Journey to Debtfreedom. Can I be debt free by 2015?

JayneC

Ok.... so having spent several years, being on and off the debt diet I am determined to get rid of it once and for all.

I have just over £11,500 on credit cards - will come back with interest rates later - I had given myself 3 years but now I just want it gone asap.

I work part-time and am a single mum. I have youngest DS (15yo) at home and am privately fostering his friend (also 15yo), due to some difficulties at home. I home educate them both too. I have 4 older 'children' who have all but flown the nest, youngest DD at uni (21yo), so still supporting her to some degree, plus 3 grandkids.

I am quite frugal so cutting back any more will be extremely challenging. My salary is not much more than the outstanding debt:o

The plan is to try and up my income as much as possible. I already do surveys, mystery shopping, avon, car booting, ebaying and have recently started doing some workshops - making natural bodycare products. I have joined the 'make £10 a day' challenge, though I'm aiming for £20:o, I save loose change, look for roadkill, have signed up to clicksnap, etc and cashback sites (but don't buy much so not great pickings there). I also have an allotment and keep a couple of chicks.

I will post my SOA tomorrow, any advice appreciated.

So would any of you lovely people like to join me on my journey?

Cheers,

JC

JayneC

Right here's the SOA
Any comments/suggestions welcome. My gas payment should come down soon and I'm working on getting the electric down too.

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 2
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 950
Partners monthly income after tax....... 0
Benefits................................ 705
Other income............................ 130
Total monthly income.................... 1785

Monthly Expense Details
Mortgage................................ 428
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 90
Electricity............................. 97
Gas..................................... 10
Oil..................................... 0
Water rates............................. 31
Telephone (land line)................... 36
Mobile phone............................ 16
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 200
Clothing................................ 0
Petrol/diesel........................... 50
Road tax................................ 0
Car Insurance........................... 60.64
Car maintenance (including MOT)......... 50
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 180
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 8.68
Buildings insurance..................... 24.24
Contents insurance...................... 0
Life assurance ......................... 9.8
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 0
Entertainment........................... 20
Holiday................................. 0
Emergency fund.......................... 0
firewood................................ 80
Total monthly expenses.................. 1411.36


Assets
Cash.................................... 0
House value (Gross)..................... 100000
Shares and bonds........................ 0
Car(s).................................. 1500
Other assets............................ 0
Total Assets............................ 101500


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 74093.7..(428)......NaN
Total secured & HP debts...... 74093.7...-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
MBNA...........................8506.5....280.......22.48
HSBC...........................900.9.....23........20.88
PostOffice.....................2142.3....54........15.75
Total unsecured debts..........11549.7...357.......-


Monthly Budget Summary
Total monthly income.................... 1,785
Expenses (including HP & secured debts). 1,411.36
Available for debt repayments........... 373.64
Monthly UNsecured debt repayments....... 357
Amount left after debt repayments....... 16.64

Personal Balance Sheet Summary
Total assets (things you own)........... 101,500
Total HP & Secured debt................. -74,093.7
Total Unsecured debt.................... -11,549.7
Net Assets.............................. 15,856.6

JayneC

I'm actually paying another £15 per month on MBNA as a regular over payment. I've set the payments up as standing orders, so although they only just cover min payments at the mo they won't go down over time.

hummingbird

Hi Jayne!
Many congratulations on starting your diary!


I am absolutely no expert, and so I hesitate to chip in my £0.02 - I'm sure there will be people along soon who can help with some suggestions.


However I have noticed that your credit card APR's are high and so you won't be making much of a dent in the capital owed. I was in the same situation but since losing my job I've had to call time and default....... would you be able to get the interest rates lowered by balance transfers or calling the companies to negotiate?


You are going without things you need, or may need in the future eg dentist (or do you get these free?)


Love Hummingbird x

JayneC

According to the snowball calculator I need to pay an extra £623 per month to get this cleared by Jan '15:eek:

So that's around £20 per day extra I need to find from somewhere.

Unfortunately it seems that the gods are conspiring against me already. My car was hit a couple of days ago whilst parked outside my mum's, by a taxi who drove off without leaving his details! Result - a completely crumpled passenger door:mad: Luckily it hasn't affected the mechanism so I can still open/close and lock the door. I'm thinking that I'm just going to have to live with it as claiming on my insurance will cost me and I haven't got any funds to pay for it:( I'm sure it can wait a year...
On the other hand my washing machine spectacularly blew up today, smoke, flames, blue flash - the works:( And I'm not sure I can go a year without a washing machine. I will 'borrow' my DD1's machine for now (hopefully) and try to source an extremely cheap or preferably free replacement. I just hope this isn't the shape of things to come:(

beanielou

Happy shiny new diary

JayneC

Hi Hummingbird, thanks for dropping in.

Yes I agree re the interest rates. Actually I have a bit of the PO at 0% but can't figure out exactly how much - it's not identified separately on my statement nor online. I'm close to my credit limit with them so can't transfer any more. I've just closed my MBNA card as I was peed off with them, so can't really renegotiate that. I have quite a high credit limit with HSBC so may be able to get a deal there, I will give them a call.

It may be worth targeting the HSBC and PO first with the hope of getting a balance transfer deal. Hmmm will think about that as I was planning to target MBNA as its the highest APR.

I have a tax credits NHS exemption cert so get free dentist/optician/prescriptions, but thanks for thinking about it:)

JayneC

Hi beanielou, thanks for stopping by:hello:

JayneC

Well a better day today. A lovely lady offered me washing machine on Freegle, will pick it up later in the week.

Also managed to get a bottle of washing up liquid and a 550g block of Cathdr@l City cheese for 29p using coupons at Mr T:T
Also had to get dog food and Butchers had £1.50 cashback on clicksnap and was on offer too. Is it sad that I was excited by this:rotfl:

I have been checking over my finances and have a couple of ISAs with not much in them so will cash them in and put the money towards the debt, only about £40 but it all helps, and have bagged up £5 loose change so that'll be paid in too.

I've 4 mystery shops lined up and have signed up to a couple more companies too, as well as joining the mystery shopping thread on MSE.

Any more ideas please share.

JC

JayneC

Today I cleared out my ISA's and have the princely sum of £38 winging its way to me:p, also closed an old account that had £6 in, paid my £5 change into the bank along with a cheque for £20 from my last avon order.

Then I did a mystery shop at an optician's and ended up paying £30:o. I got new glasses, which were free as I get an NHS voucher, however I got the anti-glare coating which was £30. But I am bothered by oncoming headlights when I'm driving at night so do need it really. I'm figuring that the money I've paid in today will cover that and I will start my debt busting payments with the ISAs and mystery shop;).

I've photographed some clothes for ebay and had a quick look around for anything else that I can ebay or carboot, unfortunately not much, but I've put the word out and so family will hopefully send their cast offs my way. I'm toying with the idea of doing vintage fairs but will need to purchase some stock to start up. Still undecided:cool: Has anyone any experience with this? I went to one in the Autumn and it was packed out, so seems popular. And I do like hunting out pretty vintage and retro items, the problem would be letting them go:p

Anyhoo, I'm off to sort my Avon delivery now.

JCx

JayneC

Just noticed that I got a new star yay:j:j