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Changing your mindset and sticking to it...!

Just wondered if anyone had come up with the magical way to keep themselves debt free? As you can see from my sig we are in a lot of debt and trying, patiently to pay it off. However part of me is scared to because this is something we have been through before - twice. Just after we got married we found ourselves in a mountainful of debt, we had taken loans out to pay for our wedding, to furnish the house, to buy a car. It was the late 1980's and we were 7500 in debt and OH was earning only 550 per month, I was unemployed. The best thing I did at that time was get a job - working in a bank because it made us face up to our debt problems, I had to keep ourselves in financial order. 3 years later our debts were paid off helped by the fact I was working, OH was promoted at work and by us snowballing our debts. It was an amazing feeling and the next 5 years were brilliant we had holidays, saved, had a baby then we both decided to retrain and that is where the problems began we continued the lifestyle without the money to pay for it. We had a lot of equity so took out a secured loan to consolidate - of course that did not work and now we are over 30k in debt. This time I am determined we will never live like that again, spending money we don't have but I've said it before and that is the bit that worries me ! :o
Debtfree JUNE 2008 - Thank you MSE:T

Comments

  • lynzpower
    lynzpower Posts: 25,311 Forumite
    10,000 Posts Combo Breaker
    well here we all are struggling, so aside from the cash falling out of the sky, I dont think there is a magical solution! Although I wish there were!!

    Could you post up your SOA and an idea of your incomings and outgoings?
    What are you spending on food, transport rent/mortgage etc? Theres a budget planner speadsheet at the top of the page to help

    If you postyour ins and outs up here, then we can look to see where you can cut back!

    Lynz
    x
    :beer: Well aint funny how its the little things in life that mean the most? Not where you live, the car you drive or the price tag on your clothes.
    Theres no dollar sign on piece of mind
    This Ive come to know...
    So if you agree have a drink with me, raise your glasses for a toast :beer:
  • Hi themaccas

    You seem to have paid a chunk off in the last month. How much are you trying to pay off per month against the debt?
    Debt Free Wannabe :rolleyes:
  • themaccas
    themaccas Posts: 1,453 Forumite
    You're right lynzpower I guess if there was a magical solution this board would not exist, I guess it comes from a reeducation about our attitude with money. We both earn a decent wage and I have always been careful in trying to get the best deals for utilities, insurance food etc and I'm pretty sure that, apart from our mobile bills - 3 contract and 1 PAYG for myself, OH, DS1 and DD that cost us around £85 per month(!!), we have cut off as many corners as we can.

    We are able to throw £1400 per month to cut down our debt but February has been a really good month, I have worked extra shifts at work during a weeks holiday and I had some tax back so I think we'll have managed to pay off just over £2500 this month. There is plenty of overtime and extra shifts going at work however I have decided that I'll only do them when I have spare time ie whilst I have holiday or I'm given time off that's owing. I do need to have life and my children need me more than our debt needs paying!
    Debtfree JUNE 2008 - Thank you MSE:T
  • roswell
    roswell Posts: 2,447 Forumite
    Just think of monay in the sence of the bartering system you exchange money for goods, Money is just a tool for the exchange so imagen sheep, You start with a whole sheep then remove a leg for tax if your buying on finance you will most likely have to find another half sheep and pay 2 extra legs in the term of the loan if not more .....

    see how that helps you to stay debt free.
    If it doesnt pay rent sell it.
    Mortgage - £2,000
    Updated - November 2012
  • themaccas
    themaccas Posts: 1,453 Forumite
    Been thinking about this like your idea Roswell! I have just started a diary to record our debt free pathway and I am writing about everything this debt has made me and our family feel to try and remind me in years to come when we are debt free (being positive here!) how hard this is emotionally, mentally and all the negative things that it causes. I wish I had done this when we were paying off debts in the late 80's I am sure it was just as hard then.
    Debtfree JUNE 2008 - Thank you MSE:T
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