Deliciosa’s DFW diary

deliciosa · 6 February 2007 at 9:46AM

Hi guys

I decided to start the diary after being encouraged by some of you – I hope this will help me to hang on and not give up!

My current debt is £4300 (ish) on credit cards. I know some of you here have bigger debts but for me this is huge, scary, tremendous, unbelievable….

So how did I get into this?

From August 2004 till August 2005 I was on a net £180 per week salary. But I managed to build up a nice credit score by January 2005 and I applied for a loan to pay off £400 debt to a person I know. I got £2500 in loan from HSBC. I have no idea how, but I spent it within a month. I was so stupid…. I thought the world was mine and I could just do anything…

Within the next few months I have been offered two credit cards: HSBC with a limit of £1500 and M&S with a limit of £1500. I accepted them both. I started spending on them. I thought I could just hand over the plastic and I got the shiny new book, skirt, shoes, anything I wanted… I thought I only have to pay back three percent every month.. I thoguht I made the best deal ever… and I kept on spending. I maxed them out by July. I do not want to blame anyone else but myself, but I would like to add that giving a credit of £5500 to a person on a gross £13k annual salary is not responsible lending. I now see this. The banks were greedy and I was too, I fell into the trap. I cant believe how easy it was to buy things… I could have anything I wanted. I bought a dior bag and dior shoes. How stupid was I…

I kept on repaying the loan all right but then I was short of money because of my low income. So I kept on spending on my credit cards… in June I have been offered a BA Amex because I was an executive club member (how? Because I bought business class plane tickets, because I stupidly thought I could just do it, since I had nice credit cards!!! Stupid, stupid, stupid!!!) I accepted. They gave me a credit limit of £800. and I kept on spendign on this one too…

In August 2005 I became unemployed. After three scared nights I got a job that paid me £20k – I was all over the moon. So, of course, I thought I can spend even more now. I did not even consider paying back my debts! I met the minimum payments and that made me happy, and I spent about 900 on my amex, every month, maxing it out, then paying it back… I got into a terrible debt by December, when I lost my job. My boss was harrassing me and they didn’t pay for half of december. I was in a terrible state and I just wanted to survive until June 2006, when my loan repayments end. I had absolutely no money. I was in a horrible state, and I still kept spending on the cards, I made the minimum payment of £50, then as soon as it cleared I used the card again – pathetic. I forgot to tell in the meantime the HSBC card increased the limit to 2000. That was now maxed out as well.

Then, in January 2006 I got this contract job which paid fairly well. I tried not to overspend but I still did not realise what a mess the whole situation became. I kept on spending and I justified it by saying I needed new clothes for the office, etc. By June, I started missing payments. By October, I paid off my loan (3 months late!!) and I realised that even without a loan I had about £5300 debt, £300 of which overdue.. I was scared, then I came here, and I had my lightbulb moment. Can you believe, almost two years after starting to get into debt.

Now, since November 2006 I managed to pay off £1000. I am on a very very good salary now since the 21st January (my first pay check is this Friday!!!!) – I am earning £26k. Thank God for this. I am committed to pay off the debt latest by the end of this year. No more irresponsible spending. I will spend on my amex because it gives me BA points but once I cleared its balance I will pay it off every month so I don’t pay interest. I want to get out of this mess. I want to save money, I have a decent salary now, I actually could!! I don’t ever want to get into debt again. No more loans. No more credit card applications.

You guys here helped me a lot, and still do, I dotn know what I would do without this forum. It helped me realise that I am not alone. So thank you and I will keep you posted about my progress!!!

Maddy

elantan · 6 February 2007 at 9:53AM

Maddy what a great first post to your diary ...i'm positive by the end of the year it will turn into an amazing story....do you have your lunch planned out for today? good luck and congratulations for 2008 and a debt free life (wanted to get in early)

sammiboo · 6 February 2007 at 9:53AM

sounds like you are getting on with dealing with your debts! well done!

I know the feeling, i owe just over 11k which is nothing compared to some people on here but to me its loads.

ai think it will teach you a lesson for the future and the way you spend.

Skint_Catt · 6 February 2007 at 11:16AM

Well done on starting your diary and having your lightbulb! :T

We're all here to help!

You have a good salary in relation to your debts, which is thankful, but some careful planning will sort it all out for good.

Will be keeping an eye on your progress

Good Luck

Catt xx

LookingAhead · 6 February 2007 at 11:44PM

Hi Maddy. I have just posted on the other thread you have to as I am worried about you and your not eating...so take a look at that when you have a moment.

Things will get better, they *really* will so keep looking forward.

However as I said on the other thread, your health comes FIRST.
You must sort out your food budget as a priority ok?

I'll be back to check on you....;)

slowlyfading · 7 February 2007 at 12:08AM

You're doing so well so far

really organised! Please keep us updated with your progress. I read your other thread too, please look after yourself. -hug-
SF :heartpuls

miggy · 7 February 2007 at 12:25AM

Hiya,
I found your new thread

I can hear how scary it's all been, from the way you write, and how it's gone from great 'highs' down into the depths. :grouphug:
Have you mapped out how you are going to make the repayments, and planned how you will save after it's all sorted out?
I know this is boring, but take it steady. It would be great if it were all sorted yesterday, but on a lovely salary like yours, it won't be as long as it must feel now. Not too many months in the future, you will be looking back and saying 'I did it!'
Have you found the OS board yet?

slowlyfading · 7 February 2007 at 9:50AM

how are you feeling today?

hope you're alright!
SF :heartpuls

deliciosa · 7 February 2007 at 10:03AM

Hi all, thanks for writing again!

About my health: my boss sent me home yesterday as he thought I looked pale and he was worried. I will take the rest of the week off.

I found the old style boards and today I will have time to browse them, I will do it right away!!!

miggy (and to all lovely people that are worried) - I realise I can't go on with no eating. So I decided I will have proper lunch every day. I will go to the old style board for advice right away!! And besides, if I keep on not eating I wont be ableto wear my clothes as they look a bit saggy already, and spending on new clothes, however fun, would be more expensive than food...

So yesterday morning I was on a meeting and they provided free lunch so I ate a lot. I did not spend any money yesterday!! Today I will buy ingredients and cook at home. Something cheap. (Old style board here I come).

Also someone asked if i have worked out how i do my repayments. oh it was miggy

so I will get paid on Friday or Sat (probably friday) and it will be a lot of money because I will get almost one and a half month's salary. It will be about £1700 hopefully. So I put £400 aside for my rent, that leaves me with £1300. I planned to allocate it the following way:

£400 to HSBC card
£900 to Amex.

Because amex is the highest percentage and the HSBC is the second highest.
Also, I know I will need spending money too for the next month, but I can do it on my amex and then it will give me BA points. I will be careful not to spend it all on amex, I think I could set up a limit of £400 to spend maybe? That would include travelcard which is £90. So that leaves me with £310 to spend for a whole month, that's food, clothes, toiletries - it should be enough, or maybe even too much? please help if someone has an idea...

so if everything goes well, I will have £1500 ish on my HSBC card outstanding, and before next payday, I will have about £600 outstanding on my amex, and then the £1300 on M&S card - this would be about £3400 debt.

What do you think?

I'm off to the old style board now!!!

Thanks again to everyone, I am always afraid that if I dont mention everyone by name, everyone will get upset and dont write me anymore,

deliciosa · 7 February 2007 at 10:04AM

slowlyfading wrote:

how are you feeling today? hope you're alright!
SF :heartpuls

I have to answer to this separately because this was so lovely - thank you

I'm feeling much better.

Actually, I'm thinking about eating some kind of chicken fajita wrap today - I only need chicken and tortilla as we have peppers! but if anyone has an idea what else I could put thats not chicken, that would be great (cus chicken expensive).

slowlyfading · 7 February 2007 at 10:07AM

The only thing is with that plan, is that when you get paid, if you pay off that amount on the cards, you'll have nothing to spare for yourself. I'm not sure whether putting it BACK onto a card is a good idea or not, you'll have to wait for someone more useful to come along

Its upto you though, you sound more positive today, which is always a good thing

Glad to hear that you're going to have lunch

plan it so you'll enjoy what you're eating, thats the main thing

have a good day.
SF :heartpuls

Deliciosa’s DFW diary

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