DFW journey starts today

twiggy86 · 16 October 2014 at 12:36PM

Hi

Been lurking for a while but today I am determined to get things under control - so this is my fourth step!
Here's my background info! I half inherited a house last year so have finally moved out of the parents and in to the real world of responsibility! The key reason for my debt is that the house needed extensive work doing (completely re-wired, replumbed, plastering, flooring etc etc!) Whilst I had some savings for the work, this quickly ran out and so resorted to putting it on my credit card to get the house into a habitable state. There's still lots more work that needs doing and so I need to get back on track money wise and get some savings otherwise this will continue to spiral.

First step was to calculate my total debt:-
Credit card - £6,652.48
Next - £436.48
Overdraft - £480.52 (interest free)
Parents - £820
TOTAL - £8,389.68 (eek)

So my second step was to apply for an interest free credit card to transfer some of my current balance. However unfortunately I got refused.
So my first question is - I know Martin says to space out applications but how long should I leave in between? I've made an appointment to speak to someone at the bank next weekend but worried this isn't enough time between applications but also really want to get some debt shifted.

I've also started working on a budget so that I know exactly where I stand (third step!) My second question is - if I budget £20 for X and £50 for Y etc - where do you keep your money? (No I'm not a burglar!) Do you keep it in your bank and just note how much is in each pot or do you draw it out the bank and keep it in separate envelopes? I have got a couple of accounts with my bank so all my household DD come out of one so that is separate from my everyday money. I know I would feel more in control if I had it in separate envelopes but then what if I do online shopping?!

I hope this is the right post for this - any help would be greatly appreciated!

System · 16 October 2014 at 4:53PM

Welcome!

Your debt will be completely manageable soon enough with the help of everyone on here. I assume as you inherited half of the property you've paid half of the structural costs?

As far as your budget management goes, what works best for you? For some people the envelope thing works, but you’ll need to make sure your home/contents insurance will cover large sums of cash… I personally find it’s more tempting to spend that money if it’s in cash or in front of me! I transfer my money in to a different bank account and have set up my direct debits to come out of that account. It takes some management each month but keeps my bills organised!

twiggy86 · 17 October 2014 at 10:49AM

Sorry by inherited half I meant that I got a mortgage for the other half to buy a family member out - i.e. its all mine but so are the costs!

I'm having a good long think to see what I think will work best for me - going back a few years I worked in a pub whilst at uni and was paid in cash (did pay tax) and I always had money. I then did a placement year and was paid into my bank - got paid a lot more but never had money! Went back to the pub - less money but always had money! So I think cash might work better for me, but I guess I can always change it!

Since posting I remembered I bought some beds on finance which I have to either pay off in full by May next year or go onto a 3 yr plan paying 31.93% interest!

So total debt is actually £9,863.64.

I don't know whether it would be best to save as much towards the beds by May (whilst paying off the other debts) and then put whatever I haven't managed to save on my CC (CC is 19.9% interest) to avoid the 3 yr plan and ridiculous interest. So say I save £1,000 then put the other £600 on my CC (which WILL have been decreased by then!) - or is this not advisable?

I'm new to this so please advise if you don't think this is the best way forward!

twiggy86 · 17 October 2014 at 3:22PM

Good bit of money saving today... Was going to pop out for a card for my friends birthday on my lunch break, but in the true money saving spirit decided to go on my way home instead so as to not waste petrol (even though I would be rushing on my way home). But my boss asked me to pop out for her this afternoon so I managed to get a card at the same time meaning that I get my petrol and parking paid for instead!

System · 17 October 2014 at 4:09PM

Bonus on the card! Did you go to a 'Card Factory', their 8 for £1 and 5 for £1 deals get me through the whole year for birthdays, xmas's and anniversarys! Just have to spend some time rifling through all the rubbish ones to get good ones!

twiggy86 · 17 October 2014 at 4:15PM

No I didn't as there wasn't one near where I was going (and it would have just been Tesco's I went to later anyway!)

I will definitely go to a "card factory" and stock up as it also means you're prepared! However what do you mean by "card factory"? There's a G&Ts near my home which is cheap, although I'm not sure it's that cheap!

October_Starter · 17 October 2014 at 8:37PM

Hi Twiggy :wave:

I'm a new DFW too. Good luck in your journey! I am sure you will get through it all

October xx

twiggy86 · 18 October 2014 at 12:26AM

Thanks October and good luck to you too.

Free night tonight - went round a friends for her birthday - was going to drive but a friend offered me a lift so another petrol saving! Especially good as it's 40 minutes each way to my friends! Didn't drink anyway so didn't waste any money on alcohol either.

Got some money today so off to the bank in the morning to pay it in and then pay it off the CC! Every little helps!

twiggy86 · 18 October 2014 at 9:57PM

Weighed my clothes in today - got a massive £2.80! Hoped for me but oh well it's better than nothing!

Decided not to put the bits on ebay yet - if I put them on next week for a week they'll finish at the beginning of the month so hopefully get more bids!

Haven't paid off CC yet but I've got a good chunk that I can pay off so will happy once that's done.

twiggy86 · 20 October 2014 at 9:52AM

Nothing exciting to report for yesterday but did have a no spend day and managed to dry some washing on the line (don't have a tumble dryer but been struggling to get stuff dry so it was just lingering around!)

I am however getting better at saying no which should help me save money!

Planning a no spend day again today - wish me luck!

twiggy86 · 20 October 2014 at 2:37PM

Paid £150.80 off the CC today (more than the minimum)! Waiting for some more money to come in plus I had to add a bit more to the CC for work expenses which I will get back on Friday (PAYDAY!) so will update signature then which will hopefully show a good chunk coming off the CC!
Also want to try and make an overpayment on my Next account this month.
Still on track for a NSD today as well!

DFW journey starts today

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