Hi all - Report card says 'must do better'

Barebear

My last post was 18 months ago and I have not really got any further out of debt! :mad:

My circumstances have changed considerably, as I've changed jobs. I completed my degree and decided to look to see if there were any decent jobs I could go straight into. I'm happy to say I got a great job with a good deal more money. I also sold the flat last summer making a good profit.

However I'm still in a vicious circle of debt. The total balance of debt seems to be around £19k with my repayments being around £600 each month!!

I just got rid of the Gas prepayment meter so I dont have any debt with them any more, but I'm still paying the debt on the electricity account.

I'm at work right now, so I can't post the current SOA, I'll do it later tonight. The one thing I can say is that I've kept the other bills like insurances down. I'm not spending as much on the disposable income side of things, but after listing the debt, I realise, once again, that I NEED to take control.

Barebear

I did the SOA -


Statement of Affairs and Personal Balance Sheet



Monthly Income Details

Monthly income after tax................ 1800

Partners monthly income after tax....... 100

Benefits................................ 0

Other income............................ 0

Total monthly income.................... 1900



Monthly Expense Details

Mortgage................................ 399

Secured loan repayments................. 0

Rent.................................... 0

Management charge (leasehold property).. 0

Council tax............................. 135

Electricity............................. 112

Gas..................................... 50

Oil..................................... 0

Water rates............................. 0

Telephone (land line)................... 20

Mobile phone............................ 50

TV Licence.............................. 14

Satellite/Cable TV...................... 45

Internet Services....................... 30

Groceries etc. ......................... 100

Clothing................................ 0

Petrol/diesel........................... 120

Road tax................................ 0

Car Insurance........................... 17.79

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................. 11.74

Buildings insurance..................... 7.09

Contents insurance...................... 15.92

Life assurance ......................... 7.17

Other insurance......................... 4.12

Presents (birthday, christmas etc)...... 0

Haircuts................................ 0

Entertainment........................... 0

Holiday................................. 0

Emergency fund.......................... 0

Total monthly expenses.................. 1138.83



Assets

Cash.................................... 0

House value (Gross)..................... 90000

Shares and bonds........................ 0

Car(s).................................. 2000

Other assets............................ 0

Total Assets............................ 92000



Secured Debts

Description....................Debt......Monthly...APR

Mortgage...................... 68000....(399)......7

Total secured debts........... 68000.....-.........-



Unsecured Debts

Description....................Debt......Monthly...APR

Welcome........................2748......83.3......66.83

Vanquis........................248.15....11........53.99

Monument.......................228.88....10........31.99

Over Darft.....................980.......0.........0

Student Loan...................2500......0.........4.8

OUSBA..........................292.......70........8.8

CoOp Bank......................4613......170.......12

Halifax Loan...................7086......152.......15

Capital One....................285.69....14........30.34

Total unsecured debts..........18981.72..510.3.....-



Monthly Budget Summary

Total monthly income.................... 1,900

Expenses (including secured debts)....... 1,138.83

Available for debt repayments........... 761.17

Monthly UNsecured debt repayments....... 510.3

Surplus(deficit if negative)............ 250.87



Personal Balance Sheet Summary

Total assets (things you own)........... 92,000

Total Secured debt...................... -68,000

Total Unsecured debt.................... -18,981.72

Net Assets.............................. 5,018.28



Created using the SOA calculator at https://www.makesenseofcards.com.

Reproduced on Moneysavingexpert with permission.

Barebear

Sorted a few things out - made myself a new budget planner which suits my needs more than the one I down loaded from here. I also sorted out my Gas & Electricity DD's and saved £22 per month which will go towards the most expensive credit card.

This is a full time job, keeping things in order. It's one of the hardest things I've ever done. But I now realise how vital it is.

Barebear

Definitley made progress, as I've got the spending under control again and planned for next month's bills and spending already. I've never been this organised and it feels liberating. :-)

Barebear

Almost 3 months on from my last re-organisation and I'm pleased to say that I've regained full control. It's extremely difficult to bite the bullet and jump off that debt rollercoaster!!

I toyed with the idea of consolidating, but I could clearly see from my budget planner that by Feb 09, I'll be over £300/month better off. I can then start piling some of that towards the long term debt. Overpayments or putting it away in an ISA ready for an early settlement. In a year's time, I'll be almost £500/month better off. For anyone who hasn't got a monthly balance sheet, that is a great example of how it can help you see clearly how you're fixed either right now or in the future.

Right now, though, things are tight and this Christmas looks like being a lean one. I can see that this is where I'd have borrowed more in the past, but I really have to cut the cloth to suit now. Just say no and get onto the Old School moneysaver's board for some tips. :A

Barebear

It's been two years since my last post on this thread and, having used the budget planner/spending diary I made back then, I have brought the total balance of unsecured debt down from approximately £19,000 to £8,000. I have completely revised how I spend my hard earned. In less than 18 months I will be debt free.

I have used this website for help at various points as I've gone along, times did get very tough at times, but I'm confident in my own situation. I will keep updating more regularly as I get towards my goal.

L-M

Well done barebear:T:beer:

Halving your debt is fantastic, congratulations:D

Best of luck for getting debt free in the next 18 months:beer:

Magnolia

I started reading this thread not knowing that it started so long ago - but not that long ago that I cannot say well done on your achievements - you have done fantastic! - here's to the next 18 months and debt free :beer:

gemini12

I too hadnt realised the date on your early posts. I can only stand in awe at what you have acheived. :beer:. That is really well done.

Barebear

Thanks for the comments. I hope it helps others in some way too.

I must say that I have not made concerted efforts to put every penny towards paying these things off. I have just been meeting my regular commitments, never missing and controlling my other spending. A monthly look at the finances is now part of my routine. The balance dropping is as it should be. It's encouraging to see that with regular payments, it does make a clear difference. I have one payment to make to the loan I had with Welcome Finance and that's gone!! I had some extra saved up over the past couple of months and took the early settlement option, saving me about £300. It's amazing what these companies will accept in way of early settlement if you have the money there, and make an offer.

I would urge everybody to get control of your spending and keep hitting the monthly payments, never miss and DON'T take out any more debts along the way. Your Credit Card companies will raise your limit, but whatever you do, don't use it.

Good luck if you are reducing that debt.