Money woe to money wealth challenge

rictus123

Just when you stop and think its a long road ahead to the magical world of debt free and then the fact every spare penny that comes in will be going straight out to getting there....

what im trying to say is its only just kicked in im paying out nearly half my take home on getting out of debt and its looking like i have about £15k and it will take me 3 years(at min payments) or at least a year(if i divide it up into sensible overpayment plan)

I think its time for another SOA*new and improved* and a proper plan to see me through it as i keep getting out of it then something else pops up and now at 19 im £15k in debt.

CH27

Post up your SOA & people will happily help you:)

smartbear1

Welcome to the debt free road. Big steps first are a good idea they give you a sense of achievement. I tried snowballing and creating plans, scoping things out. It helped me to prioritise what needed to go first and what should be the priority for payment.

However, as with all plans life often throws a spanner in the works so I'm very flexible with my debt free plans and will sometimes pay more off a lower interest card if I know there is a good balance transfer coming up. Getting all your debts in at the lowest possible APR is key to paying things off.

Be careful about rolling debts into one big loan though - sometimes it doesnt change the habit of over spending. The mind change of cutting down on spending must be there first. Starting and keeping a debt free diary on here makes a big difference.

If you are determined you can do this and everyone here on this site will support and help you on your journey. Good luck!!

MichaelCR

rictus123 wrote: »

Just when you stop and think its a long road ahead to the magical world of debt free and then the fact every spare penny that comes in will be going straight out to getting there....

what im trying to say is its only just kicked in im paying out nearly half my take home on getting out of debt and its looking like i have about £15k and it will take me 3 years(at min payments) or at least a year(if i divide it up into sensible overpayment plan)

I think its time for another SOA*new and improved* and a proper plan to see me through it as i keep getting out of it then something else pops up and now at 19 im £15k in debt.

Sorry to hear about your unfortunate circumstances !

I to am 19, And i can appreciate what its like being in debt although my debt is only around £10000, But even so its still hard to come by, I already have a default on my credit file (Good start to using credit in my life, not.), I lost my job and i truly was at rock bottom, Not being able to afford to pay off my cheapest phone bill each month, I fell seriously behind on alot of my creditors (Unfortunately most are more unsympathetic when your going through a rough patch), None of my creditors where willing to help me out, i had a perfect credit history this time last year, Now however, I can't even get a vanquis credit card !

But just keep on doing what you're doing ! It sounds like you're getting back on track, Even if you are paying half your wages each month, In 3 years time when its over, You'll of learnt a valuable lesson like i have, Although its nice being to take on credit, At the same time you've got to respect it and understand it more, And really think whether you can afford to cover your back if it all goes wrong down the line !

Good luck !

Chrisblue1962

In some ways, having a LBM and starting to sort out one's affairs is an important but relatively easy part.

The hard part about repaying debt is that it's going to be a long road but ultimately a rewarding one. When I used to go running and was doing my training, I used to visualise finishing a race and what I'd achieved rather than the grind of just clocking up the miles.

Depaying debt is just the same - Focus on the end of the race and not the path to it!

Thankfully, this Forum is here to help people maintain and stay on the road. A pound repaid is a pound nearer freedom.

dreamdreamer

I totally agree with Chrisblue - you HAVE to focus on the goal. Every now and again I lose all my energy and focus tackling my debts. It's been a LONG 2 years of living on peanuts. I'll have a couple of days where I just think "I can't do this anymore, what's the point, this isn't even living it's just surviving" and then I force myself to focus on how wonderful it'll be to have no debt hanging round my neck, and how LOADED I'll be when all my pay goes to ME instead of to creditors. I allow myself to go online and look at all the places I'd like to go, the things I'd like to buy, and I plan for what I'll do with the extra money every month.

You look like you're starting where I did - I had £15.8k of debt in 2009 when I started this journey. Now I have £2.8k and about 4 months left. It is a long hard slog, for sure, but the rewards will be so worth it.

rictus123

Cheers for the replies guys! Iv started by taking control of my life and finances!I say I have 15k but its not as bad as it sounds as 6k of that is car finance and I have a van now so the car will b getting handed back once half the payments are made...which is about September time. So 240 a month until then. I have seen about overtime at work as I did a lot last summer and plan on doing the same this summer...I'm posting this from my work. Don't worry its tea time, I'm not skiving...been here since 7.30 and finish at 5. So now as of Monday my hours are changing. Old hours are 7.30 to 5 Mon to Fri. New hours are 7 to 6 and 7 to 5 on a Saturday. Now I'm on 8.95 an hour but anything over 39 hours is time and a half. Take home 1332 a month just now...if I'm right il now take home just over 2,000? Someone care to check? And I have a payrise coming in July so that will increase even more. Big wage for my age, above average....so now I'm picturing a years time and the money I earn will be all mine! SOA to follow folks.....cheers!

KPR11

rictus123 wrote: »

So now as of Monday my hours are changing. Old hours are 7.30 to 5 Mon to Fri. New hours are 7 to 6 and 7 to 5 on a Saturday. Now I'm on 8.95 an hour but anything over 39 hours is time and a half. Take home 1332 a month just now...if I'm right il now take home just over 2,000? Someone care to check?

Very quick and rough calculation, with the assumption that there is an hour of unpaid lunch and 4 weeks in a month, tells me that you will be taking home c£1,900 per month under the new hours. So yes you will probably take home c£2,000pm

rictus123

Just been put home early with full days pay as forklift is leaking oil...Perfect chance for me to sort out the SOA! Cheers KPR! What was your exact figure? Take off half an hour mon to fri but get paid for lunch on a Saturday. I get paid fortnightly so not going to stop until its at least £1,000. That will give me a real sense of achivement....I cant go wrong if im taking home that much. I dont want to over pay my debts and be skint so i have about £500 in my account and i think il keep that as my emergancies fund...I will also have my overdraft and card as i pay them off. SOA on way...

rictus123

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 2000
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2000

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 570
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............................ 35
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 20
Clothing................................ 20
Petrol/diesel........................... 150
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 20
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................................. 50
Emergency fund.......................... 0
Total monthly expenses.................. 1090


Assets
Cash.................................... 500
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 8750
Other assets............................ 1000
Total Assets............................ 10250


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Secured Debt.................. 7120.51..(330)......0
Hire Purchase (HP) debt ...... 5800.....(240)......0
Total secured & HP debts...... 12920.51..-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Credit card bank...............800.......25........0
Capital one....................600.......25........0
Overdraft .....................500.......25........0
Total unsecured debts..........1900......75........-


Monthly Budget Summary
Total monthly income.................... 2,000
Expenses (including HP & secured debts). 1,090
Available for debt repayments........... 910
Monthly UNsecured debt repayments....... 75
Amount left after debt repayments....... 835

Personal Balance Sheet Summary
Total assets (things you own)........... 10,250
Total HP & Secured debt................. -12,920.51
Total Unsecured debt.................... -1,900
Net Assets.............................. -4,570.51




So looks like il have an extra £800 to throw at debts...meaning debt free in 10 months?

With another payrise in July, should see an extra £600 onto wage so £1,400 to repay as of then...Should at a push be debt free by end of year...

Going for overdraft of £500 first. Then il tackle 2 credit cards = total of £1,400 for them so £1,900...

Goal set to clear that £1,900 by the end of June....

rictus123

What appeals straight away is £570 on debts...£645 including cards...

Thats a massive amount of my pay that should be going to savings not some bank! Ahwell im taking control so iv changed some things already and more to come.