First Steps to Solvency 13 September 2020 at 10:31PM edited 18 February at 7:10PM in Debt Free Diaries 5.8K replies 596.3K views

alt80

Updated this with Feb-21 balances - new start lol. Personal only, no business/ property held in spvs.

Feb-21                Balance                            Value                  LTV

Jul 21 0% - C1    £6,320.00                        £-          

Jul 21 0% - C2    £1,185.00                        £-          

Jan 22 0% - C3   £6,450.00                        £-          

Oct 22 0% - C4   £11,080.00                      £-                        

                                          

Overdraft           £2,345.00                         £-         

                                          

Range Rover     £90,400.00                      £85,000.00        

BMW                  £34,950.00                      £27,500.00        

                                          

Total Debt         £152,730.00                   

                                          

Res Mortgage    £289,060.00                   £625,000.00      46.25

                                          

Total Debt +  Res Mortgage  £441,790.00                   

Total Assets       £737,500.00    

Net Worth         £295,710.00 

alt80

To do for WC 14/9/20
1. Accountant appointment
2. September (remaining) budget
3. Template for ongoing - any available online either excel/numbers works for me
4. Balance transfers
5. Voluntarily terminate third car

These are all big steps for me so think that's enough for one week. 

mark55man

Good luck - you will get some comments on  the car, plus generally how these debts accrue.  But the only way for the debt is down - once you put your mind to it.  I sense there is quite a lot of money coming in and going out, and sometimes that makes it complicated, but the principles are the same, focus on the target (debt free date, or individual cards), stop doing expensive things frequently (its important to make big purchases wisely, but even more important to stop leaking cash).  There are two ways to get to £0, the hard and quick way, or the scenic and long way.  It depends how long you want to be here!!

I've found you get back what you put in on MSE, so be as open as you can, and I wish you well with your shiny diary

alt80

The debts have accrued because I don't treat my personal finances like my business and like expensive toys too much. Spent far too long burying my head in the sand not managing my personal finances and have been in significant debt previously (more than this) addressed by a remortgage of my BTL portfolio because I didn't want to upset my wife and was ashamed of myself. Not very clever so we're here again less than two years on and she's now fully aware of my financial problems.

Believe it or not my credit record is decent, I've never missed a payment and have access to significantly more credit on the cards but I was heading for decimating it carrying on as I was.

Income is c.£7k/m split between my business and BTL portfolio.

DayDreamerandGeneralWaster

Small steps are fine. You will get there. 

Definitely have a look yo see what you have to sell, e bay,Vinted. Facebay. All well off people  know flog things they don't use and look out for bargains, no shame in it at all these days. 

Andyjflet

actually have a friend who now makes a very good living from selling designer handbags online, fell into it and then everyone started asking her to sell the gear for her, she takes 50% cut to sell and market etc !!

alt80

Looking forward to clearing some of the stuff out of our lives tbf. We do sell old stuff from time to time. Wife is going to be doing most of it.

enthusiasticsaver

I am glad you have started a diary. It keeps money saving in the forefront of your mind and you will get good advice. An impressive to do list for your first week and good your wife is getting on board by selling stuff. I would use the money raised to start emergency savings fund. Anything over £1k goes to debt so you are almost there. It just stops you putting unexpected spends on a credit card which can be demoralising when you are trying to pay off debt. Is it all on 0% now then apart from loans? 

alt80

Going for the new day new start mentality with this. My sleep pattern went completely out the window last week so forced myself to get up with my wife this morning and have breakfast together as a family. I generally hate mornings and running my own business have always done what I can to avoid being up at a decent time. It was nice to have breakfast together so going to work on doing this everyday plus mindfulness morning and bedtime: reducing stress is quite important to me at the moment and think it will keep me in the right frame of mind not to do this for five minutes then go out and buy another third car.

I set out a schedule last night so hopefully won’t be so distracted by what’s going on in my personal life and be able to get on with my work this week.

All probably sounds mad this is affecting me so much but it is.

Small things today to get me in the right mindset and out of the not enough/ haven’t got enough one:
1. Finish work 6.30pm
2. Start on the September remainder budget and don’t give up if it’s bad
3. 15 minute activity with son (I don’t spend enough time with him)

alt80

@Andyjflet my wife loves bags as much as I love cars lol. I’d be quite happy if she gets into commission sales but up to her.

@enthusiasticsaver will be all 0% by the end of this week. 

I was thinking the same re emergency fund. It’ll allow me to pay the insurance on the Range Rover up front when it’s due for renewal in November rather than being monthly or on a credit card. I can then use the amount split over 12 to pay myself back. 

RelievedSheff

Well done on starting your diary. It will really give you some motivation when you are feeling a bit down, you can come back and read how far you have come.

It really sounds as though you have turned a corner and I'm sure that with your wife now onboard you can pretty quickly make your financial situation look a lot more rosy.