Will we ever be debt free???

prozacthegigglefairy

Hi,I posted ages ago, but, and please dont flame me, couldnt face it at the time.Now, I am in a much better position financially and am ready to get debt free.This is how things stand, h2b and I are getting married in 8 weeks, a very very budget wedding, but something we felt we deserved and needed to do.I have been a Stay at home mum, but my youngest starts full time school in Sept.I passed my driving test in October, so have decided to look for a job which works around that and have got one, thankfully.I will post my SOA below, but as you can see, we will have a very good expendable income at the end of each month.Most of our debts are old ones, some 7 years old, which I think we should be having wrote off by now.In total we owe, c 30k.I am unsure whether to save the expendable income, in a high interest savings account and then when we reach our goal of 30k, approach the creditors offering a settlement, or, approach them now and offer payments, which may awaken old debts due to become statute barred.I am aiming to have the 30k in 3 years, saving 800 per month, (still leaves us with some to play with each month), or should I go for the rolling method, where we pay one, and use that money to pay another quicker...or do I go for the approach where save to pay one off at a time.....I am so unsure which to do.Our SOA is as follows.IncomeMy Income 800 per monthH2B Income 1200 per monthChild Benefit 120 per monthMaintenance 220 per monthTotal In 2340 per monthI am not sure what the Tax Credits will be, as they are currently calculating it.OutgoingsRent 340 per monthCouncil Tax 140 per month (including debt, which will be paid off in 6 months)Loan 90 per month (paid off September!)Gas 40 per monthElectric 50 per monthWater Rates 40 per monthHouse Ins 29 per monthCar Ins 45 per monthHire Purchase 107 per month (paid off Dec)Shopping 200 per month (we have learnt to be frugal with the weekly shop!)Petrol 80 per monthDental, Glasses, MOT and Car Tax we save 60 a month for.Union 10 per monthTV Licence 11 per monthInternet and TV £60 per monthTotal Out 1262Leaving us with an Expendable Income of 1078.This does not include bonuses etc, which we always use for xmas and Birthday presents, usually about £800.We aim to save as I said £800 a month, and use the rest towards a holiday and clothes etc.Adding to that will be any money we receive for our wedding, as a kick start to our debt free road.The wedding we have been saving for for 3 years, and has only cost £3k in total, and we have not accumulated any debt in doing so.As I said, just totally unsure what would be the best way to get rid of these debts...can any one advise???Thanks so much, PTGF

Sugarhunny1

Hi and good evening!

Could you edit your post and put in spaces, makes it so much easier to read!

Sugar xxx

prozacthegigglefairy

Sugarhunny1 wrote: »

Hi and good evening!

Could you edit your post and put in spaces, makes it so much easier to read!

Sugar xxx

Hi HunI did, and it has put it back to how it was...what have i done wrong??I am so useless at this type of stuffPTGF

prozacthegigglefairy

It has done it again!!

Sugarhunny1

prozacthegigglefairy wrote: »

Hi,I posted ages ago, but, and please dont flame me, couldnt face it at the time.Now, I am in a much better position financially and am ready to get debt free.This is how things stand, h2b and I are getting married in 8 weeks, a very very budget wedding, but something we felt we deserved and needed to do.I have been a Stay at home mum, but my youngest starts full time school in Sept.I passed my driving test in October, so have decided to look for a job which works around that and have got one, thankfully.I will post my SOA below, but as you can see, we will have a very good expendable income at the end of each month.Most of our debts are old ones, some 7 years old, which I think we should be having wrote off by now.In total we owe, c 30k.I am unsure whether to save the expendable income, in a high interest savings account and then when we reach our goal of 30k, approach the creditors offering a settlement, or, approach them now and offer payments, which may awaken old debts due to become statute barred.I am aiming to have the 30k in 3 years, saving 800 per month, (still leaves us with some to play with each month), or should I go for the rolling method, where we pay one, and use that money to pay another quicker...or do I go for the approach where save to pay one off at a time.....I am so unsure which to do.Our SOA is as follows.Income

My Income 800 per month
H2B Income 1200 per month
Child Benefit 120 per month
Maintenance 220 per month
Total In 2340 per month

I am not sure what the Tax Credits will be, as they are currently calculating it.
Outgoings
Rent 340 per month
Council Tax 140 per month (including debt, which will be paid off in 6 months)Loan 90 per month (paid off September!)
Gas 40 per month, this is high, can you change supplier?
Electric 50 per month as above
Water Rates 40 per month
House Ins 29 per month can you get a better deal?
Car Ins 45 per month as above
Hire Purchase 107 per month (paid off Dec)
Shopping 200 per month (we have learnt to be frugal with the weekly shop!)Petrol 80 per month any chance of cutting back? cycle?walk?
Dental, Glasses, MOT and Car Tax we save 60 a month for.
Union 10 per month
TV Licence 11 per month
Internet and TV £60 per month
Total Out 1262

Leaving us with an Expendable Income of 1078.

This does not include bonuses etc, which we always use for xmas and Birthday presents, usually about £800.We aim to save as I said £800 a month, and use the rest towards a holiday and clothes etc.Adding to that will be any money we receive for our wedding, as a kick start to our debt free road.The wedding we have been saving for for 3 years, and has only cost £3k in total, and we have not accumulated any debt in doing so.As I said, just totally unsure what would be the best way to get rid of these debts...can any one advise???Thanks so much, PTGF

I would suggest paying one debt off at a time and snowballing, this should keep you motivated and be able to keep focused.

Hope you have a lovely day when it arrives!

Sugar xxx

prozacthegigglefairy

Thanks for replyingThe gas and electric are on a meter paying off an old debt.Our home insurance is up for renewal next month, so may be lowered, hopefully and the car insurance is high because I am classes as an inexperienced driver, as I only passed in October..also that is with my partner on there, and is fully comp, with protected no claims.The petrol can't be cut back, as my job involves driving around from one patient to another, so not able to reduce at all, but considering the miles I do weekly, it is very low.Thanks againPTGF

Sugarhunny1

Hopefully my post makes it easier to read! Someone who has more knowledge on things will be along shortly.

Forgot to say... congrats on getting the job. It'll give you a whole new outlook on life and just being back in the workforce is so motivating and uplifting! I was a stay at home mum for years and getting back out there was so liberating!

Sugar xxx

prozacthegigglefairy

Thanks hun,It has given me a new lease working again and I am lucky that the hours mean no childcare fees, and family have offered to help too through school holidays.

tealady

When you renew your insurances don't forget to go via a cashback site, it could save you pounds.

prozacthegigglefairy

Oooh...I have never heard of a cashback site...which one should we use, as they both up for renewal next month

slowlyfading

www.quidco.com is a good one for cashback - you can get quite a bit back from insurance and things x