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  • FIRST POST
    • ramhainn
    • By ramhainn 25th Jun 18, 10:47 PM
    • 12Posts
    • 16Thanks
    ramhainn
    I want to be living my dreams... not stress out
    • #1
    • 25th Jun 18, 10:47 PM
    I want to be living my dreams... not stress out 25th Jun 18 at 10:47 PM
    Hi everybody,

    I have been reading the forum for a while now and want to take matters into my own hands financially to be able to stop worrying so much about money and be enjoying life a bit more...
    I have amassed a debt that is perhaps not that huge but the stress related to it and the fact that my money is not spent the way I want to be spending it is really affecting me and it is pretty much all I think about.

    Most of the money I owe relates to the some personal issues having to move a couple of times, at a short notice and buying some photographic equipment because I want to enjoy my hobby.

    Probably at the moment my biggest worry is my mortgage back in Poland and the overdraft there. Although the flat is mostly rented out, the rent does not cover the mortgage plus all other monthly payments related to it. In this town and considering the standard of the flat, I am not able to charge more for it. On top of that, there is about £4000 in overdraft on my Polish account, mostly related to me moving to the UK and the flat being empty for a couple of months. Another thing, selling the flat would possibly take up to a year and it is possible I would not get enough to cover the remaining mortgage.

    In the UK, I have the following debt:
    Barclays CC £2400 (0% balance transfer)
    Overdraft 1 £100 (to be paid off next month)
    Overdraft 2 £500
    Car loan ( from my ex £2100 - 0%)
    Camera loan (ca £1200 left).

    I am on a good salary (I get £2150 a month), around £400-500 goes towards the repayment of my debts a month but... things keep happening, like I have to move (cost me £1000 back in Feb) or something breaks and it feels like I am back to square one.

    I stopped spending money on photo equipment which is driving me mad. The fact that I can't buy or do things like go on a holiday or a weekend break drive me mad.

    I am really determined to clear the debts and want to save up some money to buy a place here in the UK.
Page 1
    • ramhainn
    • By ramhainn 2nd Aug 18, 11:04 PM
    • 12 Posts
    • 16 Thanks
    ramhainn
    • #2
    • 2nd Aug 18, 11:04 PM
    • #2
    • 2nd Aug 18, 11:04 PM
    I was hoping for some words of encouragement but that didn't happen...
    Well... Sometimes support does not come where you expect it but you still have to carry on with your plan I guess...
    • pidge04
    • By pidge04 2nd Aug 18, 11:56 PM
    • 393 Posts
    • 840 Thanks
    pidge04
    • #3
    • 2nd Aug 18, 11:56 PM
    • #3
    • 2nd Aug 18, 11:56 PM
    Oh I am sorry to hear this.

    How is it going for you?
    CC1 £2400/£549 CC2 £3000/£2299 CC3 £600/£348 LOAN £13,000/£5235
    • Purplemumof2
    • By Purplemumof2 3rd Aug 18, 8:47 AM
    • 6,425 Posts
    • 23,881 Thanks
    Purplemumof2
    • #4
    • 3rd Aug 18, 8:47 AM
    • #4
    • 3rd Aug 18, 8:47 AM
    Morning ramhainn,

    The boards can move quite quickly some days and threads get lost.

    Welcome aboard and good luck with your journey x
    Official DFW Nerd Club - Member no. 791 - Proud to be dealing with my debts
    MBNA: £5960.00 BC: £349.99 Cap One: GONE Lloyds: £10,300.00
    OD £0/£500 LC £0/£1500 Washer £0/£309.99
    POAMAYC 2018 #041 PD £7219.86/£7000
    Savings for Christmas £314.24/£400
    20p Savers 2018 £2 Savers 2018 50p Savers 2018 SPC 11 2018 #003
    • UncannyScot
    • By UncannyScot 3rd Aug 18, 10:47 AM
    • 1,636 Posts
    • 8,938 Thanks
    UncannyScot
    • #5
    • 3rd Aug 18, 10:47 AM
    • #5
    • 3rd Aug 18, 10:47 AM
    Hi and welcome

    As said above sometimes the boards move so fast new folks can be missed, sorry if you feel that we ignored you.

    One of the first things we advise is to make a Statement Of Affairs (SOA) so that you know what all your incoming and outgoing finances are; there is a link to this on the main site.
    Also, there is a budget planner spreadsheet available.
    You do not need to post up the completed SOA on the forum if you don't want to, however, some folks find it helpful to have folks here check it over to see where possible savings can be made.

    Hope that helps you and please, if you need any other advice or info, post up and we will do our best to get back to you as soon as we can.
    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.
    • Debtnomoreplease
    • By Debtnomoreplease 3rd Aug 18, 12:17 PM
    • 141 Posts
    • 329 Thanks
    Debtnomoreplease
    • #6
    • 3rd Aug 18, 12:17 PM
    • #6
    • 3rd Aug 18, 12:17 PM
    Hi, sorry as above if you don't keep updating your diary can move quickly.

    Good news is you're dealing with things-huge step-well done!

    Did you manage to pay the £100 overdraft off you were planning to pay?

    Have you managed to pay anymore towards your debt recently?

    It's going to be a very hard doing the things you love, whilst you get debt free, but trust me it will be absolutely worth it! Once debt free can enjoy the things you love again, without the stress-trust me it's so worth it! Being in debt doesn't have to be forever.

    I would suggest you need a £1000 emergency fund first so when something happens you aren't adding to your debt. Can you pay minimums on your debts and try to save that £1000? Good news is-you are on a good wage to deal with this.

    This debt didn't appear over night, therefore won't go away overnight, but if you put everything and cut back as much as possible you WILL be debt free.

    You have an expensive camera, is there anyway of making you hobby into a side job and selling some of your photos? Is there anything you can sell to raise some money to start your emergency fund? eBay, buy and sell sites etc...it's amazing what you can find to sell when you are ruthless.

    Keep checking in on here and more people will see your diary and will be happy to check in and offer you support.

    All the best
    • Gurj247
    • By Gurj247 3rd Aug 18, 1:19 PM
    • 125 Posts
    • 47 Thanks
    Gurj247
    • #7
    • 3rd Aug 18, 1:19 PM
    • #7
    • 3rd Aug 18, 1:19 PM
    Looks like you have circa £11k in debt (Poland and UK) and appreciate you are on a good salary, but as said a Statement of Affairs (SOA) would help us inform you better, in the hope our advise helps (although at times it may be harsh).


    Also where in the UK are you as although your salary is pretty good, if you are living in central London then it may not go that far as cost of living is significantly higher when compared to say Leeds in Yorkshire.


    Agree with the suggestion above - first try and get a Emergency Fund together.


    Also assess your debts and work out which is costing you the most (what has the highest interest) and prioritise getting that debt paid off first and work your way down that way.


    Also look at the Deals Page on the main page for cheaper nights out etc. as everyone needs a little reward along the way.
    Date of Update – 28/07/16
    Goal 1 – Reduce Mortgage - £116,500/£120,000 = 97%
    Goal 2 – Skyline GTR Fund - £0/£40,000
    Goal 3 – Savings – Rainy Day - £6000/£10,000
    Goal 4 - Savings for Daughter - £100/mth
    • ramhainn
    • By ramhainn 14th Sep 18, 11:13 AM
    • 12 Posts
    • 16 Thanks
    ramhainn
    • #8
    • 14th Sep 18, 11:13 AM
    • #8
    • 14th Sep 18, 11:13 AM
    Hi
    Thanks very much for your replies. I felt a bit ignored to begin with but it is really good to connect with people who have the same problem as it seems that those closest to me do not seem to understand.
    Here is my SOA

    Debt Calculator - Free Income & Expenditure Debt Budget Statement
    Summary
    Monthly Budget Summary
    Amount(£)
    Total monthly income
    2,168
    Monthly expenses (incl. HP & secured loans)
    1,358.18
    Available for debt repayments
    809.82
    UNsecured debt repayments
    507
    Amount left after debt repayments
    302.82

    Personal Balance Sheet Summary
    Amount(£)
    Total Assets (things you own)
    1,091
    Total Secured & HP Debt
    -0
    Total Unsecured Debt
    -9,753.92
    Net Assets
    -8,662.92
    Household Information
    Number of adults in household
    1
    Number of children in household
    0
    Number of cars owned
    1
    Income, Expense, Debt & Asset Details
    Income
    Amount(£)
    Monthly income after tax
    2168
    Partners monthly income
    0
    Benefits
    0
    Other income
    0
    Total monthly income
    2168

    Expenses
    Amount(£)
    Mortgage
    0
    Secured/HP loan payments
    0
    Rent
    360
    Management charge (leasehold property)
    0
    Council tax
    78
    Electricity
    31
    Gas
    31
    Oil
    0
    Water Rates
    0
    Telephone (land line)
    0
    Mobile phone
    91.82
    TV Licence
    12.43
    Satellite/Cable TV
    35
    Internet services
    24
    Groceries etc.
    300
    Clothing
    40
    Petrol/diesel
    120
    Road tax
    2
    Car Insurance
    40
    Car maintenance (including MOT)
    20
    Car Parking
    0
    Other travel
    50
    Childcare/nursery
    0
    Other child related expenses
    0
    Medical (prescriptions, dentists, opticians etc.)
    0
    Pet Insurance/Vet bills
    14
    Buildings Insurance
    0
    Contents Insurance
    8.93
    Life Assurance
    0
    Other Insurance
    0
    Presents (birthday, christmas etc.)
    0
    Haircuts
    0
    Entertainment
    100
    Holiday
    0
    Emergency Fund
    0
    Total monthly expenses
    1358.18

    Secured & HP Debt Description
    Debt(£)
    Monthly(£)
    APR(%)
    Mortgage
    0
    (0)
    0
    Secured & HP Debt totals
    0
    -
    -

    Unsecured Debt Description
    Debt(£)
    Monthly(£)
    APR(%)
    BOS overdraft
    86.59
    50
    7
    RBS overdraft
    350
    50
    7
    BOS CC
    873.58
    50
    0
    Camera
    1254
    57
    10
    Car loan
    750
    150
    0
    Overdraft in Poland
    4200
    50
    10
    Barclays CC
    2239.75
    100
    0
    Unsecured Debt totals
    9753.92
    507
    -

    Asset Description
    Value (£)
    Cash
    1091
    House Value (Gross)
    0
    Shares and bonds
    0
    Car(s)
    0
    Other assets (e.g. endowments, jewellery etc)
    0
    Total Assets
    1091

    I have around £10k unsecured debt, £1.1k in savings (this is my Help to Buy ISA - trying to save for a deposit, £50/month goes there).


    Getting an emergency fund would be a great idea. I have to pay car insurance soon and that will knock me around £400 back.


    Plus my situation in Poland is getting worse. I am going there end of October to potentially put the flat on the market and cut my losses this way. It is a hard decision that is not supported by my relatives but I do not think that the price of the flat will raise enough in a couple of years to cover all the expenses that I will have to make towards it. I will possibly need to transfer £350 monthly to cover mortgage and all charges there until I find a lodger or sell it.

    I am thinking of changing a job within the next 10 months for a better paid one, so fingers crossed. Although I am on a good salary (I live in Scotland), I think I can do better.

    It seems that people got out of much bigger debt so here's hoping I can clear my 10k.

    I would really appreciate all advice.
    • pidge04
    • By pidge04 15th Sep 18, 7:54 AM
    • 393 Posts
    • 840 Thanks
    pidge04
    • #9
    • 15th Sep 18, 7:54 AM
    • #9
    • 15th Sep 18, 7:54 AM
    I really think you can clear your 10k. Set yourself a debt free date. Do you live alone? Can you set a target of £200 for groceries? Is there anything you can do about your mobile phone costs? Good luck!
    CC1 £2400/£549 CC2 £3000/£2299 CC3 £600/£348 LOAN £13,000/£5235
    • pidge04
    • By pidge04 15th Sep 18, 7:56 AM
    • 393 Posts
    • 840 Thanks
    pidge04
    Try not to listen to those around you...you know the ins and outs of your financial situation and they do not (presumably).
    CC1 £2400/£549 CC2 £3000/£2299 CC3 £600/£348 LOAN £13,000/£5235
    • ramhainn
    • By ramhainn 15th Sep 18, 7:22 PM
    • 12 Posts
    • 16 Thanks
    ramhainn
    As for my mobile - one part of contract expires in February so it will go down. Not too sure what else I can do as contract lasts till July next year after which I'm planning to go sim only.

    Next week I'm planning to see if I can switch energy provider and get back my £120 credit back.

    And next point on my list is getting an emergency fund together.
    • doingitanyway
    • By doingitanyway 15th Sep 18, 7:35 PM
    • 3,292 Posts
    • 17,692 Thanks
    doingitanyway
    I was hoping for some words of encouragement but that didn't happen...
    Well... Sometimes support does not come where you expect it but you still have to carry on with your plan I guess...
    Originally posted by ramhainn
    You might get more encouragement if you visit other people's diaries and offer them encouragement too. You have posted 4 times and all posts have been on your own diary. Support works both ways.

    Wishing you well with your journey.
    Emergency fund 500/1000
    If not now then when?
    • ramhainn
    • By ramhainn 17th Sep 18, 8:07 AM
    • 12 Posts
    • 16 Thanks
    ramhainn
    You might get more encouragement if you visit other people's diaries and offer them encouragement too. You have posted 4 times and all posts have been on your own diary. Support works both ways.
    Originally posted by doingitanyway
    Busted! I agree it works both ways. You have to start somewhere though. Perhaps I do not believe that I can offer support, perhaps I feel I have no expertise to offer...
    Hopefully by reading people's advice and sticking to my plan I will be more supportive in the forthcoming future....
    Thanks anyway
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