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  • FIRST POST
    • Treadingonplaymobil
    • By Treadingonplaymobil 12th Feb 17, 9:56 AM
    • 1,501Posts
    • 14,576Thanks
    Treadingonplaymobil
    £67,031.92 is a frightening number indeed....
    • #1
    • 12th Feb 17, 9:56 AM
    £67,031.92 is a frightening number indeed.... 12th Feb 17 at 9:56 AM
    £67,031.92. Seriously. £67,031.92. That is a SCARY number. I can't believe our debt has peaked (and it is the peak, I am determined) at this level.

    Our light bulb moment actually happened a few months back, but it's taken since then of wrangling utilities and carefully watching out income/outgoings (using You Need a Budget) to really figure out where we were overspending and how the monthly shortfall of anything from £200-£1,000+ was happening.

    We have literally nothing to show for this debt, it's just crept up over the past 8 years or so, and has always been at manageable levels, but back in October we realised we were spending more on credit cards each month than we were paying off.

    We committed that cardinal sin of taking out a consolidation loan, but alongside it we looked really carefully at our spending over the next couple of months, budgeted realistically for what we spend and have (I think) picked off all the easy 'low hanging fruit' of budget cuts and really identified why we were overspending.

    The main reason for the debt is, erm, me. Not that I'm the biggest spender (neither of us are amazing), but because I am self employed with a hugely variable income and basically worked out our budgets on the basis I would always earn my 'best' month's income. Which was, with hindsight, maybe a TINY bit deluded.

    The aim of this diary is to keep us on track with actually reducing our debt every single month, not doing it in a three steps forward, two (or four) steps back sort of way. Having sat down and put our numbers into the whatsthecost site, it appears that we are looking at 7 years and 1 month of repayments to clear the debt (and that's assuming we can get rid of the shortfall showing below). I REALLY want to reduce this term as that just seems bonkers.

    SOA below, with a couple of explanatory notes.

    Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 2
    Number of children in household......... 3
    Number of cars owned.................... 1

    Monthly Income Details

    Monthly income after tax................ 250 (variable, but this is the minimum I have earned in any month in the last 5 years)
    Partners monthly income after tax....... 2711.86
    Benefits................................ 192
    Other income............................ 0
    Total monthly income.................... 3153.86


    Monthly Expense Details

    Mortgage................................ 698
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 174 (including overpayment for a period when we messed up during a house move 18 months ago and didn't restart the direct debit for the new property. Will drop by a little under £50 after either March or April, can't remember which)
    Electricity............................. 52 (gas and electricity are one combined DD, I haven't checked the exact split but the total is £104)
    Gas..................................... 52
    Oil..................................... 0
    Water rates............................. 104 (also including a debt from previous property, but I think this will be included for another 6 months or so. I'm not sure what our actual usage is)
    Telephone (land line)................... 18.5 (includes internet)
    Mobile phone............................ 85 (£45 for my contract, which I use for work as well, £40 for DH)
    TV Licence.............................. 12.12
    Satellite/Cable TV...................... 0
    Internet Services....................... 0 (included in landline cost)
    Groceries etc. ......................... 520 (Includes £40 for one lot of school lunches. I am REALLY struggling to reduce this, but feel I could and should be able to!)
    Clothing................................ 100 (growing children, plus see notes below re clothes)
    Petrol/diesel........................... 225 (90% DH commuting costs)
    Road tax................................ 16.27
    Car Insurance........................... 25.22
    Car maintenance (including MOT)......... 30
    Car parking............................. 0
    Other travel............................ 50
    Childcare/nursery....................... 70 (this will disappear in April as child 3 gets free 15 hours)
    Other child related expenses............ 81.85 (music/swimming lessons x2, cubs and beavers, National Trust membership as they love visiting them)
    Medical (prescriptions, dentist etc).... 5
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 27.07
    Contents insurance...................... 0
    Life assurance ......................... 16.26
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 90
    Haircuts................................ 20
    Entertainment........................... 135
    Holiday................................. 75
    Emergency fund.......................... 25
    Total monthly expenses.................. 2707.29



    Assets

    Cash.................................... 0
    House value (Gross)..................... 210000
    Shares and bonds........................ 0
    Car(s).................................. 800
    Other assets............................ 0
    Total Assets............................ 210800



    Secured & HP Debts

    Description....................Debt......Monthly.. .APR
    Mortgage...................... 173733...(698)......3.14
    Total secured & HP debts...... 173733....-.........-


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    Barclaycard....................6880.21...156...... .0
    MBNA...........................9614.71...98....... .0
    Parental loan..................20000.....0.........0 (see notes below)
    Tesco loan.....................21000.....377.......10
    Total unsecured debts..........57494.92..631.......-



    Monthly Budget Summary

    Total monthly income.................... 3,153.86
    Expenses (including HP & secured debts). 2,707.29
    Available for debt repayments........... 446.57
    Monthly UNsecured debt repayments....... 631
    Amount short for making debt repayments. -184.43


    Personal Balance Sheet Summary
    Total assets (things you own)........... 210,800
    Total HP & Secured debt................. -173,733
    Total Unsecured debt.................... -57,494.92
    Net Assets.............................. -20,427.92


    Created using the SOA calculator at stoozing.
    Reproduced on Moneysavingexpert with permission, using other browser.


    Regarding the (relatively) high clothes expense, it is a combination of 3 growing children (8, 6 and 3), plus the fact that my job is in the fashion industry, and as a self employed person I need to have the right sort of 'look' in order to get work (think along the lines of a self employed personal shopper - people need to see you looking good in order to book with you).

    The parental loan was for a house deposit. The parent in question has no idea about our debts. She is not desperate for the money back and isn't charging us interest, but has asked us to save £150-200 every month into a savings account and then once we've saved a decent sum to either repay them or 'reborrow' it for work on the house (basically they want us to be able to make repayments if they suddenly need the extra income, but meanwhile are happy for us to benefit from it. I am not saving the money while our debt payments are so high - we are hoping to have paid enough off that if the parent ever needs it that we can reborrow it and pay them back). This isn't great, but realistically I think the best solutions is to treat it as the lowest priority for snowballing - once we have paid back the other debts we will throw the entire £630+ at this debt.

    So, there is a freaking enormous shortfall every month, which is somewhat depressing. Most months it is covered by the fact that I earn more than my 'bare minimum', but it is those months where it isn't covered that the debt creeps up again, and I am a total disaster for going 'oh well, we've spent on the credit card, we might as well keep going' and buying more clothes or something for the house - this is probably a significant proportion of our debt problem.

    We have managed to get rid of the balance on the one credit card we were spending on, so the remaining ones are both on 0% deals (although one expires in September). I have not cut up the remaining credit card, because we don't have an emergency fund in case of eg boiler repairs, but it has not been used for all of a month, and I hope to keep it that way.

    A DMP or similar isn't really on my horizon right now - I feel like we should be able to make the cuts to make our budgets balance, and I am optimistic that as my income goes up (when I can work more as child 3 starts school) that we will be able to make overpayments.

    My plan for now is:
    1) Try to wiggle those budget numbers around enough that we don't have a shortfall any more.
    2) Make a plan for any months where I make extra - do I use it for an emergency fund, as a fund to cover future months' shortfalls, to throw money at the debt to try to reduce minimum payments in case of future 'shortfall' months?
    3) Try to make more money. Not quite sure how this will work as I am largely limited to working around DH's working hours (I work evenings and weekends and the 5hrs childcare per week we are paying for for child 3).

    Now that's all down in black and white I am feeling a combination of relieved (to be clear on the numbers) and immensely stressed (by the semi-regular £180+ shortfall).

    Onwards and downwards (for the debt, not me)!

    edited to add: the original £67,031.92 figure was based on the total figure for the Tesco loan, which included all interest payable over the entire term of the loan. I have updated the debt figure in my signature and in all posts going forward as at 4th June 2017 to reflect that actual current debt balance rather than the balance plus interest over the lifetime of the loan. This has knocked £7,911.62 off the debt figure, but means that each monthly payment will have the interest for that month deducted from it, so it won't affect the DFD if I don't make overpayments.
    Last edited by Treadingonplaymobil; 04-06-2017 at 2:58 PM.
Page 125
    • Treadingonplaymobil
    • By Treadingonplaymobil 12th Feb 18, 12:32 PM
    • 1,501 Posts
    • 14,576 Thanks
    Treadingonplaymobil
    Ooh, and thanks for help with the apostrophe issue Cumbria! That's been irritating me.
    £67,031.92 is a frightening number indeed... The debt free diary of one family and their enormous debt
    LBM debt on 12th Feb 2017/DFD: £58,608.13/Dec 2026
    debt on 6th Apr 2018: £34,168.99/Feb 2026

    Mortgage = c.£192,200
    • Cherryfudge
    • By Cherryfudge 12th Feb 18, 12:59 PM
    • 1,622 Posts
    • 8,591 Thanks
    Cherryfudge
    Just wanted to say 'happy MSE birthday' and while I don't always read your lists, sometimes I do! I write lists on mine from time to time and don't necessarily expect people to read them: it's just what works for me, and yours should be what works for you.

    MSE birthday cake to celebrate:
    • JoJoC
    • By JoJoC 12th Feb 18, 1:59 PM
    • 1,664 Posts
    • 6,089 Thanks
    JoJoC
    Congratulations on surviving a year of debt-busting! I also enjoy reading your diary and pop in most days, although I don't always comment.

    I do like reading your lists now and again, and I find that I'm inspired or reminded of things that I need to do so I find that element helpful, although I don't ready every list every day.

    You should be writing your diary for you, so i'd say you should just do what works for you to keep you on the straight and narrow. If people enjoy reading and commenting, then that's a bonus!
    CC1: £4601.14/ £5031.14 (10% paid off, £480) | CC2:£3407/ £3807 (12% paid off, £450) | Loan: £10,788.72/ £15,000((28% paid off, £4211.28))

    July debt total: £23,838.14 | New debt total: £18,796.86 | Total debt paid: £5,141.28 (22%)
    *My debt busting and savings diary*
    • Busy Mee1
    • By Busy Mee1 12th Feb 18, 3:31 PM
    • 573 Posts
    • 2,571 Thanks
    Busy Mee1
    Congratulations on your first year...it has been a real rollercoaster of a ride
    (there have been times when I have had to cover my eyes ) But it has been brilliant to watch you learn what works for you and your family.

    You have made some real progress and I am confident in Year 2 you will make even more......you have definitely developed much more insight into your spending and where the elephant traps for you are. I even sense you are starting to enjoy the challenge of it all

    I am settled in for your year 2 x
    • Honeybug
    • By Honeybug 12th Feb 18, 3:44 PM
    • 19 Posts
    • 180 Thanks
    Honeybug
    Congratulations and well done TOPM. 1 year down .........

    I dont read your lists so much, but your diary is for you so I guess do whetever feels the most helpful in your debt busting challenge.

    I enjoy reading about your journey, thought processes and the conclusions you draw. Some of these are different to my own which makes it all the more interesting.

    Keep going, year 2 will be over before you know it!
    • Purplemumof2
    • By Purplemumof2 12th Feb 18, 3:48 PM
    • 6,025 Posts
    • 22,019 Thanks
    Purplemumof2
    Happy MSE Anniversary TOPM.

    Here's to more debtbusting adventures xx
    Official DFW Nerd Club - Member no. 791 - Proud to be dealing with my debts
    MBNA: £6500.00 Cap 1: £417.28 BC: £8224.59 (temporary)
    AFD xxx LTW 14/16
    POAMAYC 2018 #041 PD £3790.84/£7000
    Savings for Christmas £131.00/£365
    20p Savers 2018 £2 Savers 2018 50p Savers 2018 SPC 11 2018 #003
    • kindofagilr
    • By kindofagilr 12th Feb 18, 4:22 PM
    • 6,182 Posts
    • 20,806 Thanks
    kindofagilr
    Happy MSE anniversary I don't always post but I am a reader, you are doing fabulous xx
    Next Target: Very - Was £1469.07 - Now £1455.07 - 05/04/18

    POAMAYC 2018 #87 Paid £1906.53/£12,000 ~ 15.88%
    POAMAYC 2017 #87 Paid £10,380.18/£10,000 ~ 104%
    POAMAYC 2016 #87 Paid £7454.80/£7000 ~ 106%


    Mortgage (Start Date 01/04/09 ~ 30 year term, due to end 01/07/39)
    £104,409/£85,093.24 (as of 31/03/18) ~ 18.50% Paid

    My Debt Free Diary (Link)
    • pennywisepoundstupid
    • By pennywisepoundstupid 12th Feb 18, 4:28 PM
    • 4,734 Posts
    • 15,876 Thanks
    pennywisepoundstupid
    Congrats on your first year, you have achieved so much.

    I quite like reading your lists as it reminds me of things I need to do, but at the end of the day it's your diary to post what you want and if having lists helps you focus then carry on. xx
    Be mindful of your self-talk. It's a conversation with the Universe."
    Debt free and saving for my future
    Long term savings £10,000 Holiday spends £1000/£349.02 Kitchen savings stage 1 £1500/£160.24
    Amazon vouchers
    £5
    • Money spending mummy
    • By Money spending mummy 12th Feb 18, 4:28 PM
    • 32 Posts
    • 81 Thanks
    Money spending mummy
    Happy anniversary! You are doing well. I like reading your diary, you always seem to fit so much into your time.

    Back to lurkdom now!
    • Treadingonplaymobil
    • By Treadingonplaymobil 12th Feb 18, 6:12 PM
    • 1,501 Posts
    • 14,576 Thanks
    Treadingonplaymobil
    Loving seeing all the lurkers pop their heads up, as well as my lovely regular commenters.

    I do keep this diary for me, but one of the things that helps keep me on track is knowing that others are reading along and sharing my journey, so it's lovely to hear what you enjoy reading about . If the comments dried up I'm fairly sure I'd give up pretty quickly!
    £67,031.92 is a frightening number indeed... The debt free diary of one family and their enormous debt
    LBM debt on 12th Feb 2017/DFD: £58,608.13/Dec 2026
    debt on 6th Apr 2018: £34,168.99/Feb 2026

    Mortgage = c.£192,200
    • FiscalPickle
    • By FiscalPickle 12th Feb 18, 6:26 PM
    • 103 Posts
    • 248 Thanks
    FiscalPickle
    Well done on your first year of debt busting TOPM. I also have a diary that!!!8217;s just to keep me accountable but it is nice to have the odd cheerleader pop by
    DFD - 26/10/19
    In the process of shedding £20k and 35lbs
    • debtaghh
    • By debtaghh 12th Feb 18, 6:57 PM
    • 1,187 Posts
    • 3,513 Thanks
    debtaghh
    Well done on your first year and keep it up. I enjoy reading your diary as it is but do what suits you.

    Thanks for the tip Cumbria as it's been bothering me so I have done what you said.
    Debt 16th October 2017: Cc £49,987- family £37,561: total debt £87549

    Current debt: Cc £42,775 , Family £ 39,608 total debt £82,383

    Frugal living challenge # 10- £8000 presents/ food/ entertainment/clothes/shoes/haircuts
    • DawnW
    • By DawnW 12th Feb 18, 7:15 PM
    • 4,964 Posts
    • 39,123 Thanks
    DawnW
    Just a suggestion TOPM, but if you didn't want to include your lists in your diary thread (though I can't see why not, it is your diary after all), you could join us on the Small Things thread on the main DFW board. We all post up our lists there every day
    NSDs for April: 10 / 15

    • Chrystal
    • By Chrystal 12th Feb 18, 7:54 PM
    • 230 Posts
    • 1,508 Thanks
    Chrystal
    Happy 1st Anniversary TOPM!

    Yours is one of the diary's I love reading.... seeing the changes you've made (kicking and screaming at times ) has been illuminating to say the least.

    I so admire your determination to do what is best for your family, and the debt busting is FANTASTIC when you think of how much more there would have been on your total without your 'lightbulb moment'

    I'm really looking forward to the next year and cheering you on all the way. X
    GC. Oct.17 = £261.18/ £300 = + £38.82 NSDs 20/31
    GC. Sept.17 = £354.89/£300 = - £54.39

    • poddle911
    • By poddle911 12th Feb 18, 8:06 PM
    • 1,402 Posts
    • 6,050 Thanks
    poddle911
    Massive congrats TOPM for keeping on track for a whole year! To a bystander (lurker) itís seemed precarious at times, but your determination has kept you on the straight and narrow, and your writing and self-awareness has kept us all here. Good luck with the next one!

    Cheering you on from the sidelines
    LBM Sep 2008 debt: £27,927.04
    start weight: 140.2, week 2: 138
    • Suffolk lass
    • By Suffolk lass 12th Feb 18, 8:06 PM
    • 1,911 Posts
    • 20,218 Thanks
    Suffolk lass
    YEAR 2: Week 1: Day 1

    My diary this year
    I have been contemplating restructuring the way I write my diary. I'm not sure whether my daily lists are of any interest to anyone here, now that they tend to be more about my daily life than MSE stuff. Although the two are kind of inextricably linked these days - menu plans, daily work etc. I know some bits of it help to keep me on track (noting food shopping and menu planning etc) and I quite like sharing the rest. Any thoughts? What do you lot find helps keep you on track in your own diary? What do you like reading here or in other diaries? Maybe a daily MSE list, and only checking in with weekly and monthly lists once a week.
    Originally posted by Treadingonplaymobil
    I rather like your lists - I sort live here as your nagging conscience, ready to remind you about things you once said, if you show signs of slipping back (sorry, you know I mean well). I share the sentiments of others, you write well and are always a good read. Have you considered blogging like slowlyfading (Frugal Cottage)? She makes small amounts of money from that with the advertisers and links, as well as plotting her progress towards FIRE (Financial Independence, Retire Early) having paid off debts first.

    I love the way you defend your position, then quietly rethink it and compromise and it is your mindset shift you should be most proud of. Never has the "been on a journey" reference been more pertinent (however corny and overused as an expression). Keep it up TOPM A- for year 1 - great balance between living and debt.
    MFiT T4 #2 update 51.75% after Q8 £5,203 behind where I should be
    Save £12k in 2018 #53 - after Feb 13.3%/£10,000
    OS Grocery Challenge 2018 spent £452.64/£3,000 including stores so far
    My DFD is here
    • apple muncher
    • By apple muncher 12th Feb 18, 9:05 PM
    • 7,179 Posts
    • 53,992 Thanks
    apple muncher
    Congratulations on your year of slowing down, turning and re-directing the tanker to head in the direction of your choice. Well done to all the TOPM clan!
    NST April #17; NSD 16/15 ; Ex 17/20 ; craft 16/30 (48); remove 402
    2018 Pay off: £1188; 2
    018 sell

    Mortgage £21,904 (01/14: £78,201; 01/15: £59,629; 01/16: 39,915; 01/17: 27,295; 01/18 23,143) MFWDate Dec 2018
    • enthusiasticsaver
    • By enthusiasticsaver 12th Feb 18, 10:01 PM
    • 6,265 Posts
    • 12,438 Thanks
    enthusiasticsaver
    I like the lists too and well done on the debt reduction over the last year. I look forward to seeing your progress over the next 12 months and hopefully towards your extension plans. I don't always agree with your approach but I definitely think you have improved your situation.

    I agree with Suffolk Lass that you are an eloquent writer, humorous sometimes and self deprecating. You mostly consider advice, although don't always follow it but that's ok. It is your debt, your life and your journey.
    Debt free and mortgage free and early retiree. Living the dream

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • Misslayed
    • By Misslayed 12th Feb 18, 10:03 PM
    • 4,368 Posts
    • 22,499 Thanks
    Misslayed
    Happy Avinersary!
    Hi. Martin has asked me to tell you I'm a (novice) Board Guide on the Competitions, Site Feedback and Campaigns boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with abuse). Any views are mine and not the official line of MoneySavingExpert.com.
    • Treadingonplaymobil
    • By Treadingonplaymobil 13th Feb 18, 6:31 AM
    • 1,501 Posts
    • 14,576 Thanks
    Treadingonplaymobil
    Week 53: Day 2

    Good morning! What a horrible wet and stormy morning it is here.

    The weekend turned out a little more expensive than planned as we ended up getting dinner in a services on the way home - had been hoping to make a packed dinner at my dad's and just bulk it out with a treat or something from the services, but there wasn't anything readily available so we had to fork out. Hopefully I've sufficiently rejigged the budgets to cover it without leaving the rest of the month unmanageable.

    The DC are on half term this week, so inevitably life won't be as productive, but I'm looking forward to having a few not-too-hectic days with them. We are going to a scrapstore today (place where they have loads of bits of fabric, paper, scraps etc that local businesses donate and you pay a fixed fee for a basket full), which was a Christmas present for two of the DC. Hopefully that will keep them occupied for the afternoon once we get back too.

    Need to go food shopping too. Aiming to do a pretty small shop in an ongoing effort to eat the freezer contents.

    Menu plan
    Tuesday - sweetcorn fritters
    Wednesday - dal and rice using up various leftover lentils/mung beans
    Thursday - leftover frozen veggie burgers/cauliflower cheese
    Friday - egg, frozen veg and chips
    Saturday - columbian black bean stew
    Lunches - frozen packed lunch bits (will make a fresh batch on Sunday), homemade pitta, houmous and veg, leftover frozen soup portions
    Snacks - hm biscuits, fruit, hm scones and jam.

    I have a big heavy parcel in the hallway which I am assuming is my bulk purchase of vinegar/bicarb etc for eco friendly cleaning. I will report back on the concoctions.

    I have decided to check in with my longer term lists once a week (maybe more often if I'm making good progress and want to note it), but to keep my daily 'three things' list and to try to update my spending/saving list in the evenings (although it's the morning today, for yesterday).

    Three things to do today
    1. Menu plan.
    2. Food shopping.
    3. Plan work for this week for maximum efficiency in minimum time.

    Savings/Spends:
    - £20.53/£28 February 'rounding down' overpayment pot
    - £1,046.80/£5,000 2018 debt repayment goal.
    - £21.85 in services on Friday night during the drive from hell.
    - £4.20 knitting pattern for cardigan for friend's new baby. Excessive, but I was in a rush to find a pattern I could knit at my dad's.
    - £33.39 YNAB subscription (paid the price for not having savings pots and had to juggle things round to cover this, but managed it without trashing the other savings pots. I feel I've already posted this, when I first got the email saying it was coming out. Never mind)
    Last edited by Treadingonplaymobil; 13-02-2018 at 6:34 AM.
    £67,031.92 is a frightening number indeed... The debt free diary of one family and their enormous debt
    LBM debt on 12th Feb 2017/DFD: £58,608.13/Dec 2026
    debt on 6th Apr 2018: £34,168.99/Feb 2026

    Mortgage = c.£192,200
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