New Wannabe - my progress updates

seancollier

Hi! I'm 23 and I've just calculated I owe £27,117.40. I have just moved into my first mortgaged home and so I'm suffering the effects of never having any spare cash. I've had my lightbulb moment and realise I need to do something about it so, heres my breakdown!...

Income
Salary £1505.76 after tax
Extras £100 approx in Mystery shopping and profit on employers mileage

Total Income £1605.76


Outgoings
Mortgage (50%) - £325
Home Insurance - £11.94 until May 08
Council Tax - £52.50
Gas - £15
Electricity - £15
Water - £20
TV Licence - £11.50
Sky - £20
BT - £5.50
Mobile - £55
Food - £150
Gym - £45 (in cancel. period until end Oct)
Car leasing - £326.27 - Lease ends 12/01/08
Car Insurance - £80.81 - Jan
Diesel - £40
Business Subscriptions - £15

Debts
Loan - £242pm - bal £5574.97 repay date June 09 (7.9%)
Student Loan - approx £6k remaining, not currently repaying (4.6%)
CC 1- £5102.75 @ 16.9% (some 0% but spend on after bal trans). Limit £9000
CC 2- £3473.15 @ 6.95% for life - Limit £3700
CC 3- £3100approx. 0% just ended. 16.9% - Limit £3500
CC 4- £409.57 - 0% until Nov 07 - Limit £500
CC 5- £456.96 - 16.9% - Limit £1650
Overdraft 1 - £1500 ([EMAIL="1000@16.4%"]1000@16.4%[/EMAIL], [EMAIL="500@0%"]500@0%[/EMAIL])
Overdraft 2 - £1000 @ 17.4%

Total Debt: £27117.40

Income: £1605.76
Outgoing: £1706.50

That means I spend more than I earn but I am working on the following to improve this...

I have the leased car which I got for work in my last job. In my new job, I don't do any where near the mileage I used to and I don't get a car allowance. This car is to be returned in Jan 08 (cant return before). My old car (which is also financed on a private HP deal) was borrowed to a friend for the past year who was going to lease one. I hired him mine and I will get it back in Jan 08. Complicated I know! He will stop paying the HP to me, and I will continue to pay £248 a month. So I'll be saving £80 by reverting back to that car!

I've cancelled my gym membership, the last month for payment is October.

I've changed mobile providers, from £55 to £33 per month and should receive my new phone in a few days. The old phone is going to go on eBay and should sell for about £65.

So my main aim now is to chip away at the higher interest card first. Don't think I can get a new card to Balance Transfer at the moment so I'll keep my eyes pealed for existing customer deals from my current suppliers and see how it goes. I can get cashback from one of my cards so think I'll clear the balance (£400) and start using that where possible.

I've also opened a Quidco account, and use Vouchercodes.com where possible. A step in the right direction I'm sure!!!!

I look forward to being a proud debt-free wannabe!!!!!

mrsspendalot

Hi and welcome

Your food bill could be reduced a bit. I spend that on a family of 5. Pop over to the oldstyle board for tips on cheaper ways of eating. Also you house insurance looks high. I just renewed for £6 a month through Lloyds TSB and got £120 cashback through quidco too.

seancollier

Thanks mrsspendalot!

My home insurance isnt due until next May and it's because a) I live in a flood risk area, b) a new house so unestablished postcode area and c) it's my policy!

I will be cutting down on the food spending too, as there is only 2 of us in the house and it wil be an incentive to eat a little more healthly anyway!!!

I hope to keep this updated on a monthly basis, if only for my own amusement and measuring purposes!

MissKJ

Welcome to the forum Seancollier, sounds like you know what you are doing. Good luck and keep at it!

Lavendyr

Hello Can you get rid of Sky? Freeview is pretty good and it's free!

Food is very high for 2 but as you say you can drop that:
- Cut out any alcohol or keep to absolute minimum (give yourself a weekly budget and stick to it)
- Pasta and rice is dead cheap, and you can do a lot with canned tomatoes, a bag of frozen mince and some herbs/spices!
- Buy fruit & veg at a local market towards the end of the trading day for some very cheap produce

Cancel the gym as soon as you can, you can do free exercise (jogging, or exercise DVDs).

Car insurance is quite high, even for a 23-year old presumed male - what are you driving? Have you got a no-claims bonus? When is your renewal due, I would look around for a better deal if you can!

Also if you are only spending £40 a month on diesel I presume you aren't actually driving very much - could you consider dumping the car altogether and walking/cycling/public transporting it?

What are business subscriptions? This sounds potentially expendable?

Hope that helps as some initial thoughts!

By the way, regarding student loan, I would scratch that from your debt list for now - especially if you are not earning enough to have to repay it. The rate is dependent on inflation so in real terms you are only paying back what you borrowed. Make that your last priority and focus on the higher interest rates as you've said.

Can you do any part-time weekend work to boost your earnings a bit?

Hope that helps and good luck

seancollier

Hi, thanks for your replies...!!!

Firstly, I noticed in my last post that i put c) it's my policy! That actually meant to read its my first policy, rather than offend anyone!!!!! Oops!

So I've cancelled the gym (theres a 3 month cancellation period) and my last payment will be October.

Can't cancel Sky as only been in a contract for 3 months. Haven't paid for the first 2 months as I got a big credit when I joined. Also got broadband and phone from them.

My car insurance is high as I'm 23 and drive BMW 1-series. This is my leased car that I got through my car allownace from my last job. However this is surplus as I am getting my old car back in Jan. As for petrol, I need to drive to work as its not accessible by other means. I work to work already some days, but my employer is moving office soon, and will be a further 10 miles away

Business subs are trade mags from my old employer which I'm in commitment for as I got them delivered to home and claimed back. I've tried to cancel, but not up until end of year.

As for earning extra cash, I'm going to restart an eBay shop I had a while back which I can do when I get home from work, plus I'm also already involved in a bit of mystery shopping!

I'm going to try and cut my food spend down considerably though!!!!

Any more ideas/encouragement welcome!!!!

Sean