My diary for self-accountability

RasperryJam

I am starting this diary to keep myself accountable in paying down my accrued debt from the past 2 years.

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 2598.44
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2598.44

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 300
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 10
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 40
Groceries etc. ......................... 200
Clothing................................ 20
Petrol/diesel........................... 100
Road tax................................ 14.16
Car Insurance........................... 27.03
Car maintenance (including MOT)......... 23.33
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 20
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 41.66
Haircuts................................ 15
Entertainment........................... 100
Holiday................................. 0
Emergency fund.......................... 1000
Total monthly expenses.................. 1911.18

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 3500
Other assets............................ 0
Total Assets............................ 3500
No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Amazon Platinum CC.............3700......200.......27
Amazon Classic CC..............657.......30........30
Very Credit....................559.......60........45
Monzo Credit...................469.......50........19
Total unsecured debts..........5385......340.......-


Monthly Budget Summary
Total monthly income.................... 2,598.44
Expenses (including HP & secured debts). 1,911.18
Available for debt repayments........... 687.26
Monthly UNsecured debt repayments....... 340
Amount left after debt repayments....... 347.26


Personal Balance Sheet Summary
Total assets (things you own)........... 3,500
Total HP & Secured debt................. -0
Total Unsecured debt.................... -5,385
Net Assets.............................. -1,885

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With the snowball approach I should be able to get this reduced to £0 in 10 months at the current rate, although that is quite optimistic given rising prices so we'll see how I get on.

RobM99

£300 a month rent seems low!

RasperryJam

RobM99 said:

£300 a month rent seems low!

Yes, it is quite low. I am extremely fortunate. I currently live with my family and that's how much they charge me for my room. I tried to pay a market rate (£650 or so) but they wouldn't hear of it. I am going to try and increase it this month to help cover the cost of living increases we're all suffering from.

RasperryJam

This month will be a struggle. I forgot that my car insurance (£324, budgeted above monthly but I pay for it annually) is due along with an MOT and an annual car service (also budgeted monthly above at £23.33/month but again I pay for it annually) are due.

I suppose I will simply have to cut back in other areas. Don't need a hair cut this month, for example.

sunshine_raincloud

Welcome and good luck on your journey!

Just had a look through your SOA. Do you pay £1000 every month towards your EF? But then you have no cash assets or savings listed? The general advice I have seen on this forum is once you have built an emergency fund of normally £500-£1000 depending on your situation then the rest of the money can be used to pay off debts, which would look like you would have a lot more funds available to do so. Have you gone through all of your bank statements from the last 3 months or so and categorised outgoings to see where your money is actually going? My first SOA was what I thought I was spending but then when I went through my statements I was shocked to see I was spending drastically more in many areas.  It seems like you have a good income and comparatively low outgoings with regards to rent and bills so being completely honest with yourself about how you have accumulated the debt and what your spending habits are like will put you in good stead for the future! Not a criticism just sharing the wisdom I have received from spending time on here! 

RobM99

RasperryJam said:

RobM99 said:

£300 a month rent seems low!

Yes, it is quite low. I am extremely fortunate. I currently live with my family and that's how much they charge me for my room. I tried to pay a market rate (£650 or so) but they wouldn't hear of it. I am going to try and increase it this month to help cover the cost of living increases we're all suffering from.

Bargain! Friend of mine charges a lodger £100 a week (also cheap) and feels bad about putting the rent up £25 to cover higher energy bills and council tax!

RasperryJam

sunshine_raincloud said:

Welcome and good luck on your journey!

Just had a look through your SOA. Do you pay £1000 every month towards your EF? But then you have no cash assets or savings listed? The general advice I have seen on this forum is once you have built an emergency fund of normally £500-£1000 depending on your situation then the rest of the money can be used to pay off debts, which would look like you would have a lot more funds available to do so. Have you gone through all of your bank statements from the last 3 months or so and categorised outgoings to see where your money is actually going? My first SOA was what I thought I was spending but then when I went through my statements I was shocked to see I was spending drastically more in many areas.  It seems like you have a good income and comparatively low outgoings with regards to rent and bills so being completely honest with yourself about how you have accumulated the debt and what your spending habits are like will put you in good stead for the future! Not a criticism just sharing the wisdom I have received from spending time on here! 

Thanks! My post keeps getting caught in some kind of suspicious filter so I will try and reply more fully later on.