First Steps to Solvency

edited 18 February at 7:10PM in Debt Free Diaries
5.8K replies 596.3K views
alt80alt80 Forumite
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edited 18 February at 7:10PM in Debt Free Diaries

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 
«134567577

Replies

  • alt80alt80 Forumite
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    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. 
  • mark55manmark55man Forumite
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    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
    I think I saw you in an ice-cream parlour/Drinking milk shakes cold & long/Smiling & waving & looking so fine
    Weight 29/06/2021:96kg - YTD: -0.5kg, Trips to tip: 06/52 - Rooms Painted: 0/4 - Jun Steps (L:Av:H):(646:4956:15109)
    Debt 01/01/2021:£107.5K -- YTD:[email protected]%:£5k - Mortgage Neutral:£12K/£95K - EF:£2.5K/£10K
    Debt Reduction 2018:£20K 2019:£16K 2020:£37.5K 2021 Net YTD(29/05/21): £22K = (St:£107.5-(M:95k+CC:5k-MF:12k-EF:2.5k))
  • edited 13 September 2020 at 11:03PM
    alt80alt80 Forumite
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    edited 13 September 2020 at 11:03PM
    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.
  • 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. 
    Old username Taadaa, seems l went over the virtual rainbow bridge. 
    Total unsecured debt January 2020: £36k current £16852
    Credit card £0 Sept 2020 (First time in adult life!)
    Loan 1: Sept 2020 £12200  June 2021 £0
    The final battle 
    Loan 2: June 2021 £16602
    MFW: Nov 2007 @ £17000 June 2021 £82634
  • AndyjfletAndyjflet Forumite
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    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 !!
    Baby Step 1 - £3500 saved for emergency fund STORM MODE
    Baby Step 2
    M&S Loan £9701.82
    M&S Credit card 0
  • alt80alt80 Forumite
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    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.
  • enthusiasticsaverenthusiasticsaver Forumite, Board Guide
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    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? 
    Early retired in December 2017

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to [email protected]
  • alt80alt80 Forumite
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    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)
  • alt80alt80 Forumite
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    @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. 
  • RelievedSheffRelievedSheff Forumite
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    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. 
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