I want to be debt free.

Buffythedebtslayer

I have been stuck in the get in to scary debate with credit cards get out it with bank loans cycle for nearly 10 years now and I am so ashamed and sick of it all.

I want this to be my last bank loan and to not feel like this anymore. I want to be able to buy a house and rent it out and not be constantly worrying and feeling stupid cos i am the only one of my friends not own her own house.

My loan is 21,448. I have nothing to show for it really, nice teeth a taxed car that I cant drive and no credit card bills. but thats it.

Basic statement of affairs.

earn - 1713
loan - 448
rent 500
spending money - 400
phone - 40
saving 250

I want to pay off my loan. I feel really inspired by some of the stuff I have read here. it seems like a really great place.

So what should I do first?

HairyHandofDartmoor

Hi. Your soa is a bit basic. Could you give us a bit more detail so that we can help you better? See southern scousers sticky at the top for a guide.

Don't worry, now you have posted on here you will get all the help you need and will be able to kick all the debt !!! you want! (I'm a buffy fan too!)

HairyHandofDartmoor

The website didn't like the work I used (although I wasn't aware it was a swear word) but you can probably guess from the context!

Lavendyr

If you have a car that you can't drive, can you sell that and use the money towards paying off your debts? You could get a refund on the tax as well.

And if you're not driving it but don't want to sell it, and it's not being used at all you should declare it SORN so that you don't have to pay for the tax (though obviously if you start using it again you would need to start taxing it again).

Buffythedebtslayer

Monthly Incomings:

My salary - 1713
Benefits -0

Total - £1713

Monthly Outgoings:

Mortgage/Rent -500
Spending money* - 400,
Council Tax - ?? not sure?
Gas - 0
Electric -0
TV License -0
Sky - 0
Phone - £40
Food -0? probably not
charity stuff - £16
savings - 250

* pets - 20 quid a fortnight, going out? shopping? God what do I spend it on? vet bills, I guess I need to do a spending diary thingy.

Debts

I have lots of Credit cards - but don't owe any money on them.

Egg Loan –

Balance £21,448 APR 7.9%

Loan term 60 months,

monthly payment 448, including 46 pounds pp.
I can make extra payments on that if I wish.

Overdraft -2400, monthly bank fees of 6.50! cheeky **********


I am very lucky in that I still live at home even though really I should have moved out years ago! so I have this great opportunity to get debt free, and buy a house rent it out and have someone esle pay the mortgage. This WILL happen.

HairyHandofDartmoor

You are lucky that you live at home! So you should make the most of it.

Definitely keep a spending diary as your SOA is very vague and we need precise amounts.

£400 is a lot for spending money. What does this go on?

Buffythedebtslayer

In theory its meant to be fifty quid a week for going out:o and 200 per month to pay for vets, clothes, shoes, bags, books(huge weakness) DVD's etc.

And since I have spent more hours of my life then I care to think about clearing and sorting my "stuff" out and I live in a tiny room it drives me nuts.

I don't need any more stuff. I don't need any more stuff. I really don't.


How would I set out my spending diary? is there a template?

xx

HairyHandofDartmoor

I don't know. I just use a small notebook in my bag and write the days date, and then whip it out and record anything I buy (and I mean anything!). I do a weekly total on a sunday to see if I have stayed on budget (which is meant to be £50 per week). I don't know what other people do but it is a good way to find out where your money goes.

A useful motivator for me is to have a photo of my dream house in my wallet, which puts me off buying things I don't need as I know that every purchase takes me further away from that dream house.

Buffythedebtslayer

cool I shall find a notepad - must have one somewhere and start tomorrow which is handy since it is the 1 of September! seems like a good time to start.

thank you!

HairyHandofDartmoor

No problem! I'm off to bed now, so will speak to you another day no doubt!

Hippychick

You need to show more detail on your SOA and a spending diary is a very good idea.

One thing I would say is ditch the savings, repay your debt first then save once your loan has gone also if you cut your spending money down to say £100.00 per month you will then be able to throw this at your debts

250 savings + 300 surplus spending money + 448 loan payment = £998

Pay that to your loan and it will take less than 2 years to clear.

Also how much money do you have saved up so far? If you chuck that at your debts as well it will be repaid in no time. Chek out the main site for Martins guide re saving versus debt repayments.

Do yourself a budget what do you actually need to spend your money on? if you have too much stuff try selling it on Ebay or Amazon and you will earn extra cash there as well.