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Young, Dumb and Ridden with Debt – Time for a change? - The 6 Month Challenge !!!
hilltan1991
Posts: 3 Newbie
Dragging myself out of the nice warm bed, stumbling down the stairs, head surprisingly not pounding after the previous days indulging, I decided it was time to pull my head out of the sand, lay out my debts, create a plan and pay them off, oh when you say it like that it sounds so simple!
So at 6.30am on Boxing Day 2012 I had my eureka moment, I decided to I wanted to pay off all my debt and I won’t it gone ASAP! That’s the problem with my generation; we just can’t wait for anything!
Here is my goal:
I will not own a single penny to any company/person by the time I am 22 years old.
Now that I have laid my marker, here’s a bit about me, I’m currently 21 with my birthday being on the 2nd of June (not long
) I live in a three bedroom terraced house with my Girlfriend, our Cat and two dogs, one of which is a puppy that I bought the better half for Christmas, the fool that I am! Lol.
I have always enjoyed spending money, whether I had it or not, but as I am getting older I now realise that just isnt the way to live and things have got to change.
What I owe:
Now this is the bit that’s going to make me squirm…
Credit Cards
NatWest Master Card - Card has now been cut up
Balance - £1356.97
Credit Limit - £2250.00
Barclaycard - Card has now been cut up
Balance - £2155.29
Credit Limit - £2500.00
Capital One – Only Credit Card that Isn’t Cut up, Meant for Emergencies only!
Balance - £252.06
Credit Limit - £800.00
Shopping Accounts
Very – This is all ‘Buy Now Pay in 12 Months’
Balance - £2531.75
Credit Limit - £3600.00
PayDay Loans
[STRIKE]PayDay Uk– Have the funds in Bank Account just waiting for date
£596.99
Date due: 28th December 2012[/STRIKE]
[STRIKE]PayDay Express – Have the funds in Bank Account just waiting for date
£298.97
Date due: 27th December 2012[/STRIKE]
Pounds to Pocket
[STRIKE]£1577.88[/STRIKE]
£1436.43
12 Monthly Payments of £131.45
Family
Mum and Dad - £1700.00
Paying £100 a month so far 3 months in (started at £2000.00)
Girlfriend (Nicole) £1000
Borrowed for a new car not yet planned how to pay her back however she may be having the car so will have to wait and see!
Car Finance
£8400.00
48 Monthly payments of £175.00 then I will own the car, first payment goes on the 5th February 2013 then continues on the 5th of every month.
That was a bit of a shock, didn’t realise how much it was, and nearly reached for the whisky and its only 7.30am…
Okay now onto my earnings:
I currently work in an Office Furniture Manufacture as a bit of Jack of all Trades, designing new furniture, building, selling, basically if there is a problem or something needs to be done then I am the man!
I get paid Weekly, however this could change soon, but for the moment I am paid £8 an hour for a 39 hour week which gives me a basic wage of £312.00. Then I work 5 hours overtime (this is guaranteed) at time and a half which adds on another £60.00 a week and then I receive also receive a £2 a day bonus at the end of every month.
Wage: £372.00 a week
After Tax: £302.00 a week
It’s not the best wage but it’s a good start, and I am hoping for a promotion in the next couple of months which would include a fixed salary, commission and a company car! (I can dream lol)
Oh and if anyone needs a new office chair then I can I know just the man lol!
Right after trying to unsuccessfully plug some office furniture lets get back to business….
My outgoings:
This is where things get a little difficult and I could do some help with, as I get paid weekly I have to split up when I pay for certain things and split up the rent/bill money that goes into our joint account.
So I have given a monthly breakdown below:
Monthly
Rent/Bills - £600.00
this is transferred to a joint account that I share with my Girlfriend. We only have the bare minimum so there are no real savings to be made here!
Phone - £36.00
Direct Debit for 24 Months
Car - £175.00
Direct Debit for 48 Months
The plan of Action
Pay off at least £300 a month on my debt every month just from my wage. Plus as much more I can spare.
I am going to clear all the Pay Day Loans first, then the Credit Cards, then the shopping accounts and finally my family!
I will be clearing the debts from highest interest first and have transferred as much Credit Card debt as possible to low APR!!!
Oh and I also am going to Las Vegas in May, which I will need to pay off and save spending money for :S
Right time to stop getting distracted, I am going to do everything in my power to pay off this debt that I owe. I have listed below some extra methods that I am going to use:
Sealed Pot: I have a massive Coke Bottle that I am going to put all my loose change into. At the end of the 6 months I am going to count it and use it to pay off as much as possible.
No Weekly Spending: Not spending any money from my account at all, I will use my Credit Card to pay for petrol and then pay that amount off at the end of the week, there is no reason that I should need to spend the money!
eBay/Amazon: Sell as much stuff as possible on these sites, I hope that I can make a large dent in the debt with this, it’s amazing how much rubbish I have accumulated!
Car Boots:Have lots of tack that I need to get rid of! Perfect for a couple of Car Boots!!!
Overtime and Bonuses: I am going to try and get as much in as possible! Looking for another 10 hours a month minimum!!!
Where I am at the moment:
So I owe a big lump sum, but I’m not bothered by a challenge, In fact I crave one.
I currently have £1044.59 in my bank account and £150.00 in cash; I am going to use this to pay off as much of the Payday loans as I can. Then it’s onto the Credit Card!!!
Now I know it’s going to be hard but I am determined to do it, so here goes nothing!!
!
So at 6.30am on Boxing Day 2012 I had my eureka moment, I decided to I wanted to pay off all my debt and I won’t it gone ASAP! That’s the problem with my generation; we just can’t wait for anything!
Here is my goal:
I will not own a single penny to any company/person by the time I am 22 years old.
Now that I have laid my marker, here’s a bit about me, I’m currently 21 with my birthday being on the 2nd of June (not long
) I live in a three bedroom terraced house with my Girlfriend, our Cat and two dogs, one of which is a puppy that I bought the better half for Christmas, the fool that I am! Lol.I have always enjoyed spending money, whether I had it or not, but as I am getting older I now realise that just isnt the way to live and things have got to change.
What I owe:
Now this is the bit that’s going to make me squirm…
Credit Cards
NatWest Master Card - Card has now been cut up
Balance - £1356.97
Credit Limit - £2250.00
Barclaycard - Card has now been cut up
Balance - £2155.29
Credit Limit - £2500.00
Capital One – Only Credit Card that Isn’t Cut up, Meant for Emergencies only!
Balance - £252.06
Credit Limit - £800.00
Shopping Accounts
Very – This is all ‘Buy Now Pay in 12 Months’
Balance - £2531.75
Credit Limit - £3600.00
PayDay Loans
[STRIKE]PayDay Uk– Have the funds in Bank Account just waiting for date
£596.99
Date due: 28th December 2012[/STRIKE]
[STRIKE]PayDay Express – Have the funds in Bank Account just waiting for date
£298.97
Date due: 27th December 2012[/STRIKE]
Pounds to Pocket
[STRIKE]£1577.88[/STRIKE]
£1436.43
12 Monthly Payments of £131.45
Family
Mum and Dad - £1700.00
Paying £100 a month so far 3 months in (started at £2000.00)
Girlfriend (Nicole) £1000
Borrowed for a new car not yet planned how to pay her back however she may be having the car so will have to wait and see!
Car Finance
£8400.00
48 Monthly payments of £175.00 then I will own the car, first payment goes on the 5th February 2013 then continues on the 5th of every month.
The Total Debt
£19869.91
Ouch!!!
That was a bit of a shock, didn’t realise how much it was, and nearly reached for the whisky and its only 7.30am…
Okay now onto my earnings:
I currently work in an Office Furniture Manufacture as a bit of Jack of all Trades, designing new furniture, building, selling, basically if there is a problem or something needs to be done then I am the man!
I get paid Weekly, however this could change soon, but for the moment I am paid £8 an hour for a 39 hour week which gives me a basic wage of £312.00. Then I work 5 hours overtime (this is guaranteed) at time and a half which adds on another £60.00 a week and then I receive also receive a £2 a day bonus at the end of every month.
Wage: £372.00 a week
After Tax: £302.00 a week
It’s not the best wage but it’s a good start, and I am hoping for a promotion in the next couple of months which would include a fixed salary, commission and a company car! (I can dream lol)
Oh and if anyone needs a new office chair then I can I know just the man lol!
Right after trying to unsuccessfully plug some office furniture lets get back to business….
My outgoings:
This is where things get a little difficult and I could do some help with, as I get paid weekly I have to split up when I pay for certain things and split up the rent/bill money that goes into our joint account.
So I have given a monthly breakdown below:
Monthly
Rent/Bills - £600.00
this is transferred to a joint account that I share with my Girlfriend. We only have the bare minimum so there are no real savings to be made here!
Phone - £36.00
Direct Debit for 24 Months
Car - £175.00
Direct Debit for 48 Months
The plan of Action
Pay off at least £300 a month on my debt every month just from my wage. Plus as much more I can spare.
I am going to clear all the Pay Day Loans first, then the Credit Cards, then the shopping accounts and finally my family!
I will be clearing the debts from highest interest first and have transferred as much Credit Card debt as possible to low APR!!!
Oh and I also am going to Las Vegas in May, which I will need to pay off and save spending money for :S
Right time to stop getting distracted, I am going to do everything in my power to pay off this debt that I owe. I have listed below some extra methods that I am going to use:
Sealed Pot: I have a massive Coke Bottle that I am going to put all my loose change into. At the end of the 6 months I am going to count it and use it to pay off as much as possible.
No Weekly Spending: Not spending any money from my account at all, I will use my Credit Card to pay for petrol and then pay that amount off at the end of the week, there is no reason that I should need to spend the money!
eBay/Amazon: Sell as much stuff as possible on these sites, I hope that I can make a large dent in the debt with this, it’s amazing how much rubbish I have accumulated!
Car Boots:Have lots of tack that I need to get rid of! Perfect for a couple of Car Boots!!!
Overtime and Bonuses: I am going to try and get as much in as possible! Looking for another 10 hours a month minimum!!!
Where I am at the moment:
So I owe a big lump sum, but I’m not bothered by a challenge, In fact I crave one.
I currently have £1044.59 in my bank account and £150.00 in cash; I am going to use this to pay off as much of the Payday loans as I can. Then it’s onto the Credit Card!!!
Now I know it’s going to be hard but I am determined to do it, so here goes nothing!!
0
Comments
-
hilltan1991 wrote: »Credit Cards
NatWest Master Card - Card has now been cut up
Balance - £1356.97
Credit Limit - £2250.00
Barclaycard - Card has now been cut up
Balance - £2155.29
Credit Limit - £2500.00
Capital One – Only Credit Card that Isn’t Cut up, Meant for Emergencies only!
Balance - £252.06
Credit Limit - £800.00
Shopping Accounts
Very – This is all ‘Buy Now Pay in 12 Months’
Balance - £2531.75 / 12 = £210.97 pm
Credit Limit - £3600.00
PayDay Loans
[STRIKE]PayDay Uk– Have the funds in Bank Account just waiting for date
£596.99
Date due: 28th December 2012[/STRIKE]
[STRIKE]PayDay Express – Have the funds in Bank Account just waiting for date
£298.97
Date due: 27th December 2012[/STRIKE]
Pounds to Pocket
£1577.88
12 Monthly Payments of £131.45 starting on the 28th December
Family
Mum and Dad - £1700.00
Paying £100 a month so far 3 months in (started at £2000.00)
Girlfriend (Nicole) £1000
Borrowed for a new car not yet planned how to pay her back however she may be having the car so will have to wait and see!
Car Finance
£8400.00
48 Monthly payments of £175.00 then I will own the car, first payment goes on the 5th February 2013 then continues on the 5th of every month.
Monthly
Rent/Bills - £600.00
this is transferred to a joint account that I share with my Girlfriend. We only have the bare minimum so there are no real savings to be made here!
Phone - £36.00
Direct Debit for 24 Months
Total outgoing (not incl Credit Cards) is £1253.42
Okay now onto my earnings:
After Tax: £302.00 a week x 4 Income = £1208
The plan of Action
Pay off at least £300 a month on my debt every month just from my wage. Plus as much more I can spare.
Oh and I also am going to Las Vegas in May, which I will need to pay off and save spending money for :S
!
Hiya, not wanting to pee on your bonfire but I cant make it add up now let alone find overpayments. You should do a soa and include your cc payments as theres going to have to be some major tweaking going on just to pay minimum and thats before you mentioned Vegas.
Good luck on your journey you sound like you have the determination but defo put a soa up so you will get a clearer picture.
Littlewoods £10 Very BNPL £234.42
My total debt is [STRIKE]£7242.32[/STRIKE]£244.42
Extra payment a week: This week: £
Total to date: £1279.29 not incl this week
#33 NOvember challenge0 -
Good luck on your journey! Your going to need to sell a lot of stuff if your to pull yourself through in as little as 6 months
£19869.91/6 = £3311 per month (not including interest)
Net wage = 302*26 = £7852/6 = £1309 pm
Bills = £821 pm
Meaning you have a shortfall of £2490 (+interest) every month to find!
Maybe you should try set yourself a longer term more realistic target0 -
Good Morning world, after having to clear up some dog mess at 4.30 this morning my inability to sleep has continued to haunt me and thus I am now awake!
I wanted to say thank you for the reply's guys, I appreciate your advice and will take it on board.
I do understand that I will have a lot to make up every month if I wish to reach my goal and I may it appear have stretch my self to far, but I do have a plan (believe it or not lol )!!!
So I am going to keep my original goal and keep you updated every step of the way!!!
So here are some things that I need to do today, Debt Related of course:
Avoid the dreaded Sales!
List all unwanted Xmas pressies on ebay and Amazon
Sort out all junk to give a clear picture of what I can sale
Plan a way to make my millions ( Still dreaming lol)0 -
Woop Woop!!!
Have cleared my 2 of my three payday loans!!!
The third with Pounds to Pocket took their first payment today, only another 11 to go
Does anyone know if you save money on this if you manage to pay back early?
I also spent yesterday listing lots of items on Amazon and eBay
Hope its worth all of the effort.
Today I should receive £351 from Amazon for items that I sold before Xmas, thats going straight at the debt
Even managed to avoid buying an Xbox yesterday at the special price of £99 from Asda!!!
Oh and its PayDay for me, woop woop got to love a Friday.
Hope everyone has a great day 0
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