My debt free journey begins again.....

MiaowMiaow

Right, I am starting over as went completely overboard and drowned.

This forum helped me last time and so I am back to start a complete fresh and hopefully this will be a turning point in my life.

I am still suffering with depression which I find has a distinct link to my spending habits. I am hoping to break this.

I have also got engaged and so am so happy with that aspect of my life. We are going to get married abroad 2015 and between us are aiming to save £8k. The pot stands at £250! though we only started this weekend. I have applied for a 2.8% ICA account and they are just sending the forms to sign and then we can set up our direct debits (£150pm each).

So the important part is my debt which I need to go over the figures for but rough guide as follows:

Loan £16000 paying just short of £400pm - the amount includes the interest. over 4 years

OD £1500 - this I hate living in and desperately need to cut down

Littlewoods - £387 interest free paying £70 pm

CC 1 - £3770 low % life of balance

CC2 - £3656 currently interest free but going to try and transfer to CC1, I struggle to get accepted for 0%

total is a whopping £25,313:eek:

Need to confirm figures but that is pretty accurate


My aim is to get rid of it all ASAP

first step is to see if I can transfer CC 2 to CC1 and aim on paying that off alongside the OD.

Littlewoods should be gone in 5 months.

Once all that gone I will save as much as poss and then when I have enough to pay off the remainder of my l;oan balance as it stands at that time I will do that.

Such a long way off!!!!!!


Plan of Action -

• Ebay!!!! already listed 30 items and sold some so on my way with that. Have a spreadsheet set up to calculate costs and overall profit and also am making sure to weigh items and work out postage so I dont get bitten which I have done in the past! takes longer to list but worth it.
• keep posting in this diary for motivation
• have as many NSD as possible
• meal plan - started this earlier this year and need to get back with that
• just opened my £2 coin box and have £100 to pay into my account!!!
• sell books on amazon - only got 2 listed but loads i can put on
• we are very lucky that my H2B's father is taking us on holiday in the summer but apart from that no holidays allowed.
• no unneccessary spending whatsoever!
• my H2B has a really good talent in taking pictures and I love taking pictures too so looking at selling some prints on ebay to see how it goes and maybe open a shop on there and do it properly
• try and do some overtime
• cancel sky - sent email

hopefully lots more ideas will present themselves!!!

off to catch up on some other diaries now

Thanks for reading

x

NinjaSavingKat

So between now and 2015..( not sure which month ) you intend to have paid of £25500 ( rounded up ) plus saved £8000... totalling a massive £33500? Taking into account the normal everyday livings expences of eating and using a vehicle..etc...

I say go for it!!! :T:T:TBut be realistic. Your actions so far are commendable and I have no doubt you will do this. What is good though is posting an SOA ( someone will have to find the link ) and let us all have a look at where your money is going. How many cars do you have? Is this your debt or a shared debt? What is your shared income? How much you paying on food ...etc...

It might be annoying to list everything but so many people will come forward wtih some brilliant ideas and more importantly motivation....

My only advice.... Pay off EVERYTHING you have before you save. Check every single % rate on each debt as you might be surprised that an introductory offer has expired - then pay these off first!!!

Other than that I wish you well... eBay is addictive, MSE is addictive and the goodwill and determination on here infectious. You can have that perfect wedding and start a home together debt free....

You have precisely 19 months until the 01/01/2015... do you have an actual physical date to be debt free in your mind and do you want to be debt free before you marry...?

Onwards and Upwards!!!

MiaowMiaow

Thanks
Realistically I won't have paid off the whole debt amount prior to the wedding but I will be doing as much as I can to get there!!!
I will definitely post an SAO once I get all my paperwork sorted and will get a better picture.
I'll be using this diary as my spending diary too so I can see where everything is going and hopefully think twice before opening my purse:)
I'm also entering comps. Certainly don't expect to win anything but i guess someone has to so no harm in trying!!
x

MiaowMiaow

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.................... 2 both required for work and are not flash cars but basic to meet needs
Monthly Income Details
Monthly income after tax................ 1800
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 400 rent towards mortgage and bills
Total monthly income.................... 2200
Monthly Expense Details
Mortgage................................ 638
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 117 have checked and band is correct
Electricity............................. 51 gas and elec is £81 together - will look at a new deal
Gas..................................... 30
Oil..................................... 0
Water rates............................. 38.23
Telephone (land line)................... 0
Mobile phone............................ 30 contract until november 2013 as it was a 2 year contract
TV Licence.............................. 12.12
Satellite/Cable TV...................... 40 this is sky which includes internet and phone but I have emailed them and asked about cancelling.
Internet Services....................... 0
Groceries etc. ......................... 100 we put this amount in each towards food shopping and as I start properly meal planning I hope thid will decrease
Clothing................................ 10
Petrol/diesel........................... 80
Road tax................................ 3
Car Insurance........................... 20
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10.4
Pet insurance/vet bills................. 10
Buildings insurance..................... 15
Contents insurance...................... 15
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20 I do have a lot of people i buy for (mainly children) but am looking to cut back further/opt out of present giving
Haircuts................................ 20
Entertainment........................... 100 i know this is high but i wanted my SOA to be realistic so I am aware I need to cut this back. Many of my friends live far aware so we meet half way for tea etc which results in this.
Holiday................................. 20 dont usually have this but my H2Bs father is taking us on holiday this year and i want to save now for spending money as dont want to be stuck when it comes round later this year
Emergency fund.......................... 0
cat food................................ 40 buy bulk when on offer and need to try cheaperr brands. I have 2 cats. this also includes cat litter
wedding savings......................... 150
gym..................................... 18 a luxury but also need to lose weight and this is one think helping my depression and to keep me motivated so I feel I need it at the moment until I feel confident to exercise out in the park etc.
Total monthly expenses.................. 1597.75

Assets
Cash.................................... 0
House value (Gross)..................... 140000
Shares and bonds........................ 0
Car(s).................................. 4000
Other assets............................ 1500
Total Assets............................ 145500

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 135000...(638)......0
Total secured & HP debts...... 135000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
overdraft......................1500......20........2
CC1............................3700......30........5.5
CC2............................3500......30........0
littlewoods....................387.......70........0
LOAN...........................16400.....398.......0
Total unsecured debts..........25487.....548.......-

Monthly Budget Summary
Total monthly income.................... 2,200
Expenses (including HP & secured debts). 1,597.75
Available for debt repayments........... 602.25
Monthly UNsecured debt repayments....... 548
Amount left after debt repayments....... 54.25
Personal Balance Sheet Summary
Total assets (things you own)........... 145,500
Total HP & Secured debt................. -135,000
Total Unsecured debt.................... -25,487
Net Assets.............................. -14,987
Created using the SOA calculator at www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using IE browser.


I appreciate any comments

Many Thanks

MiaowMiaow

I have decided to name all of my debts, not sure what yet but something that will motivate me!

KeepFighting_2

Whilst everyone is giving you advice on your debts and that is great. I feel I cannot read the thread without saying you need to make sure that you sort out your depression ASAP. If you do not it will mean that this is to no avail and believe me I am talking from experience. Please make sure that you take steps to prevent your depression recurring, carrying on whatever. It is great that you have a direction and a mission but I know this soon wears off and the depression comes back and before you no it bang it is worse.

The very best of luck and if I can help I am more than happy too.

MiaowMiaow

thanks 'keepfighting'
I do notice I have a lot of highs and lows which correspond to how I manage my money.
I am on medication and this seems to be working well, I have been on various meds for the last 3 years and have had counselling and CBT (though that didnt work for me)
I feel okay at the moment but will be heading to my GP soon for a review of meds as do worry about my mood swings
Thanks again

KeepFighting_2

MiaowMiaow wrote: »

thanks 'keepfighting'
I do notice I have a lot of highs and lows which correspond to how I manage my money.
I am on medication and this seems to be working well, I have been on various meds for the last 3 years and have had counselling and CBT (though that didnt work for me)
I feel okay at the moment but will be heading to my GP soon for a review of meds as do worry about my mood swings
Thanks again

I was fortunate and did not need meds but like you CBT was not very useful. I presume your fiance is aware of all of your probelms as otherwise that is a train crash waiting to happen.
I found that the best therapy I recieved was from my wife explainign how she felt and putting my life in perspective. Never forget you are a person and celebrate the positives never let the negatives win.
I would suggest watching Pollyanna (corny I know ) but you really need to embrace the "glad game"

MiaowMiaow

Thanks 'keepfighting' I will definitely try that film:)
Thankfully my fiance is aware of all my problems - debt and depression and he is supportive. He also has his own debt.
You have given me food for thought and so each day as well as doing MSE things I will do something positive for my health too even if its a walk or enjoying a chat with a close friend but it is these little things that keep me going:)

MiaowMiaow

Off to work now - need to post some ebay parcels on route then on way home got to go via my mums to pick up some money cash bags as have cash to pay into the bank sat am.
Taking soup and water from home so should be ok for the day as had a bacon butty from home for my brunch
going to charge phone at work if poss.

MiaowMiaow

So today I have done the following -

• posted 8 ebay parcels
• noted that 2 more ebay items have sold and sent feedback on payment
• charged mobile phone at work
• other than postage for parcels I have not spent any money
• organised to go to mums for tea tomorrow with H2B
• checked sky email
• checked banking
• got change pot out ready to count up - just need money bags from mums tomorrow as didnt finish as early as i hoped today so couldnt do that
• updated ebay spreadsheet

I am pleased with my ebay spreadsheet as have previously calculated postage wrong and made a loss! This way I am very organised and have a running total of my profit.