Long Road To Pay Off Debt

onarollsaver

Wanted to make a thread to hold myself accountable.

Also to see if there is any way we can make savings.

Took out loans and credit cards due to a wedding and debt consolidation really.

Not taking out anymore credit and working off paying all this down.

Thanks for reading.

SOA below.

Income (Me & Wife) - 4696.08

Life Insurance (me) - 49.94
Car Warranty - 38.86
Tv - 15.00
car finance-365.83
water-45.50
loan (1) - 275.42
loan (2) - 660.57
energy - 135.51
life insurance (wife)-35.48
council tax - 162
broadband-31.00
house insurance-27.45
mortgage 519.24
now tv-9.99
netflix-4.99

Kids
childcare-32.00
dancing-28.00
gymnastics-30.00

Total - 2,466.78

Left - 2,229.30

Use Monzo Pots to organise remaining money.

Groceries - 400    1829.30
Emergency Savings - 50
Takeaway - 75  1704.30
Kids Clothing etc - 40
Kids Birthdays - 20

1644.30

Me (Personal Spending) - 250
Wife (Personal Spending - 350

Left - 1044.30 - Pays off Credit Cards

Debts owed

CC1 (0%) - 6,427.04
CC2 (0%)  - 1,740.68
Wife CC (0%)  - 6,907.48
Loan (1) Remaining - 3,919.01
Loan (2) Remaining - 18,349.35
Car finance remaining (HP) - 14,281.61

All our CC'ds have 0% for a few years remaining.

onarollsaver

Forgot to say insurance gets paid yearly for me and my wife pays her insurance from personal spending.

fuel also gets taking out of our personal spending accounts

[Deleted User]

Personally I would focus on overpaying the loans as unlike the credit cards they are costing more to service. You have a good income but a total of approximately £50000 of unsecured debt plus your mortgage. Have you addressed the areas of overspending ? Is your SOA aspirational or does it reflect your actual spending? How many children do you have as child expenses seem low? Both of you are giving yourselves a total  £600 of personal spending money a month which seems high considering your total debt.
£75 a month on takeaways needs to be thought about. That could be nearly another £1000 a year off your debt. 

Just some observations. 

What savings do you have? Have you got pensions in place?

[Deleted User]

Sorry about all the questions, but trying to be constructive about possible ways forward. 

Best wishes.

dawnybabes

Is this what you actually have left each month ? I’d keep a diary and write down every purchase for the next few weeks to see where you are leaking money. 

How much have you in the emergency savings ? You’ve no budget for holidays / days out / Xmas sort of stuff 

onarollsaver

[Deleted User] said:

Personally I would focus on overpaying the loans as unlike the credit cards they are costing more to service. You have a good income but a total of approximately £50000 of unsecured debt plus your mortgage. Have you addressed the areas of overspending ? Is your SOA aspirational or does it reflect your actual spending? How many children do you have as child expenses seem low? Both of you are giving yourselves a total  £600 of personal spending money a month which seems high considering your total debt.
£75 a month on takeaways needs to be thought about. That could be nearly another £1000 a year off your debt. 

Just some observations. 

What savings do you have? Have you got pensions in place?

Yes very true on overpaying on loans. I don’t overspend tbh most of my personal allowance goes towards the credit cards, I probably spend about 100 pound a month max.
we have 2 children but any days out of stuff for our kids comes out of personal allowance.
yes we are trying to stop so many takeaways but when we are both working until late then putting the kids to bed it’s hard to find time and energy to cook.
we don’t have have any savings everything goes towards paying debt. Yes we both have workplace pensions.

onarollsaver

dawnybabes said:

Is this what you actually have left each month ? I’d keep a diary and write down every purchase for the next few weeks to see where you are leaking money. 

How much have you in the emergency savings ? You’ve no budget for holidays / days out / Xmas sort of stuff 

No emergency savings at the end of the month if there is anything left it goes to pay off credit cards,
all budget for days out comes from personal accounts. Holidays we have a couple booked from our wedding fund.

[Deleted User]

@onarollsaver Many thanks for your response. Please keep updating on your progress. I hope it is successful. Best wishes. Best wish

onarollsaver

Does anyone know how you can get out of a hire purchase agreement on a car?

dawnybabes

onarollsaver said:

Does anyone know how you can get out of a hire purchase agreement on a car?

It depends on how far into the agreement you are 

onarollsaver

Around a year in to agreement