My 1st Diary - SOA Done, Snowballing Ready 25 October 2012 at 6:27PM edited 30 October 2012 at 4:59PM in Debt free diaries 123 replies 8.7K views

ecoverbee

Hi Everyone, decided to start a diary to make sure I stick to my new plan. I asked for advice the other day and it opened my eyes massively. My light bulb moment - Whoop!

Before the other day I was snowballing my debts but only a few of the credit cards and the advice was to put everything together and snowball that, so I spent a few days getting all my finances checked, knowing the APR's and total amounts. Also before we never really had much money as we were randomly putting money down on debts but with no guidance really.

Snowball End Date - 39 Months to wipe everything but only 31 Months to clear everything but our car.

We have recently paid a loan off which has now given us £250 a month to use as a snowball, plus around £187 to survive on which will be used for car tax, car insurance, holiday fund, and spare money.

Work Overtime - at the moment and all the way up to Christmas there is plenty of overtime going so I'm using it to build our house fund pot which will now be used for Christmas presents and also use some of it for debts.

There will be around £150-£200 extra each month so this will mean this years presents will be paid for using cash and NOT DEBT which is amazing.

Spare Money & Making Money

I have also just put some empty ink cartridges on ebay and already had a bid, I plan on listing a few things a week and using the money to go towards the debts.

I like the challege PAD pay a debt a day so any spare money I have will be going into a pot and will also be used for paying the debts down.

I really think that although the snowball says 31-39 months I can make it go faster by using the advice on this site.

Thanks
Andy


Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1180
Partners monthly income after tax....... 1600
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2780

Monthly Expense Details
Mortgage................................ 296.1
Rent.................................... 278.2
Council tax............................. 108
Electricity............................. 76
Water rates............................. 30.23
Mobile phone - 2 of us.................. 47
TV Licence.............................. 12.12
Satellite/Cable TV...................... 35
Groceries etc. ......................... 160
Petrol/diesel........................... 80
GAP Insurance 10months then free........ 41.67
Wife's Union FEE........................ 16.6
Life assurance ......................... 14.94
Other insurance......................... 22.75
DFS Sofa 0%............................. 30.91
Car Tax ................................ 13.33
Car Insurance .......................... 50
Holiday................................. 50
Wife's Money .......................... 50
Total monthly expenses.................. 1412.85


Assets
Cash.................................... 0
House value (Gross)..................... 48500
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 48500


Secured & HP Debts
Description....................Debt......Monthly.. .APR
Mortgage...................... 46000....(296.1)....5.69
Total secured & HP debts...... 46000.....-.........-

Unsecured Debts
Description....................Debt......Monthly.. .APR
Very...........................1185.58...12.35.... .39.7
Next...........................351.17....33.05.... .26.49
Barclaycard....................1544.64...34.75.... .6.72
Mini...........................16500.....276...... .6.8
TSB Loan.......................10375.....419.......19. 5
Virgin.........................6507.04...205...... .24.2
TSB............................6835.03...137...... .17.9
Total unsecured debts..........43298.46..1117.15...-


Monthly Budget Summary
Total monthly income.................... 2,780
Expenses (including HP & secured debts). 1,412.85
Available for debt repayments........... 1,367.15
Monthly UNsecured debt repayments....... 1,117.15
Amount left after debt repayments....... 250

Personal Balance Sheet Summary
Total assets (things you own)........... 48,500
Total HP & Secured debt................. -46,000
Total Unsecured debt.................... -43,298.46
Net Assets.............................. -40,798.46

ecoverbee

Just started my spare change pot and found £2.78.

ecoverbee

Managed to add another £0.69 to my spare change pot today. Also twisted my ankle today at work so not happy, doesn't feel too bad now as been icing it so hopefully it should be full healed by Monday.

Spent some money on Macdonalds tonight and felt a little guilty. Done 20 hours overtime this week so should get me £120 after tax but maybe more. Will use £100 to out towards Christmas and the leftover towards debts.

Looking to start using swag bucks this week.

unimaginative_user_name

Well done on having your light bulb moment and starting this diary. So many of the stories on here are inspirational.

Good luck and keep posting. I'm sure there'll be loads of the support on the debt-free road.

TOTF

Hello!!

We have very similar unsecured debt levels so I will be watching your success very closely. Maybe even find some motivation from your diary.

Great start. Im off to complete and SOA now.

closed

loose change isn't going to dent 43k, concentrate on the bigger picture rather than the mse challenges/obsessions, you have put down emergency fund/holiday savings, that money should be going on very asap, and all available low interest credit should be used to free up money to pay off high interest credit. ie if you have credit available on a barclayclard at a low rate, buy food/petrol/presents on that, and use the cash to pay off Very then Next, but don't go over your CC limit

mobile phone/tv/insurances could be trimmed.

Are some of these loans, which are due to be paid off automatically over the next 3 years, because 250 over 39 months is nowhere near 43k

ecoverbee

The bottom 4 are actually for car tax, car insurance and my wife's money otherwise she may go insane without any.

This will also be the 1st year we can pay cash for Christmas.

Thanks
Andy

ecoverbee

closed wrote: »

loose change isn't going to dent 43k, concentrate on the bigger picture rather than the mse challenges/obsessions, you have put down emergency fund/holiday savings, that money should be going on very asap, and all available low interest credit should be used to free up money to pay off high interest credit. ie if you have credit available on a barclayclard at a low rate, buy food/petrol/presents on that, and use the cash to pay off Very then Next, but don't go over your CC limit

mobile phone/tv/insurances could be trimmed.

Are some of these loans, which are due to be paid off automatically over the next 3 years, because 250 over 39 months is nowhere near 43k

Thanks for the advice. Will look at doing that with barclaycard.

As for the snowball we are already paying 1100 something to the debts and can throw an extra £250 per month.

Am I doing the snowball wrong then as now I'm unsure?

The SOA says we will be putting over £1300 per month to the debts

please-let-me-be-lucky

closed wrote: »

loose change isn't going to dent 43k

I'm sorry but I disagree to a certain extent. All the little bits add up and anything you pay off is valuable. For example, I skim my account once a week and pay the odd pounds & pence towards the credit card. For example if my balance is £108.93 I'd pay the £8.93. This not only reduces the balance but over time reduces the interest I pay also. So far this year I've paid off over £500 by doing this.

Obviously the big chunks make a bigger difference more quickly but there is a place for the little bits too.

Good luck on your journey X

beanielou

As has been said very needs to go very soon.
The APR is dire.
Every little helps.
If you make a PAD every day of £1 that is £30 in a month.
Even if you sell only £10 pw on ebay that is another 40 a month off the debt.
I hope it goes well.
Keep posting

closed

ecoverbee wrote: »

Am I doing the snowball wrong then as now I'm unsure?

Sorry, it's probably right - your current repayments appear to be around 50% capital repayment, and 50% interest.