Living on Earth is expensive - But is does include a free trip around the sun!

jcst104

I’m 25 with debts of 21K (not including my student loan) - There I have said it!!

I have no idea how it got that bad as I honestly have nothing to show for it. I think it was just living the dream; I just thought live for the moment and pay it back later. I have had some amazing experiences and I never want to regret doing the stuff I did at the time I did it but now I want to sort out the debt and pay back for the fun I have had; and get ready to be able to pay upfront for a lifetime of great experiences.
I left a good paying job in October to go back to uni. Not all doom and gloom on the money side as I am doing a PhD so being paid to be there, although ALOT less than I was earning so I just need to be so careful with spending, and re-plan how I am going to pay the debt off. On top of that my partner (of only a year and a half) has said that he is not happy to invest in a future with me and my current debts, which although really annoys me can understand. Would you want to spend your life trying to stop someone overspending? Even if he isn’t “the one”; when I do find Mr Right I want to be financially stable, able to support myself and be confident with my spending.
So here it is the start of my slog to being debt free, as with all LBM it coincides with starting a PhD, thinking of the future, trying to get fit and healthy, a new year and everything else. But what I have learnt for previous mini attempts at saving/spending less…. ROME WASN’T BUILD IN A DAY.

jcst104

Well I have sold most of my DVD's!! To be honest I didnt have that many but have sold 24 for just under £3. Well thats what I have been quoted, just need to box them up and see what they say in a few days time. I even took the time to get the best price for each one, its amazing how much it varies between companies.

It was actually harder than I thought- as I say I didnt have many - tending to only buy films I really like and want to watch, but when ever penny counts you have to say goodbye. I did keep around 15 - all my david attenborough ones (Im a biologist so its like my bible), jurrasic park, mean girls and bring it on. Oh and you cant sell edward sissorhands, interview with a vampire, willow or the neverending story for 30p - Im not that desperate yet. Although if it does get much worse I will have to say goodbye to the classics too...:(

All in all I am pretty happy with my progress today, provided I actually box them up and post them this weekend.

And this evening I think I will do my SOA, and try work out a budget. Ive never had a budget, only ever said - right spend nothing now... which means I spend nothing for a few days and then go mental!

TT4A

jwil

I love the title of your diary! Good luck with the debtbusting, you can do it!

jcst104

Have done my SOA this morning, not great news as my debts are a little more than I thought. I have over estimated my spends (rather that than under estimate and not seeing the problem), but only to what I was spending before my pay cut and move back to education. So there is definately room for movement. Also cant believe how quick and easy it was to fill in.

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 3
Number of children in household.........
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1000
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1000

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 362.5
Management charge (leasehold property).. 0
Council tax............................. 60
Electricity............................. 10
Gas..................................... 10
Oil..................................... 0
Water rates............................. 10
Telephone (land line)................... 10
Mobile phone............................ 30
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 25
Clothing................................ 20
Petrol/diesel........................... 160
Road tax................................ 15
Car Insurance........................... 30
Car maintenance (including MOT)......... 10
Car parking............................. 15
Other travel............................ 30
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)...... 20
Haircuts................................ 50
Entertainment........................... 30
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 897.5

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 2000
Other assets............................ 0
Total Assets............................ 2000

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Loan...........................11842.....282.......16
CC1............................4888......25........0
CC2............................1182......50........29
Old Job........................250.......0.........0
Loan M and D...................900.......0.........0
Loan...........................1922......175.......0
CC3............................1744......25........19
Total unsecured debts..........22728.....557.......-

Monthly Budget Summary
Total monthly income.................... 1,000
Expenses (including HP & secured debts). 897.5
Available for debt repayments........... 102.5
Monthly UNsecured debt repayments....... 557
Amount short for making debt repayments. -454.5

Personal Balance Sheet Summary
Total assets (things you own)........... 2,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -22,728
Net Assets.............................. -20,728

So lets fix this?

I think today I will make a plan of where I can cut down my spending and then over the weekend work out how I can earn more.

Emsky*

Good Luck!" Subscribed!"

jcst104

Well today i dragged the other half to a school christmas fayre to sell some of the items I had made, nothing overly expensive but was hoping to make a few bucks, at least break even... Well the table cost £14, they wanted a raffle prize with a retail value of £15 and wait for it .... I took £3.50!!:cool: With taking off fuel and the cost of the items in the hamper it was a blooming expensive day. Was disapointed when I left (thankfully I had not given my raffle prize to the school yet so packed that up in my car when I left) and even contemplated cancelling the cheque I had posted them. I know its for a charity but as it was sold as being a really big fete with loads of buyers and sellers I thought I would make the money back. Dont think many people made money back - the only thing that sold was popcorn and seeing santa that the school put on. I have decided to cancel all the fetes I had planned on going along too and am going to try sell the hampers at a car boot and on ebay/gumtree. I really thought this would a good money making day.

I did get a brilliant free lunch off my parents and they bought me shampoo and conditioner... What woud I do without my Mum and Dad....

Also realised my SOA I put down only spend £25 a month on food ... lie! Its £25 a week so £100 a month- something I am sure I can work on.

ZTD

Have you read this site's debt guide? http://www.moneysavingexpert.com/loans/debt-help-plan

It's looking like your debts may have strayed into the unmanagable area, assuming your SOA is correct.

jcst104

I dont think its at the unmanagabale stage yet...

I have enough money sitting in my bank currently to pay next months rent, cc's and loans as well as give me a food money and petrol (although this will only be £40 for the month rather than per week as before).

I have paid half of all the christmas things I have to go to (office meals etc), already have everyones presents (just need to buy stamps to send cards to friends around the world).

I know my SOA says I am under by £450 each month but I dont think I have been yet.. maybe I am in denial - we will see at the end of this month.

My mini problem is I only get paid 3 monthly so have to be careful about making sure I dont try and pay off too much in the first month and then not having enough the final month to meet minimum payments. Its all a juggling game.

The uni actually currently underpaying me by 3k a year (need to get that sorted) which would know a big chunk off the debt. They also owe me for 3 hours demonstrating and approx £70 in fuel, but with uni's everything is so slow!

ZTD

jcst104 wrote: »

I dont think its at the unmanagabale stage yet...

From the link I gave you:
What counts as debt crisis depends on who you ask, but there's a strong indication if you answer yes to either of these ...

Are you struggling to pay all basic outgoings eg mortgage, rent, energy bills and credit-card minimums?
- or -
Are your debts (excluding mortgage) bigger than a year’s after-tax income?

Looking at your SOA, it looks like you answer "yes" to both.

jcst104 wrote: »

I have enough money sitting in my bank currently to pay next months rent, cc's and loans as well as give me a food money and petrol (although this will only be £40 for the month rather than per week as before).

That's a stock of money. Like every stock, it will eventually run out. You need to look at your *flows* of money.

I did a quick and dirty calculation of just your rent/utilities/CT/travel and loans and that appeared to account for all of your wage. This is not including those little things like food. Are you earning anything from anywhere else, or is £1000 it?

Are you eligible for benefits?

Knarston

Help I am not sure where to post this. I am not massivly in debt and have a good wage but just am crap with money and must admit have never had to or could budget properly I just want out of this circle, I have had an alcohol problem for 16 years am in AA now and love it (nearly 7months happy sober rather than 12 months sober drunk before) I am due another payrise soon but never seem to be able to do anything nice just work to live.

Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 0
Monthly Income Details
Monthly income after tax................ 2900
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2900
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 625
Management charge (leasehold property).. 0
Council tax............................. 175
Electricity............................. 75
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 50
Mobile phone............................ 45
TV Licence.............................. 29
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 200
Clothing................................ 150
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 40
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 21
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 30
Haircuts................................ 15
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1455

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

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
Lloyds TSB.....................2728......90........0
Egg............................1520......65........0
Lloyds Loan 1..................1011......136.4.....0
Total unsecured debts..........5259......291.4.....-

Monthly Budget Summary
Total monthly income.................... 2,900
Expenses (including HP & secured debts). 1,455
Available for debt repayments........... 1,445
Monthly UNsecured debt repayments....... 291.4
Amount left after debt repayments....... 1,153.6
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -5,259
Net Assets.............................. -5,259

jcst104

Hi ZTD - No not elligable for benifits, was earning alot more before I started the PhD so that is prob why I have not had a problem paying everything before now.

I do the odd mystery shop, but thats hardly a huge money maker. My debt is more than I earn in a year - does that mean I should just give up and declare myself bankcrupt... youv'e really thrown me. I was really optimistic that by cutting down spending, and doing odd jobs, mystery shopping I would be able to pay everthing off without having to go down the bankcruptcy route.