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

gothrockchic1

Hi YB I hope you are ok and all is going well x

YoungBusinessman

Thanks for the message goth rock chick. Not much happening, iv taken delivery of my new motor(I know a lot of you will think !!!!!!?!?) but deposit was paid in February and to custom spec, cost 22k, about 11k is finance.....was told I could lose deposit/part of deposit if I cancelled so I took the motor as planned. Ordered and paid for this before any court action.

So I'm now looking at 36k with 1,300 payments. However, I refuse to give up. I will defeat this. I'm going to up the 1,300 as much as I can and work at it one day at a time. Please don't judge me, a lot has gone on, I know I can beat this. Payday on Friday to look forward to, every single penny has a home(I know where it's all being spent, debt!!!) first pay in a month covers bills and second pay all goes to debts.

Hard work will get me out of this mess, I need a new SOA. Goth rock chick il pm you over the weekend, thanks for your support x

slowlyfading

Hard work and determination will get you there - don't lose hope

YoungBusinessman

Absolutely slowly fading so hopefully a few of use stick around for the journey as who knows what might happen but this will take at least 2 years!!! Aslong as I can pay all my bills for next 2 years and get debt free il be happy as il still only be 25 and iv got my mortgage fixed deal up at the end of 2017! So needing debt free except mortgage so I can save all of 2017 to buy another place!!! So optimistic right now despite so many set backs!!!

gothrockchic1

Hi YB, so glad your ok. :j

I think you are best to take the car financially and once all the debts paid you can buy a bigger and better one. :rotfl:I am rather jealous though, I love cars!

I really love your spirit and determination keep pressing on :A

YoungBusinessman

Well I'm about £37,000 in debt now....with a really good motor and £90k mortgage on a £122k property with one months expenses in the bank(£2,600) I'm going to pay £1,500 a month minimum to this, meaning with interest taken into account I will be below £20k by the end of next year. Then I shall see about maybe a 2/3 year manageable payment. Throughout this time i will save up a good emergency fund aswel. Just the way I want to deal with it. Knowing if I miss a months income I am screwed should be enough to spur me on and build up that buffer.

Emergency fund built slow and steady, £1,500 a month to service the debt and a hell of a frugal life with a "treat" at every £3/4k paid off as to not lose focus and keep motivated.

Nights out are one thing that need knocked right on the head.

As of this moment in time I have 32 months until my debt free date(minus the mortgage) really I have 39 as that's when mortgage is up for renewal as I want to be debt free by then so can look to taking on another property and work on my wealth, never want to be in a situation like this again. Thanks for your nice comments messages and support.

patman99

Good luck with your journey. It looks like you have a good plan there.
Once you have knocked the Court costs and car loan on the head, there is nothing stopping you over-paying on the mortgage once you have a new deal in place (remember, nothing to stop you looking around for a better mortgage deal once your current one is up. I have done this 5 times and now have a baserate+0.16% tracker).

girlatplay

YoungBusinessman wrote: »

Nights out are one thing that need knocked right on the head.

Nights out are not the be all and end all. I know you're young and I know that it is good to get out and socialise but when you look back and think of the money wasted it is not so much fun. At least you are figuring that out early though

You have a good vision. Work hard and save hard. We all know you can do it and we are routing for you

YoungBusinessman

Nights out are my main downfall though it's one think I can knock on the head and see almost instant savings. Work hard,save hard, that's definitely a Moto for me to live by. Am I right in saying if I'm £37k in debt, at 23% apr, if I pay £1500 a month until end of 2015 so 16 months then I will have £24k paid minus interest so over £18k paid off? Does that make sense?

YoungBusinessman

Well I'm feeling ever so optimistic this week for some reason, really motivated at work. If only I was always this motivated the debt would be gone in no time!! Actually feeling excited for 6 day working weeks and frugal living knowing I'm working towards debt free so I can then move up the property ladder. Getting wealthier everyday that goes by so getting closer to debt free all the time.

Must admit I have already considered downgrading the motor so I can knock a few thousand off the balance outstanding. Will have a think!! Excited for payday now just to start hammering down this debt and build an emergency fund!