Busting this debt before 42

Chocolatefund

New year, new car and new loan, equals new diary.

My previous dairy;

https://forums.moneysavingexpert.com/discussion/6547320/busting-this-debt-before-40

Why am I doing this s**t agin? Right…because last year I had a midlife crisis and succumbed to the ‘shiny new car’ syndrome. Buggers.

I very much enjoyed the challenge of debt busting last year so lets gooooooo round two!

My finances so far:

Sinking Fund: £252

Shiny Fund: £2,000

Emergency Fund: £2350

Stocks & Shares ISA: 1440

SIPP: £6570

Car Loan amount: £23,000

My emergency fund took a hit last year when I had a relative in financial trouble. That money has since been paid back to me, but since my Naffwest saver only allows £150 per month max, I’ve put that money into the ‘Shiny Fund’. Just my little fun savings account for things I want. Which is too many. This is going to cover a trip to London I’ve got planned in May.

As I’ve moved location for work and my allowances have increased for this, will post a new SOA to reflect what I’m working with.

I already want to eat some chocolate.

Brie

Glad you're thinking of an SOA. It's good to rebalance the budget occasionally.

fatbelly

Let us know what your thinking is about the shiny new car with its huge loan costs and massive depreciation.

Chocolatefund

https://forums.moneysavingexpert.com/discussion/comment/81887680#Comment_81887680

No regrets. Fully aware that it’s a depreciating asset. Not MSE in the slightest and it would have been more cost effective to buy a used car in cash.

MillQueen

Good luck! What’s the plan for paying it off?

Chocolatefund

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................ 3883
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0

Total monthly income.................... 3883

Monthly Expense Details
Mortgage................................ 840
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 124
Electricity............................. 135
Gas..................................... 0
Oil..................................... 0
Water rates............................. 21
Telephone (land line)................... 0
Mobile phone............................ 17
TV Licence.............................. 15
Satellite/Cable TV...................... 0
Internet Services....................... 40
Groceries etc. ......................... 230
Clothing................................ 10
Petrol/diesel........................... 230
Road tax................................ 52
Car Insurance........................... 67
Car maintenance (including MOT)......... 30
Car parking............................. 15
Other travel............................ 20
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 19
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 0
Entertainment........................... 150
Holiday................................. 50
Emergency fund.......................... 150
ISA..................................... 100
SIPP.................................... 350

Total monthly expenses.................. 2685

Assets
Cash.................................... 4500
House value (Gross)..................... 292000
Shares and bonds........................ 7900
Car(s).................................. 30000
Other assets............................ 0

Total Assets............................ 334400

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 143846...(840)......3.9

Total secured & HP debts...... 143846....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Loan...........................21933.....460.......7.6

Total unsecured debts..........21933.....460.......-

Monthly Budget Summary
Total monthly income.................... 3,883
Expenses (including HP & secured debts). 2,685
Available for debt repayments........... 1,198
Monthly UNsecured debt repayments....... 460

Amount left after debt repayments....... 738

Personal Balance Sheet Summary
Total assets (things you own)........... 334,400
Total HP & Secured debt................. -143,846
Total Unsecured debt.................... -21,933

Net Assets.............................. 168,621

[i]Created using the SOA calculator at www.LemonFool.co.uk.
Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]

Chocolatefund

https://forums.moneysavingexpert.com/discussion/comment/81888967#Comment_81888967

Hello! Glad you asked :-)

I have two money goals this year. First is to get the loan to below 10k, and to have 10k saved in my SIPP by end of December.

Last dairy, I threw everything and the kitchen sink at the debt. But this year, I’m going for a slightly different approach. Since my salary has breached into the 40% tax range more, increasing my SIPP contributions will let me claim more tax relief in April. Done lots of number crunching and I reckon I’ve got a good shot of achieving this. Also going to have to up my petrol and food budget as I’ll be away a lot more, and also commuting lots on the weekends.

Loan calculators tell me that £700 a month overpayments will clear the loan in 22 months. I’ve already made the first overpayment last month, so the total outstanding is now £21,933. 21 payments left.

My budget going forward will be,

Food £230

Petrol £230

Eating out/Fun £150

Miscellaneous £ 40

That’s total £650 a month spending. Last year I was able to stick with £450 a month, but with my new work location and tons more driving, theres no way I can do that. Since this debt busting is going to be a bit longer, I’m upping the Fun allowance also. I keep a spending dairy which shows in January I spent a total of £629. So going to work with this and see how it goes.

Going to need to find me another colouring chart for the journey.

Honeysucklelou2

Hard to beat a colouring chart for motivation in debt busting!