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
    • theroamingnomad
    • By theroamingnomad 12th Jan 18, 1:23 PM
    • 115Posts
    • 124Thanks
    theroamingnomad
    Got the ball rolling...
    • #1
    • 12th Jan 18, 1:23 PM
    Got the ball rolling... 12th Jan 18 at 1:23 PM
    Afternoon all!

    I'm waist-deep in the process of cataloguing my various responsibilities with a view to becoming debt-free by the end of December 2018.

    One little victory I did secure today was with O2. I'm 6 months in a 24-month Refresh agreement with them. The phone and line rental are separate so I get two bills each month; £21 for the phone and £33 for the line rental. I phoned them up today to see what they could do to help and they were kind enough to drop me down to the next lowest tariff. It's only a £3 p/m reduction but I didn't think they'd do anything! £36 a year saved!

    I will update later today, or tomorrow, when I've fully catalogued everything with a view to seeking guidance from the experts here as to how to reach my goal on time or a little early!
Page 1
    • fatrab
    • By fatrab 12th Jan 18, 1:44 PM
    • 852 Posts
    • 2,236 Thanks
    fatrab
    • #2
    • 12th Jan 18, 1:44 PM
    • #2
    • 12th Jan 18, 1:44 PM
    Howdy!


    Welcome along!


    One of the first things you'll be asked for is an SOA so here's the link:


    http://www.stoozing.com/calculator/soa.php


    Be as brutally honest as possible.


    Good luck!
    You can have results or excuses, but not both - Wannabe debt free by Dec 2022
    June's targets - Be 15st by end of month, 19/30 AFDs
    39 x £2 coins (#32)
    • theroamingnomad
    • By theroamingnomad 12th Jan 18, 6:59 PM
    • 115 Posts
    • 124 Thanks
    theroamingnomad
    • #3
    • 12th Jan 18, 6:59 PM
    • #3
    • 12th Jan 18, 6:59 PM
    https://pasteboard.co/H2CyRJQ.png

    I've created the above spreadsheet in order to outline my plan. The SOA seemed a bit lacking and didn't seem to cater for my variable payments and snowballing. I've attached it below though:

    Statement of Affairs and Personal Balance Sheet

    Household Information

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

    Monthly Income Details

    Monthly income after tax................ 1240
    Partners monthly income after tax....... 0
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 1240


    Monthly Expense Details

    Mortgage................................ 0
    Secured/HP loan repayments.............. 0
    Rent.................................... 380
    Management charge (leasehold property).. 0
    Council tax............................. 0
    Electricity............................. 0
    Gas..................................... 0
    Oil..................................... 0
    Water rates............................. 0
    Telephone (land line)................... 0
    Mobile phone............................ 30
    TV Licence.............................. 0
    Satellite/Cable TV...................... 0
    Internet Services....................... 0
    Groceries etc. ......................... 150
    Clothing................................ 0
    Petrol/diesel........................... 0
    Road tax................................ 0
    Car Insurance........................... 0
    Car maintenance (including MOT)......... 0
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 0
    Contents insurance...................... 0
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 0
    Haircuts................................ 0
    Entertainment........................... 33.97
    Holiday................................. 0
    Emergency fund.......................... 0
    Total monthly expenses.................. 593.97



    Assets

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


    No Secured nor Hire Purchase Debts


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    Lowell.........................2100......175...... .0
    Cabot..........................645.......215...... .0
    Drafty.........................500.......35....... .89.9
    Phone..........................378.......21....... .0
    Total unsecured debts..........3623......446.......-



    Monthly Budget Summary

    Total monthly income.................... 1,240
    Expenses (including HP & secured debts). 593.97
    Available for debt repayments........... 646.03
    Monthly UNsecured debt repayments....... 446
    Amount left after debt repayments....... 200.03


    Personal Balance Sheet Summary
    Total assets (things you own)........... 0
    Total HP & Secured debt................. -0
    Total Unsecured debt.................... -3,623
    Net Assets.............................. -3,623


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


    In order to facilitate this plan, I have made the following changes:
    • Recently gave up a bigger flat to move into a shared house. A bit difficult at my age but a necessary step to cut costs. It does mean that I'm 'all-in' with just one payment for everything each month.
    • Growing my hair and beard out so no need for a haircut for the next 4-6 months, aside from a tidy-up that a friend has offered to do for free.
    • Stopped getting the train to work and started walking - that saved £50 a month!

    Anything I might have missed or not considered?
    Last edited by theroamingnomad; 12-01-2018 at 10:32 PM. Reason: Added SOA
    • Mnd
    • By Mnd 12th Jan 18, 10:18 PM
    • 548 Posts
    • 646 Thanks
    Mnd
    • #4
    • 12th Jan 18, 10:18 PM
    • #4
    • 12th Jan 18, 10:18 PM
    I don't think you will get much response to that.png attachment

    I may be wrong about that, but the standard procedure on here is to do the SOA as suggested , modify if necessary and take it from there
    • theroamingnomad
    • By theroamingnomad 12th Jan 18, 10:33 PM
    • 115 Posts
    • 124 Thanks
    theroamingnomad
    • #5
    • 12th Jan 18, 10:33 PM
    • #5
    • 12th Jan 18, 10:33 PM
    I don't think you will get much response to that.png attachment

    I may be wrong about that, but the standard procedure on here is to do the SOA as suggested , modify if necessary and take it from there
    Originally posted by Mnd
    It's a shame as the SOA doesn't really do my plan justice. I've added one though.
    Debt-free by January 1st, 2019.
    £4905.87/£5124 - as of 24/03/18
    • fiisch
    • By fiisch 12th Jan 18, 11:10 PM
    • 285 Posts
    • 162 Thanks
    fiisch
    • #6
    • 12th Jan 18, 11:10 PM
    • #6
    • 12th Jan 18, 11:10 PM
    Couple of points... in your first post, your mobile phone bill total was £54/month, less £3/month reduction, yet in your SOA you have only entered £30.

    £150 for monthly groceries is doable, but is very tight.

    £33.97 a month for entertainment? This is a very specific amount - presumably this refers to some membership fee? That seems incredibly low and unlikely - no meals out, beers, coffees?

    I suspect your available for debt repayments may be a little optimistic considering the above. Bear in mind that when I moved into a shared house, my entertainment spend went up as I was more inclined to go out (cinema, meals out etc.), although granted this is a few years ago and was living with complete strangers.
    Save £6k in 2018: £1651.19 / £6000
    • theroamingnomad
    • By theroamingnomad 12th Jan 18, 11:29 PM
    • 115 Posts
    • 124 Thanks
    theroamingnomad
    • #7
    • 12th Jan 18, 11:29 PM
    • #7
    • 12th Jan 18, 11:29 PM
    Couple of points... in your first post, your mobile phone bill total was £54/month, less £3/month reduction, yet in your SOA you have only entered £30.
    The phone bill is in two parts; £21 for the phone and £30 for the line rental. I've out the phone as a debt as it can be paid down

    £150 for monthly groceries is doable, but is very tight.
    I've been doing it for three months now and always have money left

    £33.97 a month for entertainment? This is a very specific amount - presumably this refers to some membership fee? That seems incredibly low and unlikely - no meals out, beers, coffees?
    Yes, specific memberships. I don't buy stuff like beers or coffee or eat out

    I suspect your available for debt repayments may be a little optimistic considering the above. Bear in mind that when I moved into a shared house, my entertainment spend went up as I was more inclined to go out (cinema, meals out etc.), although granted this is a few years ago and was living with complete strangers
    Been doing it for three months now and am always left with excess, hence my spreadsheet articulating it much better than the SOA
    Originally posted by fiisch
    I'm hopeful I can achieve this in the time frame I've aimed for
    Debt-free by January 1st, 2019.
    £4905.87/£5124 - as of 24/03/18
    • fatrab
    • By fatrab 13th Jan 18, 9:04 AM
    • 852 Posts
    • 2,236 Thanks
    fatrab
    • #8
    • 13th Jan 18, 9:04 AM
    • #8
    • 13th Jan 18, 9:04 AM
    Are your specific memberships wants or needs? You need to get rid of the wants for now.


    If its a gym membership, bin it. If you need it for your career, such as a professional body, keep it.


    That could be the difference that allows you to pay off Drafty a month early. Which you absolutely MUST concentrate on doing.


    Like you say, from then on you can snowball, and with the Cabot loan ending soon you'll see the light at the end of the tunnel in no time.


    You're mobile and line rental are also wants, but you've done what you can to minimise them. It would be unreasonable to suggest doing without a mobile with your current surplus and with your situation so close to being under control. Consider sim-only at the end of your current contract just until you get back on your feet.


    It would be advisable to also build up a little emergency fund of around £500-£1000 once you have payed off Drafty.


    Best wishes
    You can have results or excuses, but not both - Wannabe debt free by Dec 2022
    June's targets - Be 15st by end of month, 19/30 AFDs
    39 x £2 coins (#32)
    • theroamingnomad
    • By theroamingnomad 13th Jan 18, 11:41 AM
    • 115 Posts
    • 124 Thanks
    theroamingnomad
    • #9
    • 13th Jan 18, 11:41 AM
    • #9
    • 13th Jan 18, 11:41 AM
    Are your specific memberships wants or needs? You need to get rid of the wants for now.


    If its a gym membership, bin it. If you need it for your career, such as a professional body, keep it.
    It's professional body stuff and Spotify on a reduced rate


    That could be the difference that allows you to pay off Drafty a month early. Which you absolutely MUST concentrate on doing.
    The plan is to have that done in three months

    Like you say, from then on you can snowball, and with the Cabot loan ending soon you'll see the light at the end of the tunnel in no time.


    You're mobile and line rental are also wants, but you've done what you can to minimise them. It would be unreasonable to suggest doing without a mobile with your current surplus and with your situation so close to being under control. Consider sim-only at the end of your current contract just until you get back on your feet.
    Alas, I'm tied in until May 2019 with the contract and £30 is the absolute lowest they will go. I'll definitely be going SIM-free then and buying any handset outright.


    It would be advisable to also build up a little emergency fund of around £500-£1000 once you have payed off Drafty.
    That's the plan, but I haven't had an emergency in a few years now. I'd rather focus on getting my debt done with.

    Best wishes
    Originally posted by fatrab
    My image attachment shows my plan in much better detail. If I leave myself a surplus of £50 a month for any unforeseen things that crop up, I can be debt-free by the end of October, hopefully!
    Debt-free by January 1st, 2019.
    £4905.87/£5124 - as of 24/03/18
    • gr1340
    • By gr1340 13th Jan 18, 12:22 PM
    • 72 Posts
    • 40 Thanks
    gr1340
    You do know that with a refresh contract, if you pay the phone off you can cancel the line rental with no penalty?

    You have 18 months left to pay for the phone at £21 per month so a total of £378. If you pay that, you can cancel the £30 odd line rental and find a cheaper deal of £10 a month of less so thatís £20 a month saved.
    • gr1340
    • By gr1340 13th Jan 18, 12:39 PM
    • 72 Posts
    • 40 Thanks
    gr1340
    You do know that with a refresh contract, if you pay the phone off you can cancel the line rental with no penalty?

    You have 18 months left to pay for the phone at £21 per month so a total of £378. If you pay that, you can cancel the £30 odd line rental and find a cheaper deal of £10 a month of less so thatís £20 a month saved.
    Originally posted by gr1340
    And, to get the money, sell the phone you currently have and buy this for £15 (or £5 if you use fast track):
    https://www.hotukdeals.com/deals/ee-alcatel-one-touch-pixi-3-35-inch-1499-499-10-top-up-argos-collection-2876275
    • theroamingnomad
    • By theroamingnomad 13th Jan 18, 12:55 PM
    • 115 Posts
    • 124 Thanks
    theroamingnomad
    You do know that with a refresh contract, if you pay the phone off you can cancel the line rental with no penalty?

    You have 18 months left to pay for the phone at £21 per month so a total of £378. If you pay that, you can cancel the £30 odd line rental and find a cheaper deal of £10 a month of less so thatís £20 a month saved.
    Originally posted by gr1340
    I did not know this. I suspect, with my credit in the bin at the moment, that I would need to stay with O2, but I will definitely plan on switching to a SIM-only deal. I'd rather stay on contract than PAYG for the benefit of the credit reporting - I've never missed a payment in 3.5 years with them.

    I'd love to downgrade but the phone I have, the OnePlus 5 is my entertainment hub and office away from work. It'll last me another couple of years too!
    Debt-free by January 1st, 2019.
    £4905.87/£5124 - as of 24/03/18
    • theroamingnomad
    • By theroamingnomad 13th Jan 18, 1:58 PM
    • 115 Posts
    • 124 Thanks
    theroamingnomad
    I've updated my plan, as below:



    My aim is to be debt-free by the end of September, having removed my language learning and Spotify commitment. I've also tried to get Draft paid off ASAP...
    Debt-free by January 1st, 2019.
    £4905.87/£5124 - as of 24/03/18
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

294Posts Today

3,595Users online

Martin's Twitter
  • Ah these care free days of watching #ENG score 5 goals in the first half of a World Cup match. It reminds me of... Never.

  • Then it should be. It's not some accident. It's deliberate grappling https://t.co/UxVTuUSNio

  • Penalty yes but time someone was sent off for these wrestling moves #WorldCup

  • Follow Martin