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Thank you for this. Your right I am looking at the money thinking that the credit is mine...and I also know the debt is mine.....its just as you say learning to say no. I really struggled last year and I never ever want to be in that position again. My finances seem to be so complicated and lots of direct debits. I am self employed so my money comes in all different times of the month and some days I feel rich and more tempted to spend than what I should. Thank you so much for this.
Okay you need to simplify it. Not sure what you have now, but I am like you. My BF is the complete opposite and makes me begrudgingly sit down every week and go through everything (grrrrrr).
Have two current accounts.
One account - get all your direct debits to come out of. They will probably roughly stay the same for months (presumably just house stuff?). Get them all coming out of one account so you have an idea of exactly what goes out. Add any car expenses into that too (roughly what you spend in a year and divide by 12. You'll have money then to cover servicing/tax/breakdown, etc).
Get the wages paid into another account. Try not to feel you have to spend what goes in!
What's your weakness? Actual shops? Online shopping? Gadgets? Games? Food?
If you don't look, you won't buy!
Worst thing in London for me was lunchtime shopping. I don't go out now. Lunchtime food costs loads so my OH makes me a packed lunch every day (we buy crisps etc in bulk too). And we do our main shopping online and he just tops it up locally. Try to eat out with restaurant deals.2023 wins: *must start comping again!*0 -
Thank you all for the comments they have been really useful and I'm going to simplify like you suggest and have two accounts.
The amount is £7000 in total I only have ten months left on a car loan so that is including in the 7000 then the ccj is for just short of £2000 so that is also included in there. I've been looking at it all wrong and thinking that the money was all mine to put away for a house deposit but I won't be able to get a mortgage anyway unless I'm in control of my finances so as you have all said it needs to be paid. Thank you for all the tips. I don't think I've got one particular weakness where I'm spending on one thing but it's the little things that add up - a meal out here and there not budgeted for or maybe not planning meals and lunches or just not knowing what's coming in and out. Also because I'm renting at the moment that is quite expensive ..... I will have a good look at things this week. Thank you all so much for your comments and help.0 -
So you have "about" £33k in savings plus £7k (exactly?) of debt you could pay off tomorrow. You will have a far better chance of getting a mortgage and possibly far more choice of lenders/rates if you clear your debts, especially the CCJ.
If you don't have a partner like HazyJo's BF, you can post your SOA and we will do our best to help. There are apps (names, please?) to help you keep track of your budget; if you choose one, please make sure it is a free one! Some of them charge you to use them; a bit self-defeating, imho. Or you can use a simple spreadsheet.
I look forward to hearing you have it all under control, an AIP in place and are house-hunting.
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Thank you all for the comments they have been really useful and I'm going to simplify like you suggest and have two accounts.
The amount is £7000 in total I only have ten months left on a car loan so that is including in the 7000 then the ccj is for just short of £2000 so that is also included in there. I've been looking at it all wrong and thinking that the money was all mine to put away for a house deposit but I won't be able to get a mortgage anyway unless I'm in control of my finances so as you have all said it needs to be paid. Thank you for all the tips. I don't think I've got one particular weakness where I'm spending on one thing but it's the little things that add up - a meal out here and there not budgeted for or maybe not planning meals and lunches or just not knowing what's coming in and out. Also because I'm renting at the moment that is quite expensive ..... I will have a good look at things this week. Thank you all so much for your comments and help.
If meals are your downfall, don't pay by card. Budget a set amount per month for meals out, withdraw that in cash and once it's spent then no more meals out until the following month.
If you pay on a credit card and pay it back over several months/years then that £25 meal will cost you a lot more than that!
If your goal is to have a mortgage, then you need to work out a budget now for all your expenses and stick to it.
Good luck.
Ageing is a privilege not everyone gets.0 -
Agree with Clutterfree's cash suggestion, was here to suggest it myself. Even just until you know how much you're getting through and what you spend it on.
Be generous if you know you can afford to. I mean don't be unreasonable and take out a tenner or twenty for the week and have it gone in a day. Also, roll over whatever's left, don't top it up. So if you draw out say £80 a week and don't go out that week, you have £160 the following week.
Sometimes you'll need to buy a birthday present, get a haircut, go for dinner or pricier drinks than usual, and it's those times when you end up thinking f--- it, I'll just stick it on the card. This way, you should have a buffer for those eventualities as other weeks you won't be out.
We all underestimate just how much we actually spend!
I also find buying presents in the sales and putting them away extremely beneficial. 70% off stuff in Boots in January! That means people get a nice present for nearly a quarter of the price!2023 wins: *must start comping again!*0 -
The CCJ will be accruing interest at 8% a year. The credit cards will be accruing interest at perhaps 20% a year.
Yet your cash savings will be accruing perhaps 0.5% of interest.
Leaving your debts outstanding is quite literally throwing money away. I think you should pay off your debts ASAP.
Once you've paid your debts you'll still have £28k left, that's plenty of security.
You'll have a much better chance at getting a mortgage if your debts are 'satisfied' rather than outstanding. Most mortgages will require you to pay off your other debts (such as credit cards) as a lending condition.0
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