Debt Free in 3 years

in Debt Free Diaries
25 replies 1.2K views
Hi
I am starting this diary to keep myself on track. I have built up 20000 pounds worth of debt over the last 8 years or so due to offers from catalogues and limit increases from CC. Money went mostly on clothes and items for my kids.
My light bulb moment hit when I realised I am going to reach retirement age in 14 years time and still be in persistent debt. I am also going to have to support youngest through university.
I contacted a few free debt help companies and arranged a dmp with Tully. A lot of companies wanted to include my husbands income and I want to keep him blissfully unaware as he suffers from anxiety and panic attacks.
I will post a SOA below but my case is unusual as my husband pays the majority of bills and I pay him money each month as my share. He doesnt really share anything money related with me but we never have anything spare for holidays or clothes or even a haircut which is ridiculous on a joint income of 60000.
DMP Feb 20 21357
Current debt 18900 EF 2000
Debt free Oct 21
«13

Replies

  • Debtfreeat50Debtfreeat50 Forumite
    37 Posts
    10 Posts First Anniversary
    Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 2
    Number of children in household......... 1
    Number of cars owned.................... 1

    Monthly Income Details

    Monthly income after tax................ 1860
    Partners monthly income after tax....... 0
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 1860


    Monthly Expense Details

    Mortgage................................ 600
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 0
    Electricity............................. 0
    Gas..................................... 0
    Oil..................................... 0
    Water rates............................. 0
    Telephone (land line)................... 0
    Mobile phone............................ 74
    TV Licence.............................. 0
    Satellite/Cable TV...................... 40
    Internet Services....................... 30
    Groceries etc. ......................... 100
    Clothing................................ 0
    Petrol/diesel........................... 0
    Road tax................................ 0
    Car Insurance........................... 50
    Car maintenance (including MOT)......... 0
    Car parking............................. 0
    Other travel............................ 50
    Childcare/nursery....................... 0
    Other child related expenses............ 54
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 0
    Contents insurance...................... 0
    Life assurance ......................... 25
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 20
    Haircuts................................ 0
    Entertainment........................... 0
    Holiday................................. 0
    Emergency fund.......................... 50
    Total monthly expenses.................. 1093



    Assets

    Cash.................................... 0
    House value (Gross)..................... 200000
    Shares and bonds........................ 0
    Car(s).................................. 0
    Other assets............................ 0
    Total Assets............................ 200000



    Secured & HP Debts

    Description....................Debt......Monthly...APR
    Mortgage...................... 101000...(600)......0
    Total secured & HP debts...... 101000....-.........-


    Unsecured Debts
    Description....................Debt......Monthly...APR
    MBNA...........................5100......160.......0
    Halifax loan...................3710......145.......0
    Hitachi loan...................210.......57........0
    Newday.........................1500......60........0
    Aqua...........................3539......160.......0
    Next...........................1500......75........0
    Very...........................2653......150.......0
    Capital One CC.................1746......100.......0
    Total unsecured debts..........19958.....907.......-



    Monthly Budget Summary

    Total monthly income.................... 1,860
    Expenses (including HP & secured debts). 1,093
    Available for debt repayments........... 767
    Monthly UNsecured debt repayments....... 907
    Amount short for making debt repayments. -140


    Personal Balance Sheet Summary
    Total assets (things you own)........... 200,000
    Total HP & Secured debt................. -101,000
    Total Unsecured debt.................... -19,958
    Net Assets.............................. 79,042



    Reproduced on Moneysavingexpert with permission, using other browser.[/i]
    DMP Feb 20 21357
    Current debt 18900 EF 2000
    Debt free Oct 21
  • Debtfreeat50Debtfreeat50 Forumite
    37 Posts
    10 Posts First Anniversary
    I appreciate my mobile phone amount is high but includes contract for me and my daughter. I will move to SIM only in July when my contract ends.

    My DMP is for 580 and is due to last for just under 4 years and first payment is due on 5/03. Tully have written to all my creditors to ask for a months breathing space and I am using this months wages for my EF and to pay off some of my OD. So far MBNA have stopped charging me interest and Halifax have stopped charging on my overdraft. All the rest are demanding payment for this month including interest.
    DMP Feb 20 21357
    Current debt 18900 EF 2000
    Debt free Oct 21
  • Sunshine_girl2Sunshine_girl2 Forumite
    1.8K Posts
    1,000 Posts Second Anniversary Name Dropper Photogenic
    ✭✭✭
    Great to start a diary , well done for having your LBM. However do Tully charge you for the DMP. Would be better off with pay plan or step change who are free . If you have gone with them because of not including your husbands salary , could you not do self managed ?
    Debt free April 26th 2021

  • Debtfreeat50Debtfreeat50 Forumite
    37 Posts
    10 Posts First Anniversary
    Hi

    Tully don't charge but are paid by lenders in the same way as others. I like them as everything is online and it has been managed very quickly and efficiently. All my money is being paid off my debts
    DMP Feb 20 21357
    Current debt 18900 EF 2000
    Debt free Oct 21
  • Debtfreeat50Debtfreeat50 Forumite
    37 Posts
    10 Posts First Anniversary
    I have opened a new bank account due to having a loan with Halifax.
    DMP Feb 20 21357
    Current debt 18900 EF 2000
    Debt free Oct 21
  • Sunshine_girl2Sunshine_girl2 Forumite
    1.8K Posts
    1,000 Posts Second Anniversary Name Dropper Photogenic
    ✭✭✭
    Hi

    Tully don't charge but are paid by lenders in the same way as others. I like them as everything is online and it has been managed very quickly and efficiently. All my money is being paid off my debts

    That's great , never heard of them good to know there are other ones that are free .
    Debt free April 26th 2021

  • Just had my first cost cutting victory. Our current Sky bill is 60 pounds and we barely watch tv. We are in contract until November but have cut down to basic package of 20 which is 10 less than I thought. In November I will switch to Freesat so one less thing to pay for!
    DMP Feb 20 21357
    Current debt 18900 EF 2000
    Debt free Oct 21
  • Debtfreeat50Debtfreeat50 Forumite
    37 Posts
    10 Posts First Anniversary
    My wages have gone into my new bank account so hurrah for that. Tully have told me that I dont need to pay anything this month so moved most of it into an EF pot. I
    t feels so strange to be able to go in and pay all my bill's without having to balance them between credit cards and worry if there is enough balance to pay them.
    I have heard nothing from any of my creditors or Tully as yet so am taking that as good news. I fear it won't be quiet for long though as they realise that I have missed a payment but hopefully the breathing space letter from Tully will stop me being too bombarded. I am having an operation in a few days and need to be able to rest without too much stress
    DMP Feb 20 21357
    Current debt 18900 EF 2000
    Debt free Oct 21
  • Debtfreeat50Debtfreeat50 Forumite
    37 Posts
    10 Posts First Anniversary
    Had a text from Next today about my missing payment and a scary looking debt collection letter from Very.
    Still no news on my DMP offer from Tully. They said they would send a letter outlining outcomes after 2 weeks so have a week to wait.
    I sent a letter off to Halifax about my old bank account with a repayment offer for my overdraft and asking if they want to close the account and add it to the DMP
    It is cold and miserable today and I am feeling a bit panicky about what is going to happen
    DMP Feb 20 21357
    Current debt 18900 EF 2000
    Debt free Oct 21
  • savingholmessavingholmes Forumite
    16.6K Posts
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    ✭✭✭✭✭
    I've not heard of Tully either. It's likely that as you start your DMP you may get some uncomfortable phone calls, texts and letters but things should settle down. If you read some diaries of others on DMPs it may give you better idea of what to expect.

    Well done for cutting your sky bill. Good that you are getting an EF together as you will lose access to new credit.
    During 2021: Target 1) Clear CC debt - £2128 to go (but debt neutral) @ 0% Target 2) Lose weight 3) Write regularly 38113/70000 words Book 2 4) Promote book(s) 5) Develop passive income streams 6) Build 3-6 mths EF 7) Declutter
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