My journey to being debt free!

chrisjdw

Hello Everyone,
I have been a lurker for a long time and only signed up recently. I am finally going to give myself a kick up the backside and work towards being debt free. Bit of background, I am 22 years old, in full time employment and have some debt that needs sorting!
My debit is listed below.
Barclays Overdraft: £2000
Halifax Credit Card: £2275
Barclayloan: £1500
First Direct overdraft: £500
CapitalOne credit card: £190
Total: £6465

Here is my SOA done as accurately as I can!

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................ 1148
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1148

Monthly Expense Details
Mortgage................................ 224
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 79
Electricity............................. 50
Gas..................................... 20
Oil..................................... 0
Water rates............................. 30
Telephone (land line)................... 15
Mobile phone............................ 55
TV Licence.............................. 14
Satellite/Cable TV...................... 65
Internet Services....................... 40
Groceries etc. ......................... 100
Clothing................................ 15
Petrol/diesel........................... 50
Road tax................................ 0
Car Insurance........................... 63
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 11
Contents insurance...................... 9
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 10
Entertainment........................... 50
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 910


Assets
Cash.................................... 0
House value (Gross)..................... 90000
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................ 4000
Total Assets............................ 95000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 49100....(224)......3.2
Total secured & HP debts...... 49100.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Barclayloan....................1500......63.21.....14.9
Halifax Credit Card............2275......40........0
CapitalOne CreditC.............191.9.....6.........38.9
First Direct O/D...............500.......5.........0
Barclays Overdraft.............2000......40........0
Total unsecured debts..........6466.9....154.21....-


Monthly Budget Summary
Total monthly income.................... 1,148
Expenses (including HP & secured debts). 910
Available for debt repayments........... 238
Monthly UNsecured debt repayments....... 154.21
Amount left after debt repayments....... 83.79

Personal Balance Sheet Summary
Total assets (things you own)........... 95,000
Total HP & Secured debt................. -49,100
Total Unsecured debt.................... -6,466.9
Net Assets.............................. 39,433.1

Any tips and help will be very much appreciated, I always find myself having no money left due to silly spending so i have done my SOA on the things i have to buy. The other things will now stop.
Thanks in advance

ChrisW

chrisjdw

No ideas you clever lot?

mum2one

chrisjdw wrote: »

Hello Everyone,
I have been a lurker for a long time and only signed up recently. I am finally going to give myself a kick up the backside and work towards being debt free. Bit of background, I am 22 years old, in full time employment and have some debt that needs sorting!
My debit is listed below.
Barclays Overdraft: £2000
Halifax Credit Card: £2275
Barclayloan: £1500
First Direct overdraft: £500
CapitalOne credit card: £190
Total: £6465

Here is my SOA done as accurately as I can!

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................ 1148
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1148

Monthly Expense Details
Mortgage................................ 224
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 79
Electricity............................. 50 - [
Gas..................................... 20
Oil..................................... 0
Water rates............................. 30 -are you on a meter?
Telephone (land line)................... 15
Mobile phone............................ 55 -could you look at going down a level, seems a bit high
TV Licence.............................. 14
Satellite/Cable TV...................... 65 -do u need all the programmes
Internet Services....................... 40 - High - would you not be cheaper grouping them all together
Groceries etc. ......................... 100
Clothing................................ 15
Petrol/diesel........................... 50
Road tax................................ 0
Car Insurance........................... 63
Car maintenance (including MOT)......... 0 - you should have something here
Car parking............................. 0 - should have at least £5 here
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0 - no check ups at dentist?
Pet insurance/vet bills................. 0
Buildings insurance..................... 11
Contents insurance...................... 9 - would you not be cheaper combining
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 10
Entertainment........................... 50
Holiday................................. 0 - not even days out
Emergency fund.......................... 0 - should have at least £20 in here
Total monthly expenses.................. 910


Assets
Cash.................................... 0
House value (Gross)..................... 90000
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................ 4000
Total Assets............................ 95000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 49100....(224)......3.2
Total secured & HP debts...... 49100.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Barclayloan....................1500......63.21.....14.9
Halifax Credit Card............2275......40........0 - how much longer are u on the 0% rate for
CapitalOne CreditC.............191.9.....6.........38.9
First Direct O/D...............500.......5.........0 - are there any charges on this account
Barclays Overdraft.............2000......40........0
Total unsecured debts..........6466.9....154.21....-


Monthly Budget Summary
Total monthly income.................... 1,148
Expenses (including HP & secured debts). 910
Available for debt repayments........... 238
Monthly UNsecured debt repayments....... 154.21
Amount left after debt repayments....... 83.79

Personal Balance Sheet Summary
Total assets (things you own)........... 95,000
Total HP & Secured debt................. -49,100
Total Unsecured debt.................... -6,466.9
Net Assets.............................. 39,433.1

Any tips and help will be very much appreciated, I always find myself having no money left due to silly spending so i have done my SOA on the things i have to buy. The other things will now stop.
Thanks in advance

ChrisW

I've popped a few thoughts in, yes on one handd I have made suggestions which would increase your spend, but hopefully saving can be made.

Sometimes its the little things in the house, - not leaving equipment on standby, leaving phone on charge overnight, turning lights off.

It may be worth keeping a note book and list all spends, then see whether its dripping through on odds and ends xx

MallyGirl

I would be throwing every spare penny at that capital one CC - 38.9% APR is nasty. At £6 per month you aren't even covering the interest that is being added so you will never pay it off if you carry on this way. A couple of really frugal months could see that paid off.

If you aren't on a water meter I would consider switching to one. I pay less than you with 2 adults, a teen and 2 big dogs that love mud.

andyfromotley

Hi Chris,

according to your SOA you are solvent. Yet you have thousands in debt? How was this built up? If it was just general overspending then your SOA is inaccurate and may represent a wish list rather than an accurate picture of your spending.

Get on a budget. I use YNAB but there are many others out there. Your budget is king. you must know what every pound is doing and stick to it religiously! Plan for everything and no spending if you don't have the money put aside for that purpose.

You have no emergency fund. This will mean that any unplanned for expense will destroy your plans and your budget. You cannot make progress like this. Try to build one of between £500 and £1000 ONLY for genuine emergencies. (Birthdays, Christmas, nights out, car tax etc are not emergencies!) I normally say that this should be built up first as it really does revolutionise your financial position. However in this case you MUST kill that Capital One its horrendous. Live like a monk in order to see of this debt in super quick time.

You live alone and have no kids, do everything you can to increase your income. Pay rise, promotion, overtime, new job. Second job - bar work, weekend work, cleaning, ironing, car washing ANYTHING. Get that income up. Every penny you earn throw at the debt. even a THIRD job. It will be short term and you can crush this debt in double quick time. Your debts are relatively small, with hard work and determination you can get rid of them quickly. Imagine your life debt free! You can do this so get to it!

chrisjdw

Hi Guys
Thanks so much for the help and support!
This month will be my first really trying hard and cutting back, I got paid yesterday and so far I'm doing well!
My SOA is what I will be working off so my plan of attack is this.
Clear capital one asap, I've put £200 aside from my pay so i will be attempting to clear that one this month but I do have some car repairs to do so that might wipe some of that, but I'll be taking some off for sure.
I've got an android box arriving for my TV and sports over the next couple of days so I'll be cancelling my sky which could be a hassle but due my past experience being in complaints and ombudsman servicing plus the my current one in the banking industry I'll be cancelling without penalty (trust me )
I am going to be trying to wipe £200 a month from debt and working overtime to try and make that £400/500 a month.
Capital one first
Then overdraft
Then loan
Then Halifax as its interest free at the moment!

andyfromotley

don't forget your emergency fund.

My_Lovely_Carrot

Hi, do you have a spare bedroom that you could let out. This would be tax free and provide you with extra money per month.

chrisjdw

Hi there carrot,
it's something im looking into as it could provide me £240 a month! Will keep updated when i get that third bedroom painted and set up for a lodger