Countdown from 47k...

IrishSean

WhySeaEm said:

Bloody heck, I realised in the middle of the night I'd left my loan off that I got from my dad- I pay him back £300 a month! How could I forget that?! So I've updated my SOA again and been through it with a fine tooth comb to make sure nothing is forgotten. That leaves me with £865 a month, so my target will be £1000 a month instead.

I'm going to transfer £1000 a month to my savings on payday, and unless absolutely desperate I will.not.touch.it. We don't have an emergency fund or any space on any credit (we're completely maxed out) so that will have to do. Then on the following night before payday I'll pay it to debt, plus anything left in our current account (if anything!). 

I need to pay back £750 to Dad (on top of the loan) next month because he lent me money to get my car fixed. So next month I'll only have £250 to put into debt. But that's ok. 

GOALS! I feel determined. Plus in lockdown we're saving more, no doggy daycare or Cineworld or entertainment apart from the odd takeaway. We're eating more though so food bill has massively gone up. Petrol is down too! So that should help from next month. 

I'm trying to factor that parental loan (those loans) in my head. You are seriously tight on headroom for your credit. It will take a big double down on the DFW commitment. I can see the need and benefit of the MacBook for work, plus the purchase had been made but other brands of tablet are available along with refurbed machines, some with warranty. I never had an I-phone but once read ppl traded up to the next model which had just 7% more functionality (i-phone 7➡8 maybe?). Hopefully by year end you'll achieve some breathing space on the debt.

Kitten868

Have you looked into selling the old one? Bit more difficult at the mo given there aren't any computer shops open but I'm sure those types are looking on eBay anyway. Would your employer consider contributing since it's for work? 
Please don't think I'm judgemental. I'm in debt but about to buy a new front door. Our current door doesn't lock in the summer and is full of holes. That's the hardest thing about being debt free wannabe - things keep breaking or need fixing. Its keeping going despite that works xxxx

enthusiasticsaver

WhySeaEm said:

So this is my diary! Welcome to anyone who reads and helps along the way

It's me, (WSE), my wifey and our Little Boy (LB) and a puppy living in the south west. (LONDON OR THE SOUTH WEST?)

My LBM came after joining this forum, doing an SOA and going through my accounts. 45K of unsecured debt when we (now- thanks to big pay rise) have a combined income of £125k is madness. Various mistakes lead us here, but now it's time to climb out of this mess and knuckle down. Wish me luck!

  
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Summary

Monthly Budget Summary	Amount(£)
Total monthly income	6,750
Monthly expenses (incl. HP & secured loans)	4,215
Available for debt repayments	2,535
UNsecured debt repayments	1,670
Amount left after debt repayments	865

Personal Balance Sheet Summary	Amount(£)
Total Assets (things you own)	3,000
Total Secured & HP Debt	-0
Total Unsecured Debt	-47,100
Net Assets	-44,100

Household Information

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

Income, Expense, Debt & Asset Details

Income	Amount(£)
Monthly income after tax	1400
Partners monthly income	5350
Benefits	0
Other income	0
Total monthly income	6750

Expenses	Amount(£)
Mortgage	0
Secured/HP loan payments	0
Rent	1500
Management charge (leasehold property)	0
Council tax	225
Electricity	60
Gas	80
Oil	0
Water Rates	40
Telephone (land line)	0
Mobile phone	55
TV Licence	15
Satellite/Cable TV	40
Internet services	40
Groceries etc.	400
Clothing	50
Petrol/diesel	300
Road tax	30
Car Insurance	80
Car maintenance (including MOT)	100
Car Parking	0
Other travel	0
Childcare/nursery	60
Other child related expenses	100
Medical (prescriptions, dentists, opticians etc.)	10
Pet Insurance/Vet bills	40
Buildings Insurance	0
Contents Insurance	30
Life Assurance	0
Other Insurance	0
Presents (birthday, christmas etc.)	50
Haircuts	50
Entertainment	280
Holiday	0
Emergency Fund	0
(Unnamed monthly expense)	0
(Unnamed monthly expense)	0
Cleaner	70
Bike scheme	15
Cineworld	40
Netflix	10
Dog food	60
Lottery	20
Union	10
Doggy daycare	320
House alarm	35
Total monthly expenses	4215

Secured & HP Debt Description	Debt(£)	Monthly(£)	APR(%)
Mortgage	0	(0)	0
Secured & HP Debt totals	0	-	-

Unsecured Debt Description	Debt(£)	Monthly(£)	APR(%)
Santander overdraft	2550	100	0
Natwest overdraft	1500	50	0
Capital one	2960	120	30.3
Macbook	950	95	0
Dad loan	2400	300	0
Lendable	7840	345	22.3
MBNA	14400	365	18.9
Santander	5000	95	12
M&S	4000	100	16.9
Barclaycard	5500	100	17.7
Unsecured Debt totals	47100	1670	-

Asset Description	Value (£)
Cash	0
House Value (Gross)	0
Shares and bonds	0
Car(s)	3000
Other assets (e.g. endowments, jewellery etc)	0
Total Assets	3000

In terms of the debts.  You say the overdrafts are not 0%.  Most are 40% now so that is £1600 interest per year you must be forking out for that now. I have just worked out the interest on the credit cards over a year is £7616.  So a total of £9216 is being paid in interest on your debts each year.  Or £768 per month.  The monthly repayments (ignoring your Dads loan and the MacBook) are £1275 so only £500 of that £1670 is going on reducing the debt. 

I wont labour on the monthly outgoings as others have pointed out your dog is costing you a fortune, the entertainment is absolutely ridiculous when you have as much expensive debt as you have and you could save on utilities and food, insurance is high, you have a cleaner which could go especially if you only live in a 2 bed house and what is this bike scheme when you have 2 cars? 

Like many others on high salaries you seem as if you have been living a life without constraints financially because you have bought into a certain lifestyle.  Even since your so called LBM you have spent almost £1000 on a MacBook for work when your monthly salary (yours, not your wifes) is only £1400.  Even if it is interest free that is £95 a month which is not going towards the £45k of debt which is costing you almost £10k in interest each year - enough to buy 10 Macbooks.  I understand you say your wife has only just had a payrise of almost double her salary.  Were you spending that previously? How safe is her job, especially with a recession looming? Where has the money you can supposedly save in lockdown from not eating out, no doggy day car, entertainment etc been going? Even on an income of almost £7k per month (three times the national average) you needed your Dad to lend you money to fix your car.  Can you see what is wrong with that? 

I have been harsh because I think you need to hear that.  You have a good income and with some sacrifices you can sort this.  If things go the other way and your wife loses her job you will be looking at bankruptcy as your salary will not sustain those debts and you have no savings or assets. If you were able to get the MacBook on interest free credit why can you not move some of those expensive debts by using 0% balance transfers? 

WhySeaEm

enthusiasticsaver

I wont labour on the monthly outgoings as others have pointed out your dog is costing you a fortune, the entertainment is absolutely ridiculous when you have as much expensive debt as you have and you could save on utilities and food, insurance is high, you have a cleaner which could go especially if you only live in a 2 bed house and what is this bike scheme when you have 2 cars? 

Like many others on high salaries you seem as if you have been living a life without constraints financially because you have bought into a certain lifestyle.  Even since your so called LBM you have spent almost £1000 on a MacBook for work when your monthly salary (yours, not your wifes) is only £1400.  Even if it is interest free that is £95 a month which is not going towards the £45k of debt which is costing you almost £10k in interest each year - enough to buy 10 Macbooks.  I understand you say your wife has only just had a payrise of almost double her salary.  Were you spending that previously? How safe is her job, especially with a recession looming? Where has the money you can supposedly save in lockdown from not eating out, no doggy day car, entertainment etc been going? Even on an income of almost £7k per month (three times the national average) you needed your Dad to lend you money to fix your car.  Can you see what is wrong with that? 

I have been harsh because I think you need to hear that.  You have a good income and with some sacrifices you can sort this.  If things go the other way and your wife loses her job you will be looking at bankruptcy as your salary will not sustain those debts and you have no savings or assets. If you were able to get the MacBook on interest free credit why can you not move some of those expensive debts by using 0% balance transfers? 

"Can you see what is wrong with that"
Of course I can, that's why I joined this forum. 

In answer to your points; we're not getting rid of the dog. We've got awful credit ratings so no chance of 0% balance transfers. The MacBook was from Currys on 0% and we weighed it up and it is essential to me and my work- yes I had my LBM but I still needed it.  Wife's job is as secure as a job can be, obviously it'll be bankruptcy if she lost her job, but I'm not going to think like that, she's worked there for 16 years. Her pay rise wasn't double now, that's over the last 3 years, but jumped 15k last month. So we haven't had any spare money yet but we will now. I've checked all my utilities and made switches and they're as cheap as can be. I have a disability so can't do the cleaning and wife works incredibly long hours, so the cleaner is staying. Not sure which insurance you think is high but the dogs is essential as it makes direct payments to vets which we need as obviously can't afford to pay if things go wrong, and the contents insurance I will check. Food we're trying to cut down on and have switched to Aldi twice a week instead of Sainsburys. And the bike scheme is for our sons bike.

I know this is a harsh forum, but I'm not sure what else you want me to say. I have been obsessively reading, reading reading since I came on to DFW literally hours a day. I'm doing the best I can right now.

[Deleted User]

Pet insurance- I've just spent £700 on my dog. He was insured though so only had to pay £99 excess. My policy is £6.95 a month. Can this be looked at? Comparison sites are a good start. 
Good luck with your diary. I'll be following it with interest and willing you on to succeed. 

WhySeaEm

4853emma said:

Pet insurance- I've just spent £700 on my dog. He was insured though so only had to pay £99 excess. My policy is £6.95 a month. Can this be looked at? Comparison sites are a good start. 
Good luck with your diary. I'll be following it with interest and willing you on to succeed. 

Thank you
Wow you're lucky to pay so little! I just went on comparethemarket and the cheapest lifetime cover I could see was £21.38 and that was with 20% co-pay. I'm happy with Bought By Many, I know £37 is a lot but it gives me peace of mind as they pay the vets direct and it's £15,000 lifetime cover. I can't get any cheaper for the same level of cover. 

WhySeaEm

!!!!!!, I'm feeling low and disheartened and overwhelmed tonight. 

  

Mumoffourkids

My contents insurance is £60 a year and I am in a four bed town house. I go on comparison sites every year and when my renewal comes through, I phone them and they match the cheapest price on the comparison sites.

Also just a quick query, the house alarm costs. Isn’t this a landlord expense?  I have an alarm and its up to my landlord to pay for it. It might just be that I have an amazing landlord who pays for loads of things on my house. He even paid for the hedges to be cut down around the front of my house one year. 

Your rent is enormous for just a two bed house. I am in Essex and I thought my rent was high.

I have been reading your posts and one thing I would say is instead of saving the money at the start of the month and then paying to debt at the end of the month, pay half to the debt at the start of the month. If you leave it until the end, you will find stuff to spend that money on. I know this as I do it myself. I cleared all my debt apart from my car loan and although I had spreadsheets saying how much money was coming in and then going out and how much could go to savings, I didn’t put it in savings straight away and I started spending it on stuff that I wanted. I could have had a lot more saved up by now, but instead I spent the money. It’s so easy to spend saying oh well, I will still have £x to put into savings or pay off debt at the end of the month.

Also how much are you spending on food at the moment? Last month I spent £687 which is way higher than normal due to us all being home, but offset against that was minimal petrol, no school bits for the kids etc. That budget was for 7 of us. There are 3 of you so your spending could be much lower than mine. In lockdown are you saving the extras that you aren’t paying for at the moment so doggy day car, entertainment, petrol etc? In theory you have £865 spare to throw at the debts each month, but in lockdown that should be much more. Take advantage of lockdown and pay more off your debts.

katsu

On your other thread you said you would give up the lottery so it might be worth amending your SOA to show the changes (if you are making those changes).  

Elby

WhySeaEm said:

!!!!!!, I'm feeling low and disheartened and overwhelmed tonight. 

  

Long time lurker but new to reading debt diaries and just bookmarked yours to follow. You can do this, one day at a time. You have acknowledged your debts and have made a huge step forward by doing so. Yes the road might be long but you've started on it and that's what counts.