I want to be living my dreams... not stress out 25 June 2018 at 9:47PM in Debt free diaries 14 replies 1.4K views

ramhainn

Hi everybody,

I have been reading the forum for a while now and want to take matters into my own hands financially to be able to stop worrying so much about money and be enjoying life a bit more...
I have amassed a debt that is perhaps not that huge but the stress related to it and the fact that my money is not spent the way I want to be spending it is really affecting me and it is pretty much all I think about.

Most of the money I owe relates to the some personal issues having to move a couple of times, at a short notice and buying some photographic equipment because I want to enjoy my hobby.

Probably at the moment my biggest worry is my mortgage back in Poland and the overdraft there. Although the flat is mostly rented out, the rent does not cover the mortgage plus all other monthly payments related to it. In this town and considering the standard of the flat, I am not able to charge more for it. On top of that, there is about £4000 in overdraft on my Polish account, mostly related to me moving to the UK and the flat being empty for a couple of months. Another thing, selling the flat would possibly take up to a year and it is possible I would not get enough to cover the remaining mortgage.

In the UK, I have the following debt:
Barclays CC £2400 (0% balance transfer)
Overdraft 1 £100 (to be paid off next month)
Overdraft 2 £500
Car loan ( from my ex £2100 - 0%)
Camera loan (ca £1200 left).

I am on a good salary (I get £2150 a month), around £400-500 goes towards the repayment of my debts a month but... things keep happening, like I have to move (cost me £1000 back in Feb) or something breaks and it feels like I am back to square one.

I stopped spending money on photo equipment which is driving me mad. The fact that I can't buy or do things like go on a holiday or a weekend break drive me mad.

I am really determined to clear the debts and want to save up some money to buy a place here in the UK.

ramhainn

I was hoping for some words of encouragement but that didn't happen...
Well... Sometimes support does not come where you expect it but you still have to carry on with your plan I guess...

pidge04

Oh I am sorry to hear this.

How is it going for you?

Purplemumof2

Morning ramhainn,

The boards can move quite quickly some days and threads get lost.

Welcome aboard and good luck with your journey x

UncannyScot

Hi and welcome

As said above sometimes the boards move so fast new folks can be missed, sorry if you feel that we ignored you.

One of the first things we advise is to make a Statement Of Affairs (SOA) so that you know what all your incoming and outgoing finances are; there is a link to this on the main site.
Also, there is a budget planner spreadsheet available.
You do not need to post up the completed SOA on the forum if you don't want to, however, some folks find it helpful to have folks here check it over to see where possible savings can be made.

Hope that helps you and please, if you need any other advice or info, post up and we will do our best to get back to you as soon as we can.

Debtnomoreplease

Hi, sorry as above if you don't keep updating your diary can move quickly.

Good news is you're dealing with things-huge step-well done!

Did you manage to pay the £100 overdraft off you were planning to pay?

Have you managed to pay anymore towards your debt recently?

It's going to be a very hard doing the things you love, whilst you get debt free, but trust me it will be absolutely worth it! Once debt free can enjoy the things you love again, without the stress-trust me it's so worth it! Being in debt doesn't have to be forever.

I would suggest you need a £1000 emergency fund first so when something happens you aren't adding to your debt. Can you pay minimums on your debts and try to save that £1000? Good news is-you are on a good wage to deal with this.

This debt didn't appear over night, therefore won't go away overnight, but if you put everything and cut back as much as possible you WILL be debt free.

You have an expensive camera, is there anyway of making you hobby into a side job and selling some of your photos? Is there anything you can sell to raise some money to start your emergency fund? eBay, buy and sell sites etc...it's amazing what you can find to sell when you are ruthless.

Keep checking in on here and more people will see your diary and will be happy to check in and offer you support.

All the best

Gurj247

Looks like you have circa £11k in debt (Poland and UK) and appreciate you are on a good salary, but as said a Statement of Affairs (SOA) would help us inform you better, in the hope our advise helps (although at times it may be harsh).


Also where in the UK are you as although your salary is pretty good, if you are living in central London then it may not go that far as cost of living is significantly higher when compared to say Leeds in Yorkshire.


Agree with the suggestion above - first try and get a Emergency Fund together.


Also assess your debts and work out which is costing you the most (what has the highest interest) and prioritise getting that debt paid off first and work your way down that way.


Also look at the Deals Page on the main page for cheaper nights out etc. as everyone needs a little reward along the way.

ramhainn

Hi
Thanks very much for your replies. I felt a bit ignored to begin with but it is really good to connect with people who have the same problem as it seems that those closest to me do not seem to understand.
Here is my SOA

Debt Calculator - Free Income & Expenditure Debt Budget Statement
Summary
Monthly Budget Summary
Amount(£)
Total monthly income
2,168
Monthly expenses (incl. HP & secured loans)
1,358.18
Available for debt repayments
809.82
UNsecured debt repayments
507
Amount left after debt repayments
302.82

Personal Balance Sheet Summary
Amount(£)
Total Assets (things you own)
1,091
Total Secured & HP Debt
-0
Total Unsecured Debt
-9,753.92
Net Assets
-8,662.92
Household Information
Number of adults in household
1
Number of children in household
0
Number of cars owned
1
Income, Expense, Debt & Asset Details
Income
Amount(£)
Monthly income after tax
2168
Partners monthly income
0
Benefits
0
Other income
0
Total monthly income
2168

Expenses
Amount(£)
Mortgage
0
Secured/HP loan payments
0
Rent
360
Management charge (leasehold property)
0
Council tax
78
Electricity
31
Gas
31
Oil
0
Water Rates
0
Telephone (land line)
0
Mobile phone
91.82
TV Licence
12.43
Satellite/Cable TV
35
Internet services
24
Groceries etc.
300
Clothing
40
Petrol/diesel
120
Road tax
2
Car Insurance
40
Car maintenance (including MOT)
20
Car Parking
0
Other travel
50
Childcare/nursery
0
Other child related expenses
0
Medical (prescriptions, dentists, opticians etc.)
0
Pet Insurance/Vet bills
14
Buildings Insurance
0
Contents Insurance
8.93
Life Assurance
0
Other Insurance
0
Presents (birthday, christmas etc.)
0
Haircuts
0
Entertainment
100
Holiday
0
Emergency Fund
0
Total monthly expenses
1358.18

Secured & HP Debt Description
Debt(£)
Monthly(£)
APR(%)
Mortgage
0
(0)
0
Secured & HP Debt totals
0
-
-

Unsecured Debt Description
Debt(£)
Monthly(£)
APR(%)
BOS overdraft
86.59
50
7
RBS overdraft
350
50
7
BOS CC
873.58
50
0
Camera
1254
57
10
Car loan
750
150
0
Overdraft in Poland
4200
50
10
Barclays CC
2239.75
100
0
Unsecured Debt totals
9753.92
507
-

Asset Description
Value (£)
Cash
1091
House Value (Gross)
0
Shares and bonds
0
Car(s)
0
Other assets (e.g. endowments, jewellery etc)
0
Total Assets
1091

I have around £10k unsecured debt, £1.1k in savings (this is my Help to Buy ISA - trying to save for a deposit, £50/month goes there).


Getting an emergency fund would be a great idea. I have to pay car insurance soon and that will knock me around £400 back.


Plus my situation in Poland is getting worse. I am going there end of October to potentially put the flat on the market and cut my losses this way. It is a hard decision that is not supported by my relatives but I do not think that the price of the flat will raise enough in a couple of years to cover all the expenses that I will have to make towards it. I will possibly need to transfer £350 monthly to cover mortgage and all charges there until I find a lodger or sell it.

I am thinking of changing a job within the next 10 months for a better paid one, so fingers crossed. Although I am on a good salary (I live in Scotland), I think I can do better.

It seems that people got out of much bigger debt so here's hoping I can clear my 10k.

I would really appreciate all advice.

pidge04

I really think you can clear your 10k. Set yourself a debt free date. Do you live alone? Can you set a target of £200 for groceries? Is there anything you can do about your mobile phone costs? Good luck!

pidge04

Try not to listen to those around you...you know the ins and outs of your financial situation and they do not (presumably).

ramhainn

As for my mobile - one part of contract expires in February so it will go down. Not too sure what else I can do as contract lasts till July next year after which I'm planning to go sim only.

Next week I'm planning to see if I can switch energy provider and get back my £120 credit back.

And next point on my list is getting an emergency fund together.