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    • yellowbees
    • By yellowbees 6th Aug 18, 9:50 PM
    • 7Posts
    • 16Thanks
    yellowbees
    Time to be a busy bee - debt free for 30
    • #1
    • 6th Aug 18, 9:50 PM
    Time to be a busy bee - debt free for 30 6th Aug 18 at 9:50 PM
    Hi everyone!

    I've been reading here for a long time, I've known for a while that my debt needs to come under control but now I am really feeling the burden of it and need to do something about it.

    I have close to 16k of debt, across CCs and a loan...which is more than half my annual income. I have enough to cover my payments and some extra each month - but I am SUCH a spender...I always end up with more month left at the end of my money, and I am perpetually in my overdraft (praise be for FD's 0%!). It's one of those that when I sit down and look at the spending - I don't have much that's tangible to show for it.

    I've filled in a SOA (will post that next!), I know step one is to stop spending, and budget budget budget.

    I turn 28 this week, and would love to be debt free and saving for a deposit by the time I hit 30. I don't know if that is a realistic goal, but I'm not great at goal setting - I set unrealistic goals for myself always!

    Hoping that if I document it, I might become more accountable to myself. Appreciate any advice or kind words!

    Yellowbees
Page 1
    • yellowbees
    • By yellowbees 6th Aug 18, 9:57 PM
    • 7 Posts
    • 16 Thanks
    yellowbees
    • #2
    • 6th Aug 18, 9:57 PM
    Soa :)
    • #2
    • 6th Aug 18, 9:57 PM
    Ok here goes...

    So I live with my partner, we split all bills 50/50 and it goes into a joint account, and we've just shopped around to reduce wherever we can. I take the train and no car. I've added some other notes in italics

    Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 2
    Number of children in household......... 0
    Number of cars owned.................... 0

    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................................ 0
    Secured/HP loan repayments.............. 0
    Rent.................................... 450
    Management charge (leasehold property).. 0
    Council tax............................. 53
    Electricity............................. 30
    Gas..................................... 0
    Oil..................................... 0
    Water rates............................. 13.5
    Telephone (land line)................... 0
    Mobile phone............................ 45 in contract for 18 months
    TV Licence.............................. 6.5
    Satellite/Cable TV...................... 12 EE TV and netflix
    Internet Services....................... 22 just moved this to EE for fibre
    Groceries etc. ......................... 150 again split with my partner, and bit extra as I frequent aldi too much
    Clothing................................ 20
    Petrol/diesel........................... 0
    Road tax................................ 0
    Car Insurance........................... 0
    Car maintenance (including MOT)......... 0
    Car parking............................. 0
    Other travel............................ 100
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 0
    Contents insurance...................... 4
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 20
    Haircuts................................ 30
    Entertainment........................... 150
    Holiday................................. 0
    Emergency fund.......................... 0
    (Unnamed monthly expense)............... 0
    Gym..................................... 20
    Total monthly expenses.................. 1126



    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
    First Direct...................2407......141.......0 not sure on the interest but this is total balance
    MBNA...........................4567......66....... .18.9 3.2k is 0% until Jan
    Tesco Bank.....................4244......130.......21.6
    Paypal Credit..................122.......22........0
    Overdraft......................500.......0........ .0
    Halifax........................2000......28....... .21 locked out of online so this is an educated guess
    Barclaycard....................2035......46....... .18.9
    Total unsecured debts..........15875.....433.......-



    Monthly Budget Summary

    Total monthly income.................... 1,700
    Expenses (including HP & secured debts). 1,126
    Available for debt repayments........... 574
    Monthly UNsecured debt repayments....... 433
    Amount left after debt repayments....... 141


    Personal Balance Sheet Summary
    Total assets (things you own)........... 0
    Total HP & Secured debt................. -0
    Total Unsecured debt.................... -15,875
    Net Assets.............................. -15,875

    • pidge04
    • By pidge04 6th Aug 18, 10:17 PM
    • 538 Posts
    • 1,475 Thanks
    pidge04
    • #3
    • 6th Aug 18, 10:17 PM
    • #3
    • 6th Aug 18, 10:17 PM
    Welcome! I am sorry I cannot read all your SOA on my phone. Will try and look in the morning on my computer.
    I really wish I had had my LBM at 28 and not at 42 so I am rooting for you and wish you all the very best! It will be fabulous to be debt free at 30, have a bunch of savings at 40 etc!
    Great to aim to break that cycle of debt and stop spending on things. Better to be free than to have a load of stuff!
    Good luck!!
    CC1 2400/267 CC2 3000/2580 LOAN 13,000/4643
    • Purplemumof2
    • By Purplemumof2 7th Aug 18, 8:41 AM
    • 6,562 Posts
    • 24,770 Thanks
    Purplemumof2
    • #4
    • 7th Aug 18, 8:41 AM
    • #4
    • 7th Aug 18, 8:41 AM
    Good luck on your journey x
    Official DFW Nerd Club - Member no. 791 - Proud to be dealing with my debts
    MBNA: 5550.00 Lloyds: 9778.00 BC: GONE Cap One: GONE

    POAMAYC 2019 #041 PD 0.00/4000
    Savings for Christmas 0.00/500
    20p Savers 2018 2 Savers 2018 50p Savers 2018 SPC 12 2019 #003
    • Starmummy
    • By Starmummy 7th Aug 18, 10:43 AM
    • 277 Posts
    • 1,326 Thanks
    Starmummy
    • #5
    • 7th Aug 18, 10:43 AM
    • #5
    • 7th Aug 18, 10:43 AM
    Happy new diary.
    Good luck with your journey.
    I started my journey in January with slightly more debt than you, Turning 30 this year was definitely a factor in getting my !!!! together.
    debt consolidated 16/8/18 11,917.34/12,618.12 (Total debt at LBM c..19.5k)
    EF savings 700.06 House Deposit (LISA) 492.51/12,000 4%
    • UncannyScot
    • By UncannyScot 7th Aug 18, 11:05 AM
    • 1,712 Posts
    • 9,453 Thanks
    UncannyScot
    • #6
    • 7th Aug 18, 11:05 AM
    • #6
    • 7th Aug 18, 11:05 AM
    Hi And welcome

    As has been said before, I also wish I had my LBM at 28...
    You are taking the right steps forward and will be in a much better position in the next few years.
    Just remember NEEDS before WANTS and use the MSE money mantra;
    If you answer NO to any of these then DON'T BUY
    Are you skint? Ask yourself, Can I afford this, and do I NEED it?
    Not skint? Ask yourself, is it worth it, and will I use it?

    You'll get there and this community of folks will help, support and advise along the way
    Last edited by UncannyScot; 07-08-2018 at 11:06 AM. Reason: brainfart
    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.
    • yellowbees
    • By yellowbees 9th Aug 18, 11:15 PM
    • 7 Posts
    • 16 Thanks
    yellowbees
    • #7
    • 9th Aug 18, 11:15 PM
    • #7
    • 9th Aug 18, 11:15 PM
    Thank you everyone! Your words are so encouraging - feel like I can totally do this!

    So started off well with a NSD on Tuesday, but a couple of busy days at work have led to laziness and today I spent way too much on lunch and coffee.

    But I have joined the PAD challenge - so 3.13 extra has been paid off my Tesco CC so far this week! Aiming for every day that I would have bought a coffee at work to pay that 2 onto this CC. I feel like I'm in a bit of a cycle of paying extra off this each month, only to get hit by interest and an over-limit charge because I am so maxed out on it.

    I've got 3k of my debt on 0% until January, I don't score highly on the eligibility checkers for any more balance transfers. Hoping that between now and then I can make a big chunk off the Tesco CC to give me some options to shift some more come January to reduce the interest I'm paying every month!

    Busy weekend ahead with birthday celebrations. My Dad is visiting tomorrow and he is taking my CD collection to sell (he has a ebay business thing) so when they start to go that'll all go on the CC. We are due a clear out so that's on the agenda for next weekend, hoping I can sell a few bits here and there but aside from the CDs there aren't that many books or things to go. Sunday night I'm going to take a closer look at my spending so I can create a bit of a better budget in preparation for end of the month
    Last edited by yellowbees; 09-08-2018 at 11:19 PM.
    • enthusiasticsaver
    • By enthusiasticsaver 10th Aug 18, 9:19 AM
    • 7,430 Posts
    • 16,382 Thanks
    enthusiasticsaver
    • #8
    • 10th Aug 18, 9:19 AM
    • #8
    • 10th Aug 18, 9:19 AM
    I think it is wise to tackle this now before it gets any higher. Your minimum debt repayments are almost as much as your rent and you have allowed nothing for reducing your overdraft and have no savings.

    You have a surplus according to that soa of 141 but I would guess by the time the end of the month comes you don't have that spare so a tighter budget is needed. Put some money into saving an emergency fund as well and put the birthday money aside too. What about Xmas. Do you save for that? Do you not take holidays?

    The rates on your Barclaycard and Tesco are really high. I think tackling the Tesco first is a good way to go. A spending diary would be a good idea too.

    I think if you want to sort this out in 2 years before you turn 30 you will either need to reduce your discretionary spending drastically or take on a 2nd job. I don't want to be harsh but you are at a point now where with some discipline and strong willpower you can turn this around but with 7 debts and no assets you must have been overspending for some time and this requires a change of thinking. As uncanny Scot says learn the difference between wants and needs. Sorting this out at 28 so you are not struggling with a lifetime of being in debt is a fantastic goal.
    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
    • yellowbees
    • By yellowbees 10th Aug 18, 9:42 AM
    • 7 Posts
    • 16 Thanks
    yellowbees
    • #9
    • 10th Aug 18, 9:42 AM
    • #9
    • 10th Aug 18, 9:42 AM
    I think it is wise to tackle this now before it gets any higher. Your minimum debt repayments are almost as much as your rent and you have allowed nothing for reducing your overdraft and have no savings.

    You have a surplus according to that soa of 141 but I would guess by the time the end of the month comes you don't have that spare so a tighter budget is needed. Put some money into saving an emergency fund as well and put the birthday money aside too. What about Xmas. Do you save for that? Do you not take holidays?

    The rates on your Barclaycard and Tesco are really high. I think tackling the Tesco first is a good way to go. A spending diary would be a good idea too.

    I think if you want to sort this out in 2 years before you turn 30 you will either need to reduce your discretionary spending drastically or take on a 2nd job. I don't want to be harsh but you are at a point now where with some discipline and strong willpower you can turn this around but with 7 debts and no assets you must have been overspending for some time and this requires a change of thinking. As uncanny Scot says learn the difference between wants and needs. Sorting this out at 28 so you are not struggling with a lifetime of being in debt is a fantastic goal.
    Originally posted by enthusiasticsaver
    Definitely need to stop it before it gets any higher. You're right, the SOA says I have 141 but I'll be damned if I know where that goes each month It's silly little spends, so much so that I don't even know what they are which is awful. Sorting out a spending diary is my task for Sunday. I ordered a pre-paid 'U bank' card a couple of months ago to try and cap what I spend, take that out instead of my bank card, but I've not been great with it. Good intentions but not followed through..!

    I didn't account for holidays as we don't have any planned, however I have just realised that I've a weekend away in Glasgow with a friend that I haven't budgeted for (starting to see my failings here). Xmas and birthdays I've just used discretionary spend before, so will need to write that in...particularly as it's SO's birthday in 4 weeks and Christmas not long after

    I will have a pay increase in October, so I will re-evaluate my overall budget then. 2nd job is in the back of my mind, my OU kicks off again in October and with 2 modules over Christmas it may be something that I have to hold off considering further until Easter. Having escaped the retail life 2 years' ago after 10 years' of pain, I'm reluctant to go back! Hoping between now and then I can just get really strict with myself and retrain my habits.
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