Turning 30 and I don't want my debts anymore

npearson01

I am now on the final run up to my 30th birthday and have decided that I want to be debt free as soon as possible and then start work on clearing my mortgage.

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household..........1
Number of cars owned..................... 1

Monthly Income Details
Monthly income after tax................ 1504
Total monthly income..................... 1504

Monthly Expense Details
Mortgage.......................................375
Council tax.................................... 67
Electricity..................................... 20
Gas.............................................. 31
Water rates................................... 36.38
Mobile phone...................................10
TV Licence.................................... 12.12
Satellite/Cable TV........................... 62.46
Groceries etc. ............................... 200
Clothing........................................ 20
Petrol/diesel.................................. 30
Road tax....................................... 16
Car Insurance................................ 47.5
Car maintenance (including MOT)...... 10
Medical (prescriptions, dentist etc).... 5
Buildings insurance.......................... 21
Life assurance ............................... 21.87
Presents (birthday, christmas etc)..... 25
Entertainment................................ 85
Union Fee...................................... 14
Cleaner......................................... 40
Total monthly expenses................... 1149.33

Assets
House value (Gross)..................... 115000
Car(s)....................................... 2000
Total Assets.............................. 117000

Secured & HP Debts
Description............................Debt......Monthly...APR
Mortgage............................. 96213....(375)......1.5%
Total secured & HP debts........ 96213

Unsecured Debts
Description..........................Debt......Monthly...APR
Virgin Credit Card.................1310........25...........0%
HSBC Loan..........................7277.......220.........7%
Total unsecured debts..........8587.......245

Monthly Budget Summary
Total monthly income............................ 1,504
Expenses (including HP & secured debts)... 1,149.33
Available for debt repayments................. 354.67
Monthly Unsecured debt repayments........ 245
Amount left after debt repayments.......... 109.67

Personal Balance Sheet Summary
Total assets (things you own)............... 117,000
Total HP & Secured debt...................... -96,213
Total Unsecured debt.......................... -8,587.82
Net Assets........................................ 12,199.18

I have done an SOA as accuratley as I can manage, my debts are £1310 on a 0% credit card , Personal Loan £7277 over 35mths-32mths remaining and a Mortgage of £96213.

I plan to pay off the credit card by the end of this year (currently paying around £200 of a month) and then save to pay of the loan. At least thats the plan anyway!

Tixy

Hi

I think you could put much more towards your debt without too much effort -

Water rates................................... 36.38 - I guess this is unmetered - a meter would probably save £20 per month
Satellite/Cable TV........................... 62.46 consider dropping to a lower package (or threaten to leave and they may do half price for 6months)
Groceries etc. ............................... 200 could reduce and still eat really well
Petrol/diesel.................................. 30
Road tax....................................... 16
Car Insurance................................ 47.5
Car maintenance (including MOT)...... 10
Presents (birthday, christmas etc)..... 25
Entertainment................................ 85
Union Fee...................................... 14
Cleaner......................................... 40 I'd say you could manage without a cleaner but I suppose it depends on how quick you want to pay off the debts, not everyone wants to cut to bare essentials!

Have you fed your figures into the snowball calculator? to find out how long it will take if you only over pay by the £109? and how much quicker it would be (and how much less in interest) if you up that to say £200 each month?

I'd also wonder if you really need the car if you only do £30 worth of fuel each month but of course thats also a personal choice (and I wouldn't want to be without a car).

Does the loan allow overpayments?

saveumcowboy

Hi
I am wondering...do you need the cleaner and could you get free view to save cable costs, this would save over 100 a month, which over a year is £1200 off your debts.

Good luck

McKneff

Definitley get a water meter, it will probably cut your bill in half seeing as there is only one in the property.

Cable TV and food could be cut down drastically.

Entertainment too, have friends in, get them to bring a bottle, have
Wii parties.

poorbutrich

npearson01 wrote: »

I am now on the final run up to my 30th birthday and have decided that I want to be debt free as soon as possible and then start work on clearing my mortgage.

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household..........1
Number of cars owned..................... 1

Monthly Income Details
Monthly income after tax................ 1504
Total monthly income..................... 1504

Monthly Expense Details
Mortgage.......................................375
Council tax.................................... 67
Electricity..................................... 20
Gas.............................................. 31
Water rates................................... 36.38
Mobile phone...................................10
TV Licence.................................... 12.12
Satellite/Cable TV........................... 62.46
Groceries etc. ............................... 200
Clothing........................................ 20
Petrol/diesel.................................. 30
Road tax....................................... 16
Car Insurance................................ 47.5
Car maintenance (including MOT)...... 10
Medical (prescriptions, dentist etc).... 5
Buildings insurance.......................... 21
Life assurance ............................... 21.87
Presents (birthday, christmas etc)..... 25
Entertainment................................ 85
Union Fee...................................... 14
Cleaner......................................... 40
Total monthly expenses................... 1149.33

Assets
House value (Gross)..................... 115000
Car(s)....................................... 2000
Total Assets.............................. 117000

Secured & HP Debts
Description............................Debt......Monthly...APR
Mortgage............................. 96213....(375)......1.5%
Total secured & HP debts........ 96213

Unsecured Debts
Description..........................Debt......Monthly...APR
Virgin Credit Card.................1310........25...........0%
HSBC Loan..........................7277.......220.........7%
Total unsecured debts..........8587.......245

Monthly Budget Summary
Total monthly income............................ 1,504
Expenses (including HP & secured debts)... 1,149.33
Available for debt repayments................. 354.67
Monthly Unsecured debt repayments........ 245
Amount left after debt repayments.......... 109.67

Personal Balance Sheet Summary
Total assets (things you own)............... 117,000
Total HP & Secured debt...................... -96,213
Total Unsecured debt.......................... -8,587.82
Net Assets........................................ 12,199.18

I have done an SOA as accuratley as I can manage, my debts are £1310 on a 0% credit card , Personal Loan £7277 over 35mths-32mths remaining and a Mortgage of £96213.

I plan to pay off the credit card by the end of this year (currently paying around £200 of a month) and then save to pay of the loan. At least thats the plan anyway!

HI there
Things don't look too bad but the thing that jumps out at me is the £200 a month grocery bill. Is this just for one?
If you have a look on the old style board, there are lots of threads about meal planning, grocery planning, batch cooking and eating well, but cheaply. I am sure it wouldn't be hard to cut this back substantially.

Good luck!

DVardysShadow

npearson01 wrote: »

... I plan to pay off the credit card by the end of this year (currently paying around £200 of a month) and then save to pay of the loan. At least thats the plan anyway!

Hmm. Is the credit card really 0%? Because if it is, you would do better to save your surplus in some savings account and get interest. And then put the savings to paying off the loan early if you can reduce interest payments.

npearson01

Hi all and thanks for the advice. I have been ringing around chasing up the advice you have provided and this is the result so far.

I gave Sky a ring and cut my bill by £17 a month, thats as much as I can do until my 12 month contract is up in September.

I would dearly love to be car free, unfortunatly thats a no go, my work contract says I have to have a car even if I rarely use it whata bummer. Although I did ring the RAC and cut by cost from £135 per year to £35 per year. I also spoketo my insurance company about reducing the annual mileage and removing the commuter category, for some bizarre reason that would actually increase the insurane costs??

I have applied to have a water meter installed

The grocery bill is a guestimate based on my last shopping bill x4, this can vary hugely as I tend to stock up as and when. I will for the next month keep a record and update with an accurate figure.

The 0% credit card is with Virgin and the introductory rate of 0% runs out in August and reverts to 28.9% so I would like to have it paid by then, that or I will transfer onto another 0% but that usually costs between 2-3% as a transfer fee.

So far a reasonably productive day! Big smiles al round and thnak you all for your advice.

Tixy

Good Progress, well done.

Have you had a look at this http://www.whatsthecost.com/snowball.aspx to get yourself a debt free date worked out?

npearson01

Yeah I put my unsecred debt details in it came up with 2013, but here's hoping that I can get it done faster than that. Pay off the Credit Card this year and then save hard to pay off the loan and who knows, I might surprise myself!

McKneff

And when you get your debts paid off, you'll be bliddy rolling in it.
:rotfl::rotfl:

and Well done, good progress so far.