Finally coming to my senses.....

frustrated12

Hi guys,

I have been lurking around for years but have never decided to actually do anything about my debt, the time has come where I feel the need to get moving on this one.

So a little bit about me, I have recently turned 25(probably this was the turning point for me, a proper grown up now and I need to take responsibility), I live on my own in a one bedroom flat that I rent. I have a full-time job with a regular income, but most of the time I just choose to ignore my debts.
Natwest CC - £1700 (APR 19.9%) This is my newest debt, about 6 months old now, no reason to have this whatsoever, just fancied a shopping trip and the bank gave me the card with pretty no questions asked, so so stupid of me.
Natwest OD - £3500 (APR 19.9%) This one start off at £1000 when I was 21 so I could buy a car and take lessons, with the intesion of paying this back straight away, then I have increased it a couple of times over the years when I have moved homes etc to pay for furniture and deposits.
Natwest OD - £600 (APR 19.9%) This one I cannot remember the reason for getting this OD, I'm sure there was a reason at the time but probably not a very thought out one.

So they are my excuses for my debt out of the way and now I need to take action and start decreasing these, I know they are not alot but it would be a massive weight off my shoulders if I could just be debt free. I know I can do it, I just need to keep focused.

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household.........
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1435
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1435
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 470
Management charge (leasehold property).. 0
Council tax............................. 68
Electricity............................. 40
Gas..................................... 0
Oil..................................... 0
Water rates............................. 42.63
Telephone (land line)................... 0
Mobile phone............................ 72.1
TV Licence.............................. 12.12
Satellite/Cable TV...................... 18
Internet Services....................... 10.88
Groceries etc. ......................... 150
Clothing................................ 10
Petrol/diesel........................... 80
Road tax................................ 13
Car Insurance........................... 43.72
Car maintenance (including MOT)......... 15
Car parking............................. 0
Other travel............................ 0
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)...... 10
Haircuts................................ 0
Entertainment........................... 60
Holiday................................. 0
Emergency fund.......................... 10
Total monthly expenses.................. 1125.45

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 500
Other assets............................ 0
Total Assets............................ 500

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
Natwest CC.....................1700......100.......19.9
Natwest OD.....................3500......100.......19.9
Natwest OD.....................600.......50........19.9
Total unsecured debts..........5800......250.......-

Monthly Budget Summary
Total monthly income.................... 1,435
Expenses (including HP & secured debts). 1,125.45
Available for debt repayments........... 309.55
Monthly UNsecured debt repayments....... 250
Amount left after debt repayments....... 59.55
Personal Balance Sheet Summary
Total assets (things you own)........... 500
Total HP & Secured debt................. -0
Total Unsecured debt.................... -5,800
Net Assets.............................. -5,300
Created using the SOA calculator at www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

So they it is, my life story laid bare for all to see...

frustrated12

Yaaaaaaay!!!!!! I have just paid off a PDL, for the last couple of months I have fallen into the trap of payday loans. I think and I am hoping that I have just paid back the last one.

I have been paid a week early from work due to the holidays which is always nice, but it means now I have to be strict on myself and make my money last 5 weeks as I am determined not to get another PDL.

frustrated12

So I have been paid today I have divided up my money and sent it to different bank accounts, that way I know exactly how much money I can spend each month, I am hoping that this will relieve so temptation to spend money.

I have £160 to last me 5 weeks - that seems like loads to me but I bet I find this first month really tough.

I am really excited to have started on this journey and I feel better already I have never been so organised in my life!

£130 - went to pay the cc
£70 - went to pay the biggest OD
£50 - went to pay for the smaller OD
All of my dd come out of one bank account so there is enough money in there to cover them. My DDs are spread throughout the month and this is where I am normally caught short, but not this time! I will leave the card for this account so I can't 'borrow' from this account when I am out shopping.

I now have a separate account just for food etc, this is just a basic account with no OD facility so once it's gone it's gone. It was really easy to set this account up, I do online banking so I just applied on line at about midnight on Sunday. Got an e-mail first thing on Monday money saying I had been accepted, received my card on Wednesday and my pin on Thursday, I couldn't believe how simple it was after reading on here that some people have had difficulty opening account and it takes the bank ages to make a decision. Maybe it's because all of my accounts are with one bank.

Planning a NSD today as I am working until late tonight, I will eat at work as its free

StressedSteph

Sounds like you have a great plan. If you can keep motivated in January to manage without the payday loan then you will escape the trap and then start paying off loads off your debts.

Have subscribed to your diary to follow you on your journey. The different accounts sounds great so you know what you have to work with.

Good luck and will check in a again soon xx

Tinka21

Good luck with your journey If you want to see ways to get your grocery bill down, nip over to the old style board as i always get loads of ideas from there. I can do us, a family of 5, for around £200 a month

frustrated12

Thanks for you support guys, makes me feel a little better that I have the support from the peoe in here

JimmyTheWig

OP, I think you're doing ok.
Sounds like you have a plan that you can stick to.
Sounds like you know what you are doing, in terms of the multiple accounts, etc.

At the rate you're going it will take you two and a half years to pay off your debts. You'll be paying nearly £1600 in interest.

You could knock 7 months (and nearly £400 in interest) off this by adding the spare £60 a month to your debt repayments. But that would give you no buffer in your budget - is this possible?


Where to save money...
As has been said, the grocery bill would be something you could look at bringing down. Some people on here manage to live on pittance, but I don't understand how myself! It's the biggest variable expense, however, so even if you can shave, say, 10% off it it will make a significant difference.

Your mobile phone bill sounds horrendous. Are you tied in to a contract? Would it be possible and make sense to reduce what you get in your contract each month if you don't use it? Or are you going over your limits each month and paying for this - in which case it might be worth increasing what you get in your contract (or cutting down your usage!).

£18 for satalite/cable TV could obviously be cut out, which would help. Just depends on how much you use the extra channels. Because while it is a luxury, £18 for a month's entertainment is pretty good value compared to most other things.

Water rates sound high to me. I think that's about what we pay for a family of 6. Are you on a meter?


One more question...
Feel free to discard this point, but might be worth considering.
Rent, council tax, electric, water, TV and internet cost you £662 a month combined.
Many people are still living with their parents at 25.
Would you be able to move back there, short term?
If you could add £634 a month to your debt repayments you could be debt-free in 7 months. That's considerably less than the 30 months you're currently looking at!

Obviously I don't know your personal circumstances and for many this wouldn't be an option. But thought I'd throw it into the mix.

Alternatively, a house share with friends / colleagues / strangers might be a compromise?

frustrated12

Hi JimmyTheWig, some great comments there so thank you

Yes I have a plan but i can always come up with a plan it's just sticking to it that is my problem, but I feel ready to beat this debt once and for all this time.

The £60 buffer that I have left in my budget will go into the debt repayments, but I want to wait until the next payday, then I can move any surplus to the debts, just in case anything comes up, I want to have that back up there.

I understand that I can cut my grocery bill dramatically but this is the first month that I am tracking my spending so I don't want to leave myself short, it is also the first time that I am going to try things like batch cooking too, I'm so excited... also I have nothing in the cupboards, not even the basic so next month's shopping should be even cheaper. Of course if there is money left at the end of the month then I am going to throw that at my CC too.

Unfortunatley there is nothing I can do about my phone bills, I have 2 contracts, stupid I know, I don't even need 2!! 1 finishes in June next year - I have contacted Vodafone to lower my tariff as I don't even use that phone anymore but they have told me I am unable to do that.

£18 for TV is not too bad I don't think, I don't smoke or drink and rarely go out, I think I will allow myself to have this luxury.

Water is £26 a month, it isn't on a meter, then I have added the sewage on the SOA as I save for this every month and then when the bill is issued I have enough money to pay it straight away.

Unfortunatley I cannot move back home, I have not lived at home since I was 16, I know it will take me longer but I am confident that I can shift this debt.
Thank you for your thoughts, I really appreciate it!

frustrated12

Well no chance of me have any extra money to pay anything off this month, I have to make my money stretch to 5 weeks and I paid £110 to pay off my PDL. This month is going to tough but no-one said this was going to be easy.

On the plus side I haven't spent any money today So one day in and I'm off to a good start

frustrated12

Managed a NSD day yesterday, but will need togo shopping today as there is nothing left in the cupboards. Have got 3 days off next week due to Xmas day but shouldn't need too much food in.

I have set up a spreadsheet for all of my accounts so I can see if I will be short anyway before the end of the month and then I can shuffle money between accounts so I can avoid those pesky bank charges, I think I have learnt my lesson and don't want to just give my hard earned money to the banks

Sharon87

A spreadsheet is a good idea. I update mine every month to keep a track of it and how much debt I currently have.

On your second contract do you have a decent phone with it you could sell (without the sim card obviously) to make a bit of extra cash?

I would say keep as you're going with your plan, make sure you have some luxuries in life like the TV or you'll go crazy. Enjoy the batch cooking. I live on my own, but in a house share, so I always make at least 3 meals each time I cook and put them in the chinese takeaway boxes and freeze them. Healthier ready meal!