£15,129 High Interest

0Credit

Hi all

So to create a bit more self accountability and to keep on track I am here to put it all out in the open, seek advice and make sure I get this sorted asap.

I have had the opportunity to squash this many times over the last 5 years but have always not or had a high expense unexpected payment pop up (moving house mainly).

I have a moderate income and no children/wife so in theory I am a complete moron for having even £1 of debt.

One thing to mention is I did have a couple of addictive habits which I have 90% squashed. I will not go into those, however those of you are observant will see it pop up I am sure when I break down my expenditure.

Income: £3500 per month plus commission (average about £1k per month).
Debt:

Loan: £8979 balance. £264 per month payment. 34 months remaining.
Credit card 1: £2350 with £240 per month min payment.
Credit Card 2: £1300 with £65 min payment.
Overdraft: £2000. £70 min payment.
Store Card: £500. £60 min payment.

Total Debt: £15,129. Payments per month £699.

I will run through expenses/set outgoings per month in my next post. Each week I will update with my expenditure also.

Here goes :money:

PositiveBalance

Hello 0Credit :wave:

What are your incoming and outgoings so we can see how much you have to throw at debt repayments each month?

And oh my... how I would love an income like yours - even living in the South that could hardly be described as moderate! :lovethoug

0Credit

PositiveBalance wrote: »

Hello 0Credit :wave:

What are your incoming and outgoings so we can see how much you have to throw at debt repayments each month?

And oh my... how I would love an income like yours - even living in the South that could hardly be described as moderate! :lovethoug

Hi

My money is all over the place BUT at the end of this month I am going to write down my set outgoings in full. The reason I am waiting is due to me moving house and my rent going up by 30% along with higher running costs. So just wanting to write down what I will be spending and not what I have been if that makes sense.

Yes my wage is good but I would say it is 60% stable only. So I need to be smart, get debt free and have some savings encase it isn't around forever!

PositiveBalance

0Credit wrote: »

Hi

My money is all over the place BUT at the end of this month I am going to write down my set outgoings in full. The reason I am waiting is due to me moving house and my rent going up by 30% along with higher running costs. So just wanting to write down what I will be spending and not what I have been if that makes sense.

Yes my wage is good but I would say it is 60% stable only. So I need to be smart, get debt free and have some savings encase it isn't around forever!

Sounds sensible...get the SOA template up above to start with and note down every other miscellaneous expense you can think of between now and then. You'll be amazed at what you find!

0Credit

I have a quick breakdown from June which is just very basic but gives an idea:

Home Costs: £1084
Food: £315
Health (medicine): £35
Car: £135 (company car but I pay fuel only)
Pets: £10.85 (insurance and their food is lumped in with the overall Food figure above)
Misc (Wasted spending): £392
Family: £500
Debt: £527

Total outgoings: £3018

This of course seems pretty good in the sense of I am under spending from my £3500 min income. HOWEVER I need to put away at least £850 per month to cover self assessment tax and accountant costs.

So I over spent and saved nothing. Nor did I clear any debt.

natsplatnat

The good news is you are aware of what you need to do and also have the income available work with.


Good luck!

0Credit

One other thing I have done is wrote down an ideal what I should have/want to spend in that month

Home: £800
Food: £200
Health: £18
Gambling: £0
Car: £65
Pets: £10.85
Misc: £100
Family: £350
Debt: £500.

This brings it back around £2k per month which would allow me to:

1) Save for tax correctly.
2) Put another £500-£1500 per month into clearing debt!

There are many ways I will achieve this as I have recently changed many habits and big one is my diet.

I am obese and eat eat eat and often get takeaways. Also when I shop food goes off, I pay for delivery etc etc.

Recently I have become THAT GUY who goes into Aldi at 9.30pm to get all the 1/2 price items.

If I am smart and don't drink/get takeaways I could even get my food bill total to under £150 per month which would be an incredible saving of over £2000 per year.

0Credit

So tomorrow I will be starting this diary in full with:

Total debts and where
Every penny I spend and where per day.
Doing full breakdown at the end of the month.
Creating budgets and plans to move forwards.

Very excited.

117pauline

Welcome

Firstly, well done on admitting your debts and starting a diary.

My first suggestion would be to keep a spending diary of your spends including time, mood and who you are with. Sounds a bit over the top but it will help you see the pattern of your spending and where you can cut back.

Other ideas

1. Do make gradual changes that are sustainable
2. Look at your food waste and work why you bought it in the first place - do you buy lots of fruit and vegetables, trying to be healthy then waste it
3. Would an annual prepaid prescription card (104) save you money?
4. Start to meal plan and make sure you have something in when you crave a takeaway
5. Work out your favourite meals then make double so you can freeze one
6. Keep a takeaway as a treat at the end of the month

Good luck
Pauline

Just to add, initially I would schedule a weekly time to check your progress and celebrate your successes.
Also treat your tax as a regular monthly commitment

0Credit

Hi

Yes it is great because I have already changed so much and do just shop for the next day (have luxury of living 30 seconds from an Aldi and go 9pm each night for the 50% off deals).

0Credit

OK so current standings

Bank Balance: £1972.61
PayPal: £1000

Debts:

Credit Card 1: £2373.72
Credit Card 2: £1263.10
Store Card 1: £505.40
Overdraft: £2070
Loan: £8715.63

Total Net Worth: - £11,955.24

At the end of each day I will update this with my total spending. Each week I will organize this into categories and then the same at each month. At the end of this month I will see where I can improve and move forwards like so.

Here goes!