Newbie Kicking the debt

Hi all, I'm new here and thought I'd post a diary for myself so that I can actually be held accountable and not stick my head in the sand any longer.


So I'm not exactly swamped with debt, but it doesn't ever go down even though I pay towards debt every month for what seems like a good few years *sigh*


I live with what I have, and then some... *rolls eyes* I just don't have any luck or any sense at all.


I currently am in debt as follows:


Overdraft - £1,652/£2700
MasterCard - £909/£2200
BarclayCard - £1936/£2600


My mastercard is from £600 phone (mine broke and already have a contract but they refused to let me use the insurance I had on it because I left it 2 weeks before informing them, even though I explained it was because I couldn't afford the excess) a £250 speeding fine (oops!) and a £80 fine for a car I do not own (basically I sold a car and dvla claimed to not have received the V5 and a year later send me a letter saying I failed to insure or tax it, I then phone 5000 times and sent various letters of proof I no longer own the vehicle but they said due to me only informing them a year later I was still due them £80 for that year... it was going to go to court and I didn't want the stress of going 100 miles to court with two children at 7am in the morning so just paid it)


My Barclay card is from buying a bed from bensons (pressured), I then came to my senses and cancelled, currently going through the furniture ombudsman to try and get a refund (they got in touch today and said they offered me a refund minus 10% which I should take?!) that was for £2100


My overdraft is from.. I don't even know now... my money goes in, I spend roughly what I get on bills and debt and then whatever else I buy that month just adds to the overdraft *shakes head*


I feel like I'm going in circles and I pretty much am. I'm a stay at home mum and would be worse off working. My husband is military as well which makes it very hard to hold down a job (which I have tried but they aren't flexible enough when he goes away for 2weeks to a month or longer)
I'd love an extra income other than my tax credits etc but I'm lost at where to start.


Any help/advice/encouragement on my journey is very much appreciated. Hopefully this is the start of my debt going down not staying stagnant or rising.


Trix
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Comments

  • Trixi89
    Trixi89 Posts: 18 Forumite
    edited 26 April 2017 at 12:49PM
    Statement of Affairs and Personal Balance Sheet
    Household Information
    Number of adults in household........... 2
    Number of children in household......... 2
    Number of cars owned.................... 1 (husband owns a car also)


    Monthly Income Details

    Monthly income after tax................ 1137 (mine only)
    Partners monthly income after tax....... 0 (separate)
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 1137


    Monthly Expense Details

    Mortgage................................ 0
    Secured/HP loan repayments.............. 0
    Rent.................................... 0 (husband pays)
    Management charge (leasehold property).. 0
    Council tax............................. 0 (husband pays)
    Electricity............................. 55
    Gas..................................... 55
    Water rates............................. 0 (husband pays)
    Telephone (land line)................... 0 (included with sky)
    Mobile phone............................ 80
    Satellite/Cable TV...................... 50 (Sky tv,internet & phone)
    Internet Services....................... 0
    Groceries etc. ......................... 250 (my half)
    Clothing................................ 0 (varies)
    Petrol/diesel........................... 50
    Road tax................................ 26
    Car Insurance........................... 50 (saving in advance)
    Car maintenance (including MOT)......... 0
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 47 (School meals)
    Medical (prescriptions, dentist etc).... 16 (contact lens scheme)
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 0
    Contents insurance...................... 18
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 0
    Haircuts................................ 0
    Entertainment........................... £15.98 (xbox live etc)
    Holiday................................. 0
    Emergency fund.......................... 0
    Total monthly expenses.................. 712.98


    Assets

    Cash.................................... 360
    House value (Gross)..................... 0
    Shares and bonds........................ 0
    Car(s).................................. 5500
    Other assets............................ 6000
    Total Assets............................ 11860


    No Secured nor Hire Purchase Debts

    Unsecured Debts
    Description....................Debt......Monthly...APR
    Overdraft......................1652......0.........0 unsure
    MasterCard.....................909.......20........0 unsure
    Barclay Card...................1936......45........0 unsure
    Total unsecured debts..........4497......65........-


    Monthly Budget Summary

    Total monthly income.................... 1,137
    Expenses (including HP & secured debts). 712.98
    Available for debt repayments........... 424.02
    Monthly UNsecured debt repayments....... 65
    Amount left after debt repayments....... 359.02

    Personal Balance Sheet Summary
    Total assets (things you own)........... 11,860
    Total HP & Secured debt................. -0
    Total Unsecured debt.................... -4,497
    Net Assets.............................. 7,363






    Although I am married, this is my finances only, we keep our money separate. I pay the bills, he pays rent and half the food shopping etc... He also has his own bills and car/petrol/debts to pay, we've worked out it's pretty much half and half so we're quite happy with this arrangement.
  • Welcome!! I've just brought my diary back from the dead today as well, so I'm a newbie too!

    I totally relate to the overdraft situation, I've been living right up to my 1800 overdraft limit for years and it's hard to kick! Good luck :)
    Debt on 01/01/2015: £10,241.50
    Remaining debt as of 09/05/2017: £3262.87
    :j
  • Trixi89
    Trixi89 Posts: 18 Forumite
    edited 26 April 2017 at 12:56PM
    the overdraft is the worst because it goes down every month then goes back up with every bill that comes out, I'm hoping once my credit cards are clear it will go down a bit each month. I'll have a look out for your diary


    I always keep on top of my finances by keeping track of every penny I spend...
    I spend on average £425 a month on actual rubbish, from amazon, justeat, mcdonalds, boots etc... I just impulse spend and I feel like an addict :/


    Jan I spent £228 - on costa, a new phone case, £100 in boots, justeat, extra petrol and greggs
    Feb was - £615 - on lidl hoover, amazon, shoes, pets at home (I bought two rabbits, new hutch and fish tanks), just eat, mc donalds
    Mar was £566 - on the same stuff again and so on and so forth... when I'm bored or feeling down I just look for stuff to buy that I don't need.... I literally go on apps like boohoo/boots/house of fraser etc and just look for nice things.
  • I spend on average £425 a month on actual rubbish, from amazon, justeat, mcdonalds, boots etc... I just impulse spend and I feel like an addict :/

    I totally get this too, I have these impulses. It can take a total change in mindset to stop doing this, so until you're there mentally have you considered the *means* you use to purchase these things? Is having a contactless card/apple pay causing extra spending? Is your paypal account connected to your cards or bank account? Cut off your resources wherever possible. I actually froze my credit cards, in water, in the freezer.... :-D

    I think you should take the bed refund, and consider the rest a lesson learned. Have you put your SOA into a snowball plan? Might help you figure out what to focus on paying off first.
    Debt on 01/01/2015: £10,241.50
    Remaining debt as of 09/05/2017: £3262.87
    :j
  • Trixi89
    Trixi89 Posts: 18 Forumite
    I totally get this too, I have these impulses. It can take a total change in mindset to stop doing this, so until you're there mentally have you considered the *means* you use to purchase these things? Is having a contactless card/apple pay causing extra spending? Is your paypal account connected to your cards or bank account? Cut off your resources wherever possible. I actually froze my credit cards, in water, in the freezer.... :-D


    A part of me really wants to save it, and then there's this niggle that doesn't go away at all. It's literally the most pointless stuff ever. I spent £100 on a rabbit hutch and then £100 on a fish tank because I wanted it at the time. The impulse never goes away though and I have tried waiting a day. Takeaways are the worst, I feel tired or drained and just order on justeat instead of eating whats in the house. Or I need a few meals and I go out to the shop and spend £100 and have no meals, or yesterday I spent £30 and all I remember buying is some washing powder from Iceland - I feel like it's becoming a real problem :(
    I have applepay for justeat on my phone and for mc donalds, the rest is contactless, or chip and pin. I've never actually spent on a credit card except for the Bed (because I was refused finance), and for fines and large purchases, never for impulse spending or food.
    I think you should take the bed refund, and consider the rest a lesson learned. Have you put your SOA into a snowball plan? Might help you figure out what to focus on paying off first.
    I think you're right, I was told they don't have to accept refunds and it's usually 20% £180 ish is a large lesson but I will be thankful to put it on my Barclaycard and have it almost cleared :)
    My overdraft costs the most with me paying about £30 a month in interest usage fees, but it's so hard so bring down when it's my most active account...
  • My overdraft costs the most with me paying about £30 a month in interest usage fees, but it's so hard so bring down when it's my most active account...

    Mine too - Santander £31 per month (£1 per day). And it's one of the toughest to shift if you have poor self control because they don't always approve a reduction of the limit, as it technically counts as a credit check/request, or sometimes your approved OD limit is considerably lower than what you currently have . Once I start attacking my overdraft my plan is to attempt to reduce the limit each month, but in the cases where they reject the request I'll put the money away in savings and try the reduction again the following month.

    If your SOA is correct, you have enough spare to make decent repayments. You just need to stop buying crap ;) Even though you don't spend frivolously on your cards, it sounds like you haven't fully accepted that your OD isn't yours to spend. You are buying things you don't have the money for. That probably sounds harsh, but for example, if an overdraft is maxed out at £2,000 and a person is paid £1500 a month, technically they still have nothing to their name. They have -£500.

    I really believe that living in negative balances is living negatively, it weighs down on you so much. Time to switch up the mentality!

    Things that helped me shift my first £7,000 of debt:

    1) APPS: Delete ANY apps that you spend on! JustEat, online shopping, games, etc. If the app isn't there, you won't click it when you're bored!
    2) SOCIAL MEDIA: Just because you like a brand, doesn't mean you have to prove it by clicking 'like' on their page! Unfollow brands, stores etc and clean your feed up. Remove temptation and free up your feeds for actual updates from the people you love :)
    3) PAYPAL: My weakness was ebay, online shopping, contactless payments and applepay. These are all luxuries and totally unnecessary!

    We are at the end of the month, I'm assuming you're about to be paid...maybe consider a reduction of your overdraft limit by £200? You can do this by calling the bank, or some banks let you do it online.
    Debt on 01/01/2015: £10,241.50
    Remaining debt as of 09/05/2017: £3262.87
    :j
  • Trixi89
    Trixi89 Posts: 18 Forumite
    I completely agree with you on the fact I'm not spending my own money, I'm technically paying back £1,100 ish a month and then taking more money from them each month to pay bills. It's a harsh concept to accept, really accept. I know it but I don't think it's fully sunk in yet. It's definitely the best mind set to be in though to enable me to be more debt savvy and free.
    I don't really want to cut my overdraft down too much, but I'm definitely going to try not to buy crap. £450 of crap a month is like £5000 a year ish, that's a 5% mortgage (which I'm hoping to have in the next 5 years)


    Deleting apps is probably a really good idea. I shall go and delete justeat and my other apps I used for 'just looking' then feeling awful because I want them but don't want to spend the money and then feel deprived *rolling eyes*
    If I didn't spend that money I could be out of debt by the end of this year AND have savings.
    I also currently smoke, which I'm going to stop. I don't enjoy it any more but I still want one, yet when I have one I hate it. I think I just have a very addictive personality which I need to kick in the backside.


    I get paid child maintenance end of the month and then benefits etc at the beginning of the month, I'm going to try and take out £300 cash, £250 for food and £50 for petrol and then hide my cards for the month and take off apple pay from my phone. It will definitely feel like a long month and I KNOW I will feel deprived as hell for not spending but I best get used to it. Fingers crossed bensons can refund me by the end of the month and I can put my Barclaycard at £0 that will make me feel good :)
  • :T

    It sounds like you're well on your way to switching up that mindset!
    I don't really want to cut my overdraft down too much, but I'm definitely going to try not to buy crap.

    is there a reason why you don't want to be overdraft free? I can understand wanting it as a buffer but if you really apply yourself and close it down (or reduce to £100) you can start to save up an actual buffer for emergencies in a savings account :beer:
    Debt on 01/01/2015: £10,241.50
    Remaining debt as of 09/05/2017: £3262.87
    :j
  • Trixi89
    Trixi89 Posts: 18 Forumite
    edited 26 April 2017 at 2:33PM
    :T

    It sounds like you're well on your way to switching up that mindset!



    is there a reason why you don't want to be overdraft free? I can understand wanting it as a buffer but if you really apply yourself and close it down (or reduce to £100) you can start to save up an actual buffer for emergencies in a savings account :beer:


    I'm trying to change the mindset and I'm going to push hard this coming month to prove to myself.


    Uhm, purely as a buffer for emergencies but I also like knowing that if worst case scenario the money is there.
    My husband is about to change jobs and we're about to move house etc and with so much uncertainty I want that there. Once we are settled and he has a settled job I will definitely look into reducing it.
    I'm also wanting to build up my credit rating, technically this debt helps as I've never missed a payment just my %%s are a little high on usage and if I reduce the overdraft the usage % will be higher etc.. maybe I'm making excuses, I'm not really sure haha
  • How you doing today?
    Debt on 01/01/2015: £10,241.50
    Remaining debt as of 09/05/2017: £3262.87
    :j
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