Debt Free in 3 years

Debtfreeat50

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.

Debtfreeat50

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]

Debtfreeat50

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.

Sunshine_girl2

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 ?

Debtfreeat50

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

Debtfreeat50

I have opened a new bank account due to having a loan with Halifax.

Sunshine_girl2

Debtfreeat50 wrote: »

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 .

Debtfreeat50

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!

Debtfreeat50

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

Debtfreeat50

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

savingholmes

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.