A million steps to being debt free - first ones taken!

helencal80

Post 1: 21/21/13


Hi all,


I think it will really help me to stay on track if I have a diary to update on a regular basis so here we go...


I have spent the past few evenings creating a massive 30 (ish) page Excel spreadsheet to record all of my spending in 2014. I never thought the things I learned in ICT at college would be useful, especially as the tutor told us to Google everything. Who knew I would use some of my new knowledge to help me become debt free!


I have yet to send off for credit reports so I have estimated my total debt, I really hope I don't get an unpleasant surprise when the reports are paid for, £16,000 was enough of a shock, let alone if it ends up being £20,000 :eek:


My real fresh start will begin in mid January after I have replaced the few items I have from Br*ghth*use (stupid idea!) and then have a little extra each week. The usual method of budgeting in my house is:


1. Pay what needs paying
2. Buy food with what is left!


I would like to know everything is paid for that needs to be and that I have a fixed amount for food, rather than having to get a weeks food for 5 of us on £30 (or less at times).

joolsybools

Good luck in your quest m'lady! Your spreadsheet sounds impressive, what's on it?

helencal80

joolsybools wrote: »

Good luck in your quest m'lady! Your spreadsheet sounds impressive, what's on it?

Thanks joolsybools!


I have the following pages:


1.Yearly totals - all set up to take totals of income,expenses and debt payments from each monthly page
2.List of debts - including payment plan info
3.Ideal Budget - what I should spend on each thing and what is left over to repay debts.


Then each month has 3 pages:
Income - record what is due in and what is actually paid
Expenses - again what is due and what is paid
Debts - what payments I have made in that month


It is long! But I think it will cover everything and has lots of totals transferred from one page to the next minimising the work I have to do. Plus it gave me something to do of an evening!

helencal80

I got my Equifax credit report online this morning.


I was quite surprised that my total debts on there were around £8700.


Then I realised there are several debts that are not on there, such as a housing benefit overpayment, tax credits overpayment, budgeting loan etc.


Adding these on it totals nearly £16,000 as I previously estimated. Hopefully there won't be too many different entries on my Experian report when that is ready to view.


Now I am preparing for the letters to start flooding in.

apple_muncher

Didn't want to just read and run. Well done on getting all this set up - I am clueless when it comes to spreadsheets!

Think I've read another of your posts, and you certainly have a lot on your plate. Good luck with it all. Feeding 5 of you on £30 is a mammoth challenge in itself!

helencal80

Thanks apple muncher. I feel much more in control since I stopped hiding from my issues. I even opened 2 letters from debt recovery companies that arrived this morning, without hesitation.
Spreadsheets are easy when you know the tricks, if you don't they aren't helpful at all! I can make you a basic one if you want.

apple_muncher

helencal80 wrote: »

Thanks apple muncher. I feel much more in control since I stopped hiding from my issues. I even opened 2 letters from debt recovery companies that arrived this morning, without hesitation.
Spreadsheets are easy when you know the tricks, if you don't they aren't helpful at all! I can make you a basic one if you want.

Oooooh, now there's an off I can't refuse! Yes please!

I tend to use paper and pen / pencil and colours. My receipts are held in a paper clip every month and I note my spends in a small notebook, totalling stuff at the end of the month. We're super lucky to not have debt, just the mortgage - and that would already be gone, but we bought my mum a place a year ago, so are paying for that.

I have signed up to ninjasavingkat's challenges recently, and seem to
do well with a monthly focus. I look back to when we were earning so much more and have to ask: where did it go? Wish I'd had this focus then, but at least it's never too late!

well done on being brave enough to open letters. Have you contacted your local CAP? Or are you not at that stage?

helencal80

I haven't contacted anyone yet, I am going to collate all debts and see if I think I can manage on my own. If not, I'll be ringing CAP or someone.




I've joined several challenges as you can see from my signature! It gives me something to focus on and it's almost like someone is there to hold me accountable if I fail for a silly reason. I suppose it's like doing Weightwatchers at a group, you try a bit harder when people are going to find out.
I get paid weekly, and will be saving my receipts in a plastic zipped envelope (found in my spare room so free), but I am on my laptop every day so hopefully I will update my spreadsheet daily.
I'll get a spreadsheet done for you by next weekend, although you seem super organised already.

Mrs_Cheshire

Helen, glad to hear your opening letters and dealing with them.
You sound so motivated!
I'm new to the journey too, managing well on the budgets set!

helencal80

Thanks Mrs Cheshire. I think we all have to come to the point where we are ready to do something about it and before that it just won't work. I'm glad you're doing well! My budgeting officially starts in January as soon as I get rid of a massive weekly payment.

helencal80

Officially January! And officially time to put my plans into action. My spreadsheet is ready to go and has already got a couple of transactions on it from getting my tax credits early.


I am still waiting for a letter about my other credit report! And Callcredit has been a pain, I am going to have to fill in an actual paper form and send it off... Will I remember how?!


Although I want to be debt free for many reasons, I think the main one is that I want to buy a house. We've been in private rented accommodation for years, but due to bad credit have ended up having to avoid agencies and potentially nicer houses. I'd love to be able to buy my own house! I'm thinking along the shared ownership route but its still better then we currently have.


This year I will make a dent in my debts, it might not be much but I am hoping to have 1/4 paid off. My estimated debt free date is 2020, when I will be 40 years old. I'd like to be DF before 40 if possible.