Ben's Debt Free Diary

Ben75

October 2016
Existing debts (in default since 2011):
HBOS Personal Loan, £10,700
Natwest Credit Card, £1,200
Total, £11,900

I have managed to clear some other debts too this year: MBNA Credit Card (£9,900 settled at 40%) HBOS Credit Card (£2,400 settled at 40%). I want to push myself over the line, I think I can get there in 2 years.

Assets, £2,600 worth of shares plus cash reserves of £500 - my rainy day fund.

I have worked out that my disposable income (ie after paying for rent, bills and basic food) in 2017 will be £6,000

In my DMP I pay £55 a month, £660 per year.

Need to decide - do I continue with my current plan, saving up for f&f payments and paying a low-ish DMP or boost my DMP to £500 a month and pay everything in 2 years. Would give me certainty but would take a bit longer. For the rest of the year I am focussing on budgeting and building up my cash reserves.

Ben75

Yikes - caught out by being billed twice for electricity. Switched suppliers at the start of last month and they obviously operate different billing cycles. Still, the good part is that budgeting and having some cash reserves means this isn't a reason to panic. Should see the benefits of lower prices in a few months as I will be saving on £13 a month.

I operate my budgeting weeks Weds to Tues, and still have £40 left before I dip into next week's cash, which more or less covers the double billing on its own. Payday a week on Weds, but all should run smoothly so I shouldn't notice. I love budgeting!

Ben

natsplatnat

Hi Ben!


Budgeting is amazing - and a definite must when organising your finances!! I love my spreadsheet...it is filled in through to the end of next year so every little over-spend or saving shows in the bigger picture!


In response to your question - I think carry on slowly, slowly with the DMP until you are fully settled with your new budget (there are always things that crop up!) and then maybe look at upping your monthly payments in stages so you have time to adjust to each new amount.


All the best! Nats x

fourthtimelucky

Just wanted to say good luck. Similar starting amount to me and looks like similar time scales as well.

Ben75

Getting ready for payday on Weds. If all goes to plan, I will be closing in on the £8k net debt target,

Save £101.51 into my ISA
Save £100.00 into my savings account
clear £55.00 on my DMP

That includes setting a generous £400 budget for four weeks and setting aside £100 for xmas.

ISA Value: £2950 (shares have gone up)
Savings account: £600
Loan: £10620
CC: £1185

Total assets: £3550
Total debts: £11805

Net debt: £8255

Ben75

Decided to liquidate my shares for a total of £2970 and will transfer the money into a savings account instead. It seems a bit risky to hold shares when I have only a relaitvely small amount in easily available cash. Will come back to investing once the debts are repaid and I have 6 months worth of salary in savings.

Huskyrunner

Good luck with your journey Ben

[Deleted User]

Good luck! X

Bobarella

Good luck to you Ben.

Ben75

Thanks all

Had a night out last night, managed to restrict myself to £7.50 on drinks - am planning to meet friends in central London on Saturday evening so need to keep an eye on my spending then.

Get paid every four weeks on Wednesdays, so I run my financial week Weds - Tues. This was my first full week and I managed to underspend on my budget for the week by £8 but it could have been better. Given Saturday, will be happy with repeating that for week2, but will keep the £8 spare just in case.

Ben75

Spent £22 at Sainsburys in the morning and £21 in the evening. A bit more than I could have done in both cases, but I have some nice food for the week and had a good evening with friends. My financial week finishes on Tuesday and I still have £29 for the week unspent. Am out tomorrow evening as well, but not expecting to have to spend too much - perhaps £7 on some dinner and £2 this evening on sundries on my way home from work.

Overall, looking good for a £12 underspend for this week after an £8 underspend the previous one.