Paying my car debt off...

Bowski_1011

Hi All
I used to be a regular here in the forums when I first decided to pay my debts off. My circumstances have changed since those days, my DD has left home so it's just me and the cat in my rented property. 
I have paid my debts and was debt free for a couple of years. However, in July after months of toying with the idea of buying a house, then realising I just couldn't afford that, I decided to buy myself a decent car, I had 2.5k deposit to put down on it so got finance for the remaining  £5265.00 (plus £1,507.80 interest).

So here I am again, back on a debt free journey, I am due to pay my car off by July 2025 - Lets see how many months I can shave off that. 

Bowski_1011

So a bit of a plan to get my car paid off early..

My monthly repayments are £112.88, so I am going to put £150 away each month for it, giving me a surplus £37.12.
£37.12 is a realistic amount for me, doesn't put too much pressure on me to leave myself short.   And I will also add whatever I can to it when I can. 
I have a savings account for this so it will be easy to add to it bit by bit.  I intend on doing some challenges P.A.D and  NSD  etc. Whatever amount I have left (Haha...I wish!!) come payday  I will also add to the pot. 

I hope by reading others diaries and keeping up with my own that it will keep me motivated till I can get debt free again. It took me a long time last time and my debt was half what it is this time, but I will get there. 

Bowski_1011

So I have just done my SOA

Number of adults in household........... 1

Number of children in household......... 

Number of cars owned.................... 1

Monthly Income Details[/b]

Monthly income after tax................ 1363

Partners monthly income after tax....... 0

Benefits................................ 0

Other income............................ 0

Total monthly income.................... 1363

Monthly Expense Details[/b]

Mortgage................................ 0

Secured/HP loan repayments.............. 113

Rent.................................... 420

Management charge (leasehold property).. 0

Council tax............................. 97 (pay over 10 months)

Electricity............................. 58 (and gas)

Gas..................................... 0

Oil..................................... 0

Water rates............................. 24.29

Telephone (land line)................... 17.99 (includes broadband)

Mobile phone............................ 7.08

TV Licence.............................. 13.37

Satellite/Cable TV...................... 0

Internet Services....................... 0

Groceries etc. ......................... 120

Clothing................................ 0

Petrol/diesel........................... 45

Road tax................................ 0

Car Insurance........................... 0

Car maintenance (including MOT)......... 50

Car parking............................. 0

Other travel............................ 0

Childcare/nursery....................... 0

Other child related expenses............ 0

Medical (prescriptions, dentist etc).... 10

Pet insurance/vet bills................. 10

Buildings insurance..................... 0

Contents insurance...................... 0

Life assurance ......................... 0

Other insurance......................... 0

Presents (birthday, christmas etc)...... 85 (£40 xmas, £20 Birthdays, £25 Mam's 60th)

Haircuts................................ 5

Entertainment........................... 0

Holiday................................. 0

Emergency fund.......................... 0

Credit Union............................ 30

Amazon Prime & Music.................... 11.98

Total monthly expenses.................. 1117.71

Assets[/b]

Cash.................................... 2500

House value (Gross)..................... 0

Shares and bonds........................ 0

Car(s).................................. 0

Other assets............................ 0

Total Assets............................ 2500

Secured & HP Debts[/b]

Description....................Debt......Monthly...APR

Mortgage...................... 0........(0)........0

Secured Debt.................. 5265.....(113)......10.9

Total secured & HP debts...... 5265......-.........-   

[b]Unsecured Debts[/b]

Description....................Debt......Monthly...APR

Barclaycard....................30........5.........0

Total unsecured debts..........30........5.........-  

[b]

Monthly Budget Summary[/b]

Total monthly income.................... 1,363

Expenses (including HP & secured debts). 1,117.71

Available for debt repayments........... 245.29

Monthly UNsecured debt repayments....... 5

Amount left after debt repayments....... 240.29

[b]Personal Balance Sheet Summary[/b]

Total assets (things you own)........... 2,500

Total HP & Secured debt................. -5,265

Total Unsecured debt.................... -30

Net Assets.............................. -2,795


A bit of an insight as to how I spend my money.

I get £1,227 on 28th of every month. Out of this money I put £640.00 into my bills account,  £105 into envelopes (Christmas, Occasions, Dentist, Slimming World, Cat, Window Cleaner, Haircut), £30 to my Credit Union account, £25 into a joint Monzo account I have with my Sister for our Mam's 60th that is in December, £5 HTB ISA, £113 Car payment.

I then get £34 per week from my 2nd job which I am currenty furloughed from and unsure at the moment if I will go back to, even if I don't go back permanent I will still get shifts ad-hoc.  I tend to use this money to get through the week, on either groceries or eating out. 

I have been using a Credit Card with a £200 limit that I got to help my credit score when I was thinking of getting a mortgage. What I have been doing is using that to buy groceries and then either paying bits off it each week with my 2nd wage or just paying it off when I get paid on the 28th.  I am thinking of getting rid of it, I don't need it for that reason anymore and I find I spend on it just because it's there. 

I have a spare £640 in my bills account - I don't think of this of savings or spending money atall - it is purely there incase I ever have to be off work, I know my bills are covered for a month. 

I have £2070 in my Credit Union account. I think of it as just £70 as the 2k is savings I don't want to touch, it;s my life savings which I want to build on for the future. I know it may not seem like it makes sense to do this when I have debt but I have never had savings until recent years and it just makes me feel secure knowing it's there, and as my debt is manageable I am happy to have savings there in the background. The rest I save at £30 a month and spend when needed, last year I used it for my DD's 21st and xmas as I hadn't saved. This year I went on a holiday with the rest of it, hence why I now only have £70 in there.

I have 1k spare cash that I have just got as a refund for my holiday that was cancelled due to covid - I would like to use 
£300 of this to start up a car pot that I will pay £50 per month to, this is for MOT, Tax (£20)& insurance (£400ish), These aren't due for 8 months MOT & 10 months for the Tax & Insurance. So I should have that covered, as long as I don't need any major repairs on the car. 

So, all my spare money tends to go on socialising/nights away. I love to be able to do these things - I don't smoke or have a lavish lifestyle - most things I do wether it be going out for drinks, food or going away - everything I do is on a budget and I enjoy being able to do these things, Sometimes it might mean that I take the odd tenner out of one of my envelopes but I am good with that.

I am living & loving life on not a great deal of money. But I feel my spending can be improved if I keep an eye on it, so that's what my diary is all about - accountability. 

Sorry, I do waffle!