Debt free by summer 2011

rictus123

Yeh folks, its me again! Keep having this lightbulb moment but enough is enough. Im 19 and earning a good income yet iv not much to show for it so far! So im wanting to be debt free by the time im 20 which is at the end of June! So 7 months for me to clear it all off! Heres my SOA!

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 1332
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1332

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 288.06
Rent.................................... 100
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 40
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 0
Clothing................................ 20
Petrol/diesel........................... 100
Road tax................................ 0
Car Insurance........................... 0
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)...... 25
Haircuts................................ 0
Entertainment........................... 100
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 673.06


Assets
Cash.................................... 770
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 7500
Other assets............................ 1000
Total Assets............................ 9270


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Secured Debt.................. 1150.....(48.06)....0
Hire Purchase (HP) debt ...... 7000.....(240)......0
Total secured & HP debts...... 8150......-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Rbs Credit Card................850.......12........0
Capital One....................571.52....6.72......0
Santander Overdraft............500.......10........0
Total unsecured debts..........1921.52...28.72.....-


Monthly Budget Summary
Total monthly income.................... 1,332
Expenses (including HP & secured debts). 673.06
Available for debt repayments........... 658.94
Monthly UNsecured debt repayments....... 28.72
Amount left after debt repayments....... 630.22

Personal Balance Sheet Summary
Total assets (things you own)........... 9,270
Total HP & Secured debt................. -8,150
Total Unsecured debt.................... -1,921.52
Net Assets.............................. -801.52

Created using the SOA calculator at https://www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using Firefox browser.


So really im looking at £3,070.51! Not including my car*not including it to make me "debt free"

I have put my salary i get for doing my basic Monday - Friday. I will add in any overtime/homers etc i get paid for. I will also add in Mot/Insurance/Road Tax when i pay for them.

Im going to make this my budget aswel as my little diary on how i go about getting £3k gone in less than 7 months!


It works out iv got at least £600 of a surplus, when i need at least £483 a month for 7 months to clear the £3k - not including added interest! Should be do able, i will stick this one out!


Wish me luck folks as i aim to start tackling this debt before i get sucked in deeper!

Note the £770 cash i have is actually £250 cash and £700 in a saving bond - get the £700 out on the 30th of this month and as for the £240, £180 is going out tomorrow so il have £70 cash+the £700 from the bond.


Next pay is going to be about £600 on the 26th. I have no Direct debits to pay until next month i have

9/12 - £240.40 on car
15/12 - Card payments/ £48.06 loan payment + £100 digs and £35 phone(last payment as deal ending) +£40 phone (New deal)

Bring it on, i will do this!

rictus123

Well £120 down today! Spent it to cancel my old car insurance a few months ago as it was £200 a month!! Cancelled that and got a better deal and paid £900 for the year! All paid now and about 8 months until its due to be renewed thank god!

Got a few little targets for myself!!!

Pay off my cards and overdraft(about £1,950) and Save up £250 by the 14th of Febuary 2011!

Why then? Well its a Sunday, Valentines day and 2 days before me and my gfs 3 year anneversary. So itl be a perfect time for a break and a night away somewhere to relax before the run up to summer where il be working flat out, doing as much homers as i can get!!

I get a fair pay rise this summer but trying not to think about it too much as il just stop paying so much off my debts now saying to myself "il pay it when i earn more" as its just a nasty circle thats hard to get out of!!!


So my £2,200 by 14th Of Feb(91 days time) Works out at just over £24 a day, just under £170 a week!!

I WILL manage this!

So on the 26th of November i will be paying out at least £340 to credit cards.

rictus123

So Targets are as followed

1. Pay off all credit cards + overdraft(£1,950) by 14/2/2011
2. Undercoat paint my room - two coats by the end of this month
3. Work out ( ie do my weights at least 5 times before the end of the month
4. Enjoy the things that are free, more. For example my lovely gf!
5. Make the most of my new phone, i think itl be worth the money!

rictus123

Well no spends recently....no money to spend anyway. A week tomorrow is payday. Not a single outgoing until the 13th. Except petrol.


Should do well over xmas and debt free by my 14th of Febuary date. Cant wait.

rictus123

Well no spend day really just £4 on lottery syndicate at work. Please be me. Even £1k would go a very long way!!

Been busy filling in the cracks in my room(after removed wallpaper) and getting it cleared out all ready for painting tomorrow.

Undercoating paint was free! And i should have enough for 2 coats including ceiling then il decide what colour im going for.

Might not get the paint until the money in saving bond is through.


87 days until my target!

Hopefully 87 days to being debt free!

jwil

You're doing really well rictus, well done for having your LBM so early! If I'd had mine when I was 19, I would not be in the situation I'm in now.

Good luck with the debtbusting, I shall follow your progress with interest!

rictus123

Thanks Jwil. Im learning from others mistakes and my own early mistakes.


Not only am i aiming for debt free but also got my longer term target. Me and my gf are coming upto 3 years together and we feel its time for us both to flee our nests and buy somewhere together. Aiming summer 2012 at the latest.

So thats what il be saving for when debt free. If i start saving for it now its going to be about £500 a month at least. Over 20 months thats at least £10k. £5k for my half of the deposit. And the rest for bits and bobs, fees and moving costs, furniture that we NEED. The rest of furniture will be gradually built up. Even though i have said £10k at least id be aiming for nearer £20k. Iv downloaded this app on my phone(for free of course! - my phones my luxary!) its a spending diary! Its amazing. Going to trial run for the rest of the year and if its good then il use it all of next year, cutting down where i can, if i can!


£20k over 20 months is an average of £1k a month which is not that reasonable now with not much overtime in the winter but i still have £675 disposable a month right now and after my rise in summer it will be £1,975 disposable as my income is set to double. I know alot of you wont believe me when i say that but it is true. With overtime onto that i could save £2,500 a month over this summer - Just for 3 months of the year and £1,000 average for the rest = £16,500 just in 2011. Meaning £3,500 to save start of 2012 then start looking.


Iv got it all planned out, just need to put it into action.

I love my job/work and love it even more if iv got something to work towards. Really cannot wait to get my own place!!

jwil

rictus123 wrote: »

Thanks Jwil. Im learning from others mistakes and my own early mistakes.


Not only am i aiming for debt free but also got my longer term target. Me and my gf are coming upto 3 years together and we feel its time for us both to flee our nests and buy somewhere together. Aiming summer 2012 at the latest.

So thats what il be saving for when debt free. If i start saving for it now its going to be about £500 a month at least. Over 20 months thats at least £10k. £5k for my half of the deposit. And the rest for bits and bobs, fees and moving costs, furniture that we NEED. The rest of furniture will be gradually built up. Even though i have said £10k at least id be aiming for nearer £20k. Iv downloaded this app on my phone(for free of course! - my phones my luxary!) its a spending diary! Its amazing. Going to trial run for the rest of the year and if its good then il use it all of next year, cutting down where i can, if i can!


£20k over 20 months is an average of £1k a month which is not that reasonable now with not much overtime in the winter but i still have £675 disposable a month right now and after my rise in summer it will be £1,975 disposable as my income is set to double. I know alot of you wont believe me when i say that but it is true. With overtime onto that i could save £2,500 a month over this summer - Just for 3 months of the year and £1,000 average for the rest = £16,500 just in 2011. Meaning £3,500 to save start of 2012 then start looking.


Iv got it all planned out, just need to put it into action.

I love my job/work and love it even more if iv got something to work towards. Really cannot wait to get my own place!!

Good luck with the savings, having a property to aim for will help keep you focussed.

rictus123

Im paying £240.40 a month of my hard earned on a car.


Any ways i can eliminate this? Even if i was to downgrade my car then i would be able to pay off at least half of the finance and then get rid of it completly by the summer. Any ideas folks?

Bought car for £7,500 in the summer, £750 deposit(i think) and £240.40 a month until 2013!!!! Good idea at the time and its not that i regret it, its just i could do with paying it asap!

jwil

Sorry, I don't really know anything about car finance. If you can downgrade it and reduce your payments by half, then that surely would be a good thing?

How much do you use the car, could you sell it and pay off the finance?

rictus123

I do use it everyday...was just as the snow here is pretty bad already and its only November! Anyway an update - payday yesterday and £666.74 in (fortnights basic pay)

So £500 out to Overdraft - thats it cleared. £125.79 out to Rbs credit card

= £625.79 of debt paid off = £2452.55 left + a bit of interest!

78 days to go until 14th of Febuary 2011 = £31.50 a day :O Or £220 a week. Now considering i take home £333 a week, thats going to be some task!!!