Not Another Debt-Free-Wannabe Diary

Simon83

A bit about me

I’ve been inspired to create my own Debt-Free-Wannabe diary, to keep a track of my spending and ‘decrease’ the debt. I look to the rest of you for motivation and help in getting my debt down as quickly as possible.

I’ve managed to get my self in £6351.21 of Debt since June 2005. I can’t actually believe I have let it get this bad. But this is my light bulb moment *July 2006*


SOA to follow

Simon83

Statement of Affairs (26 July 2006)

Bank Accounts

Halifax Overdraft - £120
Natwest Overdraft – £726.06

Credit Cards

M&S - £1081.55

Loans

A&L - £3,548.28 (Settlement Figure)
Nationwide - £875.32 (Settlement Figure)

Total = £6351.21


Expenditure

Income

£990 (looking for a new higher paid job)

Outgoings

Rent to parents - £152
Travel - £65
Broadband - £10
Mobile - £20
Gym - £28.90

Total - £275.10

Cashflow

In: +£990
Out: -£275.10
Net: +£714.90

Simon83

The Plan

Ok, as my current debt is £6,351.21, I’ve decided that this is unmanageable for me, and decided I would ask for help before it’s to late. So my kind mum will be issuing me with a cheque tomorrow for £6000.00 and it will allocated as follows-

A&L - £3,548.28
Natwest Overdraft – £726.06
M&S cc – 1081.55
Halifax - £120
Nationwide – 524.11

So that’s everything paid off apart from £351.21 on the nationwide loan.

We have agreed I pay my mum around £400 a month, if I can afford more then That’s a bonus.

So Updated Expenditure is:-


Outgoings

Rent to parents - £152
Travel - £65
Broadband - £10
Mobile - £20
Gym - £28.90
Nationwide loan – £89.10 (£351.21 outstanding)
Mum Loan - £400

Total - £764.20

Cashflow

In: +£990
Out: -£764.20
Net: +£225.80

I’m going to give my self a Debt-Free Date of July 2007, so one year from now. Going to try and sell things on ebay and make some extra cash.

Sorry for the long post, but will be keeping this diary active, and would greatly appreciate any advice and tips you can give.

Thanks

Si

yeslek

one tip - dont get lax on paying your mom back.

generally, if we owe a friend or family member money we assume they can understand if we dont have the money and that they will wait longer.

look at it as paying an extra £30 if you do miss a payment. veiw her as a bank

8pnoodles

If you have a surplus of £225 a month, what are you spending that on?

Also, be careful and don't do what I did.I sold a lot of stuff on ebay, and with the money, I... bought more stuff. lol Give yourself some room in your budget for treats, haircuts and anything else you do spend. You budget needs to account for everything. Christmas/birthday presents for people? Clothes? The more realistic your budget is, the more likely it is that you will stick to it.

Don't be afraid to rework your budget on even a monthly basis depending how the previous month went.

Simon83

wrote:

yeah, well it works out that I have about £55 per week for my self. i do have a very active social life as i'm 22, have a g/f. but ive cut down on going down town now.

so hopefully the £55 for the week should cover me over. (I hope)