MY SOA - any tips would be very welcome!

dgncl

Hello all, I've frequented these boards over a year ago now, started to sort myself out, then got a girlfriend (now ex), spent every evening in the pub and fell off the DFW wagon. All my fault of course.

Anyway, I've caught up with the wagon and decided that from 2008 I'm gonna do things properly. Again. And I've got a new girlfriend as of October but I'm being a bit more sensible now....

I've made a few changes to my lifestyle and finances already, but I'd love to have any further suggestions. I was unsuccessful in a job interview within my current employers recently that would have helped but I should be more successful this year if I re-apply.

Incoming
£1218 net salary
I get overtime at time and a half, roughly £11 per hour net, but this is only available sporadically. I should be able to get about £400-500 net overtime between March and May though....
This also includes a CycleScheme bike worth £500, which comes out at £27 per month off my net, finishing September.

Outgoing
£335 rent including bills (pretty darn good)
£303 on Natwest Loan (6.7%) 2 years in with 5 to go (about £15,000 left)
2 credit cards £550 and £1550 with minimum payments at around £50 (I've being paying more until this and last month, back on track when Jan 25th pay goes in though). The £550 is at a higher rate (16-18%ish) and the £1550 I have just BTd to a 6.9% rate. I got refused for a 0% Mint card probably due to the total limits on the two cards, £5500 and £6600, plus the loan - I should reduce these limits I guess).
£960 overdraft presently which is costing about £10 per month.
£18pm mobile package 500 mins/texts mix
£2.50ish a week for football
£4ish a week for getting the teas in for my colleagues (we do rounds)
£20-25 per week shopping at Tescos just round the corner (I'm quite frugal and its just for me)
£14.50 per time for a return ticket to my home town where my lass and my parents live, may be twice a month.

I have 3 bank accounts, one the wages go into, then I send a lump out to another account for bills and another (the one with the overdraft) for spending money. I'm whacking £500 into it in Jan so I need to keep my spending down.
I've cancelled my £14pm work gym (cheap but not used)

Total Outgoings (where paying minimum fees)
£846

So I've got about £372 left for repaying debts. Before, I've just squandered this on drinks and random stuff that disappears down black holes.

Which debts should I prioritise? I'm guessing get rid of the £550 on the credit card first then the rest of the 6.9% card, then the overdraft. After that I can pay more off the big loan. At some time I will look at the £13,000 student loan but that's not a priority as I don't have to repay it yet.

Thanks for your help!!

Wildchild_2

Bumpety bump

Don't have much advice for you but I am sure someone will be along soon

Maybe you could use one of those snowball calculators to see when your debt free date will be as some extra motivation

debrag

you say you have £372 left to pay debts, do you mean overpay? [STRIKE]You seem to have added the min amounts into your £846 outgoings.[/STRIKE] sorry just realised you say your paying min in total outgoings

How much of this £372 do you have left at the end of the month? Maybe keep a spend diary.

Think NEEDS not WANTS

dgncl

Thanks to you both. I've used a link before that says it would be in 5.2 years time, without touching my student loan. So if I get that promotion, it should be sooner!! My debts actually keep me quite focused on career development.

I started a spend diary yesterday, and so far I've spent £31.61 on shopping and sundries. I'll have to keep it up - I've dusted off my old (silly expensive HP-bought non-necessity) PDA so I'll transfer the spreadsheet to that soon.

You're right about Needs not Wants. I'm thinking of the mantra 'Do I need it? Can I afford it? Is it cheaper elsewhere?', however I'm a gadget man so I'm operating hard against my nature. I should watch a bit more Ray Mears I think and learn the bare necessities..

I have also had a very hectic year of saying Yes to everything. Trips, holidays, leaving do's, birthdays, etc etc so a lot of money has been spent on drink. I'm cutting well back on all that this year and there's nowt in my diary.

debrag

I don't count my student loan in my debts (I don't even know how much it is) it comes out before I get my wages.

Maybe get a second job, sell on ebay/amazon etc and put that money towards the debt and bring the DFD closer.

CLAPTON

I think you would be wise to work out a proper budget and then try to stick to it.

So nothing wrong with a bit of socialising and a drink but decide what's a sensible budget for it and when it gone its gone until the next month. Similarly with your other spending... there seems lots and lots of things missed out. Try to work out everything including yearly or one offs and work out a monthly budget.. (yearly things divide by 12 and save that amount each month so when you need it, its already saved for).
At the end of each month use your spending diary to compare what you actually spent with the budget and try to see where improvements can be made.
Only when you do this can you really see what you can actually afford to pay back on your debts.

misspoppy

Hi

well done on getting back on track. I notice you haven;t included food in your list of expenditure clapton is right you need to set a budget and don't forget some food!

dgncl

Debrag, I've been thinking along the same lines and put some DVDs up for sale at work on the intranet board but I've only made £16 so far. I'll do it again around pay day and stick some more on eBay (I've got quite a lot of DVDs which contributed to me overspending).

Clapton, quite true. I've stopped proper budgetting and just keep spending so I've lost track. Bad me. I've just used the budget planner from this site and it looks more like I can spend about £200 on top of the minimum repayments to clear credit cards, if I take into account budgetting for Christmas. I'll look to put some money into one of the non-spending accounts for christmas and birthdays.

Misspoppy - I've included £20-25 per week shopping in my SOA, I eat quite cheaply but healthily!

Thanks all