Determined to get rid of my debt ASAP!

enthusiasticsaver

bilko89 wrote: »

Thanks ES, a lot of homework to do tonight but actually excited to see what I can get together!

Just to point out as I've seen a few comments about my loan from my aunt. I work for my aunts company and the company provide a £1000 interest free loan which has to be paid before next year end. That's why the payment is £125. This was for my car insurance after my other insurer cancelled my policy for non payment (which is a whole other story :mad: )

Things like car insurance, birthdays, xmas, car service and other yearly one off expenses should be saved for each month. Start 1 or 2 savings accounts. One for emergency fund should you need money in a hurry (not so crucial if you in rented but presumably you would still need to find a replacement washing machine or fridge if you're broke). Ideally you should be budgeting for all these things in savings account(s) which avoids the panic of where to find the money should you have a month where everything falls due at the same time. This means it does not get lost in your everyday money.

bilko89

Hi guys, since yesterday I have:-

Downgraded my virgin media so now I'm only paying £57 per month instead of £107! I need to give them 30 days notice so last big payment will be this month. After working out my prorata credit (as with VM you pay up front), I will be receiving a £58 credit on the account so will be free next month!!

Apart from the easy ones (one off wedding payment & HP ending) We feel paying £50 per week (from benefits) for food should be achievable from the £60 per week we pay just now, by going to ALDI. That's another saving of £40 per month!

After looking into contents insurance and realising it was only £6 per month, i feel like an idiot for not even thinking about it!! Will be in place ASAP!!

After working out everything working on a spreadsheet, I should be debt free in December 2017 !!

If there's anything I have missed please let me know! Thanks everyone for all your help!!!

MallyGirl

good news. I am a spreadsheet fanatic and I find it really helpful to track everything this way.
You have a light at the end of the tunnel - what a great Christmas present to yourselves it would be to be debt free by Christmas 2017. Something great to aim for

[Deleted User]

bilko89 wrote: »

Downgraded my virgin media so now I'm only paying £57 per month instead of £107!

Is £57 really as low as they'll let you go?

EssexHebridean

Bedsit_Bob wrote: »

Is £57 really as low as they'll let you go?

From £107 that's a pretty big saving, in fairness! I don't think I've ever managed to batter more than 50% off Sky.

Aldi can be a real saver, no question, but you do need to familiarise yourself with what you'll pay for stuff elsewhere too so you know you're definitely saving. The Super 6 veg offers are brilliant though - I grabbed Parnips, Leeks, Onions and a swede this morning for 45p each - that's pretty much a fortnight's veg sorted then. As a comparison the same quantities in T's would have cost me in the region of £3.60 I reckon. Try using the MySupermarket site for the major supermarket's prices for the items on your list - you can then see at a glance when you are in Aldi whether they are cheaper.

Well done on the contents insurance. Now sort yourself a savings account and divert £7 per month extra into it so that next year's premium will be waiting ready when it needs paying.

Being debt free by Christmas 2017 would be great - of course what would be even better would be setting that as your target, and seeing how much you can beat it by... :T

[Deleted User]

EssexHebridean wrote: »

From £107 that's a pretty big saving, in fairness!

£57 pm (£684 pa) still seems a lot.

How long before you can cancel?

kindofagilr

MallyGirl wrote: »

a few comments in green.
If your partner could get any sort of work - pub work in the evening while you look after the kids - it could make all the difference

Unless it was a full time job wouldn't the benefits just decrease, so therefore not making money?

Agree with Sky, far too much money paid to sky there! I have more a month spare than you OP (But a lot more debt lol) and we only pay £33 to sky for all tv (except movies and sport), internet and line rental

kindofagilr

bilko89 wrote: »

Hi guys, since yesterday I have:-

Downgraded my virgin media so now I'm only paying £57 per month instead of £107! I need to give them 30 days notice so last big payment will be this month. After working out my prorata credit (as with VM you pay up front), I will be receiving a £58 credit on the account so will be free next month!!

Apart from the easy ones (one off wedding payment & HP ending) We feel paying £50 per week (from benefits) for food should be achievable from the £60 per week we pay just now, by going to ALDI. That's another saving of £40 per month!

After looking into contents insurance and realising it was only £6 per month, i feel like an idiot for not even thinking about it!! Will be in place ASAP!!

After working out everything working on a spreadsheet, I should be debt free in December 2017 !!

If there's anything I have missed please let me know! Thanks everyone for all your help!!!

Excellent

Well done

Bedsit_Bob wrote: »

Is £57 really as low as they'll let you go?

No need to cancel once debt free if they don't want to.

[Deleted User]

kindofagilr wrote: »

No need to cancel once debt free if they don't want to.

But they're not debt free for another 15 months, so get rid and put the £57 pm (£684 pa) toward the debts.

That should shave a bit of time off the DFD.

EssexHebridean

I get where you're coming from Bob, and to an extent you're right, but the OP isn't exactly spending a fortune on entertainment generally, are they. It wouldn't be £57 in any case - there were still need to be a landline phone in place (there are kids in the household remember, so for emergencies it's advisable to have a landline if possible) and also I'm assuming that some form of broadband isn't seriously considered a luxury by many people, these days?

I personally think, particularly for a family with children, that a small spend on entertainment per month is not only reasonable, but to be encouraged if it can be afforded. Cutting things absolutely to the bone is fine, but it can make it more likely that a plan to debt-clear will fail if all enjoyment is stripped from life.