Determined to get rid of my debt ASAP!

bilko89

EssexHebridean wrote: »

You're still not budgeting anything for car tax/insurance? You need to set aside a minimum of £75 per month to cover this - PLUS extra for the months you haven't yet done so, plus an additional sum for maintenance, servicing and depreciation. Otherwise what happens when these things come up is you just end up falling back on the CC again. You need to start building the good habits from now.

Thanks Essex. For November & December ( with less benefits & Christmas) this is what I planned to do. In January, We will have a full benefit payment again (extra £204.48) from where I can then allocate to these funds. I really want to have these pots as it would make a HUGE difference to be able to pay these annually, and have an emergency pot sitting. Come May when my rent arrears are cleared and CT is back to normal, I should have £430 left AFTER debt repayments so can make huge strides in filling these pots and upping my repayments to debt! Just the next two months are going to be extremely hard and can't see where I can afford to put away anything until January!

bilko89

Hi Shelldi, although I'm not of any help to you (sorry ) you will get more exposure if you make a new thread, there are plenty of very helpful folks on here who would be happy to offer their advice

EssexHebridean

bilko89 wrote: »

Thanks Essex. For November & December ( with less benefits & Christmas) this is what I planned to do. In January, We will have a full benefit payment again (extra £204.48) from where I can then allocate to these funds. I really want to have these pots as it would make a HUGE difference to be able to pay these annually, and have an emergency pot sitting. Come May when my rent arrears are cleared and CT is back to normal, I should have £430 left AFTER debt repayments so can make huge strides in filling these pots and upping my repayments to debt! Just the next two months are going to be extremely hard and can't see where I can afford to put away anything until January!

Good plan - you're right about having sufficient surplus that you can "catch up" with this in the new year, and this seems a sensible way of doing things. :T

bilko89

EssexHebridean wrote: »

Good plan - you're right about having sufficient surplus that you can "catch up" with this in the new year, and this seems a sensible way of doing things. :T

Thanks Essex! I got an email back from Walker Love and they are happy to accept the £100 for 2 months and £230 per month thereafter to finish off my CT arrears in time for the new CT bill coming out in April! CT is usually normally £101 per month.

Going to expand on my budget I did yesterday and start allocating the "extra funds" to pots for haircuts/car insurance/car maintenance/emergency fund.

Starting to enjoy this budgeting malarky :cool: Thanks everyone for your advice and help so far! :beer:

EssexHebridean

bilko89 wrote: »

Thanks Essex! I got an email back from Walker Love and they are happy to accept the £100 for 2 months and £230 per month thereafter to finish off my CT arrears in time for the new CT bill coming out in April! CT is usually normally £101 per month.

Going to expand on my budget I did yesterday and start allocating the "extra funds" to pots for haircuts/car insurance/car maintenance/emergency fund.

Starting to enjoy this budgeting malarky :cool: Thanks everyone for your advice and help so far! :beer:

It does actually become fun once you feel you've got a grip on it, and can start to see the real impact it makes on the numbers. The thing I remember was the first time my car insurance came up for renewal and I was able to tick the "pay in full" box. GREAT feeling! Of course once you get out the other side and can start seeing the numbers increase as your savings build, that's even better! :T

I actually really like knowing that my expenses are covered and in hand, and still get anxious even now if the CC bill is a bit higher than I was expecting or whatever.

Cailbhinn

Glad you've got a plan bilko and that Lowells are not being too hard on you.

bilko89

Hi guys! Just an update to let you all know my plan ahead! I let you all know what I'm doing in November and December but this is my plan from the new year. Let me know what you all think and thanks for all your help!!

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1486.8 Wage Rise :j
Partners monthly income after tax....... 0 STILL LOOKING
Benefits................................ 531.28
Other income............................ 0
Total monthly income.................... 2018.08

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 266.01 £71 HP finished one for £50.01 (til Aug) and £216 for car.
Rent.................................... 350 Last arrears payment in May, then back to £257.52.
Management charge (leasehold property).. 0
Council tax............................. 230 Last Arrears payment in April, then back to £101
Electricity............................. 40 Looked into moving this from PAYG to pay monthly, which would save us over £100 per year, awaiting reply!
Gas..................................... 40 As above.
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 25
TV Licence.............................. 54.56 Regular £18.18 + £36.38 so I can pay up front come renewal in April
Satellite/Cable TV...................... 57
Internet Services....................... 0
Groceries etc. ......................... 200
Clothing................................ 0
Petrol/diesel........................... 90
Road tax................................ 0
Car Insurance........................... 50 Saving this per month so I can pay annually, current insurance paid by aunt (what loan was for)
Car maintenance (including MOT)......... 85 £25 per month + £60 as MOT due January. Down to £25 + £5 for MOT.
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 56 Clubs
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 7 no brainer!
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20 May change, don't think it's enough.
Haircuts................................ 10
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 25 Along with £25 put away for car maintenance, should have £1000 away by December!
Total monthly expenses.................. 1605.57


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 4000
Other assets............................ 0
Total Assets............................ 4000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 10779....(216)......0<
Hire Purchase 2................500.1....(50.01)....0
Total secured & HP debts...... 11279.1...-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
CT 15/16.......................55.35.....9.........0
Benefit O/P....................62.5......9.........0
Arc Europe (payday)............82........3.........0
Aunt Loan......................875.......125.......0
Moorcroft (mobile).............350.......20........0
Wescot M&S.....................1138......28........0
Lending Stream.................65........2.........0
Wescot RBS.....................722.......1.........0
Provident......................280.......7.........0
Moneybox 24/7..................0.........0.........0
Fredrickson (CC)...............329.65....8.........0
Moneyboat......................292.......7.........0
Uncle Buck.....................160.......4.........0
Payday Express.................124.41....3.........0
My Jar (payday)................117.4.....5.........0
Old Insurance..................633.75....5.........0
Lowell (mobile)................339.......8.........0
Lowell (Store Acc).............56.71.....10........0
Total unsecured debts..........5682.77...254.......-


Monthly Budget Summary
Total monthly income.................... 2,018.08
Expenses (including HP & secured debts). 1,605.57
Available for debt repayments........... 412.51
Monthly UNsecured debt repayments....... 254
Amount left after debt repayments....... 158.51

Personal Balance Sheet Summary
Total assets (things you own)........... 4,000
Total HP & Secured debt................. -11,279.1
Total Unsecured debt.................... -5,682.77
Net Assets.............................. -12,961.87

Created using the SOA calculator at https://www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using other browser.

Couple of Notes:-

1. Havn't factored in my wage rise yet :j, reason for money left after debt repayments!

2. From Feb, £80 away for xmas 2017, paying £120 in Oct, Nov & Dec to make xmas fund up to £1000!

3. Aunt Loan paid off in May, more paid to Debt.

4. Debt (not including car finance) will be paid off in April 2018! Should be earlier now with the wage rise :beer:


Any thoughts, let me know!

EssexHebridean

Looking good! On the TV license though - rather than paying up front, maybe simply switch to a monthly DD to assist budgeting? It's only £12.12 per month and there is no additional fee over and above the basic license fee - so effectively interest free credit!

You're really going to be hammering the debt down come May when some of your current payments come to an end! :T

bilko89

EssexHebridean wrote: »

Looking good! On the TV license though - rather than paying up front, maybe simply switch to a monthly DD to assist budgeting? It's only £12.12 per month and there is no additional fee over and above the basic license fee - so effectively interest free credit!

You're really going to be hammering the debt down come May when some of your current payments come to an end! :T

Cheers Essex! Had a lot of fun creating my plan and will have fun updating it too!

Thanks, no brainer really if no interest added.

Received a reply back from Scottish Power, unfortunately, in order to change, I will need to pay a deposit of £150 for each meter, which I will receive back after 12 months of payments being kept up to date. Too much for me to outlay just now :eek:

EssexHebridean

Worth bearing in mind for the future though!