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  • FIRST POST
    • EmergencyNurse
    • By EmergencyNurse 1st Mar 18, 6:54 PM
    • 79Posts
    • 156Thanks
    EmergencyNurse
    Unsecured Debt Free by 2021
    • #1
    • 1st Mar 18, 6:54 PM
    Unsecured Debt Free by 2021 1st Mar 18 at 6:54 PM
    Hello All. This is the start of my journey to becoming debt free (not including mortgage) by 2021.
    No more loans, credit cards or catalogue purchases.

    Smoking stopped, car sorn so no more tax or insurance. internet tv and magazine subscription cancelled.

    Statement of Affairs and Personal Balance Sheet

    Monthly Income Details

    Monthly income after tax................ 1700
    Partners monthly income after tax....... 0
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 1700


    Monthly Expense Details

    Mortgage................................ 468
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 90
    Electricity............................. 70
    Gas..................................... 70
    Oil..................................... 0
    Water rates............................. 54
    Telephone (land line)................... 0
    Mobile phone............................ 25
    TV Licence.............................. 12
    Satellite/Cable TV...................... 22.5
    Internet Services....................... 21
    Groceries etc. ......................... 50
    Clothing................................ 0
    Petrol/diesel........................... 0
    Road tax................................ 0
    Car Insurance........................... 0
    Car maintenance (including MOT)......... 0
    Car parking............................. 0
    Other travel............................ 41
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 14.5
    Contents insurance...................... 14.5
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 0
    Haircuts................................ 0
    Entertainment........................... 0
    Holiday................................. 0
    Emergency fund.......................... 0
    Total monthly expenses.................. 952.5



    Assets

    Cash.................................... 0
    House value (Gross)..................... 135000
    Shares and bonds........................ 0
    Car(s).................................. 0
    Other assets............................ 0
    Total Assets............................ 135000



    Secured & HP Debts

    Description....................Debt......Monthly.. .APR
    Mortgage...................... 54462....(468)......0
    Total secured & HP debts...... 54462.....-.........-


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    Credit Card 1..................1291......33........0
    Credit Card 2..................423.......0.........0
    Loan 1.........................8188......263.......0
    Catalogue......................685.......67....... .0
    Credit Union...................647.......88........0
    Overdraft......................350.......0........ .0
    Loan 3.........................3834......99........0
    Loan 2.........................11288.....275.......0
    Total unsecured debts..........26706.....825.......-



    Monthly Budget Summary

    Total monthly income.................... 1,700
    Expenses (including HP & secured debts). 952.5
    Available for debt repayments........... 747.5
    Monthly UNsecured debt repayments....... 825
    Amount short for making debt repayments. -77.5


    Personal Balance Sheet Summary
    Total assets (things you own)........... 135,000
    Total HP & Secured debt................. -54,462
    Total Unsecured debt.................... -26,706
    Net Assets.............................. 53,832


    Created using the SOA calculator
    Reproduced on Moneysavingexpert with permission, using other browser.
Page 1
    • EmergencyNurse
    • By EmergencyNurse 1st Mar 18, 10:43 PM
    • 79 Posts
    • 156 Thanks
    EmergencyNurse
    • #2
    • 1st Mar 18, 10:43 PM
    Big Brother Style Shopping List
    • #2
    • 1st Mar 18, 10:43 PM
    I was paid on Feb 26th and Iíve got £384 left. Still got loan payments of £99 and £268 mobile sim only pan still to pay along with a £32 minimum credit card payment to make. Iíll open my gas/ electric bill laterÖgot to pace myself! Next payday 26th March. Counting down to payday already.

    Months' Groceries.
    ASDA Biscuit Assortment 700g !!!8232; ! 1x £0.80
    ASDA Smart Price Mint Sauce 165g 1x £0.34
    ASDA Smart Price Chopped Tomatoes in Tomato Juice 400g 10x £2.90
    ASDA Smart Price Baked Beans in Tomato Sauce 410g 6x £1.38
    ASDA Smart Price 15 Eggs 15pk 1x £1.19
    ASDA Vegetable Oil 1l 1x £1.09
    ASDA Smart Price Self Raising Flour 1.5kg 1x £0.45
    ASDA Rich Roast Instant Coffee 200g 2x £3.58
    ASDA Lentil Soup 400g 4x £1.80
    ASDA Smart Price Concentrated Fabric Conditioner 42 Washes 1.47l 1x £0.66
    ASDA Smart Price Sponge Scourers 8pk 1x £0.40
    ASDA Beef & Vegetable Soup 400g 4x £1.56
    ASDA Cream of Mushroom Soup 400g 4x £1.56
    ASDA Leek & Potato Soup 400g 4x £1.80
    ASDA Cream of Tomato Soup 400g 4x £1.56
    ASDA Classic Pea & Ham Soup 400g 4x £1.80
    ASDA Tomato Ketchup 500g 2x £0.76
    ASDA Smart Price No Added Sugar Apple & Blackcurrant Squash 750ml 1x £0.42
    ASDA Baker's Selection Square Cut Medium White Bread 800g 3x £1.65


    Total £28.10 including delivery and carrier bags.
    Lets see how far I get with this! Iím confident I can do it. So glad Iíve got some multi vitamin tablets lying around the house though, otherwise rickets and scurvy could be making a comeback. Itíll be fine, Iíll be creative with what Iíve got if I can be bothered. Cooking for one is such a faff. So long as I have enough calories it doesnít really matter.

    Iím on two weeks annual leave from work. So far I've had the pleasure of being snowed in, cigarette cravings and hunger!! On the plus side, its the first time Sky hasn't been affected by the snow. Happy Days.

    Its going to be a very long three years, and thereís nothing left to cut back on is there?
    • groovychick69
    • By groovychick69 1st Mar 18, 10:59 PM
    • 163 Posts
    • 280 Thanks
    groovychick69
    • #3
    • 1st Mar 18, 10:59 PM
    • #3
    • 1st Mar 18, 10:59 PM
    Glad itís not just me waiting for the next payday.
    Will you able to manage? Are the cards 0%
    • EmergencyNurse
    • By EmergencyNurse 2nd Mar 18, 11:08 AM
    • 79 Posts
    • 156 Thanks
    EmergencyNurse
    • #4
    • 2nd Mar 18, 11:08 AM
    • #4
    • 2nd Mar 18, 11:08 AM
    The cards aren't 0% anymore unfortunately. Just before I cancelled my Experian subscription on Monday I checked to see whether I would be accepted for a balance transfer, the probability was only 10% of acceptance.

    I'll manage somehow. I've got my health, food, warmth and a roof over my head. I just keep reminding myself that things could be worse.
    • fay66
    • By fay66 2nd Mar 18, 4:13 PM
    • 737 Posts
    • 2,056 Thanks
    fay66
    • #5
    • 2nd Mar 18, 4:13 PM
    • #5
    • 2nd Mar 18, 4:13 PM
    Good luck x Its hard on one income x
    Inland revenue £4500=
    Loan £1562
    Pay day loans -1400 1st pay 16 march £50
    Credit card 1 -4850/4850 int froze
    CC2 -978
    CC3 - 500/548 cc4 180/200
    • Moneywhizz
    • By Moneywhizz 2nd Mar 18, 4:46 PM
    • 124 Posts
    • 569 Thanks
    Moneywhizz
    • #6
    • 2nd Mar 18, 4:46 PM
    • #6
    • 2nd Mar 18, 4:46 PM
    Looking at your SOA it doesn't seem as if this is sustainable for three years. The only thing that looks high is your Gas and Electricity. Does this include arrears or is there another reason why it is so high. Given the fact that you only have £50 for food I would say that you need to look at alternative ways of reducing the debt. Is a DMP an option? Have you contacted your creditors to see if you can make reduced payments for a while? Is there any way you can increase your income? It may just not be possible to have it paid off in three years but taking a slower route may allow you a little bit of life along the way. I don't think anyone could survive for three years on a £50 monthly food budget. As you pointed out it doesn't really allow you a balanced healthy diet. Just something for you to thing about and wishing you good luck with your journey anyway.
    • EmergencyNurse
    • By EmergencyNurse 2nd Mar 18, 5:52 PM
    • 79 Posts
    • 156 Thanks
    EmergencyNurse
    • #7
    • 2nd Mar 18, 5:52 PM
    • #7
    • 2nd Mar 18, 5:52 PM
    Actually the gas and electric doesn't include arrears! I am being overcharged I'm sure. I sent a meter reading in in September and I didn't get another bill until i requested it last month. After requesting it I checked online and I was in credit by £100's. Yet in those two months since its crept up to over £200 in debt. I have previously asked them for a payment plan and all the would offer was a card meter. I'm not going down that root because for unknown reasons the charge is always higher per unit of fuel used.

    I've been spending less than £50 a month for food for the last 2yrs, cupboard is full after just spending £28!

    I received a DMP pack from StepChange yesterday, the bank account application pack they provided was with the bank i'm currently with so that seemed totally pointless.

    My plan is to do overtime after the end of this financial year, i used to do additional agency shifts but HMRC kept changing my tax codes and I'd end up even worse off somehow.
    Debt March 2018 £27,596 DMP Start June 2018 Debt Free Date 2022
    • ramblehan
    • By ramblehan 2nd Mar 18, 6:18 PM
    • 607 Posts
    • 1,246 Thanks
    ramblehan
    • #8
    • 2nd Mar 18, 6:18 PM
    • #8
    • 2nd Mar 18, 6:18 PM
    Welcome and happy shiny new diary.
    Be worth following up on the DMP option so that you can live a little and pay things back at a manageable rate. Have a read of the DMP sticky thread - you could do Stepchange or go self managed - and then you can choose which debt you hit down quickest etc, whereas with Stepchange everyone will get a % of whatever you can give. The NEDCAB website is an excellent resource to help you set things up.

    Good luck. Will subscribe.
    • mej24
    • By mej24 2nd Mar 18, 6:36 PM
    • 190 Posts
    • 136 Thanks
    mej24
    • #9
    • 2nd Mar 18, 6:36 PM
    • #9
    • 2nd Mar 18, 6:36 PM
    Nothing to add, other than good luck with your journey :-)
    • beanielou
    • By beanielou 2nd Mar 18, 6:43 PM
    • 55,015 Posts
    • 219,637 Thanks
    beanielou
    You could open a new basic bank account with a bankother than your main account.
    Keep going & put posting
    Lou~ Debt free Wanabe No 55 DF 03/03/14.
    **Credit card debt free 30/06/10~** **Weight loss 2 stone 11 lbs **

    "A large income is the best recipe for happiness I ever heard of" Jane Austen in Mansfield Park.
    ***Fall down seven times,stand up eight*** ~~Japanese proverb.
    It starts with you, it starts from now. *** It is ok to be me.***
    ***Keep plodding***
    Out of debt, out of danger.
    • EmergencyNurse
    • By EmergencyNurse 3rd Mar 18, 1:33 PM
    • 79 Posts
    • 156 Thanks
    EmergencyNurse
    "I have a cunning plan"
    Rather than go down the full DMP at this stage, I have decided to contact my credit card suppliers myself and ask if they'll stop adding interest to the outstanding balances.
    Debt March 2018 £27,596 DMP Start June 2018 Debt Free Date 2022
    • beanielou
    • By beanielou 3rd Mar 18, 3:07 PM
    • 55,015 Posts
    • 219,637 Thanks
    beanielou
    Rather than go down the full DMP at this stage, I have decided to contact my credit card suppliers myself and ask if they'll stop adding interest to the outstanding balances.
    Originally posted by EmergencyNurse
    Worth a try but unlikey unless you are currently in arrears.
    Lou~ Debt free Wanabe No 55 DF 03/03/14.
    **Credit card debt free 30/06/10~** **Weight loss 2 stone 11 lbs **

    "A large income is the best recipe for happiness I ever heard of" Jane Austen in Mansfield Park.
    ***Fall down seven times,stand up eight*** ~~Japanese proverb.
    It starts with you, it starts from now. *** It is ok to be me.***
    ***Keep plodding***
    Out of debt, out of danger.
    • EmergencyNurse
    • By EmergencyNurse 3rd Mar 18, 3:21 PM
    • 79 Posts
    • 156 Thanks
    EmergencyNurse
    Worth a try but unlikey unless you are currently in arrears.
    Originally posted by beanielou
    Well thats very easily solved!
    Debt March 2018 £27,596 DMP Start June 2018 Debt Free Date 2022
    • enthusiasticsaver
    • By enthusiasticsaver 3rd Mar 18, 4:52 PM
    • 6,609 Posts
    • 13,870 Thanks
    enthusiasticsaver
    That soa does not look sustainable and if you are being charged interest on those debts and just paying minimums it will be a very long hard journey. I cannot see how 50% of your income can go towards debt, you still have a shortfall of £77 and nothing in your budget for emergencies, presents, entertainment, clothing etc and only £50 for food. I am not surprised you are hungry. Food is a priority expense and for your health you must not go hungry to pay unsecured debts. Gas and electric is high. Is it a large house you are heating?

    A DMP via stepchange or contacting your creditors yourself would be a good first step I think to see if they will reduce or freeze your interest. Have you defaulted on any payments yet? You can open a new basic bank account with any bank you do not already owe money to.
    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
    • WannabeFree
    • By WannabeFree 3rd Mar 18, 5:24 PM
    • 1,616 Posts
    • 14,087 Thanks
    WannabeFree
    Agree with the others that it doesn't look realistic longer term especially for 3 years.

    However you CAN sort it even if it means a different route to what you first thought.

    I agree about the DMP even if you do a self managed DMP.

    Look forward to following, I've been where you are and I promise it DOES get better

    x
    ďOnce you hit rock bottom, that's where you perfectly stand; That's your chance of restarting, but restarting the right way.Ē
    • EmergencyNurse
    • By EmergencyNurse 3rd Mar 18, 6:31 PM
    • 79 Posts
    • 156 Thanks
    EmergencyNurse
    Thank you all for your advice. I'm currently looking at National Debt Line for any solutions.
    Debt March 2018 £27,596 DMP Start June 2018 Debt Free Date 2022
    • EmergencyNurse
    • By EmergencyNurse 4th Mar 18, 12:01 PM
    • 79 Posts
    • 156 Thanks
    EmergencyNurse
    National Debt Helpline Budget Completion Advice Please:

    I've just completed a National Debt Helpline Budget, just need some confirmation....for amounts owed do you put in the amount you are are supposed to pay each month OR the total amount you owe until the end of a credit agreement.

    I struggling to accept the recommended £25 a month outcome to clear a c£26k debt, what happens to the rest of my income? Why would a creditor accept such a plan?

    Do I want to live frugally for three more years and clear the debt OR pay this small amount over 10 years with the added interest that would no doubt involve?

    I know I'm banging on about it, but I know I can live on £50 a month grocery budget, TBH i've been doing it for a lot less over the past year, and it is sustainable, just eat when you're hungry no more, no less.

    All thoughts welcome.
    Debt March 2018 £27,596 DMP Start June 2018 Debt Free Date 2022
    • enthusiasticsaver
    • By enthusiasticsaver 4th Mar 18, 12:18 PM
    • 6,609 Posts
    • 13,870 Thanks
    enthusiasticsaver
    The benefit to a DMP usually is the creditors freeze the interest. They will ask for an soa and you will fill it out with the usual recommended amounts. I think for 1 person £100 for food per month is usual. You can put something for emergencies and entertainment, haircuts, presents and clothing. All the categories you currently allow nothing for. You cannot afford the current debt you have. There is a £77 shortfall even without all the gaps in your soa so you must be falling further into debt each month.

    Hopefully the end result will be you paying an affordable amount to your debts. If your creditors will reduce or freeze interest without a DMP that would help. Add up all the interest and bank charges you pay each month as an idea of what the debt is costing you. That needs to be added to that shortfall as if you don't cover the cost of servicing the debt and just pay minimums it will never be paid off.
    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
    • beanielou
    • By beanielou 4th Mar 18, 7:32 PM
    • 55,015 Posts
    • 219,637 Thanks
    beanielou
    The benefit to a DMP usually is the creditors freeze the interest. They will ask for an soa and you will fill it out with the usual recommended amounts. I think for 1 person £100 for food per month is usual. You can put something for emergencies and entertainment, haircuts, presents and clothing. All the categories you currently allow nothing for. You cannot afford the current debt you have. There is a £77 shortfall even without all the gaps in your soa so you must be falling further into debt each month.

    Hopefully the end result will be you paying an affordable amount to your debts. If your creditors will reduce or freeze interest without a DMP that would help. Add up all the interest and bank charges you pay each month as an idea of what the debt is costing you. That needs to be added to that shortfall as if you don't cover the cost of servicing the debt and just pay minimums it will never be paid off.
    Originally posted by enthusiasticsaver
    I agree with this.
    Lou~ Debt free Wanabe No 55 DF 03/03/14.
    **Credit card debt free 30/06/10~** **Weight loss 2 stone 11 lbs **

    "A large income is the best recipe for happiness I ever heard of" Jane Austen in Mansfield Park.
    ***Fall down seven times,stand up eight*** ~~Japanese proverb.
    It starts with you, it starts from now. *** It is ok to be me.***
    ***Keep plodding***
    Out of debt, out of danger.
    • kazwookie
    • By kazwookie 4th Mar 18, 7:39 PM
    • 9,704 Posts
    • 122,482 Thanks
    kazwookie
    Can you get a second job, agency work, or similar for evenings or weekends?

    Can you rent a room out to a lodger?

    Do you have any thing you can sell?

    You need to question the gas and electric more, if they owe you money, get it back, to help

    Mortgage can you get a mortgage 'holiday'
    Last edited by kazwookie; 04-03-2018 at 7:42 PM.
    Sun, Sea
    Slinky start date 29.01.18 28 to go / -14 so far and counting!!
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