Debt free in 2020

ceb1995 · 7 June 2018 at 6:22PM

So I started a mortgage free diary which i haven't kept up properly, but i've realised that overpayments just can't really happen with our debts at the moment so I'm starting afresh with debt clearing as quick as possible being the aim.

Basically, apart from DH's student loan overpayment and small amounts in credit cards and our overdraft we didn't have much debt before February when we bought our house, we now owe around 17k which is gradually becoming more frightening. So we need to get serious at tackling it, we still have some cash left to pay for a few smaller things for the house but after that the budgets gone so with that and the debt we need to stick to a budget more than ever.
The original debt free date would be in 2023 so shaving three years off will be a challenge but hopefully we'll be able to do it.

ceb1995 · 7 June 2018 at 6:44PM

So this is our SOA

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 0

Monthly Income Details
Monthly income after tax................ 1022
Partners monthly income after tax....... 1227
Benefits................................ 0
Other income............................ 20
Total monthly income.................... 2269

Monthly Expense Details
Mortgage................................ 666
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 144
Electricity............................. 55
Gas..................................... 55
Oil..................................... 0
Water rates............................. 24
Telephone (land line)................... 25
Mobile phone............................ 54
TV Licence.............................. 12.25
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 180
Clothing................................ 40
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 12
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 18.87
Contents insurance...................... 0
Life assurance ......................... 19.27
Other insurance......................... 13.07
Presents (birthday, christmas etc)...... 0
Haircuts................................ 20
Entertainment........................... 150
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1488.46

Assets
Cash.................................... 0
House value (Gross)..................... 149000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 149000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 141000...(666)......4.3
Total secured & HP debts...... 141000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
dw credit card.................2383.55...20........0
dh credit card.................605.......5.........0
windows........................6480......108.......0
dh student loan over...........2000......60........0
bathroom.......................1101.52...20........0
kitchen........................5200.08...110.6.....0
Total unsecured debts..........17770.15..323.6.....-

Monthly Budget Summary
Total monthly income.................... 2,269
Expenses (including HP & secured debts). 1,488.46
Available for debt repayments........... 780.54
Monthly UNsecured debt repayments....... 323.6
Amount left after debt repayments....... 456.94

Personal Balance Sheet Summary
Total assets (things you own)........... 149,000
Total HP & Secured debt................. -141,000
Total Unsecured debt.................... -17,770.15
Net Assets.............................. -9,770.15

Created using the SOA calculator at https://www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using other browser.

So we should have a £450 surplus but we haven't had that recently with paying for things for the house, so hoping we can keep that now. Open to suggestions as to anywhere we can reduce costs, unfortunately DH won't do without haircuts/ do it himself like I do .

pidge04 · 14 June 2018 at 12:40AM

Hi
I have had a quick glance over your outgoings and do not have any advice about reducing outgoings. Are there any ways you could boost your income at all? Someone proposed that to me when I started on here and I found that helpful. All the best to you

beanielou · 14 June 2018 at 4:25PM

Anything that you can sell to chuck the money at the debt?

ceb1995 · 21 June 2018 at 8:58PM

pidge04 wrote: »

Hi
I have had a quick glance over your outgoings and do not have any advice about reducing outgoings. Are there any ways you could boost your income at all? Someone proposed that to me when I started on here and I found that helpful. All the best to you

I'm increasing my hours at work from next month, but otherwise short of changing jobs myself there's nothing for a substantial increase. DH's bonuses vary but that can be extra hundreds.

ceb1995 · 21 June 2018 at 8:59PM

beanielou wrote: »

Anything that you can sell to chuck the money at the debt?

we're quite minimal in our belongings, the only things we have to sell at the moment are some books and clothes which I've been sticking on ebay.

ceb1995 · 21 June 2018 at 9:06PM

So the past two weeks, have been a mix of good and bad financially. I've gotten a vitamin D deficiency and had an asthma flare up which has meant going over budget on transport as i've had to use the bus or taxis to get to work and the doctors and medicines but on the plus side, I've not felt up to going out further than going out for a cheap coffee so it almost balances out budget wise.

System · 21 June 2018 at 10:50PM

Hiya, Good luck on your journey. Doing up our dump of a house helped us get to DMP land so well done on deciding to tackle it.
Do you really have £350 a month left after paying for everything?
I think you need an emergency fund, especially as you are a homeowner (£100/month) so if you do have £350 leftover be good to get that going.

What interest rates are you being charged on your debts?

Xx

ceb1995 · 24 June 2018 at 10:55AM

ramblehan wrote: »

Hiya, Good luck on your journey. Doing up our dump of a house helped us get to DMP land so well done on deciding to tackle it.
Do you really have £350 a month left after paying for everything?
I think you need an emergency fund, especially as you are a homeowner (£100/month) so if you do have £350 leftover be good to get that going.

What interest rates are you being charged on your debts?

Xx

Yes we do have £350 left each month from our salaries, except this month since with my bad health bout but DH has a decent bonus coming in at the end of the month.
We have 1k of savings roughly at the moment and Payment protection insurance for DH as an emergency fund (and emergency cover, critical illness and life insurance). Since we're replacing everything except the boiler as new in the process of doing everything up, i'd hope nothing is going to break on us soon.
Our cc's are interest free (mine is only until october so we're concentrating on getting that down and then i apparently have a good chance at a balance transfer card), all the other debts are 4/5% interest.

Supersaver88 · 12 July 2018 at 2:15AM

Your gas and electric seem very high at £110, use a comparison site and see if you could get it down. You might be able to half that depending on your usage and speak about bringing your direct debits down, you may be overpaying.

Debt free in 2020

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