Absolutely doing it this time

MrsLWW

Since I got together with my DH 7 years ago, we've managed to rack up at the worst point nearly £30K of debt. We are lucky that it is manageable for us, but adding things up and coming to the concluding figure did shock us.

We each have a personal loan running and one credit card between us which we ran up to just over £5K.

DH is a terrible spend thrift and I'm not a million miles better to be honest.

We have in the past made half hearted attempts at budgeting, but recently I have decided to take the bull by the horns and really make a dent in it.

I generally run the finances and love jam jarring, so this week have opened another couple of accounts and given each spend category it's own account and own budget:

1 My solo current account - IN: wages OUT: standing orders and mobile phone (although mobile phones going to be moved into santander 123 as didn't realise you got 3% for mobiles too!
2. DH solo current account - IN: wages OUTL standing orders, mobile phone (will move this this weekend) and his DD pocket money.

3. Joint Bills: Santander 123 (does exactly what is says on the tin) (cards remain locked away in the safe)
4a. MY Individual spend/fritter/fun money account
4b. DH Individual spend/fritter/fun money account
5. Joint grocery account (card locked in the safe until need to shop)
6. Joint fuel card (one for each card) this is new as used to be in the grocery account
7. Joint birthday/christmas (cards locked in safe) Again, this is new and was supposed to be in the grocery account but there was never anything at the end of the month and christmas came out of my credit union account
8. Socialising fund Also new, again was lumped in with the grocery account and never had money for socialising, just spent (over spent) from other accounts

9. Also have an account solely dedicated to funds ingoing and outgoing for a flat I own which I rent out.

Probably take a hit in the credit rating for a couple of months, but not needing credit for anything and mortgage not up till August, so should be fine by then.

Hoping I will now know EXACTLY where our money is going so I can take better control of it.

I have an XL document with running totals and all being well we should be debt free by May 18 - sooner if I keep taking overtime, which I absolutely will.

Currently our debt stands at £19,223.39 and after budgeting everything out and making sure there is spending for every category so that we don't dip into other accounts I hope we can throw a good £700-800 pounds a month extra at our debts and snowballing as each one is paid off.

Currently we own our 2 cars outright (both about 12 years old, but both agree that we will not be buying new ones until we have saved up and can afford to buy new ones outright.

This was my SOA

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Animals........................................... ...... 1 18YOM Cat, 1 10YOF golden retriever
Number of cars owned.................... 2 (12 year old 1.9TD, 12 year old 1.5 petrol (cost me £450 - determined not to take finance out for cars, will buy some new(ish) cars when we have saved up and can buy them outright)

Monthly Income Details
Monthly income after tax................ 1700 (£100 goes directly to a credit union for Christmas)
Partners monthly income after tax....... 1700
Benefits................................ 0
Other income............................ 160 (net profit from rental property)
Total monthly income.................... 3560

Monthly Expense Details
Mortgage................................ 648.4
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 186
Electricity............................. 63 (£126/month for gas and electricity with spark energy - pay a month in advance, currently have £680 in credit, planning on taking £380 out to go towards credit card)
Gas..................................... 63
Oil..................................... 0
Water rates............................. 0 (with ctax)
Telephone (land line)................... 30 (£90 virgin package, contracted till September and will be cancelling everything except broadband)
Mobile phone............................ 23 (SIM only all you can eat, watch lots of TV and films, also planning to ditch landline so happy to leave this as it)
TV Licence.............................. 12.2
Satellite/Cable TV...................... 30 (getting rid in September)
Internet Services....................... 30
Groceries etc. ......................... 200 (trying to ultilise everything in our freezer so hopefully spend a little less this month)
Clothing................................ 20 (genuinely for DH and I, usually him, hate clothes shopping)
Petrol/diesel........................... 200
Road tax................................ 31.93
Car Insurance........................... 46.9 (admiral multi-car)
Car maintenance (including MOT)......... 50
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 25
Medical (prescriptions, dentist etc).... 5
Pet insurance/vet bills................. 50
Buildings insurance..................... 12.41
Contents insurance...................... 12.41
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 125
Haircuts................................ 10
Entertainment........................... 200
Holiday................................. 100
Emergency fund.......................... 50
Total monthly expenses.................. 2182.25[/b]


Assets
Cash.................................... 500
House value (Gross)..................... 60000
Shares and bonds........................ 0
Car(s).................................. 1500
Other assets (rental equity)............................ 30000
Total Assets............................ 92000


Secured & HP Debts
Description....................Debt......Monthly.. .APR
Mortgage...................... 0........(648.4)....0
Total secured & HP debts...... 0.........-.........-

Unsecured Debts
Description....................Debt......Monthly.. .APR
Credit card....................5200......275.......0
My loan........................7517.19...242.2.....5
DH loan........................7500......179.......4
Total unsecured debts..........20,217


Monthly Budget Summary
Total monthly income.................... 3,560
Expenses (including HP & secured debts). 2,182.25
Available for debt repayments........... 1,377.75
Monthly UNsecured debt repayments....... 696.2
Amount left after debt repayments....... 681.55

Personal Balance Sheet Summary
Total assets (things you own)........... 92,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -19,617.19
Net Assets.............................. 72,382.81

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

Planning on adding the additional £600 to the credit card along with overtime, hopefully have it paid by June, then snowball this into the loans.

I think we're doing not too bad but always looking for improvement.[/B]

Things we do already:

Shop at farmfoods, Iceland, reduced aisle. Batch cook and freeze, however have a freezer full of meat so going to go through that today and plan meals to use it all up.

Jam jar accounts - as listed above.

Feeling, happy, confident and determined/obsessive lol. :rotfl:

GrowingUp57

Just wanted to say good luck! And I really admire all those bank accounts! Amazing, I reckon you've got this!

MrsLWW

Thanks so much, so determined this time to do it!

DCFC79

You watch tv and films using your mobile data yet you have broadband.

Why not get a cheaper sim and use your broadband for tv and films (do you use all of your allowances),

Or

Ditch the broadband

either option will save money.

MrsLWW

I'm out of the house for 12 hours at a time, so use both. thanks though.

copperman05

You doing well so keep up the momentum...

However, £125 a month for presents, does this include the £100 already going to credit union for Christmas?? Either way its a lot when your trying to pay down debts, You could also knock £50-100 off your entertainment budget, what are you paying for exactly? Reduce both of these by half and you've got another £160 or so to put towards your debts per month.

MrsLWW

The £100 that's going into the credit union I'm putting towards debt - the christmas/birthday fund is everything for christmas and everyone's birthdays, mother's day, father's day etc. and it's a reflection of what we spend, I feel if I don't budget for it, I'll end up with my accounts skew-whiff. We have all made an agreement this year to keep the spending to a minimum so any money that is left over we will throw at the debts.

Entertainment has been cut down to £80 for socialising and that's it - anything else comes out of our personal spend so that was a good idea, thanks.

Got caught out this month - - Cat went to vet for a few things (£360 later), both had their jags, worming and fleaing this month and some adjustments to their medications (£240) and also had set up a standing order to the credit card from DH's account, not realising he had already set up a DD :eek: (£225)
Also my car key broke in the door so was £45 for a replacement :mad: which came out of the fuel account - blast, but DH and I think we can squeeze through by swapping cars as luckily I've been nowhere this month and am still sitting with almost a full tank - he has a 1/4 tank which should do me to work and back for the rest of the month.

Somehow our food budget has went out the window and we now have £37 left in it till the end of the month :eek:.

However, rather than feeling sad about this, DH and I are kinda giggling about the challenge of it. Don't get me wrong, we're absolutely not in dire straights - we realistically could cool off on the aggressive way we are attacking our debts, but I seem to be in the crux of some debt busting obsession, and the thought of our debt-free date being delayed irks me somewhat.

Xx

Hiddenidenity

There'll be months where it feels like everything 'bad' happens at once and others it will be all good. There's bumps in every road. Keep on you've got this xx

MrsLWW

Credit Card paid off:j:T

AMAZING feeling!!!

UncannyScot

You're doing great
Well Done

MrsLWW

DRUM ROLL PLEASE.......

We're debt free :beer::j:T:dance:

So happy!!!!
Now we're saving like mad for an extension, but oh how good it feels not to owe anything other than the mortgage!!

Keep sticking with it people - you'll get there, and it will feel amazing!!!!!!

L Xx