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  • 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 2
    • 500daysaway
    • By 500daysaway 6th Jan 18, 7:55 AM
    • 23 Posts
    • 35 Thanks
    500daysaway
    Enthusiasticsaver, Iím not dealing with overdraft at moment was hoping to get Amex and Santander dealt with then overdraft. Using the snowball calculator that seems to be way forward too.
    • 500daysaway
    • By 500daysaway 6th Jan 18, 8:00 AM
    • 23 Posts
    • 35 Thanks
    500daysaway
    The last five years have been spent on exotic holidays, friends getting married so of course costly hen weekends, going to wedding usually as not closely incurred a hotel stay, present, new outfit, hair, nails, beauty etc. Good memories though! Then came the babies, baby showers, present!!!8217;s, 1st birthday parties! I know I didn!!!8217;t need to spend but obviously had no idea about my incoming/expenditure! Horrified to say the least!
    Last edited by 500daysaway; 06-01-2018 at 8:04 AM.
    • Mumoffourkids
    • By Mumoffourkids 6th Jan 18, 8:28 AM
    • 628 Posts
    • 3,141 Thanks
    Mumoffourkids
    Hi, just read through your diary. You have a great amount to put towards your debt but only if your budget is realistic as others have said.

    I have debt of just over £23000 but there is only me earning in my house and I have six kids! I have budgeted for treats and activities for the kids and if it takes me a little longer to pay my debt off then so be it.

    If your budget doesn't work then don't be afraid to change it and spend a bit more in yourself. If you don't you may go mad and have a spending spree!

    Good luck and I am sure you can do it.
    Total debt Dec 2017 £23090.83
    Ma7 2018 £3691.78 84.01% paid
    Emergency fund £150/£600
    Total Savings £1328.05
    • 500daysaway
    • By 500daysaway 6th Jan 18, 8:49 AM
    • 23 Posts
    • 35 Thanks
    500daysaway
    Thanks Mum of four kids, I think if I can get the interest costing stuff paid off first I!!!8217;ll increase my budget for treats to pay off the 0% debt but right now I feel sick about the debt so couldn!!!8217;t even think about spending any more! Good luck with bringing down your debt.
    • 500daysaway
    • By 500daysaway 6th Jan 18, 11:11 AM
    • 23 Posts
    • 35 Thanks
    500daysaway
    Have signed up to yougov to see if I can make any more cash. Ebay not going si well!
    • MeenaM
    • By MeenaM 6th Jan 18, 11:20 AM
    • 251 Posts
    • 461 Thanks
    MeenaM
    Hi and welcome

    If you are looking for some inspiration why not take a listen to Dave Ramsey podcasts , free to listen to from your phone, they are inspirational imo

    you will get there , stay focused on the light at the end of the tunnel and believe me when you make that first payment towards reducing your debt it feels so good! you will just want to continue doing it ,

    good luck
    Sealed Pot 11. #199Next£1170Barclays Credit Card £4891.20/0- 0% ends April 2019 virgin 0% ends july 2020 £4138 3845.89AA Credit Card £860 0- 0% ends Dec 2017 Sainsburys Credit Card £521.27-0 0% ends Feb 2018 STARTED Nov 17AIM TO BE DEBT FREE JULY 2019Emergency Fund £614/£1000
    • MeenaM
    • By MeenaM 6th Jan 18, 11:22 AM
    • 251 Posts
    • 461 Thanks
    MeenaM
    Have signed up to yougov to see if I can make any more cash. Ebay not going si well!
    Originally posted by 500daysaway
    im doing that one too , at least is doesnt waste your time by booting you off if you dont qualify for the survey after spending time answering the initial questions , i have 1250 points so far since starting in November , 5000 needed for £50

    ebay is slow i think atm a lot have said that
    Sealed Pot 11. #199Next£1170Barclays Credit Card £4891.20/0- 0% ends April 2019 virgin 0% ends july 2020 £4138 3845.89AA Credit Card £860 0- 0% ends Dec 2017 Sainsburys Credit Card £521.27-0 0% ends Feb 2018 STARTED Nov 17AIM TO BE DEBT FREE JULY 2019Emergency Fund £614/£1000
    • 500daysaway
    • By 500daysaway 2nd Mar 18, 7:22 PM
    • 23 Posts
    • 35 Thanks
    500daysaway
    So 54 days down and I have managed to transfer everything onto 0% so have incurred some charges for the transfers. I have reduced my overall debt by £1200 although it is not as much as I would have hoped for at this stage.
    • 500daysaway
    • By 500daysaway 4th Apr 18, 6:35 PM
    • 23 Posts
    • 35 Thanks
    500daysaway
    So I am exactly 3 months into my debt free diary and so far I have only managed to shave off £1108 off so I still have £28314 to go! !!!128561;!!!128561;
    My overdraft charge was £41 this month.
    • enthusiasticsaver
    • By enthusiasticsaver 4th Apr 18, 7:33 PM
    • 6,612 Posts
    • 13,910 Thanks
    enthusiasticsaver
    If all the cards are now at 0% I would tackle the overdraft next. £41 charges for one month are extortionate.
    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 Apr 18, 7:43 PM
    • 23 Posts
    • 35 Thanks
    500daysaway
    I know! I have worked out how much I need to pay to each card in accordance with when the 0% runs out. I cancelled a trip away at end of Feb so managed to not spend what I would have but then after my car running like a dream it cost me £700 last month to fix it. I had no success with Ebay and generally have felt I!!!8217;ve lost all hope!
    • 117pauline
    • By 117pauline 4th Apr 18, 8:19 PM
    • 653 Posts
    • 7,282 Thanks
    117pauline
    As people warned, your initial budget was too tough. Now you have two choices:

    1. Give up
    2. Make a realistic budget

    An initial SOA is the start. Most of us have had to alter and amend our budgets until we get one that works for us.

    However on the bright side, you have reduced your debt by £1100 and not increased it. So that's a bonus.

    In your situation I would do the following:
    • get a glass of wine or a cup of tea and go back through you bank and credit cards for the last three months and item use your spending
    • from this list were there things that you had forgotten to add into your budget or were they impulse buys?
    • draw a big fat line and start again
    • keep a spending diary and write purchases down as soon as you make them
    • look to see if there are patterns emerging in your purchases - are you tired, fed up, short of time, with the same people etc etc
    • focus on the overdraft, just think of that extra £10 per week.

    And lastly, keep posting as that will give you immense support and ideas. Don't try to do it all at once.

    So congratulations on lowering the debt and coming back - that takes guts

    Good luck
    Pauline
    Don't get it perfect - Get it going
    Better Than Before
    • Buffythedebtslayer
    • By Buffythedebtslayer 4th Apr 18, 8:41 PM
    • 15,178 Posts
    • 50,237 Thanks
    Buffythedebtslayer
    Rule 1 of debt busting, you are only allowed to lose hope for 1 evening. After that it is back to having hope.

    Rule 2 NEVER under any circumstances say your car is running like a dream. EVER. You may say it is "ok" "It is doing alright" but any more than that is a sure fire way to invite some crucial bit of kit imploding.

    I speak from experience as my car which I confidently had planned to replace in about a year (and told this to my Mum! - see you can't even tell you Mum!) has cost 580 and then the exhaust fell off (as I was leaving my mechanic!) and that was fixed along a with a brakes surprise for 290.....

    I would try FB for selling stuff and Preloved, I would also look into Music Magpie to sell unwanted DVDs and CDs.

    Either keep to paying off the cards and make extra money for the overdraft. OR Pay minimums on the CCs and make a huge effort to pay off the overdraft?

    Also post and read everyday. It helps to know even tho it is our individual debt we are all here working towards the same goals. XXX
    Frugal Living Challenge, Pound a Day challenge, Sealed Pot Challenge Debt 4990 (March)
    • 500daysaway
    • By 500daysaway 7th Apr 18, 9:04 AM
    • 23 Posts
    • 35 Thanks
    500daysaway
    So as you said I have been through my bank statements and credit card statements on Thursday from Jan to April 4 and can definetly see the problem!
    Beauty £134
    Food £311
    Lunches/coffee £106
    Shopping £763
    Petrol £490
    Fees £392
    Travel £58
    Entertainment £796
    Cash £380
    Gifts £155
    Car £885
    Yesterday I didnít buy a coffee at work and took my lunch from home. I did go to the shops on the way home to buy some essentials but ended up buying three items of clothing and shopping total was £98. I am actually worried that I have some sort of problem.
    I need to sort my overdraft and credit card as £392 is crazy amount to be paying in fees. I also need to stop the shopping and entertainment.
    I have drastically reduced the Beauty spending as I would have spent more than that per month before so happy that is over three months. I have to keep up appearances after all.
    I had budgeted for £50 a month for gifts so on the right track with that, a little silver lining.
    I need to get on top of the petrol spends and stop taking cash out the machine as I appear to just fritter it away. I am at an ultimate low!
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