Finally Getting Debt Free

CountZero

After nearly a year and a half I'm back for an update. It appears getting of of debt lark isn't as easy as I'd thought!

I slipped up last year and fell back to the same level of debt as when I started this journey :eek:

The 0% credit card I balance transferred my debt too proved part of my undoing as while I was paying off my bank loan I ended up moving the debt across to the new card. Beware, when you open up a new card they will set the limit far higher than the balance you've moved across!

I got serious about clearing the debt around summer last year and have knocked it down from £12,000 to £7000 in the last 7 months.

It's so easy to take your eye off the ball and fall back in to old habits. Writing this up to give myself a debt free date of October. I should be getting a windfall of £3000 in August which will help towards paying this off. That leaves me 7 months to clear £4,000. Averages out at £570 which is also nearly exactly the number the SOA calculator says I have free.

Been fairly generous with the 'Entertainment' budget though this covers all the random day to day expenses too an acts as a buffer. Still going to keep my Sunday roast and a few bottles of wine a week or I'l go mad!

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 2438
Total monthly income.................... 2438

Monthly Expense Details
Mortgage................................ 640
Management charge (leasehold property).. 70
Council tax............................. 73
Electricity............................. 25
Gas..................................... 25
Water rates............................. 30
Mobile phone............................ 13
Internet Services....................... 24
Groceries etc. ......................... 200
Clothing................................ 20
Petrol/diesel........................... 10
Road tax................................ 10
Car Insurance........................... 20
Car maintenance (including MOT)......... 20
Car parking............................. 10
Presents (birthday, christmas etc)...... 30
Haircuts................................ 15
Entertainment........................... 450
Holiday................................. 30
Total monthly expenses.................. 1715


Assets
Cash.................................... 300
House value (Gross)..................... 255000
Car(s).................................. 1500
Other assets............................ 0
Total Assets............................ 256800


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 146000...(640)......2.85
Total secured & HP debts...... 146000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Halifax CC (0%)................1870......30........0
Barclays CC (20%)..............4164......100.......20
Overdraught....................1000......10........12
Total unsecured debts..........7034......140.......-


Monthly Budget Summary
Total monthly income.................... 2,438
Expenses (including HP & secured debts). 1,715
Available for debt repayments........... 723
Monthly UNsecured debt repayments....... 140
Amount left after debt repayments....... 583

Personal Balance Sheet Summary
Total assets (things you own)........... 256,800
Total HP & Secured debt................. -146,000
Total Unsecured debt.................... -7,034
Net Assets.............................. 103,766

copperman05

I'm not sure your really committed to this. Your yo yo'ing with your debt, like Dave Ramsay says you can wonder into debt but you cant wonder out. Have you started a budget? I've found a lot of success with YNAB, its really gets you in control of your monthy cash flow, it pretty much stopped my frivolous spending over night.

Your groceries is £200, how many is that for? I budget £80 for the month for 1.
£450 on entertainment? whats this? You want to get out of debt, so you need to stop this sort of spending.
For me I think you have to attack the debt with all you can throw at it, half hearted effort gets half hearted results (as you have found out). Time to make a plan to properly attack your debt, look at every penny you spend, and throw as much as you can, each month until its gone. Until then your just throwing money after money away on interest, etc.

Other than that...At least you came here for a check in!

CountZero

So after nearly two and a half years and a couple of slip-ups I've finally cleared all of my debts and even have a the best part of a £1000 in savings :j

It's taken far longer than I expected and has been much harder than I thought it would be. Copperman is bang on with his earlier post - you need to be comitted.

It tough to spend several months saying no to everytihng and seeing your debt drop by such a small amount (at least initally). So easy to get back inot bad old habbits and see all your work undone.

Bi thanks to the board and all the members on here :beer: