Plan of Attack

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

RelievedSheff

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

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.

RelievedSheff

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

RelievedSheff said:

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!

SanguineGina

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

SanguineGina said:

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

SanguineGina

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

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

SanguineGina

Oh well. Gotta have smoked less though, so that's a plus.  

RelievedSheff

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.