What a year!

amaranthus

Just remember how far you've come! I'd be thrilled if my current debt was only £3.4k, compared to a start point of £10.2k - you've cleared 66% of your total debt!

morecambe.bae

Thank you I do try to be proud of myself but I get so overwhelmed by how far there is to go. I just want to breathe! I also really want a holiday this July for my 30th, and I'd like to pass my driving test before my 30th too, so I'm wondering whether to slow everything down and get those done... or is that a setback? I just don't know.

lambda

I think you're doing good. Paying that much off! Wow. How long did it take to get the 10.2k down to £3k?

morecambe.bae

Hi Lambda - I started working on it 1 January 2015, so 21 months. I was at an advantage as I was working an extra job for £400 extra a month and putting all of that cash on my debts... but now my health has declined and I'm no longer able to do that type of work - working so hard caused my hair to fall out and I just can't sustain that grind any longer!

So I think I'm a little down about my progress slowing down... when you're used to paying off £700-800 a month and then you're down to just £350 ish it feels like a fail. Even typing that I know it's mad. There's just so many things I want, to travel, to buy a place, and it feels so far away.

EssexHebridean

Ignoring your plan re the TV licence (And I won't call it political anything - it's illegal, is what it is, and if you watch BBC product at all, it's also expecting to get something for nothing whilst other people fund it, but there you go...personal opinions and all...)

Contents insurance - think about it this way. It costs somewhere around £6 - £10 per month tops. If you arrive home next time you go out somewhere, and find your home burned to the ground - all you have left is what you stand up in. No clothes, no personal tech items, no toiletries, no books, CD's or DVDs. No Furniture, no beddings or towels. Potentially, if you've just popped out for a pint of milk, no purse/wallet. No jewellery or personal keepsakes. If you have none of those things, then you are of course quite right, you have nothing to steal. if you have all or most of them, unless you have one hell of a plan for replacement (and if it involves a similar route to the TV license thing, I suggest you don't discuss it on here!) you need contents insurance.

morecambe.bae wrote: »

This will be by SOA from January onwards...

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 0

Monthly Income Details
Monthly income after tax................ 1440.63
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1440.63

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 520
Management charge (leasehold property).. 0
Council tax............................. 60
Electricity............................. 24 This is remarkably low - well done!
Gas..................................... 0
Oil..................................... 0
Water rates............................. 16.94Metered I assume?
Telephone (land line)................... 0
Mobile phone............................ 49.1 This is high - can you reduce at all? SIM only or PAYG? Do you actually use all the benefits your contract (As I presume this IS a contract) gives you?
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 10
Groceries etc. ......................... 100
Clothing................................ 20
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0 No costs at all for travel outside what your pass covers? Ever?
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 9 Is this every month?
Pet insurance/vet bills................. 25
Buildings insurance..................... 0
Contents insurance...................... 0 See note above!!
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0 With no cash assets to show you need to start building this - £50 a month for a start will get you there until you can start building savings
Total monthly expenses.................. 844.04


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

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Santander Credit Card..........1500......50........18.9
Santander Overdraft............1800......30........0
tesco credit card..............150.......25........0
Total unsecured debts..........3450......105.......-


Monthly Budget Summary
Total monthly income.................... 1,440.63
Expenses (including HP & secured debts). 844.04
Available for debt repayments........... 596.59
Monthly UNsecured debt repayments....... 105
Amount left after debt repayments....... 491.59

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -3,450
Net Assets.............................. -3,450

Those nasty surprises you mentioned earlier will be cushioned against once you have an emergency fund. Thankfully living in rented, and with no car to worry about, there really shouldn't be any genuine "surprises".

My suggestion would be that for now you budget £25 a week for general entertainment - so the odd takeaway, a drink in the pub, a quick coffee catch up with a friend. That still leaves you your additional £350 or a bit more to throw at the debt, i addition to what you're paying.

How long are your Overdraft & tesco CC on 0% for? Initially obviously throw everything at the Santander card - that interest isn;t dire, but it is a bit ouchy. In between now and when that SOA starts from in January make your existing £50 a month payment to that, and see if you can manage to pay the extra amount of the interest each month too. Then once you start with the big payments to it, you'll have it clear in under 4 months. That 4th month will also see the Tesco card cleared I believe. From there on you have a clear £500 each month to throw at the overdraft - there's that gone in another 4 months.

Take a deep breath, make the adjustments that are needed, and crack on with it. You *could* take a break now, sure, but you've been going this long, what's another 8 months, honestly? This time next year you could be standing there saying that you are debt free and building savings - but it's your choice.

Your 31st birthday - and with a debt free status, will be far better to celebrate - as you'll be able to do it without feeling conscious of every penny - you will have saved for your fun, and be able to thoroughly appreciate it as a result.

enthusiasticsaver

morecambe.bae wrote: »

Thanks so much for the reply! I do periodically apply for a 0% card but I'm always rejected. I think it's because my current credit card is almost always maxed out, and I have this loan (ending 1/12/16) so it's not a good look. I'll look for an SOA now

If the loan is almost finished and the credit cards are only around £3k mark I seriously doubt it is affordability you are being rejected on although if you are right at the top of your limit I guess it might affect it.

Do you have any defaults on your account. Have you checked on Noddle to see what is showing?

morecambe.bae

Thank you, i really do appreciate you taking the time to look at my SOA and you make some great points.
I am not breaking any laws re: TV License as I don't watch anything I'd need a license for.

My water is charged by my landlord, it's not metered and I can't do anything to impact or reduce it.
I can't change my phone contract, it's fixed for another 18 months. It doesn't bother me as I have so few outgoings - notice no internet? That's free with my rent.
The only time I spend outside of my travel pass is if I take a train elsewhere to visit someone, but that's so sporadic and rare I can't really predict it. if I have the money, I go. If I don't, I don't. I live in a major city, within walking distance of everything so I only really take a bus to work and that's covered on the bus pass.
Yes, my prescription is every month. This level of anxiety will do that to you
I definitely need an emergency fund, I know, but I also feel like it's pointless trying to save while paying off debt? I guess I should budget something for emergencies :-/

My overdraft isn't 0% but it's a set £30 fee. (£1 per day up to a max of £30)
My tesco CC repayments are calculated so that the card will be paid off by the time the 0% interest ends. There's no way I can stray from this as I'm only paying the required minimum every month.

I'm not sure how you arrived at £350 extra for debt payments, unless you went with a hard £25 per week for anything other than food?

I really do appreciate you taking the time to look at this, thank you I think my head is just spinning now.

enthusiasticsaver

morecambe.bae wrote: »

Hi Lambda - I started working on it 1 January 2015, so 21 months. I was at an advantage as I was working an extra job for £400 extra a month and putting all of that cash on my debts... but now my health has declined and I'm no longer able to do that type of work - working so hard caused my hair to fall out and I just can't sustain that grind any longer!

So I think I'm a little down about my progress slowing down... when you're used to paying off £700-800 a month and then you're down to just £350 ish it feels like a fail. Even typing that I know it's mad. There's just so many things I want, to travel, to buy a place, and it feels so far away.

You have done brilliantly to get it down in less than 2 years. It looks like just the 10 months will get it done but if a soft search shows you can get a 0% credit card it is worth doing that anyway to get rid of the interest. You will need a money transfer card to pay off the overdraft though. Not all 0% cards can do that.

Still paying £350 per month looks affordable on your soa and I would concentrate on getting it finished and paid off and then look at savings for things for your future. Bear in mind driving lessons are expensive and running a car even more so. Best do that when you are debt free. By your 30th birthday you should be almost debt free though so that is a good target to aim for.

lambda

morecambe.bae wrote: »

Hi Lambda - I started working on it 1 January 2015, so 21 months. I was at an advantage as I was working an extra job for £400 extra a month and putting all of that cash on my debts... but now my health has declined and I'm no longer able to do that type of work - working so hard caused my hair to fall out and I just can't sustain that grind any longer!

So I think I'm a little down about my progress slowing down... when you're used to paying off £700-800 a month and then you're down to just £350 ish it feels like a fail. Even typing that I know it's mad. There's just so many things I want, to travel, to buy a place, and it feels so far away.

I completely understand. We have been paying off £13k of debt since last year. Every available penny has been going to paying off the debt. It's VERY frustrating and I have been down in the dumps many times about it. Keep going - you are doing FANTASTIC! One day it will be over and that day is getting closer and closer ...

morecambe.bae

Hi enthusiasticsaver - I checked with clearscore last month and my main issue was:

1) I had a few over penalties on my Santander CC, oops
2) I was consistently maxing out my credit card.

So, I increased my overdraft and shifted a large amount of my credit card debt into the overdraft, then reduced the credit card limit by £500. Sounds mad I know, but the following month my credit score improved by 12 points! Seems they don't care how much debt you have, only how much of it is in credit cards?!