Jack's DFW December 2010

JackyO

Hi everyone,
I have read the forums and guidance and used the budget calculator and snowball to see when I can hope to shift my debt. While it is not as big as some others' debts, it is annoying, to say the least, and I want shot of it! Here is my SoA:

Monthly Budget Summary
Total monthly income

---

1,270
Monthly expenses (incl. HP & secured loans)1,006.5
Available for debt repayments

---

263.5
UNsecured debt repayments

---

92 (17 CC/25 Overdraft interest/ 40 Overdraft reduction)
Amount left after debt repayments

---

171.5

Personal Balance Sheet SummaryAmount(£)
Total Assets (things you own)

---

500
Total Secured & HP Debt

---

0
Total Unsecured Debt...........................-3,550
Net Assets..........................................-3,050

Household Information
Number of adults in household

---

1
Number of children in household

---

0
Number of cars owned

---

0

Income, Expense, Debt & Asset Details

Income Amount(£)
Monthly income after tax

---

1270
Total monthly income

---

1270

Expenses Amount(£)
Rent

---

450 all-in
Mobile phone

---

12
Groceries etc.

---

216
Clothing

---

55
Insurance

---

5
Presents (birthday, christmas etc.)

---

5
Haircuts

---

10
Holiday

---

12.5
Courses

---

10
Pushbike accessories

---

10
Books/Music/DVDs

---

15
Eating out

---

25
Drinking out

---

80
Cinema / theatre once a week

---

26
Travel - taxis, visits

---

75
Total monthly expenses

---

1006.5

Unsecured Debt
DescriptionDebt(£)

---

Monthly(£)APR(%)
Credit Card---800

---

17

---

16.9
Overdraft

---

1850

---

75

---

15.9
Family

---

900

---

0

---

0

Debt totals---3550

---

92

---

Asset DescriptionValue (£)
Guitar

---

100
Amp

---

400


I have been aware of the need to shift this debt for years, and have made some small progress, but I am only just starting full-time work. All this is hypothetical spending - I start in January. I want to start living instead of existing, and am moving to a new city.

One problem is that I have "made-do" for quite a while now so, with an increased income, I will inevitably want to buy new clothes etc. etc., so over the year that may be £750 (work and other clothes) but I would rather spend that now than in 6 months time! Not sure I've hit my LBM just yet!

There are also unknowns, like if I work abroad then that's immediately £450.00 a month saved on rent!

I am trying to be realistic but also sensible, so for example, £80 a month spent in the pub is crazy but realistic if I'm going to socialise (3 pints x 2 nights a week x £3 a pint).

Any suggestions welcome!:)

Happytogetdebtfree

Hi and welcome to the boards, its better to be realistic when it comes to budgetting rather than under budgetting and facing charges etc good luck with your dfw journey im sure you can flatten it soon I know what you mean about the sudden influx of money just try not to increase the debts just paying that little bit extra can really make the difference Good luck x

de1amo

Hi jackie---i live abroad and there are all sorts of hidden charges that this incurs so it is far from 'rent free'--the heating is cheaper if you go somewhere warmer--but there are visas and medical insurances to pay for--rent is always payable and often wages abroad are lower.

JackyO

Hi de1amo,
If I go abroad it will be with my company, so I'm hoping - perhaps a false hope? - that they will put me up. After all, most people wouldn't have the luxury of stopping rent payments while they worked abroad.

de1amo

it sounds a good deal--i would suggest before you go spending your new found spending power to clear your arrears because the interest rates you are paying seem high and it will give you peace of mind to be clear of debt--i begrudge my mortgage and i am only on 2pc!!