1 year to get shut of debt!!

bearminimum

Hi I am a new poster (nervous!),
I am wanting a bit of moral support really, to help me get rid of my debt in one year. My hubby and I both work FT so we have some surplus cash at the moment, we ran up a bit of debt last year when I was on Mat leave , mainly through buying a second car after I finally passed my test after 5 years learning. We need to clear everything for this time next year as there is a good chance my contract at work will not be renewed, and even if it is I am hoping to drop to school hours only as I am finding it knackering working full time with 2 kids, but am willing to keep soldiering on for the next year to put us in a better position as a family.

:j
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 1445
Partners monthly income after tax....... 1569
Benefits................................ 431
Other income............................ 0
Total monthly income.................... 3445

Monthly Expense Details
Mortgage................................ 1010
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 113
Electricity............................. 40
Gas..................................... 40
Oil..................................... 0
Water rates............................. 34
Telephone (land line)................... 25
Mobile phone............................ 0
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 236.5
Clothing................................ 100
Petrol/diesel........................... 215
Road tax................................ 32.08
Car Insurance........................... 66.67
Car maintenance (including MOT)......... 25
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 577.5
Other child related expenses............ 122.25
Medical (prescriptions, dentist etc).... 15
Pet insurance/vet bills................. 8.33
Buildings insurance..................... 13.31
Contents insurance...................... 0
Life assurance ......................... 51
Other insurance......................... 0
Presents (birthday, christmas etc)...... 40
Haircuts................................ 20
Entertainment........................... 100
Holiday................................. 100
Emergency fund.......................... 0
Total monthly expenses.................. 2996.64


Assets
Cash.................................... 0
House value (Gross)..................... 154000
Shares and bonds........................ 0
Car(s).................................. 13900
Other assets............................ 0
Total Assets............................ 167900


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 154000...(1010).....0
Total secured & HP debts...... 154000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
next catalogue.................500.......20........0
LTSB LOAN......................7700......197.5.....0
Family loan....................500.......10........0
Total unsecured debts..........8700......227.5.....-


Monthly Budget Summary
Total monthly income.................... 3,445
Expenses (including HP & secured debts). 2,996.64
Available for debt repayments........... 448.36
Monthly UNsecured debt repayments....... 227.5
Amount left after debt repayments....... 220.86

Personal Balance Sheet Summary
Total assets (things you own)........... 167,900
Total HP & Secured debt................. -154,000
Total Unsecured debt.................... -8,700
Net Assets.............................. 5,200


Am hoping that one of you kind people will be able to give me a shove in the right direction, its kinda normal where I am for people to be in loads of debt but something about my debt is troubling me

regards bear x

WASHER

bearminimum wrote: »

Hi I am a new poster (nervous!),
I am wanting a bit of moral support really, to help me get rid of my debt in one year. My hubby and I both work FT so we have some surplus cash at the moment, we ran up a bit of debt last year when I was on Mat leave , mainly through buying a second car after I finally passed my test after 5 years learning. We need to clear everything for this time next year as there is a good chance my contract at work will not be renewed, and even if it is I am hoping to drop to school hours only as I am finding it knackering working full time with 2 kids, but am willing to keep soldiering on for the next year to put us in a better position as a family.

:j
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 1445
Partners monthly income after tax....... 1569
Benefits................................ 431
Other income............................ 0
Total monthly income.................... 3445

Monthly Expense Details
Mortgage................................ 1010 - Interest or repayment
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 113
Electricity............................. 40
Gas..................................... 40
Oil..................................... 0
Water rates............................. 34
Telephone (land line)................... 25
Mobile phone............................ 0
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 0 No Internet?
Groceries etc. ......................... 236.5 - thats low, is this your actual spend or what you think you are spending? If actual, very well done.
Clothing................................ 100 :eek: Each month, far too high
Petrol/diesel........................... 215
Road tax................................ 32.08
Car Insurance........................... 66.67
Car maintenance (including MOT)......... 25
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 577.5 Do your workplace or your OH have childcare vouchers to assist with this
Other child related expenses............ 122.25 - What is this?
Medical (prescriptions, dentist etc).... 15
Pet insurance/vet bills................. 8.33
Buildings insurance..................... 13.31
Contents insurance...................... 0
Life assurance ......................... 51 - Very important, DO NOT CANCEL, although it is a little high
Other insurance......................... 0
Presents (birthday, christmas etc)...... 40
Haircuts................................ 20
Entertainment........................... 100 - too much every month
Holiday................................. 100 - you can't really afford this each month either
Emergency fund.......................... 0 - you should an emergency fund, how will you pay for the washing machine to be replaced? Credit cards?
Total monthly expenses.................. 2996.64


Assets
Cash.................................... 0
House value (Gross)..................... 154000
Shares and bonds........................ 0
Car(s).................................. 13900
Other assets............................ 0
Total Assets............................ 167900


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 154000...(1010).....0
Total secured & HP debts...... 154000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
next catalogue.................500.......20........0
LTSB LOAN......................7700......197.5.....0
Family loan....................500.......10........0
Total unsecured debts..........8700......227.5.....-


Monthly Budget Summary
Total monthly income.................... 3,445
Expenses (including HP & secured debts). 2,996.64
Available for debt repayments........... 448.36
Monthly UNsecured debt repayments....... 227.5
Amount left after debt repayments....... 220.86

Personal Balance Sheet Summary
Total assets (things you own)........... 167,900
Total HP & Secured debt................. -154,000
Total Unsecured debt.................... -8,700
Net Assets.............................. 5,200


Am hoping that one of you kind people will be able to give me a shove in the right direction, its kinda normal where I am for people to be in loads of debt but something about my debt is troubling me

regards bear x

Welcome to MSE. I have added comments in above. If you didn't take a holiday this year you could infact repay next and the family loan off within 10 months, and still have a surplus to live a little. Can you overpay on the loan, if so, reduce your entertainment,holidays and clothing, you could be debt free within two years.

Yours debts are not at all high, but well done for acknowledging them now before they start to spiral. You really do need an emergency fund, otherwise you will be dependant on those credit cards for replacement washing machines etc.

WASHER.x.

IWantToBeFree_2

Hi Bear

Welcome to the forums!

First question is do you really have £220 left at the end of every month?

If you want to be debt free in 12 months, you need to make additional payments of approx £500 a month, and that is on the basis that your debts are interest free, which I don't imagine they are (aside from the loan from family).

Have you checked your loan paper work to see what the penalty will be for paying it off early? What is the current term and APR?

In terms of your SOA, if you are serious about becoming debt free, you should cut down your holiday, entertaing and clothing budgets!

Numpty_Monkey

bearminimum wrote: »

Hi I am a new poster (nervous!),
I am wanting a bit of moral support really, to help me get rid of my debt in one year. My hubby and I both work FT so we have some surplus cash at the moment, we ran up a bit of debt last year when I was on Mat leave , mainly through buying a second car after I finally passed my test after 5 years learning. We need to clear everything for this time next year as there is a good chance my contract at work will not be renewed, and even if it is I am hoping to drop to school hours only as I am finding it knackering working full time with 2 kids, but am willing to keep soldiering on for the next year to put us in a better position as a family.

:j
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 1445
Partners monthly income after tax....... 1569
Benefits................................ 431
Other income............................ 0
Total monthly income.................... 3445

Monthly Expense Details
Mortgage................................ 1010
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 113
Electricity............................. 40 not bad, look at comparrison sites, cashback sites
Gas..................................... 40not bad, look at comparrison sites, cashback sites
Oil..................................... 0
Water rates............................. 34
Telephone (land line)................... 25 is the internet in with this
Mobile phone............................ 0 really?
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 236.5 thats good
Clothing................................ 100 high wear what you have,look at ebaying stuff, charity shops, replace whats knackered
Petrol/diesel........................... 215 look at Martins guide http://www.moneysavingexpert.com/travel/
Road tax................................ 32.08
Car Insurance........................... 66.67 any insurance use comparrison sites and cashback sites
Car maintenance (including MOT)......... 25
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 577.5
Other child related expenses............ 122.25
Medical (prescriptions, dentist etc).... 15
Pet insurance/vet bills................. 8.33 as car
Buildings insurance..................... 13.31as car
Contents insurance...................... 0
Life assurance ......................... 51as car
Other insurance......................... 0
Presents (birthday, christmas etc)...... 40
Haircuts................................ 20
Entertainment........................... 100
Holiday................................. 100 If not boked cancel, many cheap deals knocking about
Emergency fund.......................... 0
Total monthly expenses.................. 2996.64


Assets
Cash.................................... 0
House value (Gross)..................... 154000
Shares and bonds........................ 0
Car(s).................................. 13900
Other assets............................ 0
Total Assets............................ 167900


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 154000...(1010).....0 ??????
Total secured & HP debts...... 154000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
next catalogue.................500.......20........0??????
LTSB LOAN......................7700......197.5.....0??????
Family loan....................500.......10........0??????
Total unsecured debts..........8700......227.5.....-


Monthly Budget Summary
Total monthly income.................... 3,445
Expenses (including HP & secured debts). 2,996.64
Available for debt repayments........... 448.36
Monthly UNsecured debt repayments....... 227.5
Amount left after debt repayments....... 220.86

Personal Balance Sheet Summary
Total assets (things you own)........... 167,900
Total HP & Secured debt................. -154,000
Total Unsecured debt.................... -8,700
Net Assets.............................. 5,200


Am hoping that one of you kind people will be able to give me a shove in the right direction, its kinda normal where I am for people to be in loads of debt but something about my debt is troubling me

regards bear x

Hi, ive left a few comments, your SOA ain't to bad, a few tweaks,
you need to do a few things Find the APR's out
and keep a spending diary, list everything you and OH spend, a newspapper here, can of pop there blah blah, its amazing how much you spend

HTH:A

bearminimum

Thanks for the swift replies,

In answer to your questions, yes we do have £220 left over every month, the internet is included in with the phone, we have mobiles but OH only puts £5 on every three months or so and mine is topped up by work.
Our shopping is always £55 p/w, we stick to a strict budget and have done since I was on mat leave, we do a menu planning thing of sorts but not a sophisticated as some of the people on here.
The loan is Lloyds one, its 7% interest over 5 years, took it out in June 08, no penalties for overpayment.

As for the family loan, my OH lent this off his olds when I was on leave so he could go to Barcelona, and as they have subbed his sister for years and years don’t see why I should pay this back (but that’s another thread lol) so I don’t really acre about paying that off ever.
Next I run up a massive bill spend the next two months paying it off and then run the thing up again, its going in the recycling bin. No credit cards, I did have a £1500 card and a £1600 )D but have cleared them since going back to work in September.

Yes, clothes at £100 I agree is high but this is prob what we have spent in the last few months as we did not replace anything while I was off so my OH was in rags and also I have gone form a 12 to an 8 and nothing fitted so I have had to more or less replaced everything also where I work it is important to wear the right thing to fit in. My mums treats the lad who are 5 yrs and 16 m to shoes clothes etc but I have just had to buy the little one some bits, however I have all my elder ones clothes stashed away from age 2 (not before cos we had decided we weren’t having any more kids lol)
The other child costs are £8.50 p/w school dinners and £20 After school club also £2.50 per week for football and after Easter he will start Beavers so that will be another £2.50 is h per week for my DS!. In the school hols this ‘pot’ of money is used for soccer camp, going to pictures or any additional childcare that might be needed.

£100 for entertainment is high but that’s what I have been spending for a month and we might go out for dinner x 1 and take the kids out once. But realise I would have to cut down to get the debt paid off.

At the moment we get Tax credits towards our childcare, these are about £67 p/w so better I think than Child Care vouchers, I can get them from work in future but OH’s work doesn’t do them.

Hols are important to my OH, we only go in this country though. Have booked accom for this year and owe £305 on that to be paid in three months so can't reduce that. We didn’t get away last year.
Bear;)

WASHER

Bear, lots of useful comments on here from the DFW peeps.

Tally up how much you and your OH withdrew from the atm machine last month, it may well surprise you, I thought we were withdrawing £200 per month at the absolute most, until I tallied it up, just short of £600 a month:eek:, I almost fell over.

A spending diary will help you keep in track of your day to day spending.

JA1000

£154k House Value ??
£154k Mortgage ??

You probably can't over pay on your loan which leaves £1k to pay off, with budgeting this should be done in a couple of months, you then probably need to save about £6k to pay off loan at end of year. Can you down grade one car?

WASHER

Bear, just read your last post.


Can you do pack ups for your son instead of school dinners.

Holidays are important and i think especially important for childhood memories etc, but you need to reduce the overall cost, £100 per month is too much, what type of holiday do you go on? Do you rent a cottage? or Centre parcs?

bearminimum

Washer: will do spending diary!
JA Mortgage is £154K house I m guessing is worth that, bought in August 2007 (weep and wail!!) for £180,500 house over the road tahths the same as ours has been on market for about a year at £160K , can overpay on loan no problem .
Am weighing up selling my car as tghis would clear the loan easily. But public transport round her with 2 kids is not fun.

dancingfairy

If you've got 300 pounds left to pay for the holiday over the next 3 months - what will it be after that? maybe you could set aside a small amount each month to pay for next years holiday (when you've paid for this years) - 30 a month would give you over 300 pounds for this time next year and you would free up 70 a month to get that debt paid off quicker :T.
df

dancingfairy

Oh I agree with Washer - maybe you could do packed lunches for your child?
Can you get any credit cards? if you could transfer some of your loan to a 0% card or low interest rate card it would be beneficial as you would save on the interest - might be worth looking at? or maybe try for a loan from a credit union and see if they can give you a decent rate? Just be wary of increasing the term as otherwise it might not work out so well.
df