Sooz's Debt Free Challenge

sooziesooz

Morning,

Have been thinking about seriously tackling the debt I’ve built up for some time. I try and do it sporadically but always end up falling off the wagon. My OH and I are currently renting and looking to buy somewhere early to middle of next year. At the same time we’re trying for a baby so I really want to be a DF as possible for when the time comes. We’re also looking forward to relocating closer to my parents when we have a family as this will mean cheaper child care costs (my mum’s a saint:A ), better family support/network, and more house for our money!

I’ve got quite a bit of money tied up in an investment bond but that doesn’t mature until 2010. Also I’ve lent my sister 15k which she has yet to pay back. (see my other posts for a rant on this one:mad: ) We’re expecting her to pay that back (or part of) at the end of next year.

I think starting a diary means that I’ll be much more effective at getting things sorted.

The inspiration from all your diaries is wonderful. I’m even going to try and get my OH on board and really go on an economy drive to try and cut things down.

Right SOA is as follows:

Income £2600
OH Income £1400
Rental Income £550

Total = 4055

Outgoings
Rent - 950
Mortgage - 488
Council Tax - 140
TV Licence – 11
Gas – 20.00
Electric – 20.00
Water – 30.00
Sky – 50.00
Mobiles (x2) - 65
Food - 300
Pet Insurance – 33.00
Car Insurance (x2) – 75.00
Home Insurance (Rented House) – 29.00
Home Insurance (Our House) – 18.00
Blockbuster – 14.99
Debt Payments – 330.82
Smoking – 100
Clothes/Magazines – 200
Birthdays/Holidays/Car Tax etc - £100
Petrol - 50

Total Outgoings = £3024

Debt
£30.96 Barclaycard
£4010 Halifax One (0% until end November 2007 – Minimum Payment £80)
£280 Dyson (0% if paid off by 18/08/07 - mustn’t forget this one!)
£2000 (?) Egg Card (?% - minimum payment £20)
£1050 (Approx) (Sharpes Wardrobes (0% - £33 a month until May 2010)
£5500 Northern Rock Loan (? - 181.86 a month until 2009)
£77 Debenhams Store Card (Am going to pay and close this one when I’ve finished this email!!!!!!!!!!)
£3030 Barclays Overdraft (OUCH)

Total Debt = 15977.96 :mad:

Recent successes – we’ve just paid off £2000 from my OH CC and closed these as they were on really high interest rates and thought it would be best to tackle these first.

There’s clearly some surplus in our incomings and outgoings but I just don’t know where the money goes! I’m sure it’s coffees on the way to work, lunches from nice sarnie shops and just general crap we believe we need. I’m really focused on getting this down to <10,000 by the end of the year and pretty much gone by the end of next year. Is that unrealistic?

Any advise on where to save and be smarter will be greatly appreciated.

Wish me luck!!!!

sooziesooz

First win of my Debt Free Challenge......no more Debenhams store card - have paid it off and closed the account!!!!

floss2

Start a spending diary - it will help you track theose missing £'s!

Also, can you pay the Dyson off asap, then you won't forget it - and 18th is a Satruday so they may count the payment as late if you make it on that date as it isn't a working day.

How many are you feeding on £300 a month? Get over to the Old Style board for money saving housekeeping ideas.

sooziesooz

I'm ashamed to say that it's just me and the OH and a german shepherd to feed. It's the convenience aspect that's pushing the price up and a lack of planning on my behalf. We haven't done a weekly shop this week so will spend some time planning our meals for the next week.

sooziesooz

Spending diary starts today - thankfully I haven't spent anything yet and have been super organised and brought my lunch to work today.

I'm going to pay the Dyson off in the morning as it's one of those deals where if you don't pay it within the year then they lump enormous interest onto your original purchase. I'll end up paying something like 800 quid for a 275 vacuum cleaner !!!!

MrsTinks

Haven't read your other posts about the money your sister owes you I'm afraid BUT... her debt to you is about the same as what you owe on your own debts! YOU are paying HER debt! You're paying the interest and she's getting free money! I would suggest you put into place some sort of repayment plan for her - I know she's your sister but right now you need to look at how much your debts are costing each month (the APR% etc) because this is what you are in effect PAYING her every month...
Can she not take out a loan to pay you what she owes?

sooziesooz

Tine,

My sister got herself into a lot of debt at a time when I was relatively flush. She was unable to tell her husband as they were going through a really tough time. She was going to lose everything unless I bailed her out (she's my sister and I couldn't say no). Suffice to say she didn't tell her OH about the debt however has promised to pay me back when she qualifies as a teacher next Sept by getting out a loan.

I know that it's a terrible situation but I really can't upset the applecart with her and place her in an awful situation with her OH.

It get's me riled just even talking about it - hence my rant on MSE about it!

MrsTinks

OK found the thread... I would put my foot down with her I'm afraid and set up a repayment plan and frankly I'd charge her some interest too! £15k!
How much does she earn? Can she afford to repay a lump sum/take out a loan/repay at £500 a month? At £500 a month she's looking at 30 months to repay the full loan - And frankly I'd expect her to pay more than that! As an example... if she had borrowed that money from a bank at 9%apr (If she has a good credit rating she can get this) and then repayed £500 a month the interest alone in this perid would cost her £1916! This is month YOU are paying because you're in debt to lend this money to her...

MrsTinks

LOL cross posted sorry

OK I can see why you did it. But you said yourself she's been spending hand over fist. If the worst should happen and she runs up more debts then as family with an unoficial credit agreement you will not even rate on the creditors list should she go bankrupt... I'm looking at just worst case scenarios here
I know she's your sister but £15k is a lot of money and if I were you I'd certainly start looking at asking her to curb her spending and maybe make some repayments to you...
I know where you're coming from... I lent my dad a large amount fo money a long time ago, thought I could afford to do so, but in retrospect it ended up costing me a lot of money as I then ended up in debt thanks to my OH at the time...
Anyway - other possible solutions... What kind of penalties would you get for ending some of your investments early? Would it be worth doing?
Otherwise get your butt over to the OS board and let's have a look at reducing that £300 a month

madmoney_2

sooz i know where you are coming from, my sister owes me 1000, it would relieve me of that bleedin overdraft if she paid it bk, but like ur sister, she hasnt told oh about it so its untouchable at the mo

duchy

A few trimming ideas
Dog food-are you buying this is bulk with a monthly delivery ? Even if you do this monthly from Tesco you may save. Plenty of on-line suppliers too if you use a brand Tescos don't stock.
Sky-do you honestly watch all the channels you pay for ? If not-cut back-or ring them and tell them you are thinking of moving to Virgin and can they better your current deal (actually do this even if you plan to cut the channels)
Blockbuster-check out the deals for video services on Quidco. Looks like you can get a better deal-and cashback too.
Food shopping. I find on-line shopping works for me-but only if I stick to once a week-and no nipping out for "a few bits" in between. For me a few bits usually means £20-lethal !
Clothes/ Magazines Obviously you could trim the clothes budget-and magazines...back to Quidco for magazine subs for the "must haves"
Insurances-Quidco for cashbacks as they become due
Mobiles....worth a call to see what current offers are going even if your contracts aren't up soon and if they are...back to Quidco (sorry this is getting repeative )
These are just ideas to get you thinking where trims can be made-I think you might be quite surprised and spurred on to see what more than just trimming could do.
You're right about the coffees and the nice sarnies -a spending diary will be a bit of an eyeopener there !
I think you've got a lot to be saved there and could make your end of year target once you start number crunching and see where it's all going.