And so it begins ... the ROG fan's journey to DFness

The_ROG_fan

I am fed-up with being in debt, and have decided to do something about it.

I have an £850 overdraft with my current bank, Lloyds-TSB (although I have just opened an overdraft-free account online with Alliance & Leicester).

I have £5,868.73 of an Egg loan to pay off (£207 a month at 6.73% interest) and I have an indeterminate (although I'll find that out when I'm sent my deferral forms in August) amount of Student Loan money to pay off also.

On £1,435 a month this shouldn't be too difficult, so why is it that I seem to be finding it so difficult?

OberonSH

You need to post up a Statement of Affairs (everyhitng that comes in, and everyting that goes out), so we can all see if there's anywhere you're spending that could be cut down. Start a spending diary, and write down everything you spend - papers, a cup of coffee etc. That way you can see where it all goes.

The_ROG_fan

Going on this, I ought to have a balance each month of £552.33, but somehow that never happens and I end up at the limit of my overdraft!

Right, my SOA:

Monthly Incomings:

Salary: £1,435.02

Total: £1,435.04

Monthly Outgoings:

Rent: £318.76
CT: £78.00
Gas: £0 (quarterly bills, paid when they arrive)
Elec.: £20 (meter)
TV L.: £0 (paid yearly in June)
Food: £120
Travel: £53.80
Loan: £207
Phone: £11.70 (average)
Tiscali: £15.99
Tesco: £12.49
Weight-Watchers Online: £6.95
Medication 1, 2 & 3: £21* (every quarter)
Medication 4: £7* (every month)
Total: £882.69

* I know the prescription charge is less than £7 per item, but it isn't by much and these figures are easier
Debts:

1 Egg Loan
Balance: -£5,694.65
APR %: 6.73
Loan Ends: 02/10/09
Payment: £207.00

2 Lloyds-TSB Overdraft
Limit: -£850.00
Current bal.: -£350.00
APR: 18.7

3 Student Loan PLC Loan
Balance: Unknown
APR %: Unknown
Loan Ends: N/A
Payment: Currently Deferred (Deferral ends, I think, in August)

EDIT: I have remembered 5 more things I regularly pay for which I left off the original SOA. I have adjusted the figures to account for these.

OberonSH

First off, even if your bils are quartley etc, you still need to be putting away fro them, otherwise you have to find a lump sum when they're due, robbing peter to paul paul etc. We got our last util bills for a year (less heating in summer etc), and averaged them. Then we put this away ready for the bill.

Have you started your spending diary? You may find that this is where it goes. Get out your bank statements for last mnth, mark off eveything you've accounted for and see what's left. Then try and track it down.

What about a mobile? Don;t forget the top-ups if you have one. PLus haircuts, getting a paper, stopping at that cafe every day for a takeout coffee and a mars bar. How about going out?

OberonSH

In the meantime, how about going through your house and ebaying/amazoning everything you no longer need to knock a lump off one of your bills. If you can get a 0% transfer deal, you can transfer your debt onto it and at least then 100% of your payments goes to your debt.

If you can do that and put half the money you've 'left over' (assuming half the money you just forgot to account for) every month on top of your payments you'll be clear of the 2 loans in 11 months!! So not as bad as you might have thought.

Tashja

Hi

Not great with these but will try -

What is the £12.49 Tesco payment ??

How many of you are there in the household ?? If it is just you then your food bill could come down a little (£20/£30).

Also if it is just you have you applied to the Counsil for the single person allowance ??

Do you really need the Weight Watchers On-Line - could this not go while you get sorted ??

Hope this helps a little.

T xx

The_ROG_fan

OberonSH wrote: »

First off, even if your bils are quartley etc, you still need to be putting away fro them, otherwise you have to find a lump sum when they're due, robbing peter to paul paul etc. We got our last util bills for a year (less heating in summer etc), and averaged them. Then we put this away ready for the bill.

I'm going to start doing this, particularly for the gas bills as they can be quite expensive. Not much point, IMO, in doing this for the TV licence this year as there are only two months left to go until I need to pay it.

OberonSH wrote: »

Have you started your spending diary? You may find that this is where it goes. Get out your bank statements for last mnth, mark off eveything you've accounted for and see what's left. Then try and track it down.

I have noticed that I am addicted to buying books (I have bought at least seven in the last week, alone); I do read them, though. Perhaps I ought to go to the library of a Saturday morning, might work out cheaper.

I also end up buying breakfast at work because I sleep in most days and don't have enough time to eat it before I leave the house. I need to stop doing this, I know, but it's easier said than done.

Another thing I have noticed recently is that I seem to buy just about anything (on e-Bay or elsewhere) which has a picture of, or interview with, my favourite rugby player (the one my MSE username is named for). That can be more expensive than I realise, I think.

OberonSH wrote: »

What about a mobile? Don;t forget the top-ups if you have one. PLus haircuts, getting a paper, stopping at that cafe every day for a takeout coffee and a mars bar. How about going out?

I have a mobile, but rarely use it (I keep forgetting to turn it on ). I have long hair, which I only get trimmed and that approximately once every 2-3 months. I'll put 'em both on the SOA though. I buy papers very rarely (tend to read 'em online). I do buy my lunch every day (for the same reason I buy breakfast every day), so maybe I should put that in the SOA as well. Going out I haven't done for quite a while, my friends and I have been pretty busy lately.

The_ROG_fan

OberonSH wrote: »

In the meantime, how about going through your house and ebaying/amazoning everything you no longer need to knock a lump off one of your bills. If you can get a 0% transfer deal, you can transfer your debt onto it and at least then 100% of your payments goes to your debt.

I am a hoarder by nature so I find it extremely difficult to let go of things. I think I'll have a go at it, though, as I really do need to sort out the sheer amount of junk that's in this flat.

I'm not interested in getting a credit card; I am under absolutely no illusions about my willpower and if I got one then I'd be in even more trouble than I already am.

OberonSH

There you go then Do start your spending diary - just a little notebook that you put down EVERYTHING you spend cash on.

Yeah, the libraries are getting a lot better. The one near my shop is always getting the new books in, and if you request will even buy them to order. And if you just have to buy them, try Amazon. You can usually get them a lot cheaper by buying them through the used option.

The buying breakfast & lunch thing is going to be a hard one to crack. If you work i an office, is it worth buying some cereal or something to keep in your desk, and just taking some milk with you? If not, when you have an evening free try making some homemade breakfast bars. Healthier too usually! Packed lunches doesn't have to be boring, wraps, soups etc. I found it tricky at first, but I found the knack was getting most of it ready as soon as I got in through the door, and therfore still in a 'work' frame of mind (rather than half an hour later when you'e got your shoes off and a cuppa, and in a 'sod the world I'm not doing anything else' frame of mind)

The weight wathchers thing could be scrapped, there's loads of free diet resources on the web, and I found joining a site like https://www.3fatchicks.com was just as good, and usually a lot better informed, as they weren't trying to push the WW branded food on you!

The_ROG_fan

Tashja wrote: »

What is the £12.49 Tesco payment ??

It's for my internet access (dial-up). Tiscali (broadband) are currently "sorting out" the problems I have been having with my BB since November. I am thinking of cancelling my Tiscali a/c though as they have been less than helpful (and that's an understatement :mad: )

Tashja wrote: »

How many of you are there in the household ?? If it is just you then your food bill could come down a little (£20/£30).

Yep, just me. I used last week's bill to estimate how much I pay per month, although that bill at £27.43 is more than I usually pay for my groceries. I pay about £30 on top of that each week though for breakfast/lunch (see post above) :eek:

Tashja wrote: »

Also if it is just you have you applied to the Counsil for the single person allowance ??

Not yet, but I don't know how to do it.

Tashja wrote: »

Do you really need the Weight Watchers On-Line - could this not go while you get sorted ??

It probably could, actually; I have given up going to classes as I object to paying £5 a week just to get weighed - there's a machine in the Boots at Piccadilly that will do that for me for 50p!

Tashja wrote: »

Hope this helps a little.

T xx

It's given me something to think about. Thanks!

OberonSH

As for being a hoarder, it really is psychologically a big boost to have a clearout. Especially now it's spring.

Do it bit by bit, it's not such a big job then. 3 boxes - keep, sell and bin. Beleive me, you'll feel a lot better, and be a bit richer!!