My Debt free diary

DebtFree2020_2

ok, hope u dont mind me setting up this thread but i have decided to log my story

Basically, i am a 35 year old guy who has had a lot of problems in the past, i am now seriously in debt and am now decided that i have set an objective to be totally debt free by 2020,

Firstly, i currently have no savings and i dont own my own house

My current debts are

Electricity from Previous Address (£730.00 Payment plan arranged at £5 a week)

Welcome Finance Loan (£4255.00 Payment plan arranged at £5 a week)

Payday Loan (£532.50 Payment plan arranged at £7.50 a week)

Halifax Account Overdraft - Old Account (£465.00 Payment plan arranged at £5 a week)

Dad - Bail out from before (£6185.00 currently paying him £10 a week)

Credit Union Loan (£1893.16 Currently paying £43 a week, this gets deducted from wages straight away)

I do not drive or smoke

I have just opened a saving account and am aiming to pay rent, council tax, food shopping and these payments each friday and then transfer all other available funds into saving account, this will then be used to pay telephone and tv bill and also if i build up enough will start paying off debts in full, hence why i set payment plan so low

I am aiming to be completely debt free by December 31st 2019 so i can start 2020 entirely debt free

MrBloater

Good luck mate. This is a brilliant place to post as you will get invaluable support and advice from many folk who are, or have been, in the same boat you find yourself. Someone will come along in a minute with some more specific advice but let me be the first to welcome you - I've been here for years and it has changed things for the better massively.

DebtFree2020_2

all debts are with debt collection agencies and all are final balances so no interest will be applied, am thinking there are 49 weeks left until 1st january 2016 so if i raise payments up, i should be able to clear electric, payday loan and halifax overdraft by January 1st 2016, the credit union loan would then be paid off a couple of weeks later so 2016 i would have an extra £60 a week, i would then hopefully use this to raise up payments to dad and welcome finance, to then get them paid quicker as otherwise at £5 a week it would take me 16 years to pay off welcome and at £10 a week to dad would take me 12 years to pay my dad off, one thing is it worth increasing monthly payments each week or paying the usual amount and then putting the extra money in a saving account and paying it off in a lump sum at end of 2015

DebtFree2020_2

30/01/15

Ok firstly there was a bit of an error with wages this week, last week i applied for a top up on my credit union loan to pay off a bill and this week they took original payment i was paying on previous loan £46 as well as the new payment which they set at £45, (£43 a week loan, £2 a week savings) Only positive thing is when they took £43 payment the other £48 went into my savings so i will get it paid off a week earlier lol,

Anyway here is my running totals for this week

30/01/15

Deductions already made from wages

Credit Union 1 - £91.00
Credit Union 2 - £26.00

Bank Opening Balance + £33.68
Wages paid in - £133.14

Total Balance + £166.82

Deductions and Balances

Deducted from wages before payment

Credit Union 1
Old Loan Balance £1893.16 - Savings £27.00
Credited £91.00
New Loan Balance £1858.87 - Savings £75.00

Credit Union 2
Old Loan Balance £0.00 - Savings £57.55
Credited £26.00
New Loan Balance £0.00 - Savings £83.55

Deductions after wages received

Electricity - OB £730.00 - Paid £5.00 - NB £725.00
Welcome Finance Loan - OB £4255.00 - Paid £5.00 - NB £4250.00
Payday Loan - OB - £532.50 - Paid £7.50 - NB £525.00
Halifax Account Overdraft - OB £465.00 - Paid £5.00 - NB £460.00
Dad Bail Out - OB £6185.00 - Paid £10.00 - NB £6175.00

Total Paid out after wages received - £32.50

Balance - £166.82

Paid Out

£80.77 Rent
£20.00 Shopping
£32.50 Debt Payments
£8.00 Lottery

Total Paid out - £141.27

£166.82 - £141.27 = £25.55 Remaining

£25.54 Transferred into savings Account

New Balances

Current Account Balance £0.01
Savings Account £25.54