Debt free and buy my own house in 23 months!

rictus123

Iv just turned 20...would like to do it by my 22nd birthday so by July 2013!
Sick of the debt and going round in circles paying it off! So iv got a really good thing to aim for with buying a house at the end of it!

Income
Take home pay varies now im onto price work. Around £2,700 average month. More in summer, less in winter. The odd cash in hand bit of overtime will help when i can get it.

Debts
Capital One card - £494.31
RBS card - £782
Overdraft - £500

Loan - £858.01
Loan - £3,399.66
Loan - £2,222.80

All loans with RBS, they love giving me money!

Total debts = £8,256.78.

A shocking figure! Iv almost looked at it as though all this is a student loan and now iv served my time i have to pay it all back. Its a lesson though and a lesson learned at that. Time to face up to my debts iv created and get rid.

I also have a car on finance. 3 more payments and i have paid more than half so i can hand it back.

I am in a situation where im going away on 2 holidays, one in September and one in April 2012. Alot of you might not agree i should do this but booked a while ago and its my choice. Im just looking for help and support in other departments while having somewhere to whack down thoughts and payments so i can see the debts coming down.

Outgoings - per month
Car - £240.30
Loans - £330
Cards and Overdraft = £75

Digs(live at home) = £100
Fuel = £150
Food/work clothes = £50
Going out = £100
Spending money for holiday in April = £200

Total = £1245.30

So a £1454.70 surplus after everything is paid. This gives me a debt free date of Mid January 2012. However i have some other expenses that are not monthly but are one offs.

One off spends =
£400 tax and mot on van- both start of October.
£900 holiday in September
Insurance is due in October for car and van, car will be getting handed back, van insurance renewed. Not sure how much it will be i think roughly £900.
£800 due for holiday in April, due in January 2012.
£200 xmas pressies/birthdays.

So £3,200 one off spends due. Hopefully i can find the overtime to cover this and keep my £2,700 average wage main income to cover regular outgoings and keep my debt free date at latest the end of January 2012 so itl be new year new start and il have £1,000 for my holiday spending money saved by then. So il be on the saving wagon for 18 months if i manage to get debt free in 6. Paying off £8k in 6 is the same as saving £24k in 18!

Lets do it! Any words of advice before i get going? Got a little bit cash coming in today so going to clear my overdraft!

mrsmoneybee

Hey, good luck with your journey, you sound like you've got your head screwed on and if you stick to it you'll be well on your way to getting that deposit! Life gets a heck of a lot more expensive once you've signed that mortgage agreement but you'll already be a mse by then so won't end up in the kind of pickle lots of us have managed!

rictus123

Thanks dooberrywoo!! Iv been told that alot but dont believe it yet because i have to deal with this mess before i will! Iv been taught one of lifes most valuable lessons at an early age though, only debt from now will be mortgage! And i will be on the mortgage free wannabe boards as soon as im done here!!!

Overdraft was not as large as i thought. Went to cashpoint and got a statement! £460.17 paid off overdraft! So debt down to £7,756.78.

Interest to go on to all of them at the end of month so in a few days. Also paid £43.05 for phone bill this month today and £86.02 for fuel. For my van. Hopefully that will last me atleast 2 weeks! If it does itl mean im spending about £160 on fuel a month. About as low as i think il get it with prices being so high. Payday through my job on 5th of Aug, get a fortnights pay so it should be between £1200 - £1400.
The day before each payday im going to empty my account down to £1,000(this will be my £0) paying off whatever debt im fighting at the time. Next debt im going to tackle is £494 capital one + interest. I have about £1,150 in my account with another £250 or so coming from a homer due to get dropped off to me tonight. So about £400 should be getting paid off capital one next Thursday the 4th of Aug.


Also! I have an Isa with RBS that is at 0 and has a shocking rate, is it worth asking them to close it? My santander overdraft iv just paid off is a current account if i pay in £1,000 a momth i used to get a good rate but its ended. It has a £500 overdraft limit. Would i be better off closing this? Bearing in mind i am hoping to buy a house in 23 months. I was planning on closing ISA, Capital one and santander. Keeping rbs credit card and putting all my fuel on it and clearing it every month(obviously making sure i keep on top of clearing it so not paying interest.

What are the pros and cons? Iv done alot of credit searches before so score is probably shocking so i could get rid of these but might not be able to get others.

rictus123

Last day off on holiday!! For my 3 weeks holidays iv sort of worked 4 days and had 2 or 3 off as opposed to sitting about doing nothing the whole time. As a result i have paid off my overdraft and have about £1,400 in my account. So Capital one is at £494.31. Think i will clear that before my next pay - 5th of Aug. That Will put me under the £1,000 i wanted to treat as my £0 but il manage. One thing iv worked out this morning is how many days iv got to go..im well on track for end of January 2012 debt free date. The last day in January 2012 is Tuesday the 31st.

With an online calculator iv worked out 188 days to go-hopefully at most!

After i take off Capital one that is £38.63 a day off debts!! Thats £270.41 a week off debts at least to hit my target starting from after i pay Capital one card off.

End in sight for me, hopefully next few month pass quite quick!!

Flee_2

Good luck. You seem to be on the way to achieving your goal

rictus123

Just started this challenge https://forums.moneysavingexpert.com/discussion/comment/45616378#Comment_45616378

to spend absolute no money what so ever the whole of August(Monday is the 1st - for 31 days) apart from the following

• Digs - £100
• Phone - £45
• Fuel - £160
• Loans- £330.62
• Credit card - £50

Only 31 days im sure il manage to be as greedy as possible...watch the bank balance grow each day! Only thing is the fuel allows me to fill my transit up twice...might not be enough as got alot of overtime etc to do but il try my best to stick with it!

rictus123

Well just home from work....with £280 in my pocket!!! Not bad for about 3 hours work! More than a third of RBS card. Cannot seem to get into online banking though...is everyone else managing thats with RBS?

Night out tonight, will be on a strict budget! Last spend before No spend August!

rictus123

Well interest has been added on my 3 loans....a total of £112.80 for the month between all 3! Shocking amount of interest!!

I do come with some good news though...just cleared my RBS credit card! £815? Even though it was reading £731 due? Even if they have asked for too much(which they have done before!!) They just inform me im in credit and i put my fuel on there. So il have free fuel next month if this happens

I now owe money across 3 loans..i have cleared overdraft and 2 credit cards since starting this thread just 4 days ago! I have been working hard at the overtime though getting cash in hand. So i have paid £494.31 + £460.17 + £865.30 = £1819.78

I now owe £6593.27!!
With my no spends month being down now as dont need to pay for credit cards, its at £635. Income should hit £3,000.

£2,365 surplus should go a long way to clearing some debts!!! That will be a third gone in just a month if im able to use it all.

MissShoes

Finding this thread very good for reading to keep me on track. Will subscribe to watch your progress.

Shoes

rictus123

Thanks. Tomorrow is the first day of August so the start of my no spends month. And i mean no spend what so ever on anything i dont need to buy. Roll on the end of 31 days and i check my bank balance

rictus123

Well day 2 and second NSD! 29 to go!!

Opening balances as of today - balances as they were yesterday at start of challenge really as yesterday was a bank holiday so didnt show up.

Loan - £871.59
Loan 2 - £3,457.86
Loan 3 = £2,263.82

Total = £6,593.27

Credit card = £83.46 in CREDIT.
Bank balance = £0.72....(payday Friday should see it up into four figures...3 short sleeps and il see)
Cash = £60

Total = £144.18


Difference = MINUS £6,449.09