£32,940.78 to zero...

champagne_to_lemonade_ · 12 July 2018 at 10:56AM

£32,940.78
This is what living a champagne lifestyle on a lemonade wage brings you.

My debt is as follows -

Barclaycard - £10,903.09
MBNA - £6,252.80
Virgin - £5616.52
Loan - £4000
Overdraft - £168.37
Car finance - £6000 (approx.)
Total - £32,940.78 :eek:

I also have my mortgage which is currently £60,998.98, I!!!8217;m just putting it here for my own reference and I have a student loan which is about £11,000 but of course that is the least of my worries.

Soooooo....here goes nothing! I hope I can motivate myself once and for all!!! Spent time over the years reading others and wishing it was me doing something about my debt, but of course done nothing about it other than increase my debt!! :mad:

Wish me luck :j

BelleOfBilboa · 12 July 2018 at 10:59AM

Welcome!

Your 'name' couldn't resonate with me more! Congrats on creating a diary, first hurdle complete. I'm subscribing and looking forward to watching your journey.
Oh and good luck!! :j

champagne_to_lemonade_ · 12 July 2018 at 11:02AM

I have signed up for a benefit in work called Sharesave where I am putting £150 away each month. It runs for 3 years and best case you can make a little bit of money but worst case you leave with the same amount you have put in. There is no risk and the money can be withdrawen at any time (2-3 working days) so I will be counting this as my emergency fund if I REALLY need it. I will try and build up a mini one also to avoid having to actually take money out before the 3 years are up.

Emergency fund currently sits at: £450

champagne_to_lemonade_ · 12 July 2018 at 11:23AM

Thanks Belle, I will go have a read of your diary, the title is definitely me, well apart from the 20's part, I am sadly more mid 30's :rotfl:

Also, the major reason for me starting this diary and sorting out my debt is there is a very high chance I will be made redundant in the next 12-18 months. My payout would be ok-ish, but it would probably only clear about half my debt, but leave me no income to pay my bills!!

champagne_to_lemonade_ · 12 July 2018 at 12:08PM

This is my SOA. I work full time and do a job on the side once a week for my friend. The income from both of these vary, my monthly income changes and the work I do for my friend can vary each week, but these are the minumum earnings.

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 1 (my child is 18, so technically an adult hence why no benefits/maintence etc)
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1500
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 300
Total monthly income.................... 1800

Monthly Expense Details
Mortgage................................ 392.3
Secured/HP loan repayments.............. 119.99
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 115
Electricity............................. 60
Gas..................................... 41.65
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 13.98
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 25.24
Groceries etc. ......................... 200
Clothing................................ 0
Petrol/diesel........................... 150
Road tax................................ 12.5
Car Insurance........................... 40
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 15
Pet insurance/vet bills................. 0
Buildings insurance..................... 7.5
Contents insurance...................... 7.5
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, Christmas etc)...... 125
Haircuts................................ 30
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Gym..................................... 12.5
Car valet............................... 10
Dog Haircut - 3 times a year............ 10
Dog food & treats....................... 10
Dog Walker.............................. 80
Eyebrow wax & tint...................... 15
Total monthly expenses.................. 1493.17

Assets
Cash.................................... 0
House value (Gross)..................... 85000
Shares and bonds........................ 450
Car(s).................................. 15000
Other assets............................ 0
Total Assets............................ 100450

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 60998.9..(392.3)....2.59
Secured Debt.................. 4000.....(0)........0
Hire Purchase (HP) debt ...... 6000.....(120)......7.9
Total secured & HP debts...... 70998.9

Unsecured Debts
Description....................Debt......Monthly...APR
Barclaycard ...................10909.....170.......0
MBNA...........................6252......92........0
Virgin.........................5616......82........0
Total unsecured debts..........22777.....344

Monthly Budget Summary
Total monthly income.................... 1,500
Expenses (including HP & secured debts). 1,493.17
Available for debt repayments........... 6.83
Monthly UNsecured debt repayments....... 344
Amount short for making debt repayments. -37.17

Personal Balance Sheet Summary
Total assets (things you own)........... 100,450
Total HP & Secured debt................. -70,998.9
Total Unsecured debt.................... -22,777
Net Assets.............................. 6,674.1

champagne_to_lemonade_ · 12 July 2018 at 12:21PM

I've not included a budget for clothes, entertainment or holidays. I know this isn't realistic in the real world. Clothing I don't actually buy lots but when I do I go on a splurge, the plan for this year is to not buy anymore, should be do-able. Holidays I am going away in August, all is paid for just need spending money. Future holidays will be on hold for now. Entertainment, I would love to say it is because I am stopping everything but in reality I am pretty anti social these days. I work 6 days a week, my free time I like to go to the gym/swimming, long dog walks and most of my friends have young kids so to catch up with them it is mostly a night in.

I am in the process of getting my bathroom done. I have paid for the labour to install and tile, but I need to buy a bathroom suite and tiles. I also need a few other essential home items over the coming months from recently moving.

BelleOfBilboa · 12 July 2018 at 1:20PM

Are you quite attached to your dog walker? If not, have you heard of borrowmydoggy.com? Essentially you set up a profile for your dog and people who aren't as fortunate can share your dog eg. lunchtime walks, holidays etc. May save a bit of money?

Is your child still in education? If they are working you could ask for a contribution from them? As soon as I got a full time job my parents asked for 'rent', I didn't pay very much but was enough to get into the habit. Also why not save on the car valeting and get them to do it

Just a couple of ideas to get you thinking

Robin09 · 12 July 2018 at 1:28PM

Good luck on your debt busting journey

enthusiasticsaver · 12 July 2018 at 1:49PM

If you have signed up to save £150 a month where is that coming from or is that deducted at source from your wages? It appears you cannot afford it looking at that soa as you have almost a £37 monthly shortfall just for paying basic bills/debt repayments and not allowing for saving for home improvements(bathroom) or car maintenance or entertainment or holidays. There certainly is not £150 spare.

The dog walker is expensive so you could look to save on that by walking him yourself and ideally you should be doing the car valeting yourself and dropping the presents budget. On your present income there is nothing extra to repay the debt so if you lose your job in the next year or so you will be in real difficulties.

champagne_to_lemonade_ · 12 July 2018 at 1:57PM

enthusiasticsaver wrote: »

If you have signed up to save £150 a month where is that coming from or is that deducted at source from your wages? It appears you cannot afford it looking at that soa as you have almost a £37 monthly shortfall just for paying basic bills/debt repayments and not allowing for saving for home improvements(bathroom) or car maintenance or entertainment or holidays. There certainly is not £150 spare.

The dog walker is expensive so you could look to save on that by walking him yourself and ideally you should be doing the car valeting yourself and dropping the presents budget. On your present income there is nothing extra to repay the debt so if you lose your job in the next year or so you will be in real difficulties.

Thanks for your reply. My wage would be £1650 if I never took off the £150 but it is taken off my income before tax, I can access it whenever I want, so thought it was best to keep as savings?!

The dog walker is non negotiable as I need him to walk the dog those 2 days when I am at work and my daughter is at college. I could cancel him over summer but he is fully booked and can not risk losing my space as I will need him in August.

All my debt is 0% so with the minimum payments it is reducing by £344 per month. £1800 per month is my gaurenteed minimum, this year I haven't earned below £2000 but thought would just put in the worst casse scenario.

Agree about the present budget, this was just what I calcualed on average my yearly spends on Chrsitmas and birthdays were, but this will be dramtically cut. Should this come out my SOA?

champagne_to_lemonade_ · 12 July 2018 at 2:05PM

BelleOfBilboa wrote: »

Are you quite attached to your dog walker? If not, have you heard of borrowmydoggy.com? Essentially you set up a profile for your dog and people who aren't as fortunate can share your dog eg. lunchtime walks, holidays etc. May save a bit of money?

Is your child still in education? If they are working you could ask for a contribution from them? As soon as I got a full time job my parents asked for 'rent', I didn't pay very much but was enough to get into the habit. Also why not save on the car valeting and get them to do it

Just a couple of ideas to get you thinking

I do really like him, and what I like is the daily updates he puts on fb so you know he is actually taking the dog out and doing what you are paying for, as how do you really know when you are at work! Borrow my doggy wouldn't work for me becasue I need at least 2 walks a week (may need to increase next month when my daughter gets her college timetable) and I give him a key to my house, wouldn't feel comfortable meeting strangers each week and giving out my key.

Can't ask my daughter for money, she has a part time job but never asks for a penny from me. She doesn't get much and what she does get is enough for her to enjoy herself with her friends and buys what she wants.

Car valet I know, this is a new thing since I got my new car and to be honest I don't want to give it up and with working 6 days a week, running a house and looking after an eldery relative this is £2.50 a week I am willing to sacrifice.

I don't mean to be awkward with my replies to your suggestions, they are genuinely appreciated!

£32,940.78 to zero...

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