Sophie's Debt Free Adventure

sophie27

Well, hello! I'm Sophie (I'm incognito as bf knows I visit this forum and I'm worried he rumbles me!) and I am 26. I've been meeting all my loan/cc payments but feel I'm just swimming in debt and getting really panicky that if anything went wrong, it would tip me over the edge.

Bit of background then. I live in London with my OH. We own a house on the outskirts worth around 210k which we bought for 175k two years ago. He was in masses of debt when we first moved in together three years ago but has cleared it all bar one cc at 5k which he is fine with. He earns quite a lot more than me and is quite extravagant which makes me feel even worse about the debt I have.

So I have a car loan which has around 5.5k left on it (355 a month), 1 credit card which is 0% and 3800 outstanding (100 a month), 1 credit card which has gone back to the standard rate (100 a month) and my student loan from which 100 comes out of my salary and I pay a dd of 100 a month. The balance outstanding is 6500 (it was 8000 last month but I had a bonus) and the interest rate is 4.8%. Total debt is 17,599.41. :eek:

I have looked through the forum and guess I should post up a SOA? Thought of that makes me feel sick. I've been in denial for ages thinking debts not that bad and will be ok but not checking your online banking and filing your bank statements unopened is not balanced is it?! :rolleyes:

Need to have a look through my paperwork and get all my outgoings and incomings listed and see whats happening.

bank_of_slate

Hi Sophie,
welcome (officially) to the forum.
It's going to be very hard for you to sort this unless you both know what's going on...if you are busy paying things off while he's still living extravagantly then resentment will build!
Can you get rid of at least one (preferably both) credit cards so at least you can't use em any more?
It would be best to work out a FULL SOA for both of you, this will help you both to realise what the other is responsible for and if one of you is paying much more than the other.Are you overpaying the student loan? wouldn't it be better to clear the other outstanding debts with higher interest rates first?
...Linda xx

sophie27

OK here is my SOA, think I have done right:

Mortgage - 548
Elec & Gas - 53 *
Water - 20
Council Tax - 61
TV Licence - 11
Mobile - 25
Food - 160
Road Tax - 11
MOT & Maintenance - 20
Private Health Care - 25
Gym - 38 (April is last payment then free)
Petrol - 20 **
Broadband - 35 (expensive but usb modem for work, reimbursed)
Lovefilm - 12.99 (mum birthday present)
Management/Factor Co - 20

Car Loan - 355
Barclaycard - 100
Halifax - 100
Student Loan -100

TOTAL = 1714.99

* High as OH works from home and uses loads of energy zapping tools in garage working on scooters, cars etc.

** Petrol is low as OH fills up quite often

INCOME - 1663

SHORTFALL - 51.99

Worse that I thought! No money for emergencies, clothes or anything. This is what panics me the most. There is no travel as bought annual travelcard on my 0% card. I'm only paying 100 on cards and I took out a Barclaycard for the 0% three months ago and it was for 15 months. Rang them other day to do a balance transfer and they said no it was a special offer? V annoyed.

I do AQA but as its not a steady income I haven't put down. I recently joined Quidco too.

Yargo1

hi sophie, dont panic firstly. the people on here are great... im in the red too and have picked up no end of great tips on here..

quidco,pigsback.com, why not try the make £10 a day challenge too..im going to go for it in april.

good luck jo

elle_gee

Are they all your halves or are you paying all of the bills? What does OH pay?

Also, I think you've missed contents and buildings insurance off there

thepinklady

Hi Sophie

Welcome to the forum. This place is amazing, you will be very looked after. I'm not the best at giving advice re debts (hence me being in debt myself) but I'm sure somebody will come along and give you excellent advice.

Good luck with your debt free journey

Hayley
x

sophie27

The management co bills include buildings and I am renewing my contents at the moment so didn't put in. Need to get on moneysupermarket to get a good quote. Barclays were totally ripping me off.

Me and OH split mortgage, c tax, water, food etc. He pays phone and I pay contents ins and tv licence.

Thank you for the posts. Everyone seems v nice on here.

elle_gee

Don't forget to go through Quidco if you can find a good quote for one of the insurers on there offering cashback!

sophie27

Will do! Annoyed with myself I didn't find earlier!

Keeping_Motivated

Hi Sophie if your OH earns quite a bit more than you could you ask him to contribute more to the mortgage?

Mum_of_3_3

Hi Sophie

If your partner uses more Elec than you due to his business should he not contribute more than half towards the bills??

Also is £160 half of the food bill? If so £80 a week is a lot to spend for just 2 adults, I'm sure if you look around on the old-style board you'll pick up some tips on how to save money there.

Also does your oh have a car? If you can get to work & back using your travelcard, could you just share his car at weekends? Then you could sell your car & pay off some (if not all) of your outstanding loan.

Good luck with becoming debt free

M_o_3