Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • 500daysaway
    • By 500daysaway 3rd Jan 18, 10:33 AM
    • 23Posts
    • 35Thanks
    500daysaway
    500 days to debt free-achievable????
    • #1
    • 3rd Jan 18, 10:33 AM
    500 days to debt free-achievable???? 3rd Jan 18 at 10:33 AM
    Hi,

    Iíve been looking on these boards for a long time now and have decided that I need to get my finances in order and stop burying my head in the sand as I now am almost 30k in trouble.
    I am lucky that I have a reasonably well paid job and I give my partner a lump sum on pay day and that covers mortgage, council tax, food etc so all the money I have after that is mine to spend. Iíve had a look and if I give myself £260 to spend every month and pay the rest to debt I will be able to pay my debt off in 17 pay days ( 500 days).
    I canít tell anyone how much debt I am in as I am horrified at myself.
    I have attached my statement of affairs and plan to live as frugally as possible for the next 500 days. Achievable??? I am hoping so as I canít keep going on as I am.

    Statement of affairs
    Monthly Income Details[/b]
    Monthly income after tax................ 2600
    Partners monthly income after tax....... 0
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 2600


    Monthly Expense Details

    Mortgage................................ 0
    Secured/HP loan repayments.............. 0
    Rent.................................... 500
    Management charge (leasehold property).. 0
    Council tax............................. 0
    Electricity............................. 0
    Gas..................................... 0
    Oil..................................... 0
    Water rates............................. 0
    Telephone (land line)................... 0
    Mobile phone............................ 50
    TV Licence.............................. 0
    Satellite/Cable TV...................... 0
    Internet Services....................... 0
    Groceries etc. ......................... 20
    Clothing................................ 20
    Petrol/diesel........................... 90
    Road tax................................ 10
    Car Insurance........................... 30
    Car maintenance (including MOT)......... 5
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 50
    Buildings insurance..................... 0
    Contents insurance...................... 0
    Life assurance ......................... 0
    Other insurance......................... 14.03
    Presents (birthday, christmas etc)...... 50
    Haircuts................................ 50
    Entertainment........................... 0
    Holiday................................. 0
    Emergency fund.......................... 0
    Tax .................................... 105
    Total monthly expenses.................. 994.03



    Assets

    Cash.................................... 0
    House value (Gross)..................... 0
    Shares and bonds........................ 0
    Car(s).................................. 2500
    Other assets............................ 0
    Total Assets............................ 2500


    No Secured nor Hire Purchase Debts


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    Barclaycard cc.................13300.....300.......0
    Santander cc...................2300......50........18.9
    American Express cc............7186......200.......29.95
    Virgin cc......................3136......50........0
    Overdraft......................3500......0........ .19.84
    Total unsecured debts..........29422.....600.......-



    Monthly Budget Summary

    Total monthly income.................... 2,600
    Expenses (including HP & secured debts). 994.03
    Available for debt repayments........... 1,605.97
    Monthly UNsecured debt repayments....... 600
    Amount left after debt repayments....... 1,005.97


    Personal Balance Sheet Summary
    Total assets (things you own)........... 2,500
    Total HP & Secured debt................. -0
    Total Unsecured debt.................... -29,422
    Net Assets.............................. -26,922
Page 1
    • 500daysaway
    • By 500daysaway 3rd Jan 18, 10:36 AM
    • 23 Posts
    • 35 Thanks
    500daysaway
    • #2
    • 3rd Jan 18, 10:36 AM
    • #2
    • 3rd Jan 18, 10:36 AM
    Have been looking at different tips on these boards and thought would try the envelope with cash so just taking it out on payday and cutting up my credit cards and hiding my debit card.
    • Scott_Weiland
    • By Scott_Weiland 3rd Jan 18, 11:12 AM
    • 799 Posts
    • 2,028 Thanks
    Scott_Weiland
    • #3
    • 3rd Jan 18, 11:12 AM
    • #3
    • 3rd Jan 18, 11:12 AM
    Good luck with your journey xx

    Hiding cash in envelopes for me dont work i prefer the savings account option.
    Cashback Earnings YTD £46.04 Survey Earnings YTD £182.66
    "Always always train, be the best version of you that you can physically be"
    • 500daysaway
    • By 500daysaway 3rd Jan 18, 11:26 AM
    • 23 Posts
    • 35 Thanks
    500daysaway
    • #4
    • 3rd Jan 18, 11:26 AM
    • #4
    • 3rd Jan 18, 11:26 AM
    What is that?
    • 500daysaway
    • By 500daysaway 4th Jan 18, 6:30 AM
    • 23 Posts
    • 35 Thanks
    500daysaway
    • #5
    • 4th Jan 18, 6:30 AM
    • #5
    • 4th Jan 18, 6:30 AM
    After reading a lot of your diaries I am going to de clutter and sell on eBay. I have never sold anything online before. Any tips? I got an email from them this week saying you don!!!8217;t pay anything until you sell until end of January.
    • 500daysaway
    • By 500daysaway 4th Jan 18, 7:38 AM
    • 23 Posts
    • 35 Thanks
    500daysaway
    • #6
    • 4th Jan 18, 7:38 AM
    • #6
    • 4th Jan 18, 7:38 AM
    I understand what you mean now after looking at other peopleís diaries so I have now set up three accounts, one for Day to day spend, one for hair &beauty and one for gifts. Then on pay day will split my £260 between them so not having physical cash on me.
    • enthusiasticsaver
    • By enthusiasticsaver 4th Jan 18, 7:47 AM
    • 6,608 Posts
    • 13,851 Thanks
    enthusiasticsaver
    • #7
    • 4th Jan 18, 7:47 AM
    • #7
    • 4th Jan 18, 7:47 AM
    I like the separate accounts system. Have you looked at your bank and credit card statements to see how the debt occurred? What are your areas of overspending and have you done a spending diary?

    £50 on haircuts a month is a lot so can you get that down? You also need an account for your car as I am betting you spent more than £60 last year on maintaining a car worth only £2500. £5 a month is unrealistic. Is that £260 a month just for entertainment?

    On a reasonable salary you have a lot of debt so there has been some serious overspending going on. You also have no emergency fund and all your debts apart from Barclaycard and Virgin are on high interest rates so you need to be paying a lot more than minimums to make a dent in them or move them to 0% deals. Overdrafts particularly large ones are being targeted with high charges now so I would address that as a matter of urgency.
    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
    • 500daysaway
    • By 500daysaway 4th Jan 18, 9:21 AM
    • 23 Posts
    • 35 Thanks
    500daysaway
    • #8
    • 4th Jan 18, 9:21 AM
    • #8
    • 4th Jan 18, 9:21 AM
    Hi enthusiasticsaver,

    Yes overspending over the years and then transferring balances to 0% then doing same again. My partner earns a lot more and think I!!!8217;ve just been trying to keep up but no more.
    I spent £200 on the car last year but it!!!8217;s now running like a dream.
    That is £100 for every two months at hairdressers, I have cut down from going to the top stylist to the basic stylist at the salon but need to keep up appearances so that is a must. The £260 is for hair/Beauty/day to Day living/gifts etc.
    Thanks for your advice.
    • ChasingSunshine
    • By ChasingSunshine 4th Jan 18, 12:19 PM
    • 129 Posts
    • 994 Thanks
    ChasingSunshine
    • #9
    • 4th Jan 18, 12:19 PM
    • #9
    • 4th Jan 18, 12:19 PM
    Have a look at your phone as well. £50 a month is expensive, if you are out of contract switch to sim only and can get a very good deal for an awful lot less.
    Ouch to the interest on the Amex card but hopefully as you have a lot left over you should be able to get this down quickly. Have you used the snowball calculator to work out when you will have it paid off and the best way to hit the debt?
    • 500daysaway
    • By 500daysaway 4th Jan 18, 12:39 PM
    • 23 Posts
    • 35 Thanks
    500daysaway
    Chasing sunshine. I still have another year of my mobile phone contract. I regularly go over my data usage by £40 making it around £90 and there is no need so I am going to turn off on the data so only use it when itís connected to WiFi!
    No not used the snowball calculator although will look into that!
    When I looked at my statements I regularly spend £600 a month on beauty treatment but Iím going to go cold turkey and just go for hair and waxing appointments! If Iím out of my £260 by time it comes for my appointment Iíll have to cancel, Iím going to stick to this budget, I have to!!!
    • 500daysaway
    • By 500daysaway 4th Jan 18, 12:57 PM
    • 23 Posts
    • 35 Thanks
    500daysaway
    Does anyone have a link to snowball calculator? Thanks in advance
    • ChasingSunshine
    • By ChasingSunshine 5th Jan 18, 10:37 AM
    • 129 Posts
    • 994 Thanks
    ChasingSunshine
    Thats a nuisance about still being in contract especially if it is one that doesn't suit your usage. You might not need to turn off data completely, turning off mobile data for most apps as well as stopping background refresh etc might be enough especially if you have access to wifi most of the time.

    One of the snowball calculators is this one ttp://www.whatsthecost.com/snowball.aspx Can put in debts, apr, length of 0% deals etc and how much you can pay and it tells you when you will be debt free. Depending can change figures around and see how impacts end date.

    Good luck with the personal spends budget. Be careful that such a cut isn't unrealistic, ideally the budget should be realistic and something you can live with without feeling too deprived and then can't stick with it.
    • 500daysaway
    • By 500daysaway 5th Jan 18, 1:47 PM
    • 23 Posts
    • 35 Thanks
    500daysaway
    Thanks CS for the link.
    Paying the amount I think I can afford is saying I will pay off the amount in 19 months, two months over my target. I have applied up transfer my Amex balance 0% onto virgin card, I hope that gets approved and then the money can go straight to the debt.
    I am worried that £260 a month might be enough but canít take the anxiety associated with the debt any longer so need to tighten my belt and make it work for the next 19months.
    • 500daysaway
    • By 500daysaway 6th Jan 18, 6:57 AM
    • 23 Posts
    • 35 Thanks
    500daysaway
    So 19days till first pay day and have managed to have 3 NSDís in a row! Unheard of for me.
    • enthusiasticsaver
    • By enthusiasticsaver 6th Jan 18, 7:05 AM
    • 6,608 Posts
    • 13,851 Thanks
    enthusiasticsaver
    Can the Amex and Santander be moved to 0% or are you too over committed now? If you can do that I would target the overdraft first as that is expensive and repayable on demand.
    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
    • enthusiasticsaver
    • By enthusiasticsaver 6th Jan 18, 7:08 AM
    • 6,608 Posts
    • 13,851 Thanks
    enthusiasticsaver
    Sorry just seen you have applied to move Amex. Paying off debt is a long game - there are no short cuts so you do need to be aware of setting unrealistic targets where you blow the budget and just give up. No harm in starting off optimistically and adjusting. I am a fan of budgeting, saving for things and reducing debt at the same time. Cold turkey on the credit cards. Have you cut them up or put them away?
    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
    • 500daysaway
    • By 500daysaway 6th Jan 18, 7:10 AM
    • 23 Posts
    • 35 Thanks
    500daysaway
    Hi enthusiastic saver have applied to virgin for 0% to transfer all of Amex to 0% as have enough of balance on card just waiting to hear from them though
    • 500daysaway
    • By 500daysaway 6th Jan 18, 7:13 AM
    • 23 Posts
    • 35 Thanks
    500daysaway
    I have never had a card for barclaycard or virgin as cut them up as soon as I they arrived. The Amex has been put away and only got the Santander in November for foreign travel. If I can get the Amex transfer will may as much to Santander as possible this month and minimum payments on other cards
    • enthusiasticsaver
    • By enthusiasticsaver 6th Jan 18, 7:16 AM
    • 6,608 Posts
    • 13,851 Thanks
    enthusiasticsaver
    How are you dealing with the overdraft and what are the monthly charges?
    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
    • 500daysaway
    • By 500daysaway 6th Jan 18, 7:17 AM
    • 23 Posts
    • 35 Thanks
    500daysaway
    I have been reading debt free diaries religiously over the past few days and they have been giving me lots of inspiration but lots of people seem to have unexpected windfalls which will never happen to so I am a bit worried that I will never see the light at end of tunnel !!!55357;!!!56852;
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

1,012Posts Today

8,411Users online

Martin's Twitter