Growing up and facing the debt burden

justajamjar

This is very much a diary for me but as I am writing it on here, as I would like to make sure that I am accountable for my actions and can finally clear the debt mountain I face. Additionally I hope to have some input from all of those who have been inspirational in clearing out their debts. I have bought"stuff" that I now need to sell as I don’t use the stuff as much as I could or should. I have things like a SLR camera which I love when I use it but this seems to be only a couple of times a year. As depressing as it will be to sell it I know I need to get out of debt and start saving for a house like we are supposed to do in life.

On the face of it, I am relatively well off earning a good salary based in London. But like so many others in the world, I managed to get myself into hideous debt. It’s something I have tried to ignore but when I recently went off the rails in terms of spending I know I need to reign myself in and face up to the damage I have done to my finances, which has been caused by being out ofcontrol, and slightly addictive personality.

This is one of the few Saturday nights in a long time I am sitting at home instead of trying to hold onto my youth and go out drinking/pubbing/clubbing trying to meet the one or someone. Nights out are fun but also kind of sad since I am turning 32 by the end of the year.

Onto my debts:

I have a loan of £12k paying £368 a month (it runs for another 3.5 years and I don’t think I can get out early....)

CC debt of 12.8k (8.8k on 0%) and another Loan of 4.5k = £29.3k in debt.

It is frightening to see the figure and I know that unless I get a new job/promotion I will struggle to be debt free before 2014...

SOA to follow.

justajamjar

SOA below....

A real LBM as I thought I had more left at the end of the month.


Statement of Affairs and Personal Balance Sheet
Monthly Income Details
Monthly income after tax................ 2482
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2482
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 570
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 30
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 250
Clothing................................ 50
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 110
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 10
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1020

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

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
barc...........................8816......200.......0
halifax........................4000......100.......17
loan...........................12000.....370.......16
loan 2.........................4500......525.......6
Total unsecured debts..........29316.....1195......-

Monthly Budget Summary
Total monthly income.................... 2,482
Expenses (including HP & secured debts). 1,020
Available for debt repayments........... 1,462
Monthly UNsecured debt repayments....... 1,195
Amount left after debt repayments....... 267
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -29,316
Net Assets.............................. -29,316

justajamjar

Immediate savings steps to take are:
Bring in own lunch to work (lunch and breakfast at work costs me at least £5 a day - £110 a month.) Try avoid public transport to work which is £8 or so a day. I can cycle in its only 8 miles.
Sell all my "stuff" that I dont use.....

justajamjar

Still seemingly acting like a child and as yet havent brought lunch in or made many dinners at home. Really tough to see myself breaking promises to myself. Life is busy and I should accept that it will remain busy for the rest of the month which has its burdens and blessings.

I managed to sell an old phone for £100 so that will hekp reduce some of my debt - slowly but more needs to be done.

Goal for this week is to spend less than £100 in the whole week and hopefully finish the London tri under 3 hours which will be tough since I managed to almost break my hand on the weekend and its now swollen.

In short, head still in the sand and life hasnt changed

Moneymash

Hey Jammy,

Well done on your plan to get your debts down and posting an SOA.

Is your rent inclusive of utilities etc as you don't have any figures for the folllowing council, gas, elec, water, tv licence...unless you are still living at home?

Is your mobile in contract? Can you go sim only? Giff gaff have some good deals.

If you are living at home groceries are high, if your living on your own guess what groceries are still high. Time to get to grips with cooking, batch cook and freeze, shop at the end of the day to pick up bargains, down grade a brand or a shop if you can and reduce the take-aways and make an effort to take lunch into work.

You've got no figures for presents, holidays, entertainment and emergency fund. I feel with your salary, these must be spend categories, or were which has contributed to your debt. Have another think and decide whether zero is accurate. That may be the figure you would like but is it true. Keep a spending diary for a month just to see exactly where your money is going.

Do you have any old bank accounts you have forgotten about. Are you on the right tax code, due a rebate. You either increase income, reduce spends, ideally do both at the same time. To start the journey start of with what's least painful, e.g. selling things you don't use. Take it slow, the mind doesn't cope with rapid change and people tend to be too harsh on themselves resulting in failure.

Good luck on your journey. *subscribes*

justajamjar

I am but a bad poster....
@Moneymash - you absolutely right that my holiday bookings are incorrect as I have a cousins wedding in a different country to attend in Feb and have booked a trip to Spain to see my best mate next week as well as a trip to Austria (in December) which was booked ages ago.

justajamjar

I think the LBM has really kicked in this time, have managed to spend a sum total of £30 in the last 3 days, have lunch waiting in the fridge office and dinner is sorted at least for the next few nights.

I have budgeted £300 until the end of the month, and have managed to bring down my debt by the monthly payments.

Time to create a signature and get some sleep.

Hugandroll

Good luck. I've just started on my journey and have a lot of debt I have to clear. Will subscribe.

justajamjar

Since I hope I got the real LBM (I went to Munich Oktoberfest and my liver has since left me and I honestly think I developed voices in my head) For the last 3 days I have spent the following:
Monday: Breakfast £4.20 1xOnken yoghurt 1x Muesli Lunch: £6.90 (I know its too much) Dinner £4.65 - Pasta and saucd (ready made taglitelli)
Tuesday: Lunch £5 (massive healthy salad) Dinner:£10.75 (Chicken breasts £4.65 2x£1.00 fresh veg shaving cream and soap) Wednesday: £1.95 Yoghurt and 3xbananas....
I am hope to have a NSD tomorrow as lunch already in the office, breakfast covered and a work function for dinner.....

justajamjar

I guess we all have different reasons for being in debt, I could be as flippant and say I blame procrastination or I could look you in the eye, be dead serious and say I got lost along the way. I have spent a fortune on holidays, but this probably only counts for half my debt, and truth be told over the time I have been working I should not be in debt. I was young and dumb and if I am not careful I will continue in my errant ways.

I realise where its all gone wrong and procrastination is a word, but its really not setting any goals and just following the path I have been on, which has been determined by recruiters and interviewers accepting or rejecting me for roles. I have never looked at getting a job I would love or even want yet I am in a well paid job and miserable. I have to be honest and say that my job consumes me and I need a change.

"If you dont like something change it - if you cant change it change your attitude" A great quote and my attitude is changing.

I know that this debt I face is eating at me even if I dont like to admit it but I am aware of what I need to do - and I have started since Monday doing it. I need to control my "FOMO" -fear of missing out and try be accountable for everything I spend and try "earn" some money from other activities.

justajamjar

60 Small Ways to Improve Your Life in the Next 100 Days - I wont link to it (I dont think you allowed to) but google it and you will find the article. Its long winded and I dont know who would have the time but I am looking to get some part of my life in order before the year end:
I will follow a few of these points, which I will list out on the weekend.

For now my goals are: To be below 90kg by 23 December (I weight between 94-96kg)
To write down 3 things that made me happy today
To post on here at least once a week....

I have done enough posting today so what made me happy today?
1. I heard Linkin Park - In the end on the radio today which reminded me of living in a dorm at university and brought back happy memories.
2. I spent £1.95 - I honestly cant remember the last time I spent so little.
3. My best mate and his wife are on the way to France before I join them in Barcelona... It will be good to see him after 25 years.....

I know this is off topic but this is my diary so.... ::beer::beer: