Advice on becoming debt free

no_money_sense

Hello,

I have become sick to death of being in debt, and have decided that this year I am going to become debt free, but I was hoping I could get some advice about how to go about it. I realise alot of it will come to down to will power and not buying things I don't need and moving spare money into my debt.

But are there any tricks that could make it easier to get debt free, I tried to do a balance transfer to a Barclaycard but BC rejected me.

Some information about myself, I earn £1444 p/m after tax and 800 of that leaves to mine and my partners joint account, another 100 goes on petrol and another hundred on food. Could I be debt free within 12 months or maybe even 6?

My main motivation for this, is that my girlfriend has said I am not allowed to propose to her until I am debt free, and we can start to save for a wedding (fair enough I think).

psychopathbabble

Hello and welcome to the DFW board Well done on your lightbulb moment.

So everyone can help you see where to cut down, could you fill in your statement of affairs as accurately as possible from the following link:

http://www.makesenseofcards.com/soacalc.html

You need to be honest with it, and get all your paperwork together so you can get correct figures.

Once that has been filled out, post on here and people can see your situation clearer

Happytogetdebtfree

You need to pay about 292 a month for 12 months tackle the card and close it then move to overdraft. Good luck with it x

[Deleted User]

Well done for tackling the debt and what great motivation you have. Everything is possible if you work at it so I'm sure you can be debt-free. Fill out the form as the above poster mentioned and we can help you make sense of it all

no_money_sense

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household.........
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1445.54
Partners monthly income after tax....... 1027
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2472.54

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 600
Management charge (leasehold property).. 0
Council tax............................. 98
Electricity............................. 30
Gas..................................... 30
Oil..................................... 0
Water rates............................. 34
Telephone (land line)................... 14
Mobile phone............................ 35
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 200
Clothing................................ 30
Petrol/diesel........................... 100
Road tax................................ 11
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 18
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 4
Entertainment........................... 20
Holiday................................. 25
Emergency fund.......................... 30
Total monthly expenses.................. 1289


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................ 0
Total Assets............................ 1000

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
NW Mastercard..................1500......33........17.9
NW Overdraft...................2000......0.........18.28
Total unsecured debts..........3500......33........-


Monthly Budget Summary
Total monthly income.................... 2,472.54
Expenses (including HP & secured debts). 1,289
Available for debt repayments........... 1,183.54
Monthly UNsecured debt repayments....... 33
Amount left after debt repayments....... 1,150.54

Personal Balance Sheet Summary
Total assets (things you own)........... 1,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -3,500
Net Assets.............................. -2,500

Obviously I would prefer not to have touch my partners income, I spent the money she should not have to lose out financially because of this.

Happytogetdebtfree

Do you split the amount left over ? Ie 575? You can be frugal and down 7 months paying them off depends how you split the left over cash? Yes the finances are yours but if your intending to marry and save maybe you can do a compromise?

no_money_sense

Basically from my 1443p/m salary I send 700 to a joint account, leaving me with 743, then I pay 100 fuel and 100 food out of my own money, leaving me with 543, which I suppose could be termed disposable for want of another word. Basically it pays for clothes, extra food, and extra fuel when and if needed.

psychopathbabble

no_money_sense wrote: »

Basically from my 1443p/m salary I send 700 to a joint account, leaving me with 743, then I pay 100 fuel and 100 food out of my own money, leaving me with 543, which I suppose could be termed disposable for want of another word. Basically it pays for clothes, extra food, and extra fuel when and if needed.

So realistically, if you worked hard not to spend that money you could chuck £500 per month at the debt and get it paid off pretty quickly.

Depends how much you really want the debt gone as to the sacrifices you are willing make for 7 months. I'm sure you can go without new clothes and eating out for a few months.

If you did that, you could save £500 each month in time to buy a gorgeous ring to propose at Christmas. Use that as your incentive!

Happytogetdebtfree

Good advice psychobabble :-) xx

[Deleted User]

no_money_sense wrote: »

Basically from my 1443p/m salary I send 700 to a joint account, leaving me with 743, then I pay 100 fuel and 100 food out of my own money, leaving me with 543, which I suppose could be termed disposable for want of another word. Basically it pays for clothes, extra food, and extra fuel when and if needed.

I would do without the new clothes whilst you are paying the debts off - I'd put approx £400 a month towards the credit card - this still leaves you with £140 a month or £35 a week which should be ample. Walk when you can rather than take the car as this will save on fuel.

Are you in contract with your mobile? I've just swapped a £35 phone bill to £13.50 phone bill. I'm happy with my phone and just out of contract so swapped to sim only - this includes 300mins, unlimited texts and 100MB - I'd rather have no debt than a snazzy new mobile.

no_money_sense

This is all great advice, and I feel really positive that I can get debt free, my target is the end of August, then all being well I can use the money I was using to clear my debt to buy an engagement ring.