Recovery from reckless spending

SeekingRedemption · 15 July 2017 at 10:06AM

Definitely will, cheers. I've got a plan of action this weekend:

- Shift the TSB CC and overdraft onto the Barclayard. It'll cost around £120 in fees, but will save me a fortune in interest, with 0% until Oct 18.
- Continue paying the loan, and throw everything else at the Barclaycard to clear the balance before next Oct.
- Live thriftily until the end of July (when I get paid) using the proceeds from selling books & CDs, and that'll give me my 'debt at its worst' figure
- Do a proper, detailed spending diary throughout August - documenting every penny - so I can do a proper SOA and calculate an accurate debt free date

Another thing I'm considering is Uber Eats. It's just been rolled-out in my area, and I've noticed fellas on bicycles outside McDonalds doing home deliveries. I'm a lapsed cyclist, so it'd give me a flexible way to get fit again and earn extra money, which would be thrown exclusively at the debt.

Lucylocks · 15 July 2017 at 12:10PM

Not heard of uber eats but sounds like a plan to me; keep you occupied, get you fit which will resolve low feelings plus you may get free food. Result!

SeekingRedemption · 15 July 2017 at 12:19PM

Cheers. Yeah, I think it's just a Deliveroo type thing. I'm just keen to pay the debt off quickly (i.e. 2 years rather than 5) so I need to not only drive down my spending, but also increase my income.

Ilona · 15 July 2017 at 12:56PM

Hi. I'm going to be the odd one out here, and risk getting slated. I haven't had contents insurance for years. All my furniture, and most of my possessions are second hand, picked up from car boot sales, charity shops, given to me, and skip diving. To me they are just stuff. I take the attitude that I am responsible for what is in this house, if anything needs replacing, such as broken appliances, I have money put away for that. All the money I would have paid in insurance is now in my emergency fund. Basically I self insure.

It depends how you value what you have, and if you need to be surrounded by the latest, the modern, the most up to date, and the fashionable, or if you don't mind living with the basics. Looking around my living room I have a second hand four piece suite bought for £50 off a friend. A dining table free, the people next door threw it out. I'm sat on an office chair someone gave me because it was broken, I mended it. A sideboard I bought 30 years ago from a friend for £5. A set of drawers I found in a skip. A Dyson found in a skip. An old desk computer bought new 12 years ago, it's still working. Nearly all my clothes come from charity shops.

I know if I lost everything I have enough in the emergency fund to buy what I need, because my needs are simple. I know not everyone wants to take this chance, but as I said, my stuff is just stuff.

Ilona

Debtslayer · 15 July 2017 at 12:57PM

Sounds like you've made a good plan. Well done and good luck earning the extra income. If you keep up this determined attitude you'll soon clear the debt

Debtslayer · 15 July 2017 at 1:00PM

SeekingRedemption wrote: »

Great advice on the phone, cheers. Is it not illegal to put my wife or parents on the insurance to save money? Just would be worried about it invalidating my insurance in the event of a claim.

No, not as long as you are putting them on as additional drivers. It's illegal when people claim someone else is the main driver and they're not.
Worth ringing your insurance to see if it will come down

sourcrates · 15 July 2017 at 1:57PM

Ilona wrote: »

Hi. I'm going to be the odd one out here, and risk getting slated. I haven't had contents insurance for years. All my furniture, and most of my possessions are second hand, picked up from car boot sales, charity shops, given to me, and skip diving. To me they are just stuff. I take the attitude that I am responsible for what is in this house, if anything needs replacing, such as broken appliances, I have money put away for that. All the money I would have paid in insurance is now in my emergency fund. Basically I self insure.

It depends how you value what you have, and if you need to be surrounded by the latest, the modern, the most up to date, and the fashionable, or if you don't mind living with the basics. Looking around my living room I have a second hand four piece suite bought for £50 off a friend. A dining table free, the people next door threw it out. I'm sat on an office chair someone gave me because it was broken, I mended it. A sideboard I bought 30 years ago from a friend for £5. A set of drawers I found in a skip. A Dyson found in a skip. An old desk computer bought new 12 years ago, it's still working. Nearly all my clothes come from charity shops.

I know if I lost everything I have enough in the emergency fund to buy what I need, because my needs are simple. I know not everyone wants to take this chance, but as I said, my stuff is just stuff.

Ilona

I think the value in contents insurance is if there was a fire, and you lost everything, your insurance would replace everything for you, cooker, fridge, you have to think about the kitchen units too, cupboards, sink unit, oven, when you add up every last item, down to the knives and forks, even if you went out and got them all second hand, its still a large cost, theirs bathroom units, toilets, the cost of redecoration in every room, it can cost a pretty penny to replace everything within your four walls.

Lucylocks · 15 July 2017 at 3:43PM

Contents insurance also can provide cover for alternative accommodation- including emergency accommodation. If it all goes up in smoke it will provide you with funds to sort somewhere to live. It is essential- please don't scrimp on this

SeekingRedemption · 16 July 2017 at 5:55PM

Just sat and did a meal plan for the week ahead (first time ever). Went to the shops, bought everything I needed for £10! This is a game changer. I had no idea I could eat so cheaply, and this was from Tesco, so I'm sure that tenner could go a bit further at Aldi. Exciting!

Heidistar · 16 July 2017 at 7:28PM

Hi Danny,

Good luck on your new journey!

You should see a Solicitor about your circumstances. It may be that your wife can claim benefits and/or tax credits now that she is living alone, and you would then be able to pay less and have more towards your own living expenses.

Although it is expensive to see a Solicitor, you can probably find a one hour advice session for a limited fee and it can be well worth it and help you know what to expect going forwards.

Heidi

Recovery from reckless spending

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