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  • FIRST POST
    • ftbwannabe
    • By ftbwannabe 1st Aug 18, 9:06 AM
    • 79Posts
    • 293Thanks
    ftbwannabe
    I hope I can do this
    • #1
    • 1st Aug 18, 9:06 AM
    I hope I can do this 1st Aug 18 at 9:06 AM
    Hi

    Why am I a Debt Free Wannabe? Because someone in my family has just offered to give my partner and I money towards a deposit for our first house, but I owe 17k in unsecured debt & I think that will make it hard to either get a mortgage at all, or get a decent deal. Now I feel like I'm ruining both my partner's chances & my own.

    I never thought I'd be able to get on the housing ladder. I've been in debt since I was 18 (I'm 41 now) & getting out of it has always seemed either impossible or unimportant.
    But my SOA reckons I have hundreds of money spare each month that I could throw onto my cards & clear them in about 2 years. If I make a big effort over the next 12 months, apparently (I find it hard to believe) I could halve my debt, & then we'd be a better prospect for mortgage lenders.

    Typing this makes me want to cry, & has my stomach in knots. My inner critics are saying 'you stupid girl, you could have got out of this years ago' and 'don't bother trying, the numbers are wrong, you won't be able to keep this up and then you'll fail and feel worse' and 'he'll resent you and your money problems'. Also, 'life will be miserable, you'll have no fun, no friends and everyone will think you're boring & badly dressed'. 'LIfe's too short to scrimp' and 'you'll never get on the housing ladder anyway, or the market will crash & leave you in even more debt'

    But the more positive practical side of me is hoping that accountability will help me focus on this one day at a time, and then in 365 of those I'll look up & see £7k wiped off my debts. Even if we don't get on the housing ladder, at least I'd be debt free! My salary seems much more generous if I imagine not paying my credit cards back each month.

    Using apps to honestly track my eating, weight & spending has been really effective for me this year - I use myfitnesspal & Monzo. I love Monzo! And I will be relying on it to help my spending stay visible & something I'm in control of.

    I hope starting a diary here will help keep me accountable, and help me when it's the small day to day actions that are making a difference, not just the 'i've just started this and yes I'm going to change my life' big drama moments. (I really like the 'what small DFW things will you do this week' thread, & want to do something similar here.

    My SOA is below. The credit card payments listed are the minimum, I reguarly pay more (never the minimum) & have today changed my direct debits to pay £100 a month to each. I always have 0% deals so tell myself it's fine to have the debt- but year by year, the amount never goes down:
    SOA DFW
    Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 2
    Number of children in household.........
    Number of cars owned....................

    Monthly Income Details

    Monthly income after tax................ 1964.89 (my pension is taken out automatically)
    Partners monthly income after tax....... n/a,
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 1964.89


    Monthly Expense Details


    Rent.................................... 625
    Council tax............................. 134
    Water rates............................. 39.8
    (all other household bills paid by partner)
    Mobile phone............................ 17.66
    Internet Services....................... 4.99
    Groceries etc. ......................... 265
    Clothing................................ 0

    Medical (prescriptions, dentist etc).... 17
    Presents (birthday, christmas etc)...... 0
    Entertainment........................... 40
    Holiday................................. 0
    Emergency fund.......................... 0
    Socialising............................. 100
    web hosting + domain.................... 5.89
    Charity................................. 12
    Toiletries.............................. 10
    Total monthly expenses.................. 1291.34

    [b]


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    C Card........................1079.23...10.79.....0
    C Card...........................8839.83...88....... .0
    C Card.......................1605.63...37........0
    Student Loan...................800.......25........3.1
    Student Loan...................600.......83.28.....3.1
    C Card...................4280......90........0
    Total unsecured debts..........17204.69..334.07....-



    Monthly Budget Summary

    Total monthly income.................... 1,964.89
    Expenses (including HP & secured debts). 1,291.34
    Available for debt repayments........... 673.55
    Monthly UNsecured debt repayments....... 334.07
    Amount left after debt repayments....... 339.48


    Personal Balance Sheet Summary
    Total assets (things you own)........... 0
    Total HP & Secured debt................. -0
    Total Unsecured debt.................... -17,204.69
    Net Assets.............................. -17,204.69


    Created using the SOA calculator at stoozing com.
    Reproduced on Moneysavingexpert with permission, using other browser.
    Last edited by ftbwannabe; 10-08-2018 at 3:52 PM.
Page 2
    • enthusiasticsaver
    • By enthusiasticsaver 2nd Aug 18, 2:08 PM
    • 6,877 Posts
    • 14,811 Thanks
    enthusiasticsaver
    You seem to be doing well but a few things I would mention.

    When clearing debt don't forget about saving so you are not tempted to put unexpected expenses on a credit card. You don't have a house yet or a car so a smallish emergency fund should do. Also don't forget about saving for things you know you will spend on like christmas, a big social occasion, birthdays etc etc.

    Once your debt is gone then concentrate on saving for your house. Getting rid of the debt is the best thing you can do to help that. Enlist your friends help in looking for free or cheap stuff to do. Maybe agree on limits for birthdays,christmas presents. Don't be tempted to treat them. You cannot afford it.

    Tackle the emotional spending by taking money out of the equation when thinking of things you like to do. There are loads of free stuff you can do. Walks in park, reading books from the library, dvd afternoons or evenings.

    Is that groceries figure just for you or for you and your boyfriend? If just for you it is way too high. Meal plan and look into shopping at Lidls or Aldis if you are using an expensive supermarket. If it is for both of you are you sure that you are both splitting costs fairly? Maybe draw out groceries and entertainment money in cash each week and that will concentrate your mind on sticking in budget.
    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
    • zippygeorgeandben
    • By zippygeorgeandben 2nd Aug 18, 2:16 PM
    • 891 Posts
    • 1,195 Thanks
    zippygeorgeandben
    Yup I'm up for reading and checking in with this diary. I'm still re reading the first post OP!
    End Sep 2016 End July 2018
    £8236.57 £0
    (Tesco 4.8%) £0pcm
    £6185.75 £0 (Zopa 4.0%) £0pcm

    £5344.50
    £210.04 (Sainsburys 0% until 06/19) £140pcm
    £2000.00 £0 (Sister 0%) £0pcm

    Total debt
    £19.766.82 £210.04 Original DFD May 2019.
    • ftbwannabe
    • By ftbwannabe 2nd Aug 18, 3:18 PM
    • 79 Posts
    • 293 Thanks
    ftbwannabe
    You seem to be doing well but a few things I would mention.

    .
    Originally posted by enthusiasticsaver
    Thank you for taking the time, very practical advice.
    I already meal plan & shop in Aldi & Asda, but there must be something I can shave off since it looks like a high amount to so many people.
    I'm already planning for Christmas & I reckon everyone's getting a jar of my festive chutney this year
    Debt Free Wannabe since 1st August 18
    saving for deposit £202.78/£5000
    CC1: £100.83/£8,839.83 | CC2: £79.47/£1079.23 | CC3: £182.92/£182.92 | CC4 £100/£2446.33 CC5 £0/£4280
    Student Loan 1: £83.28/£656.92 Student Loan 2: £25.51/808.60
    Total Repayments: £572.01/£17,472 | Outstanding Debt: £1689.99
    • jwil
    • By jwil 2nd Aug 18, 4:03 PM
    • 8,809 Posts
    • 27,539 Thanks
    jwil
    Rather than putting your DD up for each of the debts have you considered snowballing? Pay the minimum to each of your debts and then all the extra to one debt to clear it faster. You usually focus on the highest interest one first, so that would be your student loans, but if the 0% ones end soon, it would be better to clear them first before you start paying interest.

    Have a play with this website
    http://www.whatsthecost.com/snowball.aspx

    Good luck
    "If you can dream it, you can do it". Walt Disney
    • ftbwannabe
    • By ftbwannabe 2nd Aug 18, 10:25 PM
    • 79 Posts
    • 293 Thanks
    ftbwannabe
    Rather than putting your DD up for each of the debts have you considered snowballing? Pay the minimum to each of your debts and then all the extra to one debt to clear it faster.
    Originally posted by jwil
    Thanks for the suggestion & link - Iíll check it out. I like the thought of targetting one at a time...
    Debt Free Wannabe since 1st August 18
    saving for deposit £202.78/£5000
    CC1: £100.83/£8,839.83 | CC2: £79.47/£1079.23 | CC3: £182.92/£182.92 | CC4 £100/£2446.33 CC5 £0/£4280
    Student Loan 1: £83.28/£656.92 Student Loan 2: £25.51/808.60
    Total Repayments: £572.01/£17,472 | Outstanding Debt: £1689.99
    • ChasingSunshine
    • By ChasingSunshine 2nd Aug 18, 10:54 PM
    • 140 Posts
    • 1,026 Thanks
    ChasingSunshine
    Hi, welcome to the forum. The suggestion of tackling your student loans could be a good one. The amounts are small so you will get the quick win of having them paid off in only a few months if you put all the extra towards that. However before doing that check when the 0% expire on each of your cards. If they are short it might be better to focus on the card with the shortest 0%, no guarantee that you will get another one to cover the balance. You might decide to create a small emergency fund first before focusing on the debt pay down. There are lots of different approaches so really depends on your personality and approach which is the best option.

    Regarding your food spend this is high esp if for two weeks your OH is buying the groceries and you are not shopping at expensive supermarkets. Maybe check exactly what you are buying, are you sticking to your meal plan or end up throwing out lots of food or doing lots of small top up shops? Do you batch cook as part of the meal plan? Eat lots of meat or could you introduce some veggie days which can help keep costs down as well as being healthier. Do lots of snacks fall into trolley while you are in supermarket?

    On your SOA there is nothing for presents which is not realistic. You are making chutney for Christmas, is this out of your food spend? Are present spends being hidden in other categories or in that surplus which is fittered away? Agree with suggestions to put small amount for clothing, you might not use it every month but there should be something there.

    Apologies for rambling on. Good luck, I have subscribed to cheer you on.
    • pidge04
    • By pidge04 3rd Aug 18, 12:43 AM
    • 281 Posts
    • 536 Thanks
    pidge04
    Can you get an emergency fund together?

    Admire your determination and focus!
    CC1 £2400/£549 CC2 £3000/£2299 CC3 £600/£448 LOAN £13,000/£5462
    • ftbwannabe
    • By ftbwannabe 3rd Aug 18, 11:19 AM
    • 79 Posts
    • 293 Thanks
    ftbwannabe
    Thanks everyone. I've tweaked my budget this week based on the feedback here & what goals feel like a healthy but achievable stretch. Let's see how this first month goes...

    I'm lucky (in a way!) in that my friends & family don't do much for presents for xmas or birthdays. I have budget for a £140 a month 'socialising' fund which is where I'd take money for small presents & cards from, as well as the cost of drinks/cake.

    I've started a £20 a month emergency fund, for stuff that might break & need replacing.

    I can't figure out how I am spending too much on food - I'm vegetarian, I cook everything from scratch, I meal plan & I shop in the cheapest shops I can. My fortnightly shops are between 60 & 70 each. That figure covers cat food & litter (15 a month) & a couple of bottles of wine (10 a month) + any household stuff like washing up liquid & washing powder. But there's clearly an extra £120 going somewhere, which can't just be my lunches & breakfasts the rest of the month. I'll keep a close eye on this category from now on & see what could be bumping it up. I suspect it's that 'just nipping into Sainsburys on my way home' 'oops I came in for 1 tomato & spent a tenner on beer & snacks' trap...
    Debt Free Wannabe since 1st August 18
    saving for deposit £202.78/£5000
    CC1: £100.83/£8,839.83 | CC2: £79.47/£1079.23 | CC3: £182.92/£182.92 | CC4 £100/£2446.33 CC5 £0/£4280
    Student Loan 1: £83.28/£656.92 Student Loan 2: £25.51/808.60
    Total Repayments: £572.01/£17,472 | Outstanding Debt: £1689.99
    • ftbwannabe
    • By ftbwannabe 3rd Aug 18, 11:27 AM
    • 79 Posts
    • 293 Thanks
    ftbwannabe
    Stuff I did yesterday towards my goals:
    picked a by-end-of year goal of paying 3k off my cards &
    set up a 100 square tfor that goal (just 100 x £30s to go!)
    Paid £30 to 1 card (99 to go!)
    Compared some ziffie prices to ebay & I can get more for some cds if i sell directly
    Found a way to see an exhibit I want to for free
    Bought ingreds for picnic tomorrow
    Remembered to take my lunch & bfast to work (i!!!8217;m great at forgetting & having to rebuy)
    Rang my union about getting free financial & mortgage advice through them
    Rang student loan company to confirm my balance
    Talked to partner about house & mortgage expectations (we're nearly on the same page, phew)
    Escaped a necessary Sainsburys trip with only 1 thing I didn't need (99p reduced aisle snack)
    Debt Free Wannabe since 1st August 18
    saving for deposit £202.78/£5000
    CC1: £100.83/£8,839.83 | CC2: £79.47/£1079.23 | CC3: £182.92/£182.92 | CC4 £100/£2446.33 CC5 £0/£4280
    Student Loan 1: £83.28/£656.92 Student Loan 2: £25.51/808.60
    Total Repayments: £572.01/£17,472 | Outstanding Debt: £1689.99
    • Starmummy
    • By Starmummy 3rd Aug 18, 1:43 PM
    • 196 Posts
    • 901 Thanks
    Starmummy
    Happy new diary.

    Best of luck with everything. I can feel your determination through your posts

    Take care
    SM
    Total debt at LBM c.£19k
    debt consolidated 16/8/18 £12,618.12/£12,618.12 Total savings £400
    • ftbwannabe
    • By ftbwannabe 4th Aug 18, 8:14 AM
    • 79 Posts
    • 293 Thanks
    ftbwannabe
    Yesterday!!!8217;s actions:
    -Managed to stick to budget on planned evening out. Resisted all food & drink & market stalls at the event (had picnic instead).
    --Spent no money during rest of day, either, only CC payment
    -Did mortgage in principle application (soft credit check only) using the level of debt I plan to have in January, & got approved! I don!!!8217;t expect those predictions to be reliable, but still it!!!8217;s a boost & incentive to make those figures real
    -used that snowballing link above & loved it - new goal, as a result, is to pay off CC2 or CC4 by end of this year.

    Quiet weekend ahead. Hope it!!!8217;s a good one for everyone.
    Debt Free Wannabe since 1st August 18
    saving for deposit £202.78/£5000
    CC1: £100.83/£8,839.83 | CC2: £79.47/£1079.23 | CC3: £182.92/£182.92 | CC4 £100/£2446.33 CC5 £0/£4280
    Student Loan 1: £83.28/£656.92 Student Loan 2: £25.51/808.60
    Total Repayments: £572.01/£17,472 | Outstanding Debt: £1689.99
    • Buffythedebtslayer
    • By Buffythedebtslayer 4th Aug 18, 6:26 PM
    • 15,230 Posts
    • 50,625 Thanks
    Buffythedebtslayer
    Hello, Am a similar age and your diary has really made me ponder what is possible

    I am very very impressed with your plan. I shall be following cheering you on

    XXXX
    Frugal Living Challenge, Pound a Day challenge, Sealed Pot Challenge Debt 4990 (March)
    • ftbwannabe
    • By ftbwannabe 4th Aug 18, 8:08 PM
    • 79 Posts
    • 293 Thanks
    ftbwannabe
    Hello, Am a similar age and your diary has really made me ponder what is possible

    I am very very impressed with your plan. I shall be following cheering you on

    XXXX
    Originally posted by Buffythedebtslayer
    Aww, thank you! That made me smile! We're not the only ones either, seems like there's a gaggle of us 40-somethings who've decided to Sort Things Out
    Debt Free Wannabe since 1st August 18
    saving for deposit £202.78/£5000
    CC1: £100.83/£8,839.83 | CC2: £79.47/£1079.23 | CC3: £182.92/£182.92 | CC4 £100/£2446.33 CC5 £0/£4280
    Student Loan 1: £83.28/£656.92 Student Loan 2: £25.51/808.60
    Total Repayments: £572.01/£17,472 | Outstanding Debt: £1689.99
    • Turningpenniesintopounds
    • By Turningpenniesintopounds 4th Aug 18, 9:42 PM
    • 1 Posts
    • 5 Thanks
    Turningpenniesintopounds
    You need to take the !!!8220;I Hope!!!8221; off your title - you!!!8217;re doing this! great diary, looking forward to following your journey.
    • ChasingSunshine
    • By ChasingSunshine 5th Aug 18, 7:07 AM
    • 140 Posts
    • 1,026 Thanks
    ChasingSunshine
    You are off to a great start and the snowball calculator is really good as a way to stay motivated. It's so rewarding seeing the DFD coming closer.

    For all the !! and numbers appearing in your post instead of apostrophe if you are using an iPhone or iPad you can go into keyboards and turn off smart punctuation. It's a bug that has been on the forum for a while and not yet fixed.
    • ftbwannabe
    • By ftbwannabe 5th Aug 18, 11:15 AM
    • 79 Posts
    • 293 Thanks
    ftbwannabe
    You are off to a great start and the snowball calculator is really good as a way to stay motivated. It's so rewarding seeing the DFD coming closer.

    For all the !! and numbers appearing in your post instead of apostrophe if you are using an iPhone or iPad you can go into keyboards and turn off smart punctuation. It's a bug that has been on the forum for a while and not yet fixed.
    Originally posted by ChasingSunshine
    Thank you! That formatting has been bugging me. (Hmm, I wonder, too, if there's a better way of replying directly to you than quoting your post).
    Also, the time I spend playing with numbers in that snowball calculator is time I'm not spending money
    Debt Free Wannabe since 1st August 18
    saving for deposit £202.78/£5000
    CC1: £100.83/£8,839.83 | CC2: £79.47/£1079.23 | CC3: £182.92/£182.92 | CC4 £100/£2446.33 CC5 £0/£4280
    Student Loan 1: £83.28/£656.92 Student Loan 2: £25.51/808.60
    Total Repayments: £572.01/£17,472 | Outstanding Debt: £1689.99
    • ftbwannabe
    • By ftbwannabe 5th Aug 18, 11:33 AM
    • 79 Posts
    • 293 Thanks
    ftbwannabe
    Stuff I did yesterday:
    - set up my asda orders for the month & if I don't do extra shops, that's only £165 for the month (£100 less than usual). I usually do 2 fortnightly shops for the weeks I cook dinner, then random shops in the other weeks. I reckon those randoms are where all my supposed spare cash is going. So I doubled the quantities for some stuff in the main shop (don't know where I'm going to keep it as our kitchen is titchy) so I should have enough for 2 weeks at a time.
    Added biscuits & crumpets to the order, which I never ever do (in case I eat them all), but I regularly buy £3 cake & pastries instead. Maybe having jaffacakes in the house will stop me splurging in cafes?

    arranged to sell my 2 old broken iphones for £22
    listed some stuff on gumtree
    sent a ppi complaint with the resolver on this site (much easier than I expected)
    paid £52.82 off one card to make it under £100
    paid 1 student loan payment
    resisted the danish pastries at the saturday market
    Started doing some surveys but got too bored. Donated my existing swagbucks balance to charity instead.
    got a new book from the library
    went for a walk with bf (free!)
    no chocolate, booze or fags

    I know I'll run out of big things to do soon, and each day will be more like 'didn't spend money', but I want to keep this up anyway as it's something to focus on & keep me accountable.
    Debt Free Wannabe since 1st August 18
    saving for deposit £202.78/£5000
    CC1: £100.83/£8,839.83 | CC2: £79.47/£1079.23 | CC3: £182.92/£182.92 | CC4 £100/£2446.33 CC5 £0/£4280
    Student Loan 1: £83.28/£656.92 Student Loan 2: £25.51/808.60
    Total Repayments: £572.01/£17,472 | Outstanding Debt: £1689.99
    • ftbwannabe
    • By ftbwannabe 5th Aug 18, 6:44 PM
    • 79 Posts
    • 293 Thanks
    ftbwannabe
    Stuff I did today
    Packaged up my phones, ziffit & music magpie orders (& found some extra stuff to send them)
    made lunch for week
    made 1 tiny cc payment
    picked a card to snowball & set up a s/s to manage that as well as amending my direct debits
    cancelled spotify + set up google play to stream the music i own for free instead
    found a more few bits to sell on ebay
    got a response (but not yet a sale) to one of my gumtree ads

    Now I've got my budget in place, my snowball plan set up, most of what i can sell up for sale, & my foodshopping done for the month, I guess now'll be the boring bit, sticking to my guns day by day (& tracking my spending day by day!). Here goes...
    Debt Free Wannabe since 1st August 18
    saving for deposit £202.78/£5000
    CC1: £100.83/£8,839.83 | CC2: £79.47/£1079.23 | CC3: £182.92/£182.92 | CC4 £100/£2446.33 CC5 £0/£4280
    Student Loan 1: £83.28/£656.92 Student Loan 2: £25.51/808.60
    Total Repayments: £572.01/£17,472 | Outstanding Debt: £1689.99
    • ftbwannabe
    • By ftbwannabe 6th Aug 18, 8:39 PM
    • 79 Posts
    • 293 Thanks
    ftbwannabe
    Today I:
    paid £25 to one card
    Let a mate buy me a coffee instead of insisting I get my own (& probably get hers too)
    Printed labels at work for my trade-in parcels
    Shopped around for my contact lenses & saved £9 vs what I'd budget for
    Ate free food at work & saved my packed lunch for tomorrow instead
    Walked to work even though I was running late & train would have got me in on time (hmm, need to be more organised in morning. It's hard in this heat!)
    Put all my fun events in my calendar so I know I have fun & treats ahead
    Got enough veg from my allotment for at least one meal this week

    I have to say, buying 2 weeks worth of jaffacakes & wine in one go feels unlikely to be a good long term plan - I've already eaten half a pack of biscuits & had half a bottle of wine. It's not like I've suddenly grown self-discipline overnight!
    Last edited by ftbwannabe; 06-08-2018 at 10:00 PM.
    Debt Free Wannabe since 1st August 18
    saving for deposit £202.78/£5000
    CC1: £100.83/£8,839.83 | CC2: £79.47/£1079.23 | CC3: £182.92/£182.92 | CC4 £100/£2446.33 CC5 £0/£4280
    Student Loan 1: £83.28/£656.92 Student Loan 2: £25.51/808.60
    Total Repayments: £572.01/£17,472 | Outstanding Debt: £1689.99
    • efes shareholder
    • By efes shareholder 7th Aug 18, 8:47 AM
    • 213 Posts
    • 379 Thanks
    efes shareholder
    That is why I don't have wine in the house unless i am planning on consuming it very very soon...............none of my debts include a wine rack as I never had wine in the house long enough to need a storage place for it

    Love Jaffa cakes and they are one of the kinder treats for your waistline - Never quite got how they fall in to the catergory of biscuits though
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