Where does all the money go?!?! £1,000 PCM...24 months to go!!

YoungBusinessman

I'm going to go straight to the point. A ruling against me has ordered me to pay £24,478.49 back at £1,000 PCM...with solicitor costs still to come :eek: forgive me if I'm starting to panic a bit, iv gone from the save 12k in 14 to the debt free wannabe boards overnight il post up a SOA. The thought of losing my house is scary. I'm away to turn 23 soon so hopefully if I can sort out my finances and get this paid off within 2 years before our fixed rate mortgage ends.

savingmummy

Oh no sorry to hear this ;(


Have you any savings you can chuck at it?
Anything to sell?

slowlyfading

Oh goodness me - what a situation to be in. What's the plan then?

YoungBusinessman

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\outl0\strokewidth0 \strokec2 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\
\
Monthly Income Details\
Monthly income after tax................ 3500\
Partners monthly income after tax....... 0\
Benefits................................ 0\
Other income............................ 0\
Total monthly income.................... 3500\
\
Monthly Expense Details\
Mortgage................................ 311\
Secured/HP loan repayments.............. 0\
Rent.................................... 0\
Management charge (leasehold property).. 0\
Council tax............................. 60\
Electricity............................. 22.5\
Gas..................................... 22.5\
Oil..................................... 0\
Water rates............................. 0\
Telephone (land line)................... 0\
Mobile phone............................ 35\
TV Licence.............................. 0\
Satellite/Cable TV...................... 0\
Internet Services....................... 80\
Groceries etc. ......................... 125\
Clothing................................ 25\
Petrol/diesel........................... 200\
Road tax................................ 20\
Car Insurance........................... 50\
Car maintenance (including MOT)......... 25\
Car parking............................. 0\
Other travel............................ 0\
Childcare/nursery....................... 0\
Other child related expenses............ 0\
Medical (prescriptions, dentist etc).... 0\
Pet insurance/vet bills................. 0\
Buildings insurance..................... 8\
Contents insurance...................... 8\
Life assurance ......................... 0\
Other insurance......................... 0\
Presents (birthday, christmas etc)...... 25\
Haircuts................................ 0\
Entertainment........................... 150\
Holiday................................. 0\
Emergency fund.......................... 0\
Total monthly expenses.................. 1167\
\
\
Assets\
Cash.................................... 2478.85\
House value (Gross)..................... 60000\
Shares and bonds........................ 0\
Car(s).................................. 3000\
Other assets............................ 1000\
Total Assets............................ 66478.85\
\
\
Secured & HP Debts\
Description....................Debt......Monthly...APR\
Mortgage...................... 45500....(311)......4.8\
Total secured & HP debts...... 45500.....-.........- \
\
Unsecured Debts\
Description....................Debt......Monthly...APR\
C. Ruling repayment............24478.....1000......0\
Total unsecured debts..........24478.....1000......- \
\
\
Monthly Budget Summary\
Total monthly income.................... 3,500\
Expenses (including HP & secured debts). 1,167\
Available for debt repayments........... 2,333\
Monthly UNsecured debt repayments....... 1,000\
Amount left after debt repayments....... 1,333\
\
Personal Balance Sheet Summary\
Total assets (things you own)........... 66,478.85\
Total HP & Secured debt................. -45,500\
Total Unsecured debt.................... -24,478\
Net Assets.............................. -3,499.15\
\
Created using the SOA calculator at https://www.stoozing.com. \
Reproduced on Moneysavingexpert with permission, using other browser.}


I'd just like to point out, the costs of everything is my half. My half food, services, the mortgage payment and the mortgage balance due. I should have that surplus to throw at it but I might pay the £1,000 a month and save as much as I can as I have another court date just before Christmas time which is when the solicitor payment will be due and any fines etc. worst day of my 22 years alive, surely it can only get better.

Spirit_2

YoungBusinessman wrote: »

I'd just like to point out, the costs of everything is my half. My half food, services, the mortgage payment and the mortgage balance due. I should have that surplus to throw at it but I might pay the £1,000 a month and save as much as I can as I have another court date just before Christmas time which is when the solicitor payment will be due and any fines etc. worst day of my 22 years alive, surely it can only get better.

It will.

By Christmas you will have paid £5000-£6000 off it at this rate.

It may then get worse again as costs/fines are incurred..but that too will pass.

If it really is not going to be manageable then visit the BR boards to see how that might help.

Good luck. Five years time this will be history.

YoungBusinessman

Thanks spirit. That's what my solicitor told me. He told me when he was 28 he never had a penny to his name, a house to live in or been abroad. Now he's got a house, holiday home and is retiring in 3 years at 60. He told me it will seem a distant memory aslong as I don't take my eye off the goal, the end debt free feeling. I was just hoping for some ideas on speeding it up a bit, I don't want to graft the next 2 years just to be paying off debt.

savingmummy

Good thing is you have a large amount left over each month for debt repayment! Do you genuinely have that amount left each month?


Best advice I can give you is cut back where you can to gain more suplus - That was my aim and it worked, shame I didn't do it when I was 22!!!


Reduce entertainment - boring I know BUT you`ll thank yourself once your debtfree AND its not forever.
!
Reduce food shop - I feed 2 adults and 2 children on just over £200 a month!


Clothing - do you need new every month? I`m sure you've loads


Sell anything you have that you don`t need or use anymore - some make £1000`s selling things.


Your so young and seem very sensible, I`m sure you`ll do well.
Pop over to the deftfree forum for advise from those with similar debts/goals.


Good luck!

YoungBusinessman

Well yes and no. I do have it left over but who knows where it's been going!! Iv had a bit of loss of income being off work being up in court but it's payday tomorrow so will hopefully get Junes £1,000 paid. I can pay more but I think I need to save up a bit more of an emergency fund just incase. One thing about the SOA is my income is seasonal so next few months might be £4,000 PCM then over winter it will drop.

Can't see me cutting much off the food budget as I'm on a diet for working out, iv got a home gym with weights and punchbag that I plan to use more and more since it's free now everything is bought and it will help cut the £150 PCM entertainment budget. If I have it all down here it feels like it will be easier to stick to. Which challenges in the debt board are the best? Could do with all the support I can get!!

Thanks for your replies

Spirit_2

YoungBusinessman wrote: »

Thanks spirit. That's what my solicitor told me. He told me when he was 28 he never had a penny to his name, a house to live in or been abroad. Now he's got a house, holiday home and is retiring in 3 years at 60. He told me it will seem a distant memory aslong as I don't take my eye off the goal, the end debt free feeling. I was just hoping for some ideas on speeding it up a bit, I don't want to graft the next 2 years just to be paying off debt.

Well then put your back into it, live frugally and pay it off in a lot less than 2 years. Make a challenge of it so that it does not drag on and drag you down.

Some years ago, when I first found this site, due to redundancy and us not being able to reduce our (expensive) life style quickly enough we accrued over £60K of debt. It took us about two years to pay it off. We cashed in long term savings plans,sold things, spent a lot less,enjoyed being more careful/frugal. It was a different but not awful time in our lives. This site and this board was a godsend in motivation, keeping on track and inspiring stories from people who were doing well with a lot less money than we had.

It got us out of debt relatively quickly. Some years later we are absolutely fine, some money saving/lifestyle changes became permanent other cut backs did not.

gothrockchic1

Hi YB, I will second anything that has been said. But remember this is a blip in your plan the sooner it is paid off the better and then you can continue with your plans.

Maybe this is what you need to master a frugal life style to fund all of your plans.

All the best.
GRC x

115K

So sorry to read this, what a shock for you.xxx