Close but no cigar

[Deleted User]

Have been lurking round the site for sometime. Reading diaries and wishing Was debt free

Have been trying really hard on my own but have hit a wall and need some advice / support / accountability and so I thought I would start my own diary

I have 2 loans
Tesco £18,000/£11033 @3.5% £216
Nationwide £25,000/£24,540 @7.1% £374

No credit cards and own my car. I have paid back parental loans of £15,000 and my car loan of £11,000 in 18 months :A

However Am finding the last £35,000 really hard to focus on...it seems so long to pay it all off, my partner has no work (Freelance work has dried up) and they are unable to work in a normal job due to anxiety issues. Therefore their contribution is unknown so I am only planning around my income.

I have 3 jobs and think I am suffering from burnout. I have just signed up for another year contract at work, which I should be pleased about ....but feel overwhelmed and out of control. I bring in about £2600 per month on average, which sounds amazing but ploughing it all into debt with no respite and seemingly no end is taking its toll.

I can!!!8217;t earn any more so am maxed out on income and can!!!8217;t juggle finances to get them cheaper as my score is a wreck.

I just need a positive focus on this. I know I CAN do it, I MUST NOT give up as I am come too far.

Sorry for the rant but I just needed to get it all off my chest :mad:

Onwards and upwards:D

[Deleted User]

OK so here is the plan for the day:

1) Pay £100 off the Tesco loan to get it into the 10Ks - Annoyed the rebate from my £1100 overpay last week is still not showing - Done
2) Plan my tutoring session for tomorrow morning - Earn £30
3) Order cheap radiator from Screwfix £20.98 (Despite the fact I want a nice Victorian one £156)
4) Check when EE contract ends, already have GIFFGAFF
5) Watch some minimalist Vids on YouTube for motivation / positivity

redofromstart

hi Meowcom - great name btw

Hope the freelance picks up soon, its hard to cope with the 'famine or feast' cycle it sometimes generates

Good luck with your diary

[Deleted User]

Hi redofromstart . Yes they had low but regular money which gave the confidence to keep ploughing money in to pay off debt. The reason I am in debt is my impatient nature and so when the debts was going down fast i was positive as it satisfied this part of me. Now it is much slower and I am finding that really hard to cope with, especially as I have shaved every outgoing to the bone. Frugal was fun, now it is miserable (Maybe the weather isnt helping).

[Deleted User]

courier new]Statement of Affairs and Personal Balance Sheet

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

Monthly Income Details
Monthly income after tax................ 2465
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 90
Total monthly income.................... 2555

Monthly Expense Details
Rent.................................... 325
Council tax............................. 125
Electricity............................. 20
Gas..................................... 10
Mobile phone............................ 10
Internet Services....................... 28
Groceries etc. ......................... 200
Petrol/diesel........................... 200
Car Insurance........................... 30
Car maintenance (including MOT)......... 10
Pet insurance/vet bills................. 54
Contents insurance...................... 15
Presents (birthday, christmas etc)...... 20
Total monthly expenses.................. 1067[/b]


Assets
Car(s).................................. 7000
Other assets............................ 40000
Total Assets............................ 47000

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Nationwide loan................24540.....376.......7.1
Tesco Loan.....................11033.....216.......3.5
Total unsecured debts..........35573.....592.......-


Monthly Budget Summary
Total monthly income.................... 2,555
Expenses (including HP & secured debts). 1,067
Available for debt repayments........... 1,488
Monthly UNsecured debt repayments....... 592
Amount left after debt repayments....... 896

Personal Balance Sheet Summary
Total assets (things you own)........... 47,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -35,573
Net Assets.............................. 11,427

[Deleted User]

OK so lots changed in 1 day.

Partner has had a wobble and is likely not to be earning for the foreseeable...not without us both having a breakdown.

I feel a huge amount of pressure and so I think I now need to put the debt busting on hold and put any extra money in a savings account for emergencies i.e. if I lost my job how would I live? I would like to have at least 6 month's worth of living expenses saved i.e. £10k - This is annoying as it is pretty much 1 debt cleared...but if we don't need to use it, I can use it to pay off the loan.

So fed up as I had it all figured out and was feeling positive about being £216 better off each month from January, but maybe I will feel mentally better about having savings...

Anyone got any better ideas? Overpaying on a 10k 3.5% loan didn't seem to be netting me much anyway financially...

[Deleted User]

Hello...:(

doingitanyway

It sounds sensible to build up some savings in your circumstances. As they build you are bound to feel more relaxed. Maybe the buzz you got paying to debt will be replaced by a new buzz of paying to savings.

With a long haul there will be times the debt is fiercely attacked and other times it isn't. You have had your lightbulb moment so you know what you need to do, maybe just not at this moment.

Roll with the punches and good luck

redofromstart

makes sense to service the debts rather than overpay while you build an emergency pot. Our famine would have been far, far worse if we hadn't started with some savings.

50/50 debt to emergency fund is often suggested which I like, but you have to judge by your circumstances.

beanielou

Happy shiny new diary
You could build up an emmergency fund but also chuck an extra 100 quid a month at the smaller loan so you can at least see it reducing.
Keep posting!

savetosave

Hi
Don't forget that if your partner isn't working you may be able to claim some of there tax allowance. Ring HMRC 0300 200 3300.
You seem to have a good amount left after making all your payments, so I think the advice to build up savings and pay more off debts at the same time is a good one.
Maybe your partner could do some surveys? I recommend one pulse and prolific academic. They don't bring in loads but every little helps.
Good luck x