My Debt Free Journey starts today

Hi all

I am so pleased that I listen to Jeremy Vine on Radio 2 every day and therefore have been listening to Martin Lewis. I finally plucked up the courage last night to visit this website - mainly , I admit, to get the dowloaded letter to reclaim bank charges. Im hoping for a VERY large payday on thats score.
OK - so here's that the bit that bites: Worked out (with the help over the snowball calculator) http://www.whatsthecost.co.uk/snowball.aspx
that I (actually "we" as its me and hubby) owe................


£65,290.79 :eek: :eek: :eek:

It's owed on a number of credit cards (7), unsecured loans (3), secured loans 1) overdrafts (1) and arrears on mortgage.

I am determined to get this payed in 3 1/2 years (sooner if we get the charges back from the bank) and try to teach my children that this is definitely NOT the way to live. You know, not answering the phone, never opeining the post amd pretending it s not that bad.

I have a good income from my job (Sales Rep) of approximately £1000.00 a week, have a fairly big mortgage (£143,000) and 4 children. We both have a small income from being semi- pro musicians of about £15,000 pa too (joint).

I do have other outgoings to: petrol (£150 per month), nursery fees (£100 per month), dancing school (£40 per month) food (£500 per month) and ...
I gamble

There I said it.

Not huge amounts, but I play online bingo most nights and some weeks I am spending about £80 per week. I do win, but it all goes back on of course.
My hubby smokes as well.


All comments, sugestions and help would be appreciated.


Thanks for listening

golddigger
LBM 22nd February 2007 - Amount in debt £72,242.23:confused: one month on :rolleyes: £63,900;) 2nd month 60,000.09
Aiming to be debt free October 2010:eek: PROUD TO BE DEALING WITH MY DEBT - official dfw nerd no.348/ DMP mutual support member no.8
Quidco: £4.07 Pigsback £17.10 Mrs Cashback 17.75 £2 savings club - £48 Loose change savings - £6.72 Woolworths Christmas Savings Card £10Reclaiming bank charges so far... £219 from Egg, £175 from Co-operative CC, £490 from Halifax One, at local court stage with HSBC and LLoyds & Marbles, MCOL with Mint
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Replies

  • Well done Golddigger! Your on the right track, if you post you SOA then you will get some fantastic advice from the board.

    You've got a great income, so you should clear you debts in no time. Good Luck with it.
    Debt Total. 17th February 2010 £15,685
  • Oh heck,
    I can't help you, but you've made a very big first step coming here.
    Loads of people to help and not to judge.
    Best thing I've done in the last couple of days is to actually admit that I've got a debt problem and ask for help here.
    Keep posting golddigger.
    Loads of lovely people here to help us
    :grouphug: A smile, a 'please' and a 'thank you' cost nothing



  • sammiboosammiboo Forumite
    1.1K Posts
    i concur with the above :)

    Post up your SOA and we can take a look and see where we can advise to better your finances.

    Welcome to MSE :T
    March 2006 £15,200+ in debt April £843.64 in debt - Debt Free date Sept 2009
    Egg Credit Card - £843.64 5.7%
  • Thank you weegie.


    REALISED I'D MISSED A CREDIT CARD OUT, SO RECALCULATED ON THE SNOWBALL AND IT COEMS TO

    £71877 - OOUCH
    OK I think my SOA are:(MONTHLY)

    INCOME: £5200 (approx)
    BENEFITS: (CHILD & DISABILITY LIVING ALLOWANCE FOR MY SONE) £160

    OUTGOINGS: MORTGAGE Northern Rock £900 @ 5.1%
    GAS Atlantic £45
    ELECTRIC Atlantic £95
    WATER Seven Trent £45
    COUNCIL TAX £95
    PETROL £150 (variable)
    CAR TAX (2 cars) £20
    INSURANCE £80
    BUILDINGS & CONTENTS £35
    LIFE INSURANCE £45
    FOOD £500
    CHILD CARE £100
    KIDS EXPENSES £100
    DINNER MONEY £110
    CLEANER £100 (I KNOW, I KNOW!)
    BUSINESS EXPENSES £40

    DEBT: MORTGAGE ARREARS £200 Northern Rock @ 5.1%
    CREDIT CARDS
    mint £300 @16.9
    egg £200 @16.9
    lloyds platinum £300 @ 15.9
    halifax one £200 @ 9.9
    marbles £250 @16.9
    GE Money (mothercare) £45 @19.9

    LOANS Northern Rock unsecured £100 @6.4
    Lloyds loan 150 @6.4
    Kensington Secured loan £456.56
    LLoyds overdraft £50
    TBI Financial (15 yr old debt) £30 @ 0%


    (ALL THESE DEBT PAYMENT ARRANGEMENTS WERE MADE TODAY)

    TOTAL IN: £5360
    TOTAL OUT:4741.56


    mmm
    LBM 22nd February 2007 - Amount in debt £72,242.23:confused: one month on :rolleyes: £63,900;) 2nd month 60,000.09
    Aiming to be debt free October 2010:eek: PROUD TO BE DEALING WITH MY DEBT - official dfw nerd no.348/ DMP mutual support member no.8
    Quidco: £4.07 Pigsback £17.10 Mrs Cashback 17.75 £2 savings club - £48 Loose change savings - £6.72 Woolworths Christmas Savings Card £10Reclaiming bank charges so far... £219 from Egg, £175 from Co-operative CC, £490 from Halifax One, at local court stage with HSBC and LLoyds & Marbles, MCOL with Mint
  • southern_chicksouthern_chick Forumite
    494 Posts
    Part of the Furniture 100 Posts Name Dropper
    Forumite
    good luck golddigger, you'll find this site really helpful and very addictive!!
    slowly working towards being MF one small over payment at a time :T
  • Welcome to the boards, they are a great tool to help you sort out your debt, so you've made the right move by coming here!

    First off, I think you know that cutting back on the cleaner should be your first port of call. I understand if you and your OH have a demanding job this might not be easy at first, but if you have any slightly older children they might be able to help you out around the house in return for a little bit of pocket money!

    Also have a hunt around this site to see if theres anyway you can get better deals on your life insurance/car insurance etc. I found this article which might help you out with your childcare costs: http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1129566540,79743,

    Good luck :)
    Lightbulb Moment: Feb 2007 :idea:

    Starting Debt:£4737.49

    Ebay Sales: £154.40 Pigsback: £15.20 Coin Jar: £18.90 Savings: £212.12

    Current Goal: Save £365 To Pay Off HFC by March 26th Goal To Date: £365.52 ~ Just waiting for paypal funds to clear :D

    Next Goal: Save £200 extra to pay towards car loan by 31st March.

    Proud To Be Dealing With My Debts!
  • For fear of stating the obvious, you're going to need to get rid of the Bingo, cigarettes, and cleaner. I know they're nice to have, but they're non-essential items, and if you're not firm and strict with yourself from day 1, you'll never make it.

    Do you need two cars as well? Would it be feasible to manage with one? Could public transport be an option? Good luck! :)
    No longer visiting these forums.
  • slowlyfadingslowlyfading Forumite
    13.4K Posts
    Part of the Furniture 10,000 Posts Name Dropper
    Forumite
    golddigger wrote:
    Thank you weegie.


    REALISED I'D MISSED A CREDIT CARD OUT, SO RECALCULATED ON THE SNOWBALL AND IT COEMS TO

    £71877 - OOUCH
    OK I think my SOA are:(MONTHLY)

    INCOME: £5200 (approx)
    BENEFITS: (CHILD & DISABILITY LIVING ALLOWANCE FOR MY SONE) £160

    OUTGOINGS: MORTGAGE Northern Rock £900 @ 5.1%
    GAS Atlantic £45
    ELECTRIC Atlantic £95
    WATER Seven Trent £45
    COUNCIL TAX £95Seems high, check through uswitch to see if you can get it chearper
    PETROL £150 (variable) Do you need two cars? Can you cut this down at all?
    CAR TAX (2 cars) £20 as above.
    INSURANCE £80 Is this necessary?
    BUILDINGS & CONTENTS £35
    LIFE INSURANCE £45
    FOOD £500 This is really high, head over to the OS board. You could cut this in half with careful planning.
    CHILD CARE £100 Is this necessary?
    KIDS EXPENSES £100 What are these?
    DINNER MONEY £110 This is high. Take sandwichs instead?
    CLEANER £100 (I KNOW, I KNOW!) An expense that you can't afford.
    BUSINESS EXPENSES £40 What are these?

    DEBT: MORTGAGE ARREARS £200 Northern Rock @ 5.1%
    CREDIT CARDS
    mint £300 @16.9
    egg £200 @16.9
    lloyds platinum £300 @ 15.9
    halifax one £200 @ 9.9
    marbles £250 @16.9
    GE Money (mothercare) £45 @19.9

    LOANS Northern Rock unsecured £100 @6.4
    Lloyds loan 150 @6.4
    Kensington Secured loan £456.56
    LLoyds overdraft £50
    TBI Financial (15 yr old debt) £30 @ 0%


    (ALL THESE DEBT PAYMENT ARRANGEMENTS WERE MADE TODAY)

    TOTAL IN: £5360
    TOTAL OUT:4741.56


    mmm

    Had a look over your SOA.
    Nicola x
    Be who you are and say what you feel because those who mind don't matter and those who matter don't mind.
    Personal Finance Blogger + YouTuber / In pursuit of FIRE
  • Hi Nicola

    Thank you for your input

    To answer some of your queries

    OUTGOINGS: MORTGAGE Northern Rock £900 @ 5.1%
    GAS Atlantic £45
    ELECTRIC Atlantic £95
    WATER Seven Trent £45
    COUNCIL TAX £95Seems high, check through uswitch to see if you can get it chearperI have checked that I am in the right council tax band and it is correct. Coventry has a higher than average Council tax
    PETROL £150 (variable) Do you need two cars? Can you cut this down at all?I am a travelling sales rep and my hubby is a singer who travels the country - we have to have 2 cars - also one is an MPV as we have 4 children
    CAR TAX (2 cars) £20 as above.
    INSURANCE £80 Is this necessary?car insurance that is - should have said and that is for 2 cars
    BUILDINGS & CONTENTS £35
    LIFE INSURANCE £45
    FOOD £500 This is really high, head over to the OS board. You could cut this in half with careful planning.£125 per week for 6 of us (2 adults, 2 teenagers, 2 younger ones)
    CHILD CARE £100 Is this necessary?this is with our jobs being long hours - this will end when my youngest starts school in September
    KIDS EXPENSES £100 What are these?Ballet lessons, drama lessons and running club
    DINNER MONEY £110 This is high. Take sandwichs instead? not sure I could do packed lunches for £7 per week per child
    CLEANER £100 (I KNOW, I KNOW!) An expense that you can't afford.
    BUSINESS EXPENSES £40 What are these?I am essentially self emplyed - have to post my sales deals off every week, they cost £4.50 to post


    Maybe I should have said that I have 4 children at the beginning ! Sure eats into the money - especially as this doesnt include school trips, uniform, shoes and clothes.

    I appreciate everyones comments and suggestions


    golddigger
    LBM 22nd February 2007 - Amount in debt £72,242.23:confused: one month on :rolleyes: £63,900;) 2nd month 60,000.09
    Aiming to be debt free October 2010:eek: PROUD TO BE DEALING WITH MY DEBT - official dfw nerd no.348/ DMP mutual support member no.8
    Quidco: £4.07 Pigsback £17.10 Mrs Cashback 17.75 £2 savings club - £48 Loose change savings - £6.72 Woolworths Christmas Savings Card £10Reclaiming bank charges so far... £219 from Egg, £175 from Co-operative CC, £490 from Halifax One, at local court stage with HSBC and LLoyds & Marbles, MCOL with Mint
  • hiya:hello: you could definately save on the food budget and the kids lunch money, have a nosy at the os board for inspiration. for my sons packed lunches i make traybakes (homemade lemon drizzle mmmmmm!)/flapjacks etc and slice into individual portions wrap in greaseproof paper and freeze in a couple of big labelled tubs in my freezer so i always have an ongoing supply of goodies to give him and as they are frozen they are not easily accesible by my eating machine of a son (i find these are the expensive things to buy all those goodies from the shop add up) if you make a different thing every weekend and freeze then they have a good selection to choose from every day and its cheap i also make huge batches of sausage rolls cook them then wrap individually in tin foil and freeze and just take them out the night before to defrost. i also send my son to school with cold tuna pasta/salads and cous cous in tubs or homemade soup in a small flask when its cold or wraps with a small amount of grated cheese and loads of lettuce and a piece of fruit every day with a reusable bottle of squash or water. i reckon you could give all 4 of them a decent lunch for the week for well under a tenner.you could even make up the sandwiches for a week and freeze (no salad) if you cant be flaffed to make it every night. the key is to have lots of different size tubs to put lunches in but once you have those you are away! :D if you can get your mind into the right frameset im sure you could do it! best of luck...angchris
    proper prior planning prevents p!$$ poor performance! :p
    Only when the last tree has died and the last river been poisoned and the last fish been caught will we realise we cannot eat money
    quote from an american indian.
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