Plan of Attack 19 August 2021 at 2:35PM edited 19 August 2021 at 6:24PM in Debt free diaries 11 replies 311 views

adamj1984

Hi Guys, 

As promised here is my new diary.

The plan is to become debt free (AGAIN), and then get a deposit together to buy an house, getting myself on the property ladder is my number 1 priority now, you could say I have become obsessed with it, but as Rome wasn't built in a day - or so the saying goes.

Some of you may remember I had a diary previously, Managed to cleared 10k plus from January 2020 to this year, unfortunately that was after many years of financial abuse, and I am going to lay my situation bare here.

So number 1 Target = Buy an house.
Obstacles
1. Credit history - Its diabolical and will take a long time to put straight!
2. debt - not a huge amount of debt and will be cleared within 12 months (ish)
3. Deposit - Pointless concentrating on this until stage 1 and 2 sorted

Summary Monthly Budget Summary Amount(£) Total monthly income 2,900 Monthly expenses (incl. HP & secured loans) 1,960 Available for debt repayments 940 UNsecured debt repayments 105 Amount left after debt repayments 835 Personal Balance Sheet Summary Amount(£) Total Assets (things you own) 9,500 Total Secured & HP Debt -13,171 Total Unsecured Debt -978 Net Assets -4,649 Household Information Number of adults in household 1 Number of children in household 1 Number of cars owned 1 Income, Expense, Debt & Asset Details Income Amount(£) Monthly income after tax 2900 Partners monthly income 0 Benefits 0 Other income 0 Total monthly income 2900 Expenses Amount(£) Mortgage 0 Secured/HP loan payments 399 Rent 541 Management charge (leasehold property) 0 Council tax 308 Electricity 45 Gas 45 Oil 0 Water Rates 12 Telephone (land line) 0 Mobile phone 0 TV Licence 12 Satellite/Cable TV 63 Internet services 0 Groceries etc. 65 Clothing 40 Petrol/diesel 80 Road tax 13 Car Insurance 103 Car maintenance (including MOT) 25 Car Parking 0 Other travel 0 Childcare/nursery 0 Other child related expenses 0 Medical (prescriptions, dentists, opticians etc.) 0 Pet Insurance/Vet bills 0 Buildings Insurance 0 Contents Insurance 0 Life Assurance 0 Other Insurance 0 Presents (birthday, christmas etc.) 50 Haircuts 9 Entertainment 0 Holiday 150 Emergency Fund 0 Total monthly expenses 1960 Secured & HP Debt Description Debt(£) Monthly(£) APR(%) Mortgage 0 (0) 0 Hire Purchase (HP) Debt 13171 (399) 25 Secured & HP Debt totals 13171 - - Unsecured Debt Description Debt(£) Monthly(£) APR(%) lowell 453 30 0 flat 525 75 0 Unsecured Debt totals 978 105 - Asset Description Value (£) Cash 0 House Value (Gross) 0 Shares and bonds 0 Car(s) 9500 Other assets (e.g. endowments, jewellery etc) 0 Total Assets 9500

My biggest obstacle is discipline, I waste a ridiculous amount of money, I pay all my wage out when I get paid, usually on bills in fairness, and then spend on the credit card all month, and then pay that off in full when I get paid, and writing this down I have realised I am just tricking myself into thinking I am doing good, I've done budgets and everything and I have incorporated paying the credit card off in full everymonth - thats £700 per month that I pay every month, and if I am honest, I could probably say where £450 per month goes (£300 on that is on ciggies - day 1 of quitting them by the way).

So Moving forward I need to curb my spending, that being said I am taking my son on holiday in october - we havent been since me and his mum split in 2016, so I wont be paying anything additional off debts in August/September - but after that its full steam ahead.

Current debt in total is currently £18,277, but that includes the interest for the car finance, it was 10k but they reported it with all interest upfront, so that will drop quite rapidly once I start making overpayments.

The council tax may look high, but its last years and this years roled into one, with covid affecting my salary last year i deffered it to this year, the £304 is the total balance spread over 8 monthly payments, to bring me up to date for when the new bill comes out in april.

The flat is long story but basically helping my sister out for a few months to help her catch up with her rent, I also have another one off bill this month which is sons uniform, first year in high school so thats going to be circa £200.

I think I have covered everything there, if you have read this far down, then I salute you thanks for reading

adamj1984

I've put it in the wrong place again haven't I.......

adamj1984

can anyone advise how i delete post?

curlytop12

maybe report the post and ask for it to be moved?
your gas and electric are really high for one person, is this arrears and bill combined though?
good luck

adamj1984

curlytop12 said:

maybe report the post and ask for it to be moved?
your gas and electric are really high for one person, is this arrears and bill combined though?
good luck

its for me and my little lad, and no its prepaid, does £90 a month sound a lot combined? i thought it was quite good in fairness

Ebe_Scrooge

A few points that occur to me.

Satellite/Cable TV at £63 a month - is this really necessary?

You've got nothing for Internet services - or is that included in the above?

Car insurance £103 a month.  That's over £1200 a year, is that right?  If so, can you find a better deal?

You've got nothing for contents insurance.  Assuming that building insurance is paid for by the landlord, you still usually need to sort out your own contents insurance.

You've got zero for both mobile phone and landline - is this right?  I'm guessing you must have a phone of some sort?

£50 a month - £600 a year - on presents is a lot.

Just my thoughts, hope they are helpful.

adamj1984

Ebe_Scrooge said:

A few points that occur to me.

Satellite/Cable TV at £63 a month - is this really necessary?

You've got nothing for Internet services - or is that included in the above?

Car insurance £103 a month.  That's over £1200 a year, is that right?  If so, can you find a better deal?

You've got nothing for contents insurance.  Assuming that building insurance is paid for by the landlord, you still usually need to sort out your own contents insurance.

You've got zero for both mobile phone and landline - is this right?  I'm guessing you must have a phone of some sort?

£50 a month - £600 a year - on presents is a lot.

Just my thoughts, hope they are helpful.

Hi, the sky includes home broadband (also WFH alot ), also includes landline, my mobile is a workphone so no costs, the car insurance is so high because its also got business miles, my job is mainly on the road visiting customers, it is the very best deal i could get.

£600 per year for presents also includes xmas, which with an 11 year old it doesnt actually go that far.

I should probably sort out contents insurance in fairness, its one of those things I can meaning to do and keep forgetting.

sourcrates

Moved to diaries.

sourcrates

BUMP PLEASE

SanguineGina

So that's confusing now - two diaries running same title? 

Posted earlier on your duplicate diary @adamj1984. 

adamj1984

Yeah I'd asked how to close the other because I put it in the wrong place, sorry guys