Working to a ten year plan

Ninno820

Hi folks - I have been lurking here for some time and have joined in with some of the challenges. But it is now time to get serious!

I have a very well paid job and have therefore spent - the trouble is as time went on so my "right" to that new handbag, those new shoes etc rose and eventaully succeeded my actual pay. Then 2010/11 saw me go into meltdown. A difficult year emotionally saw my overdraft maxed out as well as a number of credit cards as I sought to buy happiness. Brutally honest I know but it has to be said. As a result my total debt is a shocking £64211.45:eek:

In ten years time I can retire and am in the fortunate position of recieving a lump sum which would almost clear these debts. But if I don't change my spending habits then the problem will continue. Not only that - I want to enjoy my retirement and this lump sum will help to cushion any blows.

So - here I go! I am inspired by some of the other debt free diaries and the changes that they have made to their debts. I have used a financial package to set my budget and am aiming to clear around £5000 this year.

Wish me luck!:wave:

Squidge123

Good luck Ninno. Have you posted an SOA? I know there are a lot of people on here who can help you out

Peabody_2

Hi :hello:

Your definately in the right place, it's great here and everyone is so friendly. The motivation and advice from people here will have that figure down in no time and leave you with a lovely nest egg to retire on.

Have you started cutting your spending back yet? how about trying to make some extra cash through Ebay etc and put all of that toward overpayments?

Good luck, can't wait to see how you get on

Pea

twinmum07

Hello and good luck.
Well done on stopping lurking and starting posting. I know how you feel as our debts came from a similar we should be able to have this, and this, and this, and this ...............and this!
I agree with squidge to get your SOA posted as there are some very clever people on here who can see savings you can't

Ninno820

Thankyou for all the support and I will get a SOA posted - once my relatives have gone after the New Year and I can focus on the task ahead! I just wanted to declare my intention - making my debt public helps to confront it iykwim.

cutestkids

Hi

And good luck with your 10 year plan, I think thats a really good idea as you are planning for your future and not just dealing with your immediate problems.

I have subscribed to your diary to keep up with your progress:beer:

[Deleted User]

Good luck - wish I could retire in 10 years!

I am subscribing to stalk you on your journey!

Dxxx

caeler

Well done for taking control!! Good luck and I too shall stalk! :-)

dprovan

well done Ninno,

my wife and I have accrued debts of neat 40k via the same cause. We too have a longer term plan and realise that we can't irradicate the debt overnight. Like you we agree the first stage is to take control of our spending/budgeting.

Good luck and I look forward to following your progress.

Ninno820

Okay, deep breath, here we go:-

Accounts Total
Income 41,912
Expenditure 41,003
Halifax loan 3,264
Halifax 4,260
Evans 840
Capital One 5,400
Barclaycard 2,400
Access 120
Tesco credit card 840
Mortgage 6,444
Bank Of Scotland credit card 3,972
Marks and Spencer credit card 3,108
Hair and beauty 600
Union Fees 348
Sky TV 600
Food 1,460
Financial Charges 240
Clothes 1,200
internet 264
Council tax 950
Electricity 528
Water 540
Telephone 240
TV Licence 152
House Insurance 720
Petrol / servicing 1,200
Car Insurance 540
Other Motor 160
pet insurance 352
Holidays 261

At least there is a supposed surplus each year! However I am aware that the credit cards are crippling me and I need to start to reduce these. The loan is due to finish in 2013 so there is some light at the end of that tunnel and will be more money to pay off the other cards but any suggestions gratefully listened to.

Ninno820

caeler

Hiya - well done!

I'd never seen an annual SOA but it really got me thinking and I'm doing to redo mine annually too! :-)

A few things I notice - Your paying for Sky TV £600, then £264 for internet then £240 for your telephone, however £92 per month is pretty steep even for all the top TV channels. Maybe do some research on the forum as to what others pay for similar services and see if it is worth a call to enquire. I pay BT £24.50 for Landline, evening and weekend call package and unlimited internet. I couldn't imagine paying nearly £70 extra just for TV!

Your home insurance seems high too, but then you may have lots of valauables etc. I recently renewed my Home and Contents for £134 (with £50 cash back after 60 days) this includes legal with 500K rebuild costs, 40K contents with £150 excess but no other frills.

You might find putting it into a monthly format easier for people to comment on, also adding in your internet rates to your debts would be wise too to allow other users to comment.