Debt free in 3 years...? here's hoping for me and my boy

laurenh1 · 15 September 2017 at 4:24PM

First off you are not a failure! Years ago I lost my job and basically in 6 months racked up so much debt that I genuinely nevee thought id get out of it. In fact I used to get paid and not have enoygh to get food in. A bit if grit & determination and I did pay it all off, my credit rating improved fairly quickly actually and we are now fairly comfortable. That time taught me to be savvy and taught me a lot of things but it will always stay with me.

I am not cool enough to have a budgeting app- I just write everything down in my notebook.

I think moving home is a fab idea, I know its not ideal but its a real opportunity to get yourself straight and it sounds like its best for your boy xx

laurenh1 · 17 September 2017 at 8:15AM

Hope it went ok with your Mam

Im batch cooking a load of soups today ready for the colder months!!xx

Suseka97 · 17 September 2017 at 8:56AM

Okay - now I'm going to get tough

You are not a failure - far from it. Life can be tough and rather than let it defeat you - you've taken steps to get yourself straight. Moving home isn't an easy decision to make (and I hope things went okay with your mum). It's a short term thing to help you get yourself in a position to handle these debts. If you can just manage the best you can until you are able to get rid of that HP loan (February 18, yes) then you'll have more disposable income to work with.

Do go online and use the StepChange debt remedy tool or alternatively visit https://nedcab.cabmoney.org.uk/ on this site there is a great deal of useful information about debt management and many folks on the DMP mutual support thread have used their services. There is also this site https://debtcamel.co.uk/ again lots of useful info. Knowledge is power as they say.

Don't let this debt thing mess with your mental health and don't put yourself down. Debt is depressing, yes, but it's a moment in time and you won't be in this position for ever. There are many, many people out there in debt - go have a read of the DMP thread and you'll see there are many of us dealing with debt issues - very successfully. That thread has people who 'self-manage' their DMP (debt management plan) which is what you are planning to do and others who use the DMP companies I mentioned previously. We are all at different stages and its a very supportive thread.

laurenh1 · 17 September 2017 at 11:14AM

:T :THere here

Cherry_Burton · 17 September 2017 at 1:10PM

Hi,

Before you give up your flat, (is your landlord a housing association?) why not speak to Stepchange about a Debt Relief Order or some other action to help with the debt? It might be that moving in with Mum is the best thing but giving up a, relatively cheap, flat in London is a big move and not one to take without a lot of thought. You don't have to do anything in a rush, give yourself a couple of weeks and take some expert advice. It might help to have a look at this website, (I have no connection other than it has helped me in the past

https://debtcamel.co.uk/

Good luck

CB

savetosave · 17 September 2017 at 9:45PM

Hi
I use an app called spending tracker. It looks like a brown wallet in the App Store. I think you can pay for a better version, but I find the free one perfect.
Good luck with your journey

HopefulHumphrey · 19 September 2017 at 1:12PM

Thank you Laurenh1 (any recipes worth sharing?)

Thank you Suseka97 and Cherry Burton - I went on Debt Camel and its great. Straight into my saved websites! And thank you for pointing me to the DMP thread. I am going to follow that one now as well.

Cherry Burton - I have thought and thought and although it breaks my heart to give up a flat that many Londoners would sell their own mothers for; I see no other option. Its really opened my eyes up to why people 'fiddle the system' so to speak. I can't tell you how many times the council have advised me to give up work in order to remain in my flat (which I could not do anyway as its a flat specifically for people with a set income). But so sad to think that I have considered giving up a well paid job and hard fought career to go on benefits to secure my own roof.

I have considered a DRO and IVA in the past, but I am very reluctant to go into any kind of insolvency. Its a personal choice. I know that regardless of my debt, my priority bills outstrip my income so a DRO or an IVA would not benefit me as my debts are part of the problem at the moment not the whole.

My mum has agreed to have me back. Which is more the joy of having her grandson living with her than me. Which is fine!
I am going to speak to my health visitor about getting some support to help deal with the upheaval of moving and the feeling of taking a step backwards rather than forwards. I am also starting to make an inventory of things that I can sell and put that money torwards starting my emergency fund.

This may sound really basic; but in regards to bank accounts and that, do you recommend separate spending and bill paying accounts? Does your emergency fund go into a savings account? under the mattress? a savings jar?

EssexHebridean · 19 September 2017 at 2:47PM

Emergency fund into a separate savings account - this way you see the figure growing and are more reluctant to touch it. Once you know that you have a regular amount to put aside each month to build this check and see whether your bank offers a regular saver account with a higher rate of interest - Nationwide allow £250 a month into theirs for example and it pays 5%.

laurenh1 · 19 September 2017 at 4:36PM

I think your savings jar is really personal. I do my bills like this; We get paid into one account, then from that account I move my money into three other accounts, one which our bills come out of, one help to buy for my house deposit, and one emergency fund. I put money into my emergency fund for things like Christmas, holidays, if I am saving up for anything in particular and of course, emergencies. I keep a tally of what is in the emergency fund and what It is for so for example, I put money aside every month for Xmas and so a certain amount of what is is in there is ear marked for that. The idea being that if my bills and savings are separate and out of the way, I know that whatever is in my current account is mine to spend for the month and that's what I have to live on, I like not having to remember what is due to come out in bills. It is worth considering any annual expenses and breaking them down into monthly amounts and saving them so they don't catch you off guard. I hope it goes okay with your Mum, sounds like she is very supportive

EssexHebridean · 19 September 2017 at 4:58PM

The "all in one pot" method can work brilliantly for someone who is organised to the "Nth" degree, and keeps a scrupulous tally of every transaction in and out of the account they work from Lauren - I know for example that it wouldn't work for me though - I'd get in an infernal muddle in no time at all!

Generally for those new to having an EF at all we suggest keeping it separate because that underlines the "untouchable" nature of it - for someone who hasn't yet learned financial discipline and is perhaps new to budgeting having it in an account they're constantly dipping into and replenishing again can lead to the mindset that "it won't hurt" just borrowing from it for a while for something that is wanted, rather than needed.

Debt free in 3 years...? here's hoping for me and my boy

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