Debt Free by 2013 (not a typo)

Decadent_Debtor

Thanks for stopping by Mrs PG! You shouldn't need to join a gym to strengthen your back. There are lots of exercises you can do at home, either by finding yourself a spare 15mins or sneaking them in during TV advert breaks. Try googling it. Things like 'good mornings', 'the plank', 'reverse sit-ups' etc would all be great.

That said, I know my local council has some great rates on their gyms, and there are some pay-as-you-go chains that seem pretty competitive.

Let me know how you get on!

Decadent_Debtor

Evening everyone! Well, today is my three month anniversary of starting this diary, so I thought I would follow in the footsteps of Mrs HappyNow and post a quarterly update, as well as re-stating my SOA.

Three months in, how does it feel?
GREAT! There have been highs, there have been lows. I've still got a lot of debt to shift, but I'm really happy with my progress to date... and I've managed to do it without affecting my lifestyle too much (in fact, I don't think my friends have even noticed!).

Satisfied with progress?
Yes, and no. I'm really happy that I've cleared so much debt in such a short space of time, but I was hoping to have cleared a *bit* more by now. I blame Mr Osborne for taking more of my bonus than I had planned :-)

What have been the highlights?
DEFINITELY paying my parents back, but the biggest highlight has actually been coming on here to update my signature and catch up on all the diaries.

Biggest worry?
Hmm, I guess I'm a bit concerned that I'm going to have a pretty boring debt-free summer - but if that's all I've got to worry about then I'm pretty happy with that! The car is always a worry, but I think I'll get at least another year out of the old gal. Oh, and I always worry that I'll never get round to finishing the house off...

Still hoping to be debt free by the end of 2013?
Yes, and perhaps even sooner! My latest forecast is September 2013, and I think with a bit of planning and a lot of luck I might even be able to bring it in sooner. My stretch target is to come under £12,000 by the end of 2012.

Outlook for the next three months?
I've actually got a couple of big occasions coming up over the next few months but they are all budgeted for so shouldn't be an issue. Work is going to be pretty hectic but I've got three trips away coming up so going to use them as mini holidays. Always nicer when someone else is paying :-)

Oh, and on the general update front, Barclaycard sent me a 0% balance transfer offer so I decided to pay as much as I could off my AMEX and transfer the rest over to my Barclaycard (hence why the total on that card has gone up).

Still, two down (well, kind of), two to go!!!

Decadent_Debtor

Ok, so, re-stated SOA after three months, as promised in the last reply...

Statement of Affairs and Personal Balance Sheet

Monthly Income Details:
Total monthly income: 2,650.00 (+50.00)

Monthly Expense Details:
Mortgage......................946.06
Council tax......................98.00
Electricity........................30.00
Gas..................................30.00
Water..............................23.00 (-7.00)
Telephone and internet..30.00
TV Licence...................... 12.12 (-12.38)
Sky TV.............................32.75
LoveFilm.........................16.33
Food, groceries.............200.00
Petrol/diesel...................75.00
Road tax.........................(paid)
Car insurance.................(paid)
Buildings/contents.........(paid)
Haircuts..........................20.00
Gym................................39.50
Total expenses:..........1,552.76 (+19.38)

Assets:
Cash..................................0.00 (-5,000.00)
House value (gross)..200,000.00
Shares (can’t sell)........11,500.00 (+1,500.00)
Car.................................1,000.00
Total Assets: .............212,500.00 (-3,500.00)

Secured & HP Debts:
Description Debt Monthly APR
Mortgage 169,500.00........946.06 5.0%
Total secured debts: ..169,300.00 (-200.00)

Unsecured Debts:
Description Debt Monthly APR
First Direct Loan.............11,500.00......300.00 (-500.00)
Parental Loan..........................0.00.........0.00 (-8,500.00)
Barclaycard.......................7,200.00.....500.00 (+200.00)
American Express....................0.00.........0.00 (-2,500.00)
Total unsecured debts:...18,700.00.....800.00 (-11,300.00)

Monthly Budget Summary:
Total monthly income.................................2,650.00 (+50.00)
Expenses (including secured debts)............1,522.76 (+19.38)
Available for debt repayments....................1,127.24 (+69.38)
Monthly Unsecured debt repayments...........800.00 (n/a)
Amount left after debt repayments...............327.24 (+69.38)

Personal Balance Sheet Summary:
Total assets (things you own)....212,500.00
Total HP & Secured debt..........-169,300.00
Total Unsecured debt................-18,700.00
Net Assets...................................24,500.00 (+8,000.00)

Sassers

Hello there :wave: I've just read your diary and really enjoyed it. I just wanted to add a bit of encouragement on the paying off debts. I do payment a day and it works well for me.

I've been on MSE for years and I've really enjoyed treating the whole debt-busting thing as a game. It's makes it easier to cope with when you have the down days.
I don't drink Pinot - but I am off to have a Friday night treat of a Baileys in front of BBC4's Reggae night.


Sassers x

PinotGrigio41

Ok thats it !!! Mrs Happy Now has really started something here with these updates. I keep threatening and havent done mine. I think it will be more like a 4 four month update instead ! Oops !! You are all putting me to shame !

Yours was great to read though ! Well done Mr Dec !

Sassers - Baileys is my 2nd fave drink, although someone plied me with Baileys and Frangelica ( not sure if I have spelt that correctly !) at a party a few weeks ago . Oh how my head hurt the following day !

Well the gym was interesting Mr Dec and thankyou for your top tips. The last time I aimed to join I trawled around four gyms of which none of them were happy to work with me due to the back problems. The one I went to yesterday, a well known chain were fanctastic and seemed to rise to the challenge. Unfortunately we were pushed for time due to Mr Pinot collecting the infamous new bike so we didnt do the full tour, but we did get prices ! :eek: . We havent made a decision yet, I will go back in a few days for a proper look round, but also check out the two pay as you go gyms we have locally.

I hope you enjoy your weekend.

catch up soon x

Decadent_Debtor

Thanks Sassers! Baileys and Reggae Night sounds pretty cool. Especially compared to my weekend. I've been working non-stop... but (*reality check*) it's totally my fault as I knew this deadline was approaching so I should have got my !!! into gear sooner. Oh well. Bit of pressure does the world of good, I feel like a student again!

I definitely think that treating the debt thing like a game is the best way of dealing with it. I got a bit down earlier when I walked into my 'study' only to remember that I haven't had the money to do it out so it is still full of boxes. I quickly got out of my funk though by thinking what the alternative would be - more debt! I'd rather have a bare room thank you very much!

Mrs Pinot - glad to hear you had some success at the gym! They are sooo expensive though. Maybe see if you can get a free personal trainer session out of one of the big chains (try before you buy and all that...) then just do the routine they show you at home? Water bottles or tinned cans (full ones I should add) make great dumbbells. Or if your back is really that bad then your GP should send you to NHS physio. Might as well get something back from the old taxes eh?

caeler

Decadent_Debtor wrote: »

Unfortunately Mr Taxman took a little bit more than I was expecting, so not sure if I'll be able to pay off the AMEX too, but should be able to take a big chunk out of it.

I got a bonus last year and after I did my sums I decided to waiver it into my pension so I'd get the full amount as well as NI benefits. Bit of a shame but still good.

Decadent_Debtor wrote: »

I decided to pay £1,000 off the AMEX rather than spending it on the house, which has brought my total outstanding down to £18,900. Makes me feel a little bit sick writing that huuggge number down, but I also feel pretty damn chuffed considering that my debts were up at £30,000 less than 3 months ago!

Okay we admit still a scary number but I can't get over how much you've paid off in just 3 months, so you should be so pleased!!

Decadent_Debtor wrote: »

Still hoping to be debt free by the end of 2013?
Yes, and perhaps even sooner! My latest forecast is September 2013, and I think with a bit of planning and a lot of luck I might even be able to bring it in sooner. My stretch target is to come under £12,000 by the end of 2012.

Well done on your amazing progress!! You have taken control and seeing results!

Becoming debt free is a lifestyle choice especially if you want to stay that way. I've set myself a little challenge, to max out an ISA each year and not cash it in. I've had a few ISAs in my time but always had to cash in to pay for something, or pay off something! Last month I received £19.08 in interest for doing nothing! So good! Also my mortgage deal expires at the end of the year so I'll be looking for a new deal plus I've challenged myself to pay off £10K at the same time. It is technically possible so I've decided to tighten my belt and get it done.

So the small money savings thing I've done are.... renegotiated my BT contract, so getting line rental, broadband the calls for £18 a month which is a little bit better than I was paying and redone my budget so I can save the required money for my mortgage! Thought I'd share so you knew you were not alone and even after reaching debt free status you still have to keep an eye on everything!

Decadent_Debtor

Thanks Caeler! Really appreciate a viewpoint from 'the other side' as it were (i.e. debt-free) because recently I've been a bit worried/concerned about what debt-free life is going to like. Does that make sense?!

I'm sure there will be times when I go a bit crazy after payday, but I don't think I will ever go on credit card binges like I did in the past. Part of me wonders whether I will ever spend money in the same way again, or whether I'm now a tight Yorkshireman for life! :-)

Anyway, thanks again for the comments, I really appreciate it.

Decadent_Debtor

Hello everyone!

Well, looks like I've left it quite a while between updates again... Sincere apologies, as always. I've been travelling with work a lot so not found much time to get in front of the ol' laptop.

Anyway, pleased to report that all is going well. Having work pay for all my food etc for the last few weeks has given me an extra money-saving boost, so I might actually finish this month ahead of budget - for the first time ever, woo-hoo!

Quick question, does anyone have an opinion on Experian membership? I've been a member for a while and managed to negotiate a discount down to £3.49 a month, which I thought was fair value. The discount has expired now though and it's back up to £6.99, which is too much. My credit score is 989 and I'm not expecting to make any major credit applications for the next 18 months, so think I will cancel it.

Right, off to have a catch-up on all the diaries...

[Deleted User]

Decadent_Debtor wrote: »

Hello everyone!

Well, looks like I've left it quite a while between updates again... Sincere apologies, as always. I've been travelling with work a lot so not found much time to get in front of the ol' laptop.

Anyway, pleased to report that all is going well. Having work pay for all my food etc for the last few weeks has given me an extra money-saving boost, so I might actually finish this month ahead of budget - for the first time ever, woo-hoo!

Quick question, does anyone have an opinion on Experian membership? I've been a member for a while and managed to negotiate a discount down to £3.49 a month, which I thought was fair value. The discount has expired now though and it's back up to £6.99, which is too much. My credit score is 989 and I'm not expecting to make any major credit applications for the next 18 months, so think I will cancel it.

Right, off to have a catch-up on all the diaries...

My suggestion would be that unless you are particularly concerned about your credit score then cancel - you can always pay for the statutory one for £2 every 3-6 months to make sure it's all up-to-date

On another note, just read through your diary and just wondering if you have used any of the comparison sites for your utility bills? I normally check every 6-12 months if there's a better option. Often online and duel fuel plans are cheaper - it does depend on usgae and area though.

You're doing so well - keep up the good work!

D9