£228,000 debt at the age of 23

prodigalson

My goal right now is to get out of this hole I'm in as soon as possible.

Goal is eliminate all this debt by the end of 2018. I make good money but my expenses and my management of my resources has went out of control. So I am keeping this log to keep be accountable, hopefully some of you guys will comment and motivate me along the way.

I also aim to build a small emergency fund of £5,000 just in case I have future problems weather they be work related of health.

Monthly Income Details[/b]
Monthly income after tax................ 8000
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 8000

Monthly Expense Details
Mortgage................................ 906
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 125
Electricity............................. 100
Gas..................................... 0
Oil..................................... 0
Water rates............................. 22
Telephone (land line)................... 0
Mobile phone............................ 60
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 40
Groceries etc. ......................... 600
Clothing................................ 0
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 29
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 50
Entertainment........................... 400
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2332


Assets
Cash.................................... 3000
House value (Gross)..................... 600000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 5000
Total Assets............................ 608000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 150000...(906)......1.69
Total secured & HP debts...... 150000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Personal Loan..................60000.....1250......6
Credit Card 1..................1000......0.........19.7
Credit Card 2..................1200......0.........19.7
Bank 3 overdraft...............2500......0.........0
Bank 2 overdraft...............1500......0.........0
Bank 1 overdraft...............2000......0.........0
Family Loan....................5000......0.........0
Credit Card 3..................1800......0.........9.7
Total unsecured debts..........75000.....1250......-


Monthly Budget Summary
Total monthly income.................... 8,000
Expenses (including HP & secured debts). 2,332
Available for debt repayments........... 5,668
Monthly UNsecured debt repayments....... 1,250
Amount left after debt repayments....... 4,418

Personal Balance Sheet Summary
Total assets (things you own)........... 608,000
Total HP & Secured debt................. -150,000
Total Unsecured debt.................... -75,000
Net Assets.............................. 383,000

Willing2Learn

Hi prodigalson,

Be good if you could post up your Statement of Affairs (SOA). You can then get more helpful advice. Don't forget to click on the 'Format for MSE' button at the bottom of the form.

http://www.stoozing.com/calculator/soa.php

prodigalson

Also, I have defaulted on a significant number of payments, so goal right now is to get back on track as soon as possible! I have never had any CCJ's or IVA's or anything elses, if anyone has any advice to repair my credit, it would be greatly appreciated.

Willing2Learn

How many people in your household for £600/month groceries.

Also do you not have buildings and contents insurance?

Are you really paying £260/month water rates??

You have zero entered for both mobile or landline. Do you not have one or the other (or both)?

Do you not pay the TV license?

How come there is no monthly travel costs?

wymondham

is that really £1,500 a month council tax?

prodigalson

Thanks for the questions
For groceries I spend £600 that includes eating out with people I work with or friends/family. I come home late so rarely cook.

£260 for water rates is per year sorry!

I have included the phone bill as part of unsecured credit

I do not have a TV liscense

And my travel costs are paid on company card

prodigalson

Per year! Sorry! Will update it now

[Deleted User]

Well you can have all but the loan gone in a few months if you actually have over 4 grand disposable each month, then throw as much as possible at the loan to pay it down quicker

enthusiasticsaver

You must have been overspending drastically to get into that amount of debt with that income. I am guessing you don't have £4000 spare each month so you need to find out where your money is going. I am not sure how many people you are providing for but £600 groceries @nd £400 entertainment can be cut back.

pidge04

Hi - do you have any expensive hobbies?

prodigalson

I took the personal loan out to start my business as I didn't have enough cash in the bank. Definitely trying to find out where exactly my money is going and be more organised with my finances.

I grew up with parents who would never give their children any money to spend on anything. They would buy me what I wanted for birthdays and Christmas but I never had the chance to learn how to manage money so I have been in debt since I was 18 since being a student given a huge overdraft. Trying to become responsible with money now.

In terms of expenses, I eat out a lot so groceries is typically takeout food, as I arrive quite late every night. Also I go through a 20 pack of cigarettes everyday which adds up to roughly £300 per month. Entertainment is mainly smoking hookah with friends, going out 1-2 times a week in London. A few drinks here and there.