15
Petrol/diesel........................... 25
Road tax................................ 0
Car Insurance........................... 33.39
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...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 10
Entertainment........................... 20
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 579.68

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

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
Halifax........................6213.56...65........3.94
Citi...........................1440.37...35........4.69
Halifax One....................336.57....11........21.95
Egg............................253.06....10........16.9
Total unsecured debts..........8243.56...121.......-

Monthly Budget Summary
Total monthly income.................... 1,158.79
Expenses (including HP & secured debts). 579.68
Available for debt repayments........... 579.11
Monthly UNsecured debt repayments....... 121
Amount left after debt repayments....... 458.11
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -8,243.56
Net Assets.............................. -8,243.56

System

GoalDebtFree wrote: »

Hello there - my goal like everyone else is to get rid of debt once and for all. I have done up a SOA but the suprlus money section looks too healthy! I definitely don't have that amount of surplus money each month but I'm not sure where it all goes.

I think I shoud keep a diary to record where its going. But my question to anyone out there is re: Payment Protection. Should I have it? I did have it on the Halifax card but have just done the large £6000 balance transfer for a lifetime rate of 3.94% and when I realised PPI would now cost about £50 per month I cancelled it as it seemed extortionate!

Should I have kept it, should I have it at all? And as my current job contract expires in July 2010 would I even be eligible for a payout since I have this info in advance? Any help greatly appreciated!

Statement of Affairs and Personal Balance Sheet
Monthly Income Details
Monthly income after tax................ 1158.79
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1158.79
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 282
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 25 (seems steep for one person - is your heating run off electricity?)
Gas..................................... 0
Oil..................................... 25
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 22 (can you reduce your tariff?)
TV Licence.............................. 12.29
Satellite/Cable TV...................... 20 (this is not an essential so could definitely go)
Internet Services....................... 0
Groceries etc. ......................... 80
Clothing................................ 15
Petrol/diesel........................... 25 (is this for work?)
Road tax................................ 0
Car Insurance........................... 33.39
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...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 10 (get your hair cut every other month instad of every month)
Entertainment........................... 20
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 579.68

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

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
Halifax........................6213.56...65........3.94
Citi...........................1440.37...35........4.69
Halifax One....................336.57....11........21.95
Egg............................253.06....10........16.9
Total unsecured debts..........8243.56...121.......-

Monthly Budget Summary
Total monthly income.................... 1,158.79
Expenses (including HP & secured debts). 579.68
Available for debt repayments........... 579.11
Monthly UNsecured debt repayments....... 121
Amount left after debt repayments....... 458.11
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -8,243.56
Net Assets.............................. -8,243.56

Welcome along, GoalDebtFree!

Your lifestyle seems pretty minimalistic to me already. I have made a few wee notes for you though if you want to cut back further. The other thing is to look at the Increase Your Income board for ways to bring in extra dosh.

I have never bothered with payment protection on any credit product to date as I don't feel I'll ever need. However, I imagine it may provide some peace of mind for some people. It's a personal judgement call really - how bad would circumstances have to get before you would be unable to service your financial commitments? How likely is that scenario to occur?

Just a few thoughts, anyway.

System

I also meant to say that you should also definitely keep a spending diary if you are not sure where your surplus money goes each month. It is horribly revealing. I did it last month and discovered I'd spent £15 on Monster Munch in one month! I could've cried at the pure waste. I also now think I have some kind of Monster Munch problem!

GoalDebtFree

Hi thanks for the quick reply!

I will definitely keep a diary to see where its all going but after your Monster Munch revelation I'm a bt worried about what it might reveal aabout me!:)

Electricity is more like £18 now I've recalculated but I share a house and it is about £150 per quarter - which does seem very high.

Satellite at £20 is half the cost of satellite, broadband and phone calls with sky - and I feel I really need it since I have cut down on going out etc. Am a bit worried about the small things I obviously squander money thoughlessly away on and I have been trying to be as frugal as possible. Previously I had been burying my head in the sand about this but is time to address it before it gets any worse. I have even declined a good friends hen weekend as it would cost about £300!

Its because my contract runs out in July, pending confirmation of an extension (definitely not guaranteed) that I was getting a bit antsy about PPI but Idon't think would even pay out as I have prior knowledge about the end of my contract and adding an extra £50 to the debt each month just seems crazy!

So am attepmting to do more than just make minimum repayments and bury head in sand about the rest - these forums look like a good place to try and stay sane!

kaz0705

Hi GDF!

I found this incredibly useful for giving me a monthly amount that I would need to pay off on top of the minimum in order to be debt free within two years:

http://www.whatsthecost.com/snowball.aspx

I also found it quite inspiring because, based on min. payments, i was looking at about 38 more years of debt!

Good luck!

Kaz

x

savingmummy

GoalDebtFree wrote: »

Statement of Affairs and Personal Balance Sheet
Monthly Income Details
Monthly income after tax................ 1158.79
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1158.79
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 282
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 25
Gas..................................... 0
Oil..................................... 25
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 22
TV Licence.............................. 12.29
Satellite/Cable TV...................... 20
Internet Services....................... 0
Groceries etc. ......................... 80
Clothing................................ 15 is this every month? only buy if you really NEED it.
Petrol/diesel........................... 25
Road tax................................ 0
Car Insurance........................... 33.39
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...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 10
Entertainment........................... 20
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 579.68

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

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
Halifax........................6213.56...65........3.94
Citi...........................1440.37...35........4.69
Halifax One....................336.57....11........21.95 this is priority
Egg............................253.06....10........16.9
Total unsecured debts..........8243.56...121.......-

Monthly Budget Summary
Total monthly income.................... 1,158.79
Expenses (including HP & secured debts). 579.68
Available for debt repayments........... 579.11
Monthly UNsecured debt repayments....... 121
Amount left after debt repayments....... 458.11
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -8,243.56
Net Assets.............................. -8,243.56

Your SOA is fab is it 100% accurate though?! Very healthy especially with a surplus of £400+
When your wages go in and your bills/expenses go out you should have this surplus free!!
You need to think about what you do daily/weekly when you dip into spare money.
Nights out, meals out, beer/wine, lottery, newspapers, treats etc.
If you spend £5-10 a day on things you dont need (easily done) this is where it is going!!

This can then be thrown at your debts each month which will really help.
In one month your surplus could pay off your Halifax One, second month HALF of your surplus can pay off ther EGG - thats 2 debts gone!! x

GoalDebtFree

Hi thanks for all the input - I ran the snowball and if I throw £300 a month at the debt (minimum) I can be debt free by July 2012!!! Thats actually quite encouraging.

Savingmummy - my car maintenance is virtually non existant as my very thoughtful Dad takes care of all repairs (and touch wood it doesn't seem to need much!) I haven't bothered including car tax as its only £35 once a year and already done and dusteed for this year..

I ignored medical as again (touch wood) I don't really spend on medication I would lump it in with groceries etc. for the odd pack of painkillers. I actually spent £30 at the dentist yesterday but don't need to visit again until August so as a monthly cost its negligible.

But yes there are holes somewhere as that £400 is being frittered away. Will see what the spending diary throws up this month. And then there are people who insist of having weddings, babies etc. all inside the same three/four months that all need attended/acknowledged - am thinking of announcing that I am officially a recluse until 2012.....

Will have to post one of those debt counters at the bottom you all seem to have - a bit like weightwatchers - it should shame me into action!