Welcome back everyone, I want to say thank you for all the people who are coming back and reading these posts each and every day! And to all the people sharing them on social media, liking, & following the blog I thank you all! It’s great to see people engage with the blog
Today’s post is going to be a real personal post! I wanted to go into some details around my financial background and situation, and hopefully anyone going through the same, or have been through similar can relate and take something away!
The year is 2019! Having been made redundant from working at my previous job due to structural changes throughout the business, I was left looking for new employment and a new path to follow!
With a baby daughter only months away from arriving, I wasn’t about to sit about and just wait for something to come up!
I found a few jobs I liked the look of and one in particular I later got offered and accepted! But I digress!
Upon leaving my previous employer I received a decent redundancy package! And used this to pay a large amount of debts off! & still had a bit of money left over which I did gamble with! I wish I had found FI sooner and used it that way, as this is a much different style of gambling and one I find to be a lot safer! However, that I did not, & I am still in the position now where I owe a substantial amount in my eyes to several places!
I have spent the past 1-2 years gambling rather heavily with my wages, and have had some good wins and some bad & very bad losses in relation to monthly pay and the amount gambled from that!! A matter of months back I decided enough was enough! I cancelled / self excluded my self from conventional betting! And now the only Gambling Platform I use is Football Index! Which is fantastic and the perfect platform for me!
Today though, I want to go over with you my current situation, what I owe, and how I plan on paying this off/ when!
I know that hundreds, probably thousands of people out there struggle with debt everyday! And I believe that no matter what there is always light at the end of the tunnel! At the beginning of 2020 I owed around £12,000 to various places!
At the peak of my debt, I was using payday loans month to month, receiving a pay packet, paying them off then re loaning the money! Incurring £30 or so fee on every £100 borrowed! Until the point I couldn’t afford to do anything! Back in 2014-2016 I was maxing our credit cards, payday loans and gambling heavily! With nothing to show but mounting debts!!!
Fast forward to today! I now owe £8,500, though a large chunk of this (£5000) is for my car, which unfortunately for me is a £7000 car, though when I purchased it due to poor credit, I had a loan that would cost £15000 upon payback 🤦🏻♂️! I took out my car loan with a company, when I was at the peak of my payday loans etc, rock bottom credit & therefore interest was almost the same as the loan needed!
I want to show you my current credit score, my debts, and my plans going forward to pay them off whilst saving for a deposit on a house!
Current Situations (I imagine many can relate to this stuff, and I hope that you too can work to improve your situation)
I use Clear Score for this, and then use Noddle/ CreditKarma to cross check records on it! If going from Clear Score, my current Score is 189/700 (At the time of writing this yesterday it was 159, but my monthly report came out this morning)
As you can see, my credit score is a very low figure, with many debts left to pay off, of course I am very wary of my score, especially as my future goal will be to buy a house! And although I’m not completely clued up on this, credit score is something I would assume is a rather large part of the process!
Debts at Present
• Loan A – £5414.86
• Loan B – £673.94
• Loan C – £926.46
• Loan D – £884
• Loan E – £500
• Loan F – £200
Total – £8,599.26p
I currently live with my parents, along with my partner & our 8 month old daughter! My current job is contracted 30hrs per week, though I do a lot more than this, with my past 12 weeks average at 36hrs! I am in the process of changing roles to a salaried position which will be 48hrs per week!
I do need to state that currently I am furloughed from work due to COVID-19, and will be on 80% of my wage for the time being, with my next payday being early May!
So what’s the plan going forward?
Currently my monthly wage, if not taking overtime into account is around £957, though currently furloughed, when working I look to do enough overtime to hit £1300 post Tax & NI
This is all based on my current role, however, once back to work this may change due to promotion and the chance at a new and higher role within the company I currently work for!
Currently with that in mind I have the aim of paying a few bits and pieces off here and there over the coming months, whilst keeping all other repayments going too, and by the end of the year I’ll look to only owe the below amounts
Please note this could change with a potential job change and would be lower than these figures
• Loan A – £3,664.86
• Loan B – £583.94
• Loan C – £836.46
• Loan D – £0
• Loan E – £0
• Loan F – £200
Total – £5,285.26
Difference – £3,314.00
With that in mind I will also be looking to hit £3000 in my FI account as savings!
That’s a total of £6,314.00 from my wages that will be used to pay down debt and save at the same time
The Overall Plan…
With Loan B & Loan C costing the smallest amount of my budget per month, I have planned to allow these to run as long as need be,
I will be setting myself monthly budgets, these could vary from month to month, on or around payday each month I will post a detailed breakdown of what I will be doing with that months wage, if anything changes etc, especially at this time during the COVID, where a lot of people are unsure month to month on there situation!
In August 2021 I will be looking to purchase my first house, this may be very ambitious! Though I do need to stress that by buy, I will actually be looking to get onto the property ladder via a part rent, part buy property!
For this I will need around a 5% deposit which will be £5-7k, I am looking to have £3k in my FI account come the end of the year, with the period of Jan – Aug 2021 then added to this which will be around £200-£300 a month extra, so from the beginning of 2021 till August I will be looking to save around £3k as well as paying off a large amount of the £5.2k debt I have left!
I understand that this is potentially a very ambitious plan, especially given my current wage, the current situation with furlough, and taking on paying off £8.5k in debt while saving £5-£7k
But…If, and when I say if, I mean I will do everything I can to do this, get it done! I will hopefully show on the way that you can do anything you put your mind too!
I want to inspire anyone in the same situation as me at present, by showing that with plenty of things going against you, you can still achieve plenty!
Through the next 16 months till August 2021 I will document my progress to saving money, paying off my debts, improving my credit score, and if all goes to plan, buying my first house!! 🏡
I will be documenting my credit score, what went up and down that month, what I she. Done differently, if I have made any extra money on the side or through overtime (once back to work)!
This will be an exciting journey, which will involve a lot of hard work, budgeting, and doing what I can to get my first home!
I hope you have enjoyed today’s blog, it may not be for everyone, but I hope you will join me on this journey!
I want to be able to document my life thoroughly through this blog and want to show people all avenues of my life at present, I’m very transparent and will again be using this as accountability to succeed
As always stay safe, stay home, and stay positive! ♥️