making a debt free life for Poo!!!

mrskro

Hi All,

As a bit of background, I am a single mum to an amzing 4 yr old with debts totalling almost £8000. Believe it or not but up until 2007 I was relatively debt free with minor bits here and there but nothing substantial - then I got fired for being pregnant.

I went from earning £23K to NMW - everything that I couldn't afford with the money I was on was paid for with credit. ( I know it was stupid) I did thankfully win my tribunal case against my employer but the money wasn't enough to pay off debts and keep me on an even level!!

Now four and a half years later I am finally taking the bull by the horns and I will wrestle it into submission as I was once the proud owner of an excellent credit rating and now a very poor one!!! - I will get it back.

Yesterday I sent letters to all of my creditors asking them to accept reduced payments and to feeze any interest and charges - at my current levels it will take me about 8 years to pay off debts but I am hoping that when my daughter starts school and I no longer have to pay childcare at my current levels I will be able to increase my payments.

I have started saving money on food by simple things like going shopping for my groceries at 3.30pm on a Sunday as the fresh meat/fish counter put out all their reduced price stuff then - I managed to get £47.68 worth for just £11.42!!! I just make sure it says suitable for home freezing on the label and hey presto - yummy beef fillet roast, pork fillet roast, pork chops and 6 smoked haddock fillets!!" not bad eh?

I also gave up smoking and this is saving me £20 per week (I didn't smoke that much anyway!)

I'll get off now though as I think I'm just starting to ramble on!

Speaks again soon peeps!!!

ps I will be trying to update as and when my creditors respond and I make payments I am going to try and keep a running total if I ever figure this site out!!!

girlatplay

Just popping on to wish you all the best on your journey. Approximately 7 years ago I was in your situation. Today I am debt free with (small) savings! It can be done. Good luck

HeadAboveWater

Just wanted to stop by, say hello :wave:, wish you good luck, and subscribe!!

Keep us posted!

[Deleted User]

Just popping on to say best of luck xxx

NewLeaf_2

welcome. The folks here are a very supportive bunch

mrskro

thank you everyone.

I am feeling a little - no make that very out of my depth. I have read several diaries today and have been amazed at the way in which so many people have reduced their debts in short periods of time.

I have to admit that other than sending the letters to my creditors I am not sure what to do. I contacted National Debt Helpline who helped me to do the budget summary that I sent to everyone and they wer actually quite generous in my spending so the amount left for bills is actually very little on their terms. However, I know I don't spend £30 on mine and Poo's hair a month. (Poo is my daughter Erin - I will probably explain at some point how she got her name and it's nothing to do with a bear and bouncing tiger).

On top of this I know I don't spend anywhere near as much as they 'allowed' for general expenditure of a family. It was quite strange in many ways.

I would welcome any advice that I can get, or even just some kindred spirits who can grumble along with me.

girlatplay

Have a look at the PAD (Payment a Day) thread:

https://forums.moneysavingexpert.com/discussion/4045923

It took me a couple of attempts to get to grips with it but once I got into it it was brilliant! Really helped me pay off the last £3k of my debt and wish I had discovered it years ago.

Menu planning and batch cooking are great. You are already doing well by going to the supermarket at the right times. Hopefully you have a reasonable sized freezer as most things can be frozen and that is so handy.

Could you post up your Statement of Affairs (SOA) so that we could have a wee look and see if we can suggest ways to reduce some of your outgoings?

http://www.stoozing.com/msoc/soacalc.php

(I am no expert in this but I know I have read so many helpful comments from others to others)

Piquant_2

Hello to your shiny new diary!

You will get plenty of ideas and support here, along with motivation by the bucket load. Never feel embarrassed to ask a question, someone will answer.

Good luck

Piq

mrskro

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household 1
Number of children in household 1
Number of cars owned 1

Monthly Income Details
Monthly income after tax 874
Benefits 748
Total monthly income 1622

Monthly Expense Details
Rent 750
Electricity 15
Gas 15
Water rates 10
Mobile phone 30
TV Licence 11
Internet Services 10
Groceries etc. 150
Clothing 30
Petrol/diesel 50
Road tax 15
Car Insurance 35
Car maintenance (including MOT) 30
Childcare/nursery 150
Other child related expenses 50
Medical (prescriptions, dentist etc) 20
Buildings and contents insurance 35
Life assurance 60
Presents (birthday, christmas etc) 30
Haircuts 30
Total monthly expenses 1526

Assets
Car(s) 400
Total Assets 400

No Secured nor Hire Purchase Debts

Unsecured Debts
Description Debt Monthly APR
Vanquis 629 6.80 34.9
Avon. 669 7.23 0
Lowell 1200 12.96 0
247Moneybox 305 3.24 Not sure
Txt loan 436 4.71 Not sure
Loan Xtra 250 2.70 Not sure
Cheque Centre 225 2.44 Not sure
Very 193 2.09 39.9
Capital One 253 2.74 34.9
Natwest 3524 38.05 0
Gothia 246 2.66 0
Total u/sdebts 7930 85.62

Monthly Budget Summary
Total monthly income 1,622
Expenses (including HP & secured debts). 1,526
Available for debt repayments 96
Monthly UNsecured debt repayments 85.62
Amount left after debt repayments 10.38

Personal Balance Sheet Summary
Total assets (things you own) 400
Total HP & Secured debt 0
Total Unsecured debt 7,930
Net Assets.............................. -7,530


Hope this makes sense to everyone.

HeadAboveWater

Thanks for posting your SOA. Just gonna highlight a couple of things!

Mobile phone 30
Are you on contract? Near end of contract or can switch to PAYG? I've moved from contract to sim only and went from £30 to £10.50 - and that's for more minutes and data!

Groceries etc. 150
Really? We spend £150-£200 for 2 adults and 3 teenagers! Try meal planning, packed lunches, shopping lists (which you stick to!!), and the reduced sections!

Clothing 30
Can this be cut out for the time being? It would give you a bit extra to put towards the debt.

Other child related expenses 50
What does this include?

Medical (prescriptions, dentist etc) 20
A month? Is this high? Wouldn't be sure bout this one!!

Presents (birthday, christmas etc) 30
Is this budgeting/saving throughout the year for Christmas and birthdays or do you spend that every month?

Haircuts 30
Really? That's high!! Can you shop about? Space out visits a bit, for eg. try for every 6 weeks instead of 4? Home/DIY?

I'll let someone else comment on the debts/APR bits as I'm not as clued up on that!!

I would suggest keeping a spending diary each week so you can see exactly where your money is going. Especially good for your groceries as it is high!

Hope something here helps!!

girlatplay

I agree with HeadAboveWater.

For haircuts: Could you try a local college? The students are fully supervised! Sometimes small local salons look for models and you can get a haircut for free/a cheaper price than normal. Sometimes they want you to get a restyle though so be aware of that, that might not work for you (especially if you need to maintain it - more cost). Also, yes, stretch it out a bit.

Find out the APR for all of your debts. That way you can work out which ones are costing you the most in interest and you can then work on getting rid of them faster. Once you know, use the snowball calculator (you will find it from the same link as the one I gave you for the SOA). I think it is really important to know which debts are the worst ones.

Definitely make shopping lists and stick to them. Make a note of things in the house as you run out and that way you won't leave them off your list.

Forget the clothing for the timebeing unless your little one desperately needs something.

Cut out all unnecessary expenses.

Someone suggested (I think it was MemoryGirl): once a week put a £1 coin into a tin/box that you have hidden away. This is money just for you. Every now and then you can go into the box and take some money out without feeling guilty. You could get yourself a magazine/chocolate bar/hair dye/something that will give you some pleasure that is just for you.

I'll keep thinking...