Debt Free by 2013 (not a typo)

Decadent_Debtor

Right then, update time! Payday today which is always a great feeling. Means that I can pretend to be rich for a few weeks... until all my Direct Debits come out on the 1st of the month :-(

Feeling very positive today! Had a good read of some amazing new diaries on here, and of course stopped off at all my old favourites too.

Big shout out to Mrs Pinot Grigio who has inspired me to bag up my old clothes and get paid £0.50/kg for the pleasure. I must have at least a tenner's worth hiding around in various boxes and suitcases around the place. Will start bagging up later and hopefully make it into town tomorrow to collect the cash.

In other news, after nearly two years in my house I have finally succumbed to the lure of a microwave. It's starting to get pretty cold up here and the thought of making my porridge by hand every morning was too much to take! Also means that I can cook up a big batch of food on the weekends and freeze it for later in the week. It was a moneysaving-friendly microwave of course. £54.99 (£15 off in sale) and a decent brand too. Couldn't believe the price of some of the others though. £299 for a microwave? Surely the trick is buying expensive food rather than an expensive oven to cook it in?!

Well, I best get off into the loft and start bagging my old clothes. Will pop on tomorrow for an update on how I got on.

Oh, and got a few items to eB*y this weekend too.

It's all happening over here on my diary haha.

Decadent_Debtor

Update time! Well, please don't get angry Mrs PG, but I STILL haven't got round to doing my ebaying! I had a couple of weeks off work recently and a list as long as my arm but didn't quite get round to finishing everything - but all my eBay stuff is in a corner ready and waiting for the next 'free listings weekend' email.

In other news, all is going well. Had a long weekend away recently which was JUST what I needed AND came in under-budget! Result! In fact I've got quite a bit leftover this month so I'm going treat myself for a change.

Very hectic at work at the moment. Lots of trips away, which is great for moneysaving (meals and bills all paid for), but all the travelling runs me down after a while, especially at this time of year with all the cold and sore throat viruses going around. Feeling a bit sniffly today :-S

Updated my signature earlier. Down to £16,000 outstanding now, so 46% paid off in total. Still on target to be under £15,000 (50%) by the end of the year which will be amazing.

I've also managed to get a few more things to finish the house off by using some of my (small) savings after it looks like I'll be able to insure the house and car out of my pay cheque this year. Very happy about that! Get it nice and cosy for winter (regular readers will be aware that my house is decorated in rather sparse/minimalist fashion - i.e. no curtains, pictures etc).

I'm not going to go mad, as I'm still set to be relocating at some point in the next six months, but I think a few creature comforts will make the place a bit easier to sell/rent - and it will all be at Ikea prices.

Decadent_Debtor

Well how time flies when you're paying off debt...

Today is the nine month anniversary of starting this diary, so here is a quarterly update, and I will re-state my SOA in the next post.

Nine months in, how does it feel?
Good! I'm 46% paid off, £14k in nine months which I'm really proud of. I've also had some real highlights this year, including two in-budget holidays, and I'm really close to having the house finished off.

Satisfied with progress?
Yes. My monthly budget has improved to a level where I can meet my payment targets and also have a bit more to spend on myself, which makes the whole process so much more enjoyable. Ok, so I probably could have scrimped and saved an extra £1,000 or so off my debts, but I've learnt that it wouldn't be worth the misery.

What have been the highlights?
Highlight of the last three months has been slowing down a bit. I'm much happier now, having much more fun AND still paying off the debts. Long weekend away was great, as was getting a few more house things done.

Biggest worry?
I've left this section until last as I'm really struggling to think of any... I guess the car is a continual worry, but it's recently fully serviced and shouldn't give me any problems for a while. I guess the price of my car insurance renewal is probably a concern, but I will 'go compare' the life out of my quote and hopefully keep that in budget. I've also got a nice little 'emergency pot' built up so shouldn't be a problem.

Still hoping to be debt free by the end of 2013?
Yes. I had originally looked at bringing the date forward, but I'm happy to wait until the end of 2013 and bank any 'wins' from payrises or lower outgoings for myself. The plan is to get the debts cleared in 2013 then treat myself to something really special for the big 3-0 in 2014.

Outlook for the next three months?
Everything looks really positive! I've budgeted to pay my insurance renewals and Christmas from my normal paychecks, which means that I'm still on target to reach the 50%/£15k mark by the end of the year, and my savings/emergency pot will remain untouched.

The following three months will be more critical for me, as I'll likely have more clarity on my next move with work. Hopefully this will involve a pay rise and some relocation payments which will mean that I might be able to clear the debts even quicker - but I'm trying not to 'bank' these monies until I know what's going on. Excting though, I feel ready for a move.

Right, re-stated SOA next...

Decadent_Debtor

Statement of Affairs and Personal Balance Sheet

Monthly Income Details:
Total monthly income: 2,400.00 (-250.00) (new shareplan)

Monthly Expense Details:
Mortgage......................946.06
Council tax......................98.00
Electricity........................35.00 (+5.00)
Gas..................................45.00 (+15.00)
Water..............................23.00
Telephone and internet..30.00
TV Licence...................... 12.12
Sky TV.............................33.96 (+1.21)
LoveFilm.........................16.33
Food, groceries.............150.00 (-50.00)
Petrol/diesel...................75.00
Road tax.........................(paid)
Car insurance.................(paid)
Buildings/contents.........(paid)
Haircuts..........................20.00
Gym................................39.50
Total expenses:..........1,523.97 (-28.79)

Assets:
Cash...............................£400.00 (+400.00)
House value (gross)..200,000.00
Shares (can’t sell)........25,000.00 (+13,500.00)
Car.................................1,000.00
Total Assets: .............226,400.00 (+13,900.00)

Secured & HP Debts:
Description Debt Monthly APR
Mortgage 169,500.00........946.06 5.0%
Total secured debts: ..168,800.00 (-500.00)

Unsecured Debts:
Description Debt Monthly APR
First Direct Loan.............10,000.00......300.00 (-1,500.00)
Barclaycard.......................6,000.00.....200.00 (-1,200.00)
Total unsecured debts:...16,000.00.....500.00 (-2,700.00)

Monthly Budget Summary:
Total monthly income.................................2,400.00
Expenses (including secured debts)............1,523.97
Available for debt repayments......................876.03
Monthly Unsecured debt repayments...........500.00
Amount left after debt repayments...............376.03

Personal Balance Sheet Summary:
Total assets (things you own)....226,400.00
Total HP & Secured debt..........-168,800.00
Total Unsecured debt................-16,000.00
Net Assets...................................41,600.00 (+17,100.00)

beanielou

All looking good

caeler

Keep up the good work! Your doing so well!

Decadent_Debtor

Update time, as I have yet again left it ages without posting. Partly due to not much going on, but mostly due to what can only be described as the horrific 'winter vomiting bug'. Not nice, not nice at all :-(

Anyway, had a bit of a result on the home insurance earlier this month. Got my existing provider down to £89 from £171! Ok, I did drop the level of cover a bit, but that's because I have more flexibility on a month-to-month basis so didn't feel the need to over-insure myself (low excess, accidental damage etc).

Car insurance next. I've had a look at some of the cashback sites but even including the offers they can't beat my renewal quote, which is handily £25 inside budget. I'm still going to give them a call though and see if they can go any lower. Don't ask, don't get and all that...

I'm soooo close to the big £15k/50% mark!!! I think it will be a huge psychological boost to get there by the end of the year and know that if I could do it this year then I can definitely do it again next year.

Will need to have a fairly MSE-friendly Christmas, but as a family we never go mad so that should be do-able. Call me a big old Scrooge (which in all honesty I am) but I am fed up of seeing Christmas adverts and decorations up in shops already. I wouldn't mind so much if there were a genuine message behind it, but I can't help but feel that it's all about money, and inevitably debt. Makes me sad really.

caeler

I'm doing a very MSE friendly Christmas. I'm currently setting expectations so there isn't too much disappointed. I'm doing it for under £40! Sounds like I'm being cheap (and I suppose I am) but I've slightly overstretched myself buying a new house so Christmas is cancelled! I had also bought quite a few things during the year whichis ideal as I don't have to buy things now!

Decadent_Debtor

Sounds good to me Caeler! I've budgeted £200 for Xmas but that's for EVERYTHING! Presents, parties, nights out, new Xmas jumper - the lot!

I know exactly how you feel with overstretching on the new house. That's exactly where I was two years ago, but things are much better now. Couple of payrises and a bit of debt reduction have done wonders for my day-to-day finances (even if the house is not quite fully furnished yet).

caeler

I usually save £20 a month into a seperate account all ready to spend at Xmas. That helps me buy all the things you mentioned (except the jumper! but I've had to put it towards legal fees. Trust me to complete before Christmas. Good luck with sticking to your budget!