Arrived at a state of reality, but positive and up for it!

Rachiedabbler70

I am a newbie, but like a lot of people I have been an avid lurker for a long time before joining. This site has been fantastic for me and I have decided to start a 'debt-free wannabe' diary.:D


About me: just me and 2 DS's, working full-time for last 22 years. No pay rise for last 6 years, so standard of living reducing all the time and like everyone - bills getting higher.


Debt: went a bit silly when split from OH and bought a few nice things (like a lovely car and took kids on holidays!!). Realised now how foolish and for the last 12 months have been steadily reducing out-goings so that I can pay off debt. Debt at 01/01/13 was £102,504 (includes mortgage). Debt at 31/10/13 £95,571.22.


Would really appreciate support as no one in my life knows the amount of debt I have and they think I'm the sensible one.:eek:


I have the means if I cut to the bone to gradually pay off but think it will take around 10 to 12 years, but that is if I have a job for this whole period, which is looking unlikely at present.


On the plus side I can make all minimum payments (and some overpayments) and £5800 is on 0%.


Hope I haven't rambled too much. Going to figure out how to do a signature strip (think that's what it is, so that I can detail various debts and amounts paid off).


Very excited and positive - I can still pay - not reached desperate yet!!

heyjude2013

Welcome to your Diary!

Good luck with your journey!

You can pop your totals in the strip by going to the USER CP button and the 'edit signature'.

These boards make you feel so positive don't they! I always find when you read other people's incredible journeys, you really feel like you can do it!

Rachiedabbler70

Thanks for responding heyjude2013 and helping with the signature - much appreciated. I'm not sure if I have done it right, but will find out now.


Yes it is a very positive site.

Rachiedabbler70

I've been working on my budget for the last hour and the only thing I can cut down on is food and utilities (within reason). I don't drink or smoke so nothing I could reduce there, I don't go out much and rarely buy clothes - only when something gets a hole in it - even then I sometimes manage to patch it up.


Most of my debt is heading downwards now, however in 2007 I only owed £71,000, so spending above my means is the issue.


All of my 0% cards end in 2014 so the whole amount has to be paid off if I want to avoid interest payments. I want to avoid any more balance transfers as I seem to move the debt from one card to another.


I've started in the last couple of months to do a lot more home cooking and dramatically reduced takeaway spends. Think I'll join the GC forum, taking lunches to work challenge and declare my NSDs for December - might be able to get some inspiration from those areas.


All very scary, but at least I'm trying to live in reality from today.

Antwerpen

Hi!! I'm a newbie too. I have an 8 year old girl. Just want to say good luck. I'm going to subscribe

Can you post a SOA?

Rachiedabbler70

Hi Antwerpen


Thanks for subscribing. I will definitely post a SOA - probably take a couple of hours though as I have a lot of out-goings. Would be useful to have the views of others to see if I can trim down any further.


Have you started a diary at all If you have I'll subscribe to yours too.


Cheers

Antwerpen

I've started recording all my out goings into an excel document and working out income/outcome for the next month. I've found this better than averaging it out over the year as it also shows one off spends, like school trips etc. I also keep a diary in my purse to record any spending.

Yes I have. It's called a flash flood of colour, thanks .

Rachiedabbler70

Got this ready faster than I thought - SOA


Income
Wage 2078.00
Chb 134.80
Other inc 204.00
Total 2416.80


Out-goings


Mgage 1 - 305.69
Mgage 2 - 147.37
Credit card 1 - 30.00 (minimum payt)
Credit card 2 - 50.00 (minimum payt)
Credit card 3 - this month £1,019 - next month £434 - pay this one every month or balance transfer (not counted it in my total below as I use it for food, petrol, going out etc. and I've set a new budget for these below)
Loan 1 - 143.65
Loan 2 - 159.20
Loan 3 - 28.02
S Cards - 93.00
Water - 36.00
Gas - 40.00
Electric - 40.00
C/Tax - 89.00 (10 months)
Life ins - 7.77
House ins - 12.82
TV licence - 12.12
Kids - 90.00 (bus and pocket money)
Mobile - 27.50
Internet (Phone) - 22.50
Car tax - 0.00
Car insurance - 14.50
Car service - 7.00
Petrol - 42.00
Presents - 95.00
Food - 250.00 (should be but much more over recent months so trying to reduce to this)
Clothes - 50.00
Hair cuts - 25.00
Going out - 25.00
Car breakdown cover - 6.00


Total £1849.85


Have to pay all 0% debt off by Aug 2014 with the majority by Apr 2014.


Should have £566 left each month. I overpay my mortgage by £100 per month, so that leaves £466 spare? The money has been leaking through take-outs, extra spending on the kids, lending money to others and who knows what else, just not been keeping track. Definitely changed from today. If I don't exceed this budget I will just about make the payts I have to by April 2014.

Piquant_2

Happy new diary!! You will make it, just takes a while, remember that

Rachiedabbler70

Thanks Piquant - you have paid back a lot - really good amount - hopefully my job will remain long enough to get to where you are. Thanks again

theoretica

Is £95 a month on presents all year round, or just until Christmas? £1140 a year on these is one place I would be looking to make savings - can you spend time and thought to get things people would like just as well, but cheaper?