Hi I'm new here :wave:

thriftyandfabulous

Hi everyone,

Apologies if this is in the wrong place but this is my very first post. I've joined the forums after having a browse through some of the debt free diaries and it has really inspired me to think about my totally irresponsible attitude towards money and clear my debts (I think it's referred to as a light bulb moment on here?). I have debts totalling around £6000 but they re all very high interest debts as I've had a bad credit rating for as long as I can remember. I left home at 17 having had my first child and have gone on to have 4 more children and start and finish my degree.

I plan on starting a diary in the new year and have been thinking of ways I can save/make money. Here are my plans so far:

- Complete an SOA including everything
- keep a spending diary of absolutely every penny I spend
- join all the survey and cash back sites
- meal plan and try to keep my food costs as low as possible
- Any surplus from my food/fuel budget at the end of the month goes straight off one of my debts.

Any suggestions on other things I can do and keeping motivated would be hugely appreciated.
Thanks

EssexHebridean

First thing is definitely an SOA - you'll be surprised where people can find savings for you if you post it on here, too! Great start with those plans too - well done and congratulations on your LBM!

thriftyandfabulous

Hi, thanks for replying . I'll get onto an SOA at some point today - I'm currently being attacked by a very energetic toddler! Thanks again

lambda

Hi!

Don't worry you've come to the right place, and a big well done and congratulations on your first step to tackling this, and don't worry - all debt problems have a solution!

Get your SOA up and let's take it from there!

thriftyandfabulous

Thanks Lambda. Have to admit I'm slightly worried about posting my SOA as my debts are all high interest and I'm embarrassed by it all really. But I know that honesty is the first step in dealing with all this so I guess I'll just have to bite the bullet

lambda

No need to be embarrassed. People won't judge you. What's happened has happened and you have done the right thing to face it. :T

EssexHebridean

Yep - exactly what Lambda said - I bet you we'll have see (A lot!) worse! :rotfl:

Willowpop

Welcome to the forum!!:beer:

Please don't be embarrassed...even if you had the highest debt this forum has ever seen (you don't), with the worst APR's (I'll bet there's been higher rates than what you have), just think of how inspired you've been by reading other people's diaries/ threads...yours will become one of them inspiring stories to someone else, and might just be the very thread that is the turning point to someone else getting out of debt.
Get that SOA posted.

Megano

That lightbulb moment is terrible isn't it? You've taken the best step in the right direction. Onwards and upwards.
Don't worry about your SOA, take a deep breath and go for it!
When I figure out how to subscribe to diarys I'll subscribe to yours

eco

When I first started I was a bit overwhelmed by all the info on this site, but make changes one step at a time, and you will soon be making progress

thriftyandfabulous

Okay here is is...*hangs head in shame*. I plan to start my new thriftiness and paying more than the minimum in February as I have done my usual getting into lots of debt to pay for Christmas (prior to lbm- in fact I think that contributed to it) and have a payday loan to repay in January. So January will be spent paying that off and preparing for the challenge by stocking the freezer etc. However, from this point on, I will not spend a penny more on credit, so these figures will remain accurate. I want to tackle the vanquis card first because it has had the same balance for over a year despite making minimum payments. Any suggestions welcome


Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 5
Number of cars owned.................... 2


Monthly Income Details
Monthly income after tax................ 2331.74
Partners monthly income after tax....... 650
Benefits................................ 0
Other income............................ 300
Total monthly income.................... 3281.74


Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 184
Rent.................................... 430
Management charge (leasehold property).. 0
Council tax............................. 50
Electricity............................. 90. (This is dual fuel and includes arrears)
Gas..................................... 90
Oil..................................... 0
Water rates............................. 44
Telephone (land line)................... 40. (Includes broadband)
Mobile phone............................ 80. (Mine and my partners - both in contract for another 14 months )
TV Licence.............................. 12.12
Satellite/Cable TV...................... 87. (I'm going to call tomorrow and try to negotiate this down a bit. I do see sky as essential having 5 children and 1 with autism who likes to watch particular shows)
Internet Services....................... 0
Groceries etc. ......................... 610. (This equates to £140 per week for a family of 7)
Clothing................................ 50
Petrol/diesel........................... 220. (£50 per week)
Road tax................................ 32
Car Insurance........................... 100
Car maintenance (including MOT)......... 40
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 40. (Nappies, wipes, etc)
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 30
Buildings insurance..................... 0
Contents insurance...................... 18
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 120. (£100 of this goes to park, we have a large family so I need to budget for this - I didn't this year and have gotten into a mess because of it)
Haircuts................................ 20
Entertainment........................... 50
Holiday................................. 50
Emergency fund.......................... 30
Dinner money............................ 96
Student loan............................ 25. (Additional payments due to a grant overpayment)
Kids Activities......................... 60. (Includes 2 sets of football subs and a ballet class)
Total monthly expenses.................. 2698.12


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 6000
Other assets............................ 0
Total Assets............................ 6000



Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 7000.....(184)......29.9
Total secured & HP debts...... 7000......-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Vanquis........................350.......25........0
Capital One....................200.......25........0
Aqua...........................100.......15........0
Studio.........................100.......20........0
Grattan........................460.......35........0
Brilliant Gift Shop............650.......65........0
Avant Loan.....................2200......150.......0
Mobile Money...................3000......238.......0
Total unsecured debts..........7060......573.......


Monthly Budget Summary
Total monthly income.................... 3281.74
Expenses (including HP & secured debts). 2698.12
Available for debt repayments........... 583.62
Monthly UNsecured debt repayments....... 573
Amount left after debt repayments....... 10.62

Personal Balance Sheet Summary
Total assets (things you own)........... 6,000
Total HP & Secured debt................. -7,000
Total Unsecured debt.................... -7,060
Net Assets.............................. -8,060