Polly's debt free mission

PollyOnAMission

In January this year I had my LBM and decided it was time to sort out my finances. I discovered this forum, started making some changes and began some avid stalking of people's debt free diaries! I've decided to start my own in the hope that writing things down will help me feel more committed. Plus I'd love some of that fluffy lovely feeling of camaraderie and encouragement everyone seems to give each other

The first step on my debt-free ladder was to actually take stock of my finances and see what money I had (or rather didn't have); until that point if someone had asked me "how much debt do you have?" I wouldn't actually have known. Shame on me! :eek:

I got a money management app for my phone to start recording everything I spent. This has helped me so much. I then set about on my mission by doing the following:

- Set budgets for grocery/clothes/leisure/treat spending, with the help of the budget planner on this website. Before this I just used to buy what I wanted, when I wanted.
- Switched energy suppliers
- Cancelled Sky TV/broadband/phone and switched to a cheaper provider
- Took out a 0% BT credit card and a 0% purchases credit card and transferred my debts to eliminate interest charges
- Paid off the ~ 1k overdraft in my current account by spending on 0% card instead
- Put my "rainy day" savings towards my debt
- Sold worthwhile unwanted items on Ebay/Cex
- Brought homemade lunches to work every day
- Joined up on survey sites
- Severely tightened belts all round

I own my house with my brother, who lives elsewhere with his family. We have around £115k left on the mortgage and the property is worth ~£150K. We have a joint account into which I pay £350 per month for mortgage/house insurance/house repairs etc. As this is my own personal debt-busting mission I'm not going to include the mortgage side of things for the moment, other than the monthly payment into our joint account. I have a lodger who pays rent into the joint account with my brother and bills to me, so I will only include the bills portion. My ultimate aim is to pay off my debts, save some money, sell up and move to a larger house in a nicer area. This is my motivation!

Here is my SOA for "essential" items. When I say essential, I mean things that I have decided I can't/don't want to sacrifice. I am meticulous in hunting out the best deals for everything and get cashback (insurance, dog food, household bills etc) so I've trimmed the fat in this area. I have two dogs who are my main expense...however they are also my main source of entertainment, hobbies (training) and general merriment. Having them also means I am reluctant to go out as much, other than for walks

Monthly Income Details
Monthly income after tax................ 1500
Other income............................ 130 (lodger)
Total monthly income.................... 1630

'Essential' Monthly Expense Details
Mortgage................................ 350
Council tax............................. 105
Gas/Electric.............................86
Water rates............................. 32
Telephone (land line)/Broadband. 18
Mobile phone............................ 28
TV Licence.............................. 12
Petrol/diesel........................... 58
Road tax................................ 10
Car Insurance........................... 30
Car maintenance (including MOT)......... 20
Pet insurance/vet bills................. 28
Contents insurance...................... 8
Dog food.....................................40
Dog training.................................75
Total monthly essential expenditure..900

Water and council tax figures are averaged monthly over a year, but actually the monthly direct debit is higher and they have a payment holiday in Feb/March/April

This leaves me with £730 per month for food, clothes, entertainment, treats and paying back credit cards. It makes me wonder where on earth it went before.

My initial budgets are £170 per month for groceries (including cleaning products, food, toiletries etc) and £80 per month for "spending money" (clothes, entertainment, treats, haircuts etc). However it seems these are a bit low so might need some adjusting

Here is the way things have looked since January (numbers all thanks to the fab app on my phone:j). I take the "measurements" just before payday, so I am aware of the worst case scenario! These numbers include credit card debts, current accounts, savings account (now empty) and cash. I do also have a student loan (under £3k left now I think) but I'm not going to count that.

!January LBM!
Total Balance: -£4,095

February Not bad, considering... debt reduced by £92 this month
Total Balance: -£4,003 (this month I stocked up on loads of toiletries, two month's worth of dog food, paid home insurance and had to take Dearest Dog 1 for unexpected vet visits. I also still lived alone as my lodger hadn't moved in yet)
Total debt reduction so far: £92

March Some improvement...debt reduced by £289 this month
Total Balance: -£3,714
Total debt reduction so far: £381 (average £190 per month)

April Starting to get the hang of it now...debt reduced by £459 this month
Total Balance: -£3,255
Total debt reduction so far: £840 (average £280 per month)

Council Tax and water payments have resumed now...boo!
But I did get a £1,700 per year pay rise for the new financial year, yey!

So, that's the background! I will continue to update my progress. I'm amazed what a difference some severe belt tightening has made so far; long may it continue. The bad news is that I've now sold pretty much everything I want to sell so it might slow down a bit. I now have two credit cards in use, both at 0% and both should be paid off before the deals ends if I stick to my plans. _party_

If anyone has read this far...thank you. I'm going to come out of my lurking shell and follow other diaries more actively now that I've had the courage to start my own. :j

Polly x

PinotGrigio41

Hi Polly and Well Done for starting your own diary.

I too lurked for ages before I actually had my true very bright LBM and came out of the closet as it were !!:rotfl:

I have seen you over on Teatimes diary , so I thought I would pop in and say hi.

It looks as though you have taken stock and already reduced some debt, well done with that. I dont have time at the moment to take a look at your SOA, but I am sure someone will come along soon who does and can give you some helpful pointers.

Keep posting xx

jwil

Good luck!

Teatime

Hi Polly,
I have found you - yay!

Your figures look brilliant. That must be so motivating to see the debt reduction written down like that.

What kind of dogs do you have and what training do you do?

I used to do agility but at the moment I have a giant breed so I am only doing fun obedience with him ie not entering competitions. Have been looking at treiball though - it looks fun.

Anyway, good luck with the rest of the journey. We can support each other along the way.

PollyOnAMission

PinotGrigio41 wrote: »

Hi Polly and Well Done for starting your own diary.

I too lurked for ages before I actually had my true very bright LBM and came out of the closet as it were !!:rotfl:

I have seen you over on Teatimes diary , so I thought I would pop in and say hi.

It looks as though you have taken stock and already reduced some debt, well done with that. I dont have time at the moment to take a look at your SOA, but I am sure someone will come along soon who does and can give you some helpful pointers.

Keep posting xx

Thanks, Pinot! Coming out of the debt closet is hard but I feel like I am so much more in control of my life now :j I guess I'm cheating a bit starting a diary a few months in when I already have something to show for it, but I could feel my enthusiasm starting to dwindle. This seems like such a friendly and supportive place that I decided I GOTTA GET ME SOMMA THAT!

Looking at your signature it's clear you are doing BRILLIANTLY. Well done you I'm off to sign up to your diary to get some tips and show some support.


Polly x

PollyOnAMission

jwil wrote: »

Good luck!

Aww, thanks. I've just hunted out your diary and have subscribed :j

PinotGrigio41

PollyOnAMission wrote: »

Thanks, Pinot! Coming out of the debt closet is hard but I feel like I am so much more in control of my life now :j I guess I'm cheating a bit starting a diary a few months in when I already have something to show for it, but I could feel my enthusiasm starting to dwindle. This seems like such a friendly and supportive place that I decided I GOTTA GET ME SOMMA THAT!

Looking at your signature it's clear you are doing BRILLIANTLY. Well done you I'm off to sign up to your diary to get some tips and show some support.




Polly x

Blimey , you could be in for a long read, feel free to doze off and wake up at the occasionally interesting bits !!! Or........ for that matter skip most of it and start at the end !!!

debtfreewannabe321

good luck polly, you've made some great payments already this year xx

PollyOnAMission

Teatime wrote: »

Hi Polly,
I have found you - yay!

Your figures look brilliant. That must be so motivating to see the debt reduction written down like that.

What kind of dogs do you have and what training do you do?

I used to do agility but at the moment I have a giant breed so I am only doing fun obedience with him ie not entering competitions. Have been looking at treiball though - it looks fun.

Anyway, good luck with the rest of the journey. We can support each other along the way.

Hi :j

It really is motivating to see it written down! I keep making graphs too...I love graphs

I have two whippets and at the moment we just do fun obedience (actually that should probably be fun "obedience", because it's a bit hit and miss with pointy hounds:rotfl:), however I'm hoping to start agility with one of them very soon. I used to compete in agility as a child handler and it was so much fun! What breed is yours? I bet he could eat a skinny whippet for breakfast daily if he's a giant :rotfl:

I've not heard of treiball, is it a bit like flyball? I'm off to find out more...

Good luck to you too; I have subscribed to your diary :beer:

Polly x

PollyOnAMission

PinotGrigio41 wrote: »

Blimey , you could be in for a long read, feel free to doze off and wake up at the occasionally interesting bits !!! Or........ for that matter skip most of it and start at the end !!!

Hehe! I actually really enjoy reading through a long diary right from the start (if I have time). It's like reading a story when you know you'll get to find out the ending of the first in the series, then can join in and be involved for series two

PollyOnAMission

debtfreewannabe321 wrote: »

good luck polly, you've made some great payments already this year xx

Aww thank you

Looks like you're doing really well! Especially with all those vouchers earned. Blimey, how do you earn so many?! I think I need some more tips and tricks :cool:

Do you have a diary?

Polly x