Second time around the merry go round

Hi all,

I wanted to start up a thread here to document the year I finally get debt free. I’ve been here before, around 6 years ago now and got through it. This time isn’t as bad, but I’ve been living beyond my means again, and wanted to get this all down in writing.

Current situation
Credit cards: £1100 owed / £5650 limit (just taken out a loan to get this down
Overdraft: £2000 used monthly, effectively 2/3 of my pay check behind before I even start
Loans: £160 pm (credit union, £2300 left to pay) £230 pm (debt consolidation, just taken out)
Very: £2700 balance, £1500 BNPL. £130 pm

To cut a long story short I got married in October, had an expensive honeymoon to America straight after, and then Christmas and January has hit me like a freight train. My wife is in a similar position, with £7k credit card debt around £400 pm loan payments to manage.

Thankfully I’ve got a grip on this before anything has gone too badly wrong, in my early 20s I was hit with around 6 defaults and really struggled to cope, but this time I’m much more positive.

Looking for any advice and support on the journey to being debt free (at least until I try to get a mortgage at the end of this year :rotfl::rotfl:)

I’m going to be updating this as I go along to keep me honest!

Thanks
sammynick

Replies

  • Decided it’s time to do this properly, so here’s me SoA:

    Statement of Affairs and Personal Balance Sheet

    Household Information

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

    Monthly Income Details

    Monthly income after tax................ 2844
    Partners monthly income after tax....... 0
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 2844


    Monthly Expense Details

    Mortgage................................ 0
    Secured/HP loan repayments.............. 220
    Rent.................................... 590
    Management charge (leasehold property).. 0
    Council tax............................. 120
    Electricity............................. 35
    Gas..................................... 35
    Oil..................................... 0
    Water rates............................. 30
    Telephone (land line)................... 0
    Mobile phone............................ 120
    TV Licence.............................. 12
    Satellite/Cable TV...................... 7
    Internet Services....................... 50
    Groceries etc. ......................... 100
    Clothing................................ 50
    Petrol/diesel........................... 40
    Road tax................................ 10
    Car Insurance........................... 50
    Car maintenance (including MOT)......... 20
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 10
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 0
    Contents insurance...................... 0
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 25
    Haircuts................................ 0
    Entertainment........................... 100
    Holiday................................. 0
    Emergency fund.......................... 0
    Total monthly expenses.................. 1624



    Assets

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



    Secured & HP Debts

    Description....................Debt......Monthly...APR
    Mortgage...................... 0........(0)........0
    Hire Purchase (HP) debt ...... 11500....(220)......25
    Total secured & HP debts...... 11500.....-.........-


    Unsecured Debts
    Description....................Debt......Monthly...APR
    Capital One Card...............650.......25........29.9
    Barclaycard....................500.......18........29.9
    Credit Union Loan..............2300......160.......42.9
    Everyday Loans.................11000.....233.......35.5
    Total unsecured debts..........14450.....436.......-



    Monthly Budget Summary

    Total monthly income.................... 2,844
    Expenses (including HP & secured debts). 1,624
    Available for debt repayments........... 1,220
    Monthly UNsecured debt repayments....... 436
    Amount left after debt repayments....... 784


    Personal Balance Sheet Summary
    Total assets (things you own)........... 0
    Total HP & Secured debt................. -11,500
    Total Unsecured debt.................... -14,450
    Net Assets.............................. -25,950
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