Plan of Attack

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 SummaryAmount(£)
Total monthly income2,900
Monthly expenses (incl. HP & secured loans)1,960
Available for debt repayments940
UNsecured debt repayments105
Amount left after debt repayments835

Personal Balance Sheet SummaryAmount(£)
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 household1
Number of children in household1
Number of cars owned1

Income, Expense, Debt & Asset Details

IncomeAmount(£)
Monthly income after tax2900
Partners monthly income0
Benefits0
Other income0
Total monthly income2900

ExpensesAmount(£)
Mortgage0
Secured/HP loan payments399
Rent541
Management charge (leasehold property)0
Council tax308
Electricity45
Gas45
Oil0
Water Rates12
Telephone (land line)0
Mobile phone0
TV Licence12
Satellite/Cable TV63
Internet services0
Groceries etc.65
Clothing40
Petrol/diesel80
Road tax13
Car Insurance103
Car maintenance (including MOT)25
Car Parking0
Other travel0
Childcare/nursery0
Other child related expenses0
Medical (prescriptions, dentists, opticians etc.)0
Pet Insurance/Vet bills0
Buildings Insurance0
Contents Insurance0
Life Assurance0
Other Insurance0
Presents (birthday, christmas etc.)50
Haircuts9
Entertainment0
Holiday150
Emergency Fund0
Total monthly expenses1960

Secured & HP Debt DescriptionDebt(£)Monthly(£)APR(%)
Mortgage0(0)0
Hire Purchase (HP) Debt13171(399)25
Secured & HP Debt totals13171--

Unsecured Debt DescriptionDebt(£)Monthly(£)APR(%)
lowell453300
flat525750
Unsecured Debt totals978105-

Asset DescriptionValue (£)
Cash0
House Value (Gross)0
Shares and bonds0
Car(s)9500
Other assets (e.g. endowments, jewellery etc)0
Total Assets9500





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
new diary august 2021
2021 Overpayment £0/£1,500
«1

Comments

  • RelievedSheff
    RelievedSheff Posts: 11,289 Forumite
    First Anniversary First Post Name Dropper Photogenic
    Don't assume that because your credit history is blemished that you can't get a mortgage. My credit history has been atrocious yet we still managed to get a mortgage with me having 1 satisfied and 1 unsatisfied CCJ on my credit file. The rate was higher than high street rates but it did get us the house that we wanted and we only took a two year fix. We have recently been able to remortgage to a high street lender :)

    There is hope, you just need a good broker to place you with the right lender.

    Well done on making a start to getting the debts paid off. 
  • adamj1984
    adamj1984 Posts: 57 Forumite
    Name Dropper First Post
    yeah when I say its atrocious I mean its ATROCIUS

    so below is the list of defaults/ccjs

    CCJS - both satisfied
    TSB - drops off jan 22
    Lowell Solicitors - Nov 24

    Defaults - all satisfied apart from the final United utilites (3 payments left)
    Talktalk - sep 22
    Lowell - March 23
    Lowell - Nov 23
    United Utilities - Jan 24
    H and T Loans - June 25
    Thinkmoney loan - Sep 25
    Lowell - Sep 25
    United utilities  march 26

    I'm hopeful once the first United Utilities drops off in Jan 24 I'll be able to get a mortgage.


    new diary august 2021
    2021 Overpayment £0/£1,500
  • RelievedSheff
    RelievedSheff Posts: 11,289 Forumite
    First Anniversary First Post Name Dropper Photogenic
    The defaults won't all need to drop off before you can get a mortgage. To get the better rates they need to be 3 years old though :)
  • adamj1984
    adamj1984 Posts: 57 Forumite
    Name Dropper First Post
    The defaults won't all need to drop off before you can get a mortgage. To get the better rates they need to be 3 years old though :)
    so looking at March 23 then for the newest one to be 3 years old, i can live with that target date!
    new diary august 2021
    2021 Overpayment £0/£1,500
  • SanguineGina
    SanguineGina Posts: 124 Forumite
    First Post First Anniversary Name Dropper
    edited 19 August 2021 at 4:08PM
    Best of luck with quitting smoking👏

    Seeing as today is day 1, have you thought about setting the daily smokes tenner aside as the start of your deposit? Even if you use it to repay your debts quicker and save on the debt interest, you could still earmark it as deposit money and repay the deposit fund back once your debts are done with what would have still been debt repayments had the tenners not reduced them quicker.  

    Plus what a great incentive everytime the cravings strike - house or fags; I would be silently yelling house! house! house! til the worse ones passed.

    How are you quitting - cold turkey or nicotine replacement? 
  • adamj1984
    adamj1984 Posts: 57 Forumite
    Name Dropper First Post
    Best of luck with quitting smoking👏

    Seeing as today is day 1, have you thought about setting the daily smokes tenner aside as the start of your deposit? Even if you use it to repay your debts quicker and save on the debt interest, you could still earmark it as deposit money and repay the deposit fund back once your debts are done with what would have still been debt repayments had the tenners not reduced them quicker.  

    Plus what a great incentive everytime the cravings strike - house or fags; I would be silently yelling house! house! house! til the worse ones passed.

    How are you quitting - cold turkey or nicotine replacement? 
    I'm trying cold turkey, looked today and found an hypnosis video on YouTube that's got great reviews, going to five it a try
    new diary august 2021
    2021 Overpayment £0/£1,500
  • Great, hope that your first day is going well and that the hypnosis video helps/works for you.

    And good luck with your plans.
  • adamj1984
    adamj1984 Posts: 57 Forumite
    Name Dropper First Post
    Thanks, day one was a failure to be honest, rubbish day at work and ended up smoking lol, excuse I know, fingers crossed the hypnosis vid helps and I stay day 1 again tomorrow
    new diary august 2021
    2021 Overpayment £0/£1,500
  • Oh well. Gotta have smoked less though, so that's a plus.  
  • RelievedSheff
    RelievedSheff Posts: 11,289 Forumite
    First Anniversary First Post Name Dropper Photogenic
    Instead of going cold turkey talk to the NHS. They were great when my other half decided it was time for him to quit smoking. They gave him patches and the gum and ways to fight the cravings. It worked for him and he has not smoked for over 15 years now.

    Good luck with it whatever way you choose. Day 1 here you go.
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