making a debt free life for Poo!!!

mrskro

I live in a small rural area and have been buying groceries until recently from the local shops. I stopped this a couple of weeks ago. So should be abel to cut this considerably as I have started going to Tescos as I said in one of my previous posts.

I had highlighted hair until a couple of weeks ago - this is now back to dark (now saving myself a cosiderable amount of money.

Not being charged interest on several of my debts as they have already defaulted and no interest is being charged which is a relief.

Started menu planning this week and have been able to bulk cook and then freeze a lot.

I need my car and this is costing a lot as it is old and keeps breaking down - my uncle has just sold me his younger car that is in good nick so hopefully less spending on that.

As for pressie's I have 12 neices and nephews, 4 sisters and my own daughter. This is the spend for Christmas and birthdays together as I buy pressies throughout the year.

My mobile phone contract is coming to an end this month and I have set up to renew this at 10.50 per month and this is for more mins, texts and data.

Other child expenses are for my daughters hobbies - ballet, singing, drama, gymnastics and horse riding (I know it's a lot but if I dont spend on me I can at least spend on her ( I don't want her feeling like the poor kid - I know that feeling from my own childhood)

Medical expenses are going to reduce as I am apparently eligible to nhs exemption cert (for tax credits)

I hope this all makes sense, once I have new figures I will be able to be more precise.

I know that the first debts I will have to pay off will be the pay day loans as they are the highest interest.

That's all for this minute in time as my brais is starting to hurt!!!!

HeadAboveWater

:eek: Don't let the brain hurt!!!

You have already done a lot of thinking ahead and planning as you've already come up with alternatives for a lot of things which have been pointed out!

I think you've earned yourself a well deserved cuppa and biscuit!!

mrskro

girlatplay wrote: »

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


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.

I have made my first PaD of £2 which is all that I have left in my bank account. This was to Very - I'm on my way

girlatplay

HeadAboveWater wrote: »

You have already done a lot of thinking ahead and planning as you've already come up with alternatives for a lot of things which have been pointed out!

I think you've earned yourself a well deserved cuppa and biscuit!!

Agreed!!

mrskro wrote: »

Other child expenses are for my daughters hobbies - ballet, singing, drama, gymnastics and horse riding (I know it's a lot but if I dont spend on me I can at least spend on her ( I don't want her feeling like the poor kid - I know that feeling from my own childhood)

I actually understand this. Especially the last part in brackets. It is too difficult for me to try to argue this one with you. Maybe someone else will. Also, I noticed in one of your earlier posts that you said NDH were quite generous with your spending in your budget summary so perhaps you could combine this.

mrskro

I have re-jigged my previous statement to incorporate reduced spending and the APR's

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 10.50
TV Licence 11
Internet Services 10
Groceries etc. 90
Clothing 30
Petrol/diesel 50
Road tax 15
Car Insurance 35
Car maintenance (including MOT) 30
Childcare/nursery 150
Other child related expenses 50
Buildings insurance 35
Life assurance 60
Presents (birthday, christmas etc) 30
Haircuts 10
Total monthly expenses 1406.5

Assets
Car(s) 400
Total Assets 400

No Secured nor Hire Purchase Debts[/b]

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 4301%
Txt loan 436 4.71 4474%
Loan Xtra 250 2.70 1734%
Cheque Centre 225 2.44 2115%
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). 1406
Available for debt repayments 216
Monthly UNsecured debt repayments 85.62
Amount left after debt repayments 130.38

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

mrskro

sent out my letters to creditors 2 days ago, no replies but several missed calls from 'no number'. It may well be creditors but I refuse to answer a witheld number as to me it is just plain rude to not let someone know who you are and how they can call you back!!

Hoping that my creditors will agree the amounts offered but not really hopeful. Once I get an agreement and set up the standing orders I will then be able to overpay when I have some extra pennies.

I have decided to take the PaD challenge and will try to make a payment everyday (but will have to limit this to allow me some pennies in the account for emergencies!!!)

Am going through all of my spending to see where I will save the extra money that I am currently spending. I also plan to send letters to reclaim PPI from Vanquis and BC's from Natwest - it would be nice to reduce my debts.

Any advice or pointers on this would be great.

Thanks in advance :eek:

mrskro

I have just did the snowball thing and scared the bejeesus out of myself!!!

Looking at the figures if the PDL companies continue to charge interest then I will be in debt for the rest of my life!!!! Within just a few months I would go from being in just under 8K of debt to almost £15K.:eek:

I really hope that they will hold the interest though it's unlikely

I know it's my own fault but I really am feeling sorry for myself.

(I'm not looking for sympathy as my Daddy has always said if it's self inflicted problems you can find sympathy in the dictionary between !!!! and syphilis!!!:silenced:)

HeadAboveWater

:rotfl:

Nice phrase!!

Ok. LBM has well and truly hit! You know what you gotta do and now is the time to do it!! Keep the diary updated and we'll help in any way we can

girlatplay

(Oooh I love guacamole. Had some in a roll for breakfast and it was delish!)

Back to the matter in hand. I just nosily put your figures into the snowball calculator and I must admit, I was the opposite of pleasantly surprised. However, all is not lost. You need to get really focussed here.

I am not pretending to be an expert and I don't know a single thing about payday loans (except that I don't ever want one). I'm not sure if you can make overpayments to them or if you have to pay them off in one go. Whatever the case, this is the order your debts need to disappear in:

Txt - 1st
247Monebox - 2nd
Cheque Centre - 3rd
Loan Xtra - 4th
Very - 5th
Cap1 - 6th
Vanquis - 7th

The others you say are at 0% right now. How long is this for?

Do you absolutely need your car? If you could live without it for a while then you could sell it and have circa. £400 immediately to go towards Txt and also free up circa. £80 per month from car costs (I didn't include the £50 petrol in this figure as if you don't have the car I assume you will need to get buses etc.)

Remember, I have been where you are (minus the payday loan interest rates) and I now have a car which I own outright and no debt. There is hope.

girlatplay

This all depends on if you can sell your car or not but just having a further look here and thinking: if you sell the car then you will have (all approximate figures) Month 1: £400 (car sale) £80 (former car expenses) £130.38 (left after debt repayments) = £610.38 towards debt in the first month. Pay off Txt -£436 = £174.38 to carry forward to month 2.

Month 2: £174.38 carried forward + £80 (former car expenses) £130.38 (left after debt repayments) £4.71 (former monthly payment to Txt) = £389.47 towards debt in the second month. Pay off 247Moneybox - £305 = £84.47 to carry forward to month 3...and so on, always adding your minimum payment from the paid off loan to the next lot.

By month 3 you will have paid off Txt and 247Moneybox, they will be a distant memory and you will be two steps closer to debt freedom! This also allows you to keep making your minimum payments to all the others in the meantime.



I know it all looks good on paper and it doesn't always work like that but it is something to think about.

Oh and start a spending diary so you can see where all your money goes!