Very long journey ahead, time for change is now

happyfuture

Highlanddream said:

I'm like you @happyfuture , no mortgage but have short term debt. I looked at getting a mortgage but have decided to plough through, although I get disheartened at the slowness of the pay off. I started last Nov with 30 grand I am now down to 23200. Which looking at it like that I am quite pleased with the amount gone! I have transferred CC's to 0% for 12 months or more, another incentive to get them off before the rate goes back up. Fingers crossed by then I will find some more 0% ers. Is your loan over 5 years? Is it half way through ?

Thats a fantastic amount to have paid off- well done! I know I'll find the slowness tough but just have to keep thinking of the end prize of being debt free  

Loan still has 5.5 years to go, was a 7 year one. Unfortunately I've not got many 0% offers available but have done one tonight and did a second one but think it will be rejected as its my name to card in DH name but thought it was worth a chance  

happyfuture

enthusiasticsaver said:

happyfuture said:

The debt 12th May 2024

Loan- £31,787.06
Tesco CC- £13,183.19
MBNA CC- £6587.86
RBS CC- £5805.12
Barclaycard CC- £3692.22
Lloyds CC- £2191.65

Family 1- £5810
Family 2- £3746

RBS overdraft- £148.27

Overall total= £72,951.37

I think posting an soa would be a good start to see what income you have and where your money is going.  

First of all what is the interest rate on the loans and credit cards?  Get rid of the overdraft first as they tend to be 40% interest. 

Having no mortgage is good but I would hazard that loan is a debt consolidation loan which means you have been overspending and not budgeting for quite some time.  Moving away from spending to saving and budgeting will take a while to get into this mentality rather than spending whenever.  The car repair is unfortunate but take that as a reminder you need to save for emergencies rather than stick these things on a credit card. 

Thank you, I've been working on doing an SOA, so much information to put in. Know there is huge cuts to be made and have already started making them. Know there will be a lot of comments about how high some of our bills are!

Loan was taken out as couldn't get a mortgage in time for when we moved- we went from offer being accepted to moving within 6 weeks The debt just built on the credit cards through sheer overspending and spending beyond our means. 

happyfuture

[font=courier new][b]Statement of Affairs and Personal Balance Sheet[/b][b]

Household Information[/b]

Number of adults in household........... 3

Number of children in household......... 2

Number of cars owned.................... 2[b]

Monthly Income Details[/b]

Monthly income after tax................ 2394.84

Partners monthly income after tax....... 1171.49

Benefits................................ 998.59

Other income............................ 300[b]

Total monthly income.................... 4864.92[/b][b]

Monthly Expense Details[/b]

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

Secured/HP loan repayments.............. 468

Rent.................................... 0

Management charge (leasehold property).. 0

Council tax............................. 255

Electricity............................. 360

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

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

Water rates............................. 0

Telephone (land line)................... 0

Mobile phone............................ 106

TV Licence.............................. 13.25

Satellite/Cable TV...................... 29

Internet Services....................... 21

Groceries etc. ......................... 1200

Clothing................................ 100

Petrol/diesel........................... 250

Road tax................................ 17.5

Car Insurance........................... 102.72

Car maintenance (including MOT)......... 27.5

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

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

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

Other child related expenses............ 119.14

Medical (prescriptions, dentist etc).... 13.33

Pet insurance/vet bills................. 130

Buildings insurance..................... 24.71

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

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

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

Presents (birthday, christmas etc)...... 233.33

Haircuts................................ 65.83

Entertainment........................... 230

Holiday................................. 166.66

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

Amazon Prime............................ 8.99

Car payment............................. 371

Apple .................................. 28

Cleaner................................. 117[b]

Total monthly expenses.................. 4457.96[/b]

[b]

Assets[/b]

Cash.................................... 0

House value (Gross)..................... 500000

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

Car(s).................................. 20000

Other assets............................ 0[b]

Total Assets............................ 520000[/b]

[b]

Secured & HP Debts[/b]

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

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

Secured Debt.................. 31787....(468)......0[b]

Total secured & HP debts...... 31787.....-.........-   [/b]

[b]Unsecured Debts[/b]

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

Tesco..........................7777.77...220.......20.01

Tesco..........................5405.42...0.........0

MBNA...........................6587.86...170.......0

Family 2.......................3746......0.........0

Family 1.......................5810......0.........0

Overdraft......................148.......0.........39.49

Lloyds.........................2191.65...50........20

Barclaycard....................564.48....0.........21.86

Barclaycard....................3127.74...120.......0

RBS............................5805.12...130.......22.44[b]

Total unsecured debts..........41164.04..690.......-  [/b]

[b]

Monthly Budget Summary[/b]

Total monthly income.................... 4,864.92

Expenses (including HP & secured debts). 4,457.96

Available for debt repayments........... 406.96

Monthly UNsecured debt repayments....... 690[b]

Amount short for making debt repayments. -283.04[/b]

[b]Personal Balance Sheet Summary[/b]

Total assets (things you own)........... 520,000

Total HP & Secured debt................. -31,787

Total Unsecured debt.................... -41,164.04[b]

Net Assets.............................. 447,048.96[/b]

[i]Created using the SOA calculator at www.LemonFool.co.uk.

Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]