Debt free in four years...

julybride

I finally was realistic about what me and my husband owe, but feel much better for being honest. It seem so daunting at the momment but i was plesantly surprised that at the current rate it will take four years to pay off, and there are still more savings to make, i think. Can anyone just give me some reassurance that it does go by? its nice to see peoples history on here starting with huge chunks and being only a couple of months from being debt free so here's ours.

Debt October 2005 £11,250.00 :eek:
Expected to be cleared currently October 2009
Target date October 2007
wish me luck

ms_london

Hello Julybride.

The time does go fast believe me!!!

If you post your incomings/outgoings on here we might be able to help you make more savings/cut back on areas you might have missed.

Go to:

www.whatsthecost.co.uk

Its amazing that even if you were to overpay your debt each month, say by £50, how much interest you will knock off and how many months you will knock off your Debt Free Date (DFD), its worth playing around with. Are you left on a realistic budget for those 4 years? Would you not like to clear it sooner?

We are here to help, you have definately come to the right place.

Ms_London

James240

Hiya JulyBride

We have around the same amount owing and believe me Ms_London is right as she has helped me loads and the time flys past...

If u can afford to overpay then do it as it does knock some time off and even if its a months payment its still one month closer to be debt free !!!! :T

It will be worth it in the end i promise :T :T :T

James

julybride

Thank you, it's good to know i can come here can't wait to get to my DFD


Mortgage 1 £610.00 Food 150.00
Maintaining above 50.00
Buildings £14.00 Cigarettes 200.00
Gas £14.00 Petrol 35.00
Mortgage 2 £400.00 Birthdays 40.00
Loan £196.00 Other travel 300.00
Council tax 85.00 Mobile 1 60.00
Maintenance 50.00 Mobile 2 50.00
Gas/Electric 25.00
Water/sewage 20.00

Phone 16.00
Car insurance 16.00
Contents 20.00
TV license 11.00
Life 50.00
Credit Cards £180.00 @ minimum payment
Savings for yearly expenses £150.00
BALANCE £2743.00

Income is £625 from rent of property
and combined salary £2500.00

This leaves us an extra £385 to start clearing debts. All our credit cards are at 0% and i have been exchanging them for 2 years and have already reduced this substantially. At that rate i will have cleared my debts a year early i think. Our loan is in its 4th year and is at 6.7% fixed.

We are also curently having to pay for husbands rent at £300 a month until October until i move into the new flat. He had to move away with job and thats actually part of the reason we have seen our debts esculate. But our first home is now bringing in income and i am on a friends floor until for another 4 weeks but its also helped us out.

I know i am going to get slapped wrists for us smoking... but its better to be honest about where that amount of money is going. Looking at this i also need to add in a going out because then at least i know how much we really can afford.

Any other tips greatfully recieved. Looking at it like this has made me realise this is doable and we just need to get our spending under control. it has been a difficult year.

julybride

black-saturn

Theres a few other cut backs you could make in there. You could cut down on cigarettes for a start. £200 for a month seems like hell of a lot. I've cut down to 4 a day from about 20 a day and it really makes a difference to your bank balance. One day I will cut them all out somehow. Mobile phone £60??? Can you make some of the calls you make from it from your landline which would be cheaper or text instead of phone? Going on a water meter might cut down your water bill. And petrol and travel £350?? I gave up my car in favour of walking, cycling and the occasional bus. And you said life costs you £50.00 well I'm afraid you don't have one when your paying off debt. You basically have to live like your on the dole, scraping and saving and put all your money into paying off that debt.

Saving all that gives you an extra £600 a month which will pay that debt off extra quick.

julybride

I have to commute to work on the train and that is £300 a year alone on a season ticket!!!! If i could walk to London from Brighton i would, and believe me i am currently doing all sorts to limit the travel expense. Including us getting rid of the car in February.
Sorry ‘life’ meant life assurance…. No getting out of that one, get that I don’t have a life for a while. The fags actually i just worked out adn that is steep even for the 2 of us so yep there is a little saving in there. Also yep our mobile phones are high currently due to living 150 miles apart, and with neither of us with access to a landline; so again it will come down just as soon as we are in our new place in (touch wood) 4 to 6 weeks. Any other suggestions, will look intot he water metre.

black-saturn

Just that you should sell on ebay absolutely everything you don't need or want anymore. You will be amazed at how much money you will get for dvd's you never watch anymore, cd's you never play anymore, clothes you never wear anymore and books you never read anymore. Then you could pay the money off your debt. When you need to buy something think about it first - do you really need it, is there a cheaper alternative, could I look round 2nd hand shops first or on ebay for a cheaper deal before I buy it?

Hope you do well anyway.

skintchick

£300 for an annual ticket sounds a bargain! Mine into London from Oxfordshire used to £3,000!!

julybride

nope your right i wish to... £300 a month!!!!!

Midas

julybride wrote:

Cigarettes 200.00

julybride

:eek::eek::eek::eek:

If you're smoking that much it must surely be cheaper to take a cheap flight somewhere each month and bring back a load of duty free/lower duty cigs each time.

Or give up of course, and save your life as well as loads of money!!

newmum1

hi there, yeah as you have already stated the fags £200 that really is way too much, £40.00 birthdays can you not just get a them card!! mobile bills are well high why not switch tariff to free calls such as tmobile £25 per month free evenings and weekends to any other networks plus 75 texts. i have really cut back myself and am currently living like a pauper but eventually we will all be debt free.