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  • FIRST POST
    • MrsLWW
    • By MrsLWW 31st Mar 17, 11:36 AM
    • 84Posts
    • 255Thanks
    MrsLWW
    Absolutely doing it this time
    • #1
    • 31st Mar 17, 11:36 AM
    Absolutely doing it this time 31st Mar 17 at 11:36 AM
    Since I got together with my DH 7 years ago, we've managed to rack up at the worst point nearly 30K of debt. We are lucky that it is manageable for us, but adding things up and coming to the concluding figure did shock us.

    We each have a personal loan running and one credit card between us which we ran up to just over 5K.

    DH is a terrible spend thrift and I'm not a million miles better to be honest.

    We have in the past made half hearted attempts at budgeting, but recently I have decided to take the bull by the horns and really make a dent in it.

    I generally run the finances and love jam jarring, so this week have opened another couple of accounts and given each spend category it's own account and own budget:

    1 My solo current account - IN: wages OUT: standing orders and mobile phone (although mobile phones going to be moved into santander 123 as didn't realise you got 3% for mobiles too!
    2. DH solo current account - IN: wages OUTL standing orders, mobile phone (will move this this weekend) and his DD pocket money.

    3. Joint Bills: Santander 123 (does exactly what is says on the tin) (cards remain locked away in the safe)
    4a. MY Individual spend/fritter/fun money account
    4b. DH Individual spend/fritter/fun money account
    5. Joint grocery account (card locked in the safe until need to shop)
    6. Joint fuel card (one for each card) this is new as used to be in the grocery account
    7. Joint birthday/christmas (cards locked in safe) Again, this is new and was supposed to be in the grocery account but there was never anything at the end of the month and christmas came out of my credit union account
    8. Socialising fund Also new, again was lumped in with the grocery account and never had money for socialising, just spent (over spent) from other accounts

    9. Also have an account solely dedicated to funds ingoing and outgoing for a flat I own which I rent out.

    Probably take a hit in the credit rating for a couple of months, but not needing credit for anything and mortgage not up till August, so should be fine by then.

    Hoping I will now know EXACTLY where our money is going so I can take better control of it.

    I have an XL document with running totals and all being well we should be debt free by May 18 - sooner if I keep taking overtime, which I absolutely will.

    Currently our debt stands at 19,223.39 and after budgeting everything out and making sure there is spending for every category so that we don't dip into other accounts I hope we can throw a good 700-800 pounds a month extra at our debts and snowballing as each one is paid off.

    Currently we own our 2 cars outright (both about 12 years old, but both agree that we will not be buying new ones until we have saved up and can afford to buy new ones outright.

    This was my SOA

    Statement of Affairs and Personal Balance Sheet

    Household Information
    Number of adults in household........... 2
    Animals........................................... ...... 1 18YOM Cat, 1 10YOF golden retriever
    Number of cars owned.................... 2 (12 year old 1.9TD, 12 year old 1.5 petrol (cost me 450 - determined not to take finance out for cars, will buy some new(ish) cars when we have saved up and can buy them outright)

    Monthly Income Details
    Monthly income after tax................ 1700 (100 goes directly to a credit union for Christmas)
    Partners monthly income after tax....... 1700
    Benefits................................ 0
    Other income............................ 160 (net profit from rental property)
    Total monthly income.................... 3560

    Monthly Expense Details

    Mortgage................................ 648.4
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 186
    Electricity............................. 63 (126/month for gas and electricity with spark energy - pay a month in advance, currently have 680 in credit, planning on taking 380 out to go towards credit card)
    Gas..................................... 63
    Oil..................................... 0
    Water rates............................. 0 (with ctax)
    Telephone (land line)................... 30 (90 virgin package, contracted till September and will be cancelling everything except broadband)
    Mobile phone............................ 23 (SIM only all you can eat, watch lots of TV and films, also planning to ditch landline so happy to leave this as it)
    TV Licence.............................. 12.2
    Satellite/Cable TV...................... 30 (getting rid in September)
    Internet Services....................... 30
    Groceries etc. ......................... 200 (trying to ultilise everything in our freezer so hopefully spend a little less this month)
    Clothing................................ 20 (genuinely for DH and I, usually him, hate clothes shopping)
    Petrol/diesel........................... 200
    Road tax................................ 31.93
    Car Insurance........................... 46.9 (admiral multi-car)
    Car maintenance (including MOT)......... 50
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 25
    Medical (prescriptions, dentist etc).... 5
    Pet insurance/vet bills................. 50
    Buildings insurance..................... 12.41
    Contents insurance...................... 12.41
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 125
    Haircuts................................ 10
    Entertainment........................... 200
    Holiday................................. 100
    Emergency fund.......................... 50
    Total monthly expenses.................. 2182.25[/b]


    Assets
    Cash.................................... 500
    House value (Gross)..................... 60000
    Shares and bonds........................ 0
    Car(s).................................. 1500
    Other assets (rental equity)............................ 30000
    Total Assets............................ 92000


    Secured & HP Debts
    Description....................Debt......Monthly.. .APR
    Mortgage...................... 0........(648.4)....0
    Total secured & HP debts...... 0.........-.........-

    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    Credit card....................5200......275.......0
    My loan........................7517.19...242.2.....5
    DH loan........................7500......179.......4
    Total unsecured debts..........20,217


    Monthly Budget Summary
    Total monthly income.................... 3,560
    Expenses (including HP & secured debts). 2,182.25
    Available for debt repayments........... 1,377.75
    Monthly UNsecured debt repayments....... 696.2
    Amount left after debt repayments....... 681.55

    Personal Balance Sheet Summary
    Total assets (things you own)........... 92,000
    Total HP & Secured debt................. -0
    Total Unsecured debt.................... -19,617.19
    Net Assets.............................. 72,382.81

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

    Planning on adding the additional 600 to the credit card along with overtime, hopefully have it paid by June, then snowball this into the loans.

    I think we're doing not too bad but always looking for improvement.[/B]

    Things we do already:

    Shop at farmfoods, Iceland, reduced aisle. Batch cook and freeze, however have a freezer full of meat so going to go through that today and plan meals to use it all up.

    Jam jar accounts - as listed above.

    Feeling, happy, confident and determined/obsessive lol.
    Debt peak approx 30,000 now debt free!!!
    My parents always said "If you can't afford it cash, you can't afford it!" so true!.... mind you, turns out we can't afford much lol
Page 1
    • GrowingUp57
    • By GrowingUp57 31st Mar 17, 6:44 PM
    • 27 Posts
    • 39 Thanks
    GrowingUp57
    • #2
    • 31st Mar 17, 6:44 PM
    • #2
    • 31st Mar 17, 6:44 PM
    Just wanted to say good luck! And I really admire all those bank accounts! Amazing, I reckon you've got this!
    Starting Debt 19/03/17 - 15953 - Current Debt - 16635 = +682
    • MrsLWW
    • By MrsLWW 31st Mar 17, 9:50 PM
    • 84 Posts
    • 255 Thanks
    MrsLWW
    • #3
    • 31st Mar 17, 9:50 PM
    • #3
    • 31st Mar 17, 9:50 PM
    Thanks so much, so determined this time to do it!
    Debt peak approx 30,000 now debt free!!!
    My parents always said "If you can't afford it cash, you can't afford it!" so true!.... mind you, turns out we can't afford much lol
    • DCFC79
    • By DCFC79 31st Mar 17, 10:04 PM
    • 31,662 Posts
    • 19,973 Thanks
    DCFC79
    • #4
    • 31st Mar 17, 10:04 PM
    • #4
    • 31st Mar 17, 10:04 PM
    You watch tv and films using your mobile data yet you have broadband.

    Why not get a cheaper sim and use your broadband for tv and films (do you use all of your allowances),

    Or

    Ditch the broadband

    either option will save money.
    Can people stop loaning money/being a guarator to family/friends, it rarely ends well and you lose out as your money is gone or you get shafted with being a guarantor.
    • MrsLWW
    • By MrsLWW 1st Apr 17, 9:46 AM
    • 84 Posts
    • 255 Thanks
    MrsLWW
    • #5
    • 1st Apr 17, 9:46 AM
    • #5
    • 1st Apr 17, 9:46 AM
    I'm out of the house for 12 hours at a time, so use both. thanks though.
    Debt peak approx 30,000 now debt free!!!
    My parents always said "If you can't afford it cash, you can't afford it!" so true!.... mind you, turns out we can't afford much lol
    • copperman05
    • By copperman05 1st Apr 17, 4:00 PM
    • 75 Posts
    • 123 Thanks
    copperman05
    • #6
    • 1st Apr 17, 4:00 PM
    • #6
    • 1st Apr 17, 4:00 PM
    You doing well so keep up the momentum...

    However, 125 a month for presents, does this include the 100 already going to credit union for Christmas?? Either way its a lot when your trying to pay down debts, You could also knock 50-100 off your entertainment budget, what are you paying for exactly? Reduce both of these by half and you've got another 160 or so to put towards your debts per month.
    LBM Oct'16 at 51,264
    Jan '17 25,059 (Sold car)
    May '17 19,349
    DFD Projection Dec '18 Aug '18
    Gazelle Intensity!
    • MrsLWW
    • By MrsLWW 13th May 17, 1:35 PM
    • 84 Posts
    • 255 Thanks
    MrsLWW
    • #7
    • 13th May 17, 1:35 PM
    • #7
    • 13th May 17, 1:35 PM
    The 100 that's going into the credit union I'm putting towards debt - the christmas/birthday fund is everything for christmas and everyone's birthdays, mother's day, father's day etc. and it's a reflection of what we spend, I feel if I don't budget for it, I'll end up with my accounts skew-whiff. We have all made an agreement this year to keep the spending to a minimum so any money that is left over we will throw at the debts.

    Entertainment has been cut down to 80 for socialising and that's it - anything else comes out of our personal spend so that was a good idea, thanks.

    Got caught out this month - - Cat went to vet for a few things (360 later), both had their jags, worming and fleaing this month and some adjustments to their medications (240) and also had set up a standing order to the credit card from DH's account, not realising he had already set up a DD (225)
    Also my car key broke in the door so was 45 for a replacement which came out of the fuel account - blast, but DH and I think we can squeeze through by swapping cars as luckily I've been nowhere this month and am still sitting with almost a full tank - he has a 1/4 tank which should do me to work and back for the rest of the month.

    Somehow our food budget has went out the window and we now have 37 left in it till the end of the month .

    However, rather than feeling sad about this, DH and I are kinda giggling about the challenge of it. Don't get me wrong, we're absolutely not in dire straights - we realistically could cool off on the aggressive way we are attacking our debts, but I seem to be in the crux of some debt busting obsession, and the thought of our debt-free date being delayed irks me somewhat.

    Xx
    Debt peak approx 30,000 now debt free!!!
    My parents always said "If you can't afford it cash, you can't afford it!" so true!.... mind you, turns out we can't afford much lol
    • Hiddenidenity
    • By Hiddenidenity 13th May 17, 2:02 PM
    • 5,213 Posts
    • 26,717 Thanks
    Hiddenidenity
    • #8
    • 13th May 17, 2:02 PM
    • #8
    • 13th May 17, 2:02 PM
    There'll be months where it feels like everything 'bad' happens at once and others it will be all good. There's bumps in every road. Keep on you've got this xx
    • MrsLWW
    • By MrsLWW 20th Aug 17, 9:07 PM
    • 84 Posts
    • 255 Thanks
    MrsLWW
    • #9
    • 20th Aug 17, 9:07 PM
    • #9
    • 20th Aug 17, 9:07 PM
    Credit Card paid off

    AMAZING feeling!!!
    Debt peak approx 30,000 now debt free!!!
    My parents always said "If you can't afford it cash, you can't afford it!" so true!.... mind you, turns out we can't afford much lol
    • UncannyScot
    • By UncannyScot 20th Aug 17, 9:19 PM
    • 1,417 Posts
    • 7,947 Thanks
    UncannyScot
    You're doing great
    Well Done
    BUGGRITMILLENIUMHANDANDSHRIMP I TOLD EM! - Foul Ole Ron
    It is important that we know where we come from, because if you do not know where you come from, then you do not know where you are, and if you don't know where you are, then you don't know where you are going. If you don't know where you're going, you're probably going wrong.
    R.I.P. T.P.
    • MrsLWW
    • By MrsLWW 7th Mar 18, 8:39 AM
    • 84 Posts
    • 255 Thanks
    MrsLWW
    DRUM ROLL PLEASE.......

    We're debt free

    So happy!!!!
    Now we're saving like mad for an extension, but oh how good it feels not to owe anything other than the mortgage!!

    Keep sticking with it people - you'll get there, and it will feel amazing!!!!!!

    L Xx
    Debt peak approx 30,000 now debt free!!!
    My parents always said "If you can't afford it cash, you can't afford it!" so true!.... mind you, turns out we can't afford much lol
    • Poppy1984
    • By Poppy1984 7th Mar 18, 8:49 AM
    • 178 Posts
    • 352 Thanks
    Poppy1984
    Omg congratulations! How did you pay down such big debts in such a short space of time? That must feel amazing well done x
    19-02-18 Total Debt 4,015 Next 815 Very 1600 Tesco Credit Card 1600
    PAID Next 815/815 now closed Very 900/ 1600 Tesco 160/ 1600
    Emergency Fund 280/300
    • MrsLWW
    • By MrsLWW 7th Mar 18, 9:49 AM
    • 84 Posts
    • 255 Thanks
    MrsLWW
    As well as everything above, we snowballed all our debts so when the credit card was paid off we used all the money we were throwing at it to pay off the 1st loan and once we paid that off we threw everything we had at the last loan and I mean everything - Christmas money, overtime if it became available, all the money we had been sending to the former debts and we finally did it! It was a slog towards the end but so worth it!

    Xx
    Debt peak approx 30,000 now debt free!!!
    My parents always said "If you can't afford it cash, you can't afford it!" so true!.... mind you, turns out we can't afford much lol
    • Starmummy
    • By Starmummy 7th Mar 18, 3:44 PM
    • 83 Posts
    • 225 Thanks
    Starmummy
    That is AMAZING MrsLWW it is so incredible what can be done when you really put your mind to it. Well done!
    • Honeysucklelou2
    • By Honeysucklelou2 7th Mar 18, 10:02 PM
    • 833 Posts
    • 3,329 Thanks
    Honeysucklelou2
    Well done and congratulations at becoming debt free.
    paydbx #93 692/8,000.
    Loan 17k - paid off in Aug 2017. Home improvement loans 3342 March 2017. 3123 in Jan 18
    • MrsLWW
    • By MrsLWW 13th Mar 18, 11:43 AM
    • 84 Posts
    • 255 Thanks
    MrsLWW
    My post onto the Debt Free Roll Of Honour

    DEBT FREE!!!!!!!!!!!!!!!!!!

    a. The date of your lightbulb moment

    There were a few flickerings, but the light came on and stayed on 27/02/2017 - when I joined MSE!

    b. Debts at their highest

    30,000 , although my bright LBM wasn't until later, when we were round about the 21,000 mark

    c. Debt-Free Date

    12/02/2018

    d. Your one pearl of wisdom.

    Budget for everything REALISTICALLY. There is no point drawing up a really tight budget cutting out on things that you are going to spend on anyway - if you spend 50 a month on going out, but kid yourself on you won't go out and end up blowing your budget anyway then you will feel like you have failed and are more likely to fall back into bad habits.Use the Statement Of Affairs, ask for help on the Debt Free Wannabe page (although don't be disheartened when others poke holes in your budget - the hole poker might not think budgeting for a night out is something you should be doing but if it's something you know you won't do without then it's justified, you might not agree with them budgeting for a 20-a-day habit, but it's something they know they are going to spend on.

    However, becoming debt free does require will power - we stopped taking finance out on cars, we each bought a car for under 1000 - was it annoying seeing other people tool about in flash cars? Yes. But I told myself and still tell myself every day, I OWN my car outright - if something seriously went wrong with my car tomorrow, I would be less worried than someone who still owes 7k on theirs. Remember why you are making the sacrifice!

    Shop about - if you buy something regularly then shop about for it - I regularly go online to find where I can buy my e-liquid cheaper. If I'm making a big purchase like white goods, I google the model number and look in google shopping to see who has it cheaper. When it comes to make up I always ask for boots vouchers for Christmas and Birthdays so I can get the stuff I really want for less. My husband uses stick deodorants - so I googled them and now instead of spending 3.49 each on them in tesco, I get them in bulk for 1.10 each.

    I always ask for the prescription from my vets then order pet medications on line for at least 60% discount.

    I love Farmfoods, Poundshops (be careful though, sometimes it's cheaper elsewhere (1 for bleach in the pound shop V 0.39p in Home Bargains), B&M, Aldi, Homebargains etc., I literally grudge paying Tesco/ASDA etc.

    f. Which forum threads helped you

    Reading the Debt Free Wannabe forum always helped, along with the Old School Money Saving.

    g. And if you had a debt diary on the Debt-Free Wannabe board (DFW), a link to it

    http://forums.moneysavingexpert.com/showthread.php?t=5626473

    Face up, take action, allow setbacks and keep at it!!!!!!!!! Good luck everyone, and well done all those in the DF Club!!!
    Debt peak approx 30,000 now debt free!!!
    My parents always said "If you can't afford it cash, you can't afford it!" so true!.... mind you, turns out we can't afford much lol
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