I want to stop drowning

BabyStepper

Did you get rid of the deficit in your budget?

debtaghh

Once I've made my payments this month then yes my deficit will be near enough gone and I've allocated to save every month. Me not saving was always the issue. It will be tight for the next few months but I have full freezer and cupboard so will try and use that up. As long as I can get my minimums reduced I will be able to afford my outgoings. I've worked a lot lately and sold a lot on eBay to try and increase my income to pay off debts.

BabyStepper

debtaghh wrote: »

Once I've made my payments this month then yes my deficit will be near enough gone .

That's great Debtaghh! Where did the £500 per month come from? Great job!

debtaghh

I've reduced how much I will save initially as I have savings for this year already. I will still save £200 and the aim will be to increase it in the future. My second job income is slightly more than I thought ( only £20 more but all helps) plus my main job income is due to go up by another £20. By me making the payments on the cc my minimums will then reduce especially as I won't be paying interest.

BabyStepper

Rent £1300
Council tax £216
Gas and electricity £100
Water £50
Mobiles £62
Sky tv £35
House alarm £27
Prescriptions £20.50
School donation £2
Food shopping £350
Fuel £180
Entertainment £100
Holiday £100 (is it these savings you have stopped/reduced?)
Xmas/birthdays £100
Car £50
Emergency fund £50 (Maybe stopped/reduced this one too for now since you have savings?)
Tv licence/ contents insurance £20
Clothes/shoes £30
Car insurance. £30
Car insurance 2 £25
Dad cc £50 ( 0% until 2020)
Mbna £120
Barclaycard. £220
Tesco. £130
Nuba. £70
Halifax. £80
Dh Tesco £50
Dh Barclaycard. £220 (£197? After you save £23 per month by paying off the part that earns 20% interest)
Tesco £120
Dad cc 2. £40

Total outgoings. £3847.50 (3674.50?)

Dh basic £2505
Child benefit £197
My income £430 (£450?)
2nd job income £210 (£230?)

Total income. £3342 (£3,382?)

Monthly shortfall. - £505.20 (£292.50?)

If this is how you've done it then bravo, you've knocked a chunk off the deficit but still some way to go. Well done!

debtaghh

I am saving £200 instead of the £350 above plus the minimums would be reduced across a few e.g barclaycard I've just paid £1500 ( minimum is 2.25% plus the interest = £34 saving off minimum plus the £24 interest saving.) I've also paid £1300 off my barclaycard - same as above with regards to minimum saving £29. My general minimums have gone down due to general payments

£150 less saving per month
£63 less minimums
£34 less interest
£20 general reduction
£50 less food
£50 less entertainment

£367 plus extra income £40= 407... not sure why this doesn't match my spreadsheet

BabyStepper

Surely great progress Debtaghh, brilliant news!

If you can tolerate me being pedantic, is the savings you refer to 'entertainment,
holiday, christmas/birthdays/emergency fund?' Or something else? Just so we can help you figure those things out when the time comes. Sorry, just realised that can't be right cos you have included £50 reduction in entertainment. I'm stuck!!

Also, the interest you are saving is not a monthly outgoing, it just reduces the speed the debt will go down by. Maybe that's why it doesn't balance with your spreadsheet? Have another look, it'll be worth it to have it clear in your head.

I am so impressed by how you are working these numbers, and that you have paid off such a big amount with your savings. So good, you can see how it will speed up the process and get things moving faster.

How about you update your soa to show those changes? Proud moment (if it was me!)

BabyStepper

Also, I think keeping an eye on the amount the minimums reduce by, every single month you make even just the minimum payment, is a great motivator. For me it's all about motivation.

debtaghh

I'll have another look and maybe copy exactly my spreadsheet ( I bulk all the savings in one though) Entertainment is separate as I cover hair cuts and school trips in that.

debtaghh

It feels quite scary not having as much in the savings but I know it's the best thing in the long run.