Newbie here

Deep_In_Debt

Hi, I've been reading this forum for a while and have picked up some great tips and ideas from a wonderful group of people and finally took the plunge to make my first post. I'm hoping that I will be of some help to others as I start my debt free journey - I'm likely to be around for a while! I've just started (this month) on a DMP with CCCS after I had my light bulb moment in February :eek: after a long time of not facing up to things and burying my head in the sand and thinking that everything would magically sort itself out. My situation is that I have about £27k :eek: in unsecured debts mainly credit cards but a couple of small unsecured personal loans. I'm lucky enough to have a small mortgage and the scary thing is, my unsecured debts are more than my mortgage. Scary but true! My mortgage is due to be paid off in about 5 years and I'm hoping to be debt free by then. Will post a SOA when I can work it out - I'm a bit of a dummy when it comes to computers so hoping this post ends up in the right forum!

Blackruby

Welcome! I am a newbie too and I found everyone really welcoming. There are loads of ways to cut back. Like smoking, drinking, shopping. Plus loads of challenges, trying to find one to join myself.

Dee

In_Search_Of_Me

Welcome! Post your soa & pepys can make suggestion on how you can cut back...Having a spending diary & ding the grocery challange are great ways of cutting back at the start! Hope that help! Get stuck in & you'll be amazed how much you can pay off whe you put some elbow grease into it!

Deep_In_Debt

Hi Thanks for the replies. I'm feeling really motivated already. I will try and work out how to post my SOA - like I say, technology beats me!

ald65

Hi Deep in debt

we have been on a DMP for overf six months now and for us it has been great.
good luck in your debt free quest

tealady

Hi Just do a list of your incomings and outgoings. The template at the top for newbies will give you ideas for headings.

GirlRacer_2

Welcome aboard. I'm glad youve had your lightbulb moment and have decided to do something about it rather than bury your head in the sand.

As tealady suggests post up your SOA and everyone will be along to see what they can help you cut back on.

Good luck

Deep_In_Debt

This is even scarier than I thought. :eek: I've not included the interest rates on my cards and loans etc as these are being covered under my DMP. I've changed my bank account also as my overdraft is included in the DMP. I have to admit, it's a horrible sight to see those credit card debts.

Little bit of an explanation - I have an interest only endowment mortgage which I've never been in arrears or defaulted on in 20 years. House and contents insurance and life assurance are all included in my monthly mortgage repayment which is why I've not listed them separately. I don't have gas at home, just electricity and I have a water meter so my water rates are quite cheap. Council tax is over 12 months and that is with single persons discount but I live in a very expensive area. I am looking for part time work and currently do some ad-hoc work as and when needed and have registered on some of the survey sites here. I've started selling books on Amazon (not making a massive amount but there's hope!) and am having a clear out at home to see if there is anything I can sell on Ebay and do a car boot sale when the weather gets better. My mobile is PAYG and to be honest, £10 lasts a lot longer than a month for me as I use it for texting and have a tariff where I get free texts at weekends so use it mainly then. I tend to eat at work during the week and make use of the heavily subsidised restaurant.

I ran these debts up over a few years. My dad died and it affected me quite badly so I guess I took solace in spending. Also the break-up of my long term relationship affected me. My ex boyfriend was not part of the mortgage but had huge debts himself (he went BR last year) so we were living off my credit cards.

I'm lucky enough to have a small mortgage as my parents helped me buy the house a long time ago and invested a lot of their money in it so most of the equity belongs to my mum, so it's a bit difficult for me to release equity or take secured loans and my mum is not aware of the state I'm in.

Sorry if this is a bit long.

Monthly income after tax................ 1300
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1300

Monthly Expense Details
Mortgage................................ 164
Secured loan repayments................. 47
Rent.................................... 0
Management charge (leasehold flat)...... 0
Council tax............................. 110
Electricity............................. 34
Gas..................................... 0
Oil..................................... 0
Water rates............................. 12
Telephone (land line)................... 18 - this is mainly for line rental as I take advantage of free weekend calls and use my mobile in the evenings as I get a few free evening calls
Mobile phone............................ 10
TV Licence.............................. 11
Satellite/Cable TV...................... 21
Internet Services....................... 13
Groceries etc. ......................... 150
Clothing................................ 10
Petrol/diesel........................... 100
Road tax................................ 10
Car Insurance........................... 21
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 30 - I have gum disease and unfortunately the treatment cannot be done on the nhs and I have to have treatment every 3 months which does cost a fortune.
Pet insurance/vet bills................. 20 - have 2 cats and £10 pm is for pet insurance for both - will cut down on their food as one of them is obese and needs to lose weight anyway!
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 10
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 10
Total monthly expenses.................. 821

Assets
Cash.................................... 0
House value (Gross)..................... 200000
Shares and bonds........................ 0
Car(s).................................. 4000
Other assets............................ 15000
Total Assets............................ 219000

Secured Debts
Description....................Debt......Monthly...APR
Mortgage...................... 20000....(164)......0
Secured Debt.................. 5000.....(47).......0
Total secured debts........... 25000.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Barclaycard....................5900......126.......0
mBNA...........................9000......220.......0
Monument.......................4000......116.......0
Abbey Overdraft................1200......60........0
Cap One Credit Card............2000......80........0
Sainsburys Loan................2000......117.......0
First Plus Loan................2500......79........0
Halifax........................1700......57........0
Total unsecured debts..........28300.....855.......-

Monthly Budget Summary
Total monthly income.................... 1,300
Expenses (including secure debts)....... 821
Available for debt repayments........... 479
Monthly UNsecured debt repayments....... 855
Surplus(deficit if negative)............ -376

Personal Balance Sheet Summary
Total assets (things you own)........... 219,000
Total Secured debt...................... -25,000
Total Unsecured debt.................... -28,300
Personal net worth...................... 165,700

Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.[/font]

singlemum_4

Hi there Im really don't know much about the major things others will be along who do, but you could cut your grocery bill loads I use about £160pm for me and 2 teenagers.Why don't you look at the oldstyle board for ideas on cutting back in this area?

Deep_In_Debt

Hi thanks single mum. You are right - not sure what the grocery bill includes tbh. need to look into that and keep a spending diary

Blackruby

A good tip I saw once somethere was to do the level lower challenge for your weekly/monthly shop.

If you think that there are bands of brands, just go the next one down from what you usually get.

Premium own brands: (Finest, taste the difference)
Brand brands: (Heinz, Branston)
Normal own brands: (Supermarket own)
Value own brands: (Smart price, Value)

Just go down one level on everything, if you don't like the taste of the new level, go back up, but in most cases you can't tell the difference and saves you loads.