Money woe to money wealth challenge

KPR11

Well done on taking steps to address issues.

One brick at a time buddy, and don't get too caught up count your chickens before they hatch.

Budget for things based on your current situation and then anything more is a bonus. It's all about expectation management.

I have said a couple of times before, and I will say it one last time (the only reason why I am repeating myself is because I have been in a very similar position to you and it was a very, very painful and expensive lesson):

KPR11 wrote: »

you need to take it easy - learn how to crawl, then walk and then run. You have barely started crawling and you seem to wanna smash the world record for 100m sprint.

Try taking it easy, one step at a time - like you always say Rome wasn't built in a day. I do not mean to trample your dreams or want to discourage you from dreaming, dreams are very important - I believe that a man without dreams is a lost man but it is very important to be realistic.

You probably know this already, a house is built brick by brick. Your career, finances and for that matter your life is no different.

IMHO, you are setting up yourself up to fail, both financially and emotionally, if you insist on running before you are able to crawl and the walk.

The results are there for you to see, last time your debt was

rictus123 wrote: »

So debt stands now at about £6.2k as opposed to figures i have been quoting of just under £3k...... :eek:

and now it's increased to c£9k.

rictus123 wrote: »

Secured Debt.................. 7120.51..(330)......0
Total unsecured debts..........1900......75........-

The advice is meant to be friendly advice and its entirely up to you whether you want to take it or not.

I have no doubts that you will be debt free very soon. Good luck and once again wewll done on taking steps to address your issues.

KPR

RAS

rictus123 wrote: »

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 2000 - this is a good salary
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 - how come this is so low?
Management charge (leasehold property).. 0
Council tax............................. 0 ???
Electricity............................. 0 ????
Gas..................................... 0 ????
Oil..................................... 0
Water rates............................. 0 ???
Telephone (land line)................... 0
Mobile phone............................ 35 - can you reduce this?
TV Licence.............................. 0 ???
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 20 - this is incredibly low, we reckon £60 was good going but prices are rising
Clothing................................ 20
Petrol/diesel........................... 150
Road tax................................ 0 - you need to budget for this
Car Insurance........................... 0 and budget for this
Car maintenance (including MOT)......... 20
Car parking............................. 0 - never?
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 - you need this
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 25
Haircuts................................ 0 - do you never get a hair cut?
Entertainment........................... 100 - this is quite high
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

Until we know the APRs it is hard to comment. With the secured loans you really really need to read the terms and conditions in detail, as you may not be able to pay these back early or may attract early redemption penalties.

rictus123

Yep its got worse bit by bit...hopefully this is the real lightbulb moment to get going. I want to be debt free its the path that gets there, not admiting the problem that it the hard part. So il just have to do as much as i can to get it sorted. As you say, small steps and i will be there one day. Then the world will be my oyster...:o

rictus123

I have checked and i can overpay and payback loans early with no cost. Cards have a higher apr so thats going after the overdraft...

KPR11

rictus123 wrote: »

I want to be debt free its the path that gets there, not admiting the problem that it the hard part.

One of the first things I learnt when I joined the DFW board, was that till you don't address the underlying issue that is causing you to accumulate the debt in the first place, you will only be debt free temporarily cause you will just end up accumulating new debt due to the same old problems.

So by all means, strive to get debt free as quickly as you can but also make sure that the underlying issues are addressed.

My debts were due to gambling, so I could not have addressed my debt issues without addressing my gambling problems. This was a painful process as it involved finding out why I gambled in the first place.

I had cleared my debts in the past without addressing my gambling issues but then went and accumulated even more new debt!

I will stop rambling now

Out of interest, what have you secured the loan against? The last time I spoke to you, you weren't a home owner and your car was on HP.

rictus123

I put them in the secured bit as there was no room in the other section, you only get 3 spaces so totalled up 3 loans and put them in there.

I really think my loans just came from not bein patient enough to save up...now iv been in debt i know i will just overpay to get rid of the debt then the amount im paying to debts will go to savings. Iv just set up aim to pay off £28.56 a day for next 100 days. That will be 2 cards, overdraft and smallest loan(£946) all gone. That will take my debt down to £6174 by 3rd of August...

I will know what my new wage is by then so will reasses goals then.

KPR11

Oh ok!

rictus123 wrote: »

I really think my loans just came from not bein patient enough to save up...now iv been in debt i know i will just overpay to get rid of the debt then the amount im paying to debts will go to savings. Iv just set up aim to pay off £28.56 a day for next 100 days. That will be 2 cards, overdraft and smallest loan(£946) all gone. That will take my debt down to £6174 by 3rd of August...

I will know what my new wage is by then so will reasses goals then.

Sounds like you have a good game plan! Good luck

rictus123

Well works out £28.56 a day so just paid that amount to overdraft and to 1 of cards...£57.12 paid...

small steps...thats 2 steps out of 100 to get rid of 4 debts. Im really excited about the though of being debt free when i go away to Florida next year....every penny i earn will be MINE.

rictus123

Rac sorry I never noticed the comments beside my soa! Thanks I thought it was a good salary...hard work to get it though. Rent is so low as I'm 19 and stay with parents...when I move out I want to buy somewhere but obviously can't....my gf is a hairdresser so free haircut. Didn't include tax or insurance as they are paid for for a while yet. Prob should put away 120 a month for that. As I now have a transit insurance is 1200 an tax 200. Entertainment may be high to you but to me 5 percent of takehome is bearable...cheers!

rictus123

2 more £28.56 payments made today so £114.24 paid to debt so far for 100 day challenge. Only a tiny amount compared to whats needed but im sure il manage...7 oclock start tomorrow and 11 hour shift...bring it on!!