30k Journey

jamie2017 · 21 May 2017 at 10:01PM

I am 24yo with £29k of debt. This is spread over a debt consolidation loan of £15,500 and a Barclaycard of £13,500

I could lie and pretend my debt was due to various "high value" items which were essential e.g. rent deposits, not having enough to cover my rent as a student etc, but the reality is my debt is mainly down to bad budgeting and bad habits.

I have now used YNAB for 2 months so I can see where the money is going and how out of control some of my spending is.

I have had my lightbulb moment, when you have this sickening feeling everytime you go eat out, when the bill arrives and you feel physically sick knowing you have such high debt repayments that realistically you cannot afford this. When everyone around you has £700 extra a month (same work colleagues etc) as they do not have £700 minimum debt payments. The moment you feel genuinely guilty and sick to buy work shoes, because you worry about this mountain of debt behind you. Living with debt right now equals me feeling endless guilt 24/7, waking up feeling guilty, struggling to sleep with anxiety. I realise it really is not worth it.

The scariest part is you bury your head in the sand because you know it is bad and you cannot emotionally stand up and deal with it, so it gets even worse. Well 2 months into YNAB, having recorded every single penny going in and out, and knowing every penny of debt I have - I have woken up and my head is firmly out of the sand. This needs to go because it is holding back my entire life.

I got given an amazing opportunity to work in New York this year and my debt was the reason I refused it, I am losing out of amazing opportunities and life ambitions because I spend way too much on junk like Starbucks, or Amazon purchases I hardly use, or £7 lunches in the city of London. None of these things are worth it. Today is the day I commit to fixing this, and if anybody can provide me some top tips, some good threads to join, some challenges that work for them perhaps, please please do help.

I will not record a SOA here, because I have already done all of that in YNAB and I have already reduced everything to the minimum (e.g. reduced BB, removed TV package, got mobile half price, compared energy and switched, cut out extras like netflix, cancelled unused gym etc). I have also attended a tonne of the YNAB classes.

I really just need support & this will be a place I document my progress.

emmie26 · 21 May 2017 at 10:26PM

Welcome to the boards. It sounds like you have done some of the ground work already by reducing your outgoings as much as possible.
I have been in the situation where you have a mountain of debt and nothing to show for it and realised the majority of it was spent keeping up with friends and not wanting to lose face.
I found that the best way to keep myself motivated was to post in my diary as often as possible and this kept me on the straight and narrow because I felt accountable for my spending.
Good luck!

moneyfacts · 21 May 2017 at 10:46PM

Seriously, half your problem is solved as your attitude now couldn't be better!

Good luck and be positive.

I was exactly where you are in my 20s. I paid it all off and charged my attitude to money (and life). The debt free journey does eventually become a pleasant one

[Deleted User] · 21 May 2017 at 11:01PM

Well done on your progress so far. Have you got a debt free date?

jamie2017 · 22 May 2017 at 10:32AM

DFD at the moment - I am pushing for 3 years time ie 22/05/2020. It will be a challenge but I do not want this to drag on for 10 years! I have been in debt since 2010 now, 7 years too long.

I am going to kick start the debt free-ness by returning some Amazon purchases

An Amazon Echo for £150 and some WiFi powerline boosters which never worked well so I turn them off anyway (£40ish). Proceeds will go to paying off the Barclaycard.

jamie2017 · 22 May 2017 at 10:34AM

Questions - did you guys sell everything you own, I almost feel guilty to own things like a PS4, or did you just accept what you had and paid down? Should I feel guilty owning things right now or is it ok to accept what I have, draw a line and move on from there?

Also - any top tips for freeing up money in the budget e.g. cutting down groceries / eating out? I spend way to much there.

m_c · 22 May 2017 at 10:43AM

jamie2017 wrote: »

Questions - did you guys sell everything you own, I almost feel guilty to own things like a PS4, or did you just accept what you had and paid down? Should I feel guilty owning things right now or is it ok to accept what I have, draw a line and move on from there?

My advise would be, if you're going to use it, keep it.
Some people will see a PS4 as a luxury (which it really is), however if you've not got it, what are you going to do instead?
You could end up spending more money on other things to fill the time, or the flip side is you may find something far cheaper or more beneficial to fill the time. Only you can make that decision.

Also - any top tips for freeing up money in the budget e.g. cutting down groceries / eating out? I spend way to much there.

Have a look at some of the other boards on here.

jamie2017 · 22 May 2017 at 11:29AM

Eating out I have pretty much stopped, but still the groceries are too high. Will have a good browse of this site

I feel like selling the PS4 might be a silly idea, since I use it to stream a friends Sky Go, so it gives me access to movies + sports + all of my TV channels for free. Hence it is used literally every evening 6PM to Midnight by either me or my housemate & it saves me having a digital subscription (apart from the free BT TV). I could sell it in favour of a streaming device, but then I'd be foregoing gaming for 3 years, which would likely mean I visit friends places to game & then we end up going out / eating etc. So long term, probably not a money saver.

jamie2017 · 22 May 2017 at 11:40AM

I am going to look into selling old clothes, I have a tonne of things that don't fit me anymore. Might get some money to throw at the debt.

Also might sell my external hard drive, haven't used that in a good 6 months!

jamie2017 · 25 May 2017 at 3:48PM

Ok so £149.99 amazon echo returned - check
£40ish powerline wifi boosters returned - check

£189.99 towards the debt here I come.

Hiddenidenity · 25 May 2017 at 4:34PM

I haven't sold the gadgets we have. Although we don't have anything really and I wouldn't sell my childrens.

I do list on ebay what we dont need/outgrown/dont use.

As for grocery budget, we sit and decide on 7 meals for our dinners. Lunches are always sandwiches/soup/school lunches. Breakfast cereal, toast. Fruit.

Write a list and stick to it. Don't be tempted in by offers and deals, its only cheaper if you planned on buying it anyway!

I cant do a strict meal plan of a certain thing on a set day, as tbh this is where we've always failed when we dont 'fancy' that. Where as the 7 meals gives us the choice.

Hope this makes sense.

ETA: snacks are usually baked at home (flapjack/cakes/biscuits)

30k Journey

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