Debt free the Fly lady way - anyone?

wilf55

friend has asked me to help her she has no computer

she has many 5 or so store cards owing over 1000 in each late payment fees high intersest etc

what is she best doing overwelmed with all the help and dont know where to start have started reading the thread but will take time

thanks guys

Tondella

Hi wilf, why not start a new thread with this request and then lots more people will be able to suggest solutions. It all depends on her SOA really as to whether she can manage with her repayments or not. If she can't afford to make repayments then she needs to get in touch with a debt charity like CCCS or Payplan (links at the top of the board).

wilf55

what is a SOA?

Tondella

SOA means a statement of affairs, there's a more detailed explanation here

http://forums.moneysavingexpert.com/showthread.html?t=107280

basically, it's a list divided into three sections:
income - including benefits
regular outgoings - that's all your utilities, phones, tv licence and packages, insurance policies, mortgage or rent, council tax, etc etc
debts - these need to be in more detail - the amount owed, the interest (APR - annual percentage rate) that the debt is owed at, the minimum repayment per month if it is a loan or credit card, and the duration if it is a loan

From this people can comment on
a) whether your friend is paying too much for something like phone line, and could make some savings, or whether they should consider cancelling somethings all together.

b) whether they can afford to meet the repayments on their existing debts, or whether they need more professional advice, from a charity like CCCS or Payplan, both of whom will help your friend negotiate a more reasonable repayment schedule with their debtors.

i'd get as much of this information together as possible and then post it in a new thread in order to get as much help as possible from board members

Panda_Bear_3

Hi

I'm new to posting on this site although I've been getting Martin's emails. I'd love to join in with this - it's a great idea to build up new and good habits.

I'm hoping that posting on here will stop me procrastinating!

Panda Bear

Tondella

welcome Panda Bear, let us know how you get on with your first week of challenges!

Tondella

Day 29 - budget day!

Ok guys, here's my budget

income: 1727.50

regular outgoings:
gas & electric// powergen// 27.50 (i think this is too high but waiting for winter bill to come in before negotiating new payment)
TV licence// 10.99
orange mobile// 25.00 (loads of free calls here, means i don't use my landline)
water rates// 15.00
council tax// 33.00 (yay westminster!)
rent// 450.00
student loan// 56.00 (ends next month)
BT landline// 10.99

non-fixed spending
food// 35.00 per week
entertainment// 20.00 per week
gym//45.00 (this is an allowance, i withdraw it every month, put it in my piggy bank and then do payg gym visits - any leftover goes back into the debt kitty)
clothes// 80.00 (high, i know)
travel// 40.00 (long distance train tickets home and oyster card)
bits and bobs// 60.00 (haircuts, presents, cosmetics, skincare, anything additional)

total outgoings: 1073.48 (4 week month) // 1128.48 (5 week month)

leaving 654 (4 week) or 599 (5 week) to repay debts

my debt minimum repayments this month = 397.07
plus my OH contributes 1250 to repayments so we are currently overpaying by approx £1500 at the moment

bobble_hat

Day 20 – it’s my affair and Day 27 – drop the debt

My SOA at last. All my details are in here. I've posted this in my diary:

http://forums.moneysavingexpert.com/showpost.html?p=4314786&postcount=79

Day 28 – can you benefit?

Once I've got my final debt paid off I may start using cashback credit cards. Although this will be in the future when I'm convinced I've learnt my lesson and can allow myself a credit card. I'm not entitled to any benefits.

Day 29 – got debt? Budge it!
I've realise my SOA and my budget are one and the same. I have my debt repayment in there as part of my budget. It's taken me ages to get to this point, but I finally have everything how and where I want it. Yay :T

prophecy_grrl

Hi Everyone

Firstly - Thanks to Tondella for starting the DFW Fly Lady Challenge, top idea :T

Secondly - I started my 31 days yesterday, and am too scared to post on 'What have you spent today' thread as they are all old school and are practised at not spending very much. I on the other hand spent 29.02 yesterday and 15.61 today :eek: AARRRGH!!!!

To show for these ridiculous spends I have 5 weeks worth of lottery and bonus ball entries at work, food shop, medicine for Mr prophecy_grrl who was ill yesterday, a valentine card and gift.

Must do better...

Tondella

prophecy_grrl, I know what you mean about the regulars on the daily spends thread, you could always post here if you wanted to!

the important thing about this week is that you get into the habit of writing down what you spend, not that you beat yourself up over what you have spent. There'll be opportunity to review your spending and challenge yourself to get it down in later weeks.

Thanks for joining us, looking forward to watching you progress!