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  • FIRST POST
    • debtaghh
    • By debtaghh 27th Jul 16, 10:00 AM
    • 776Posts
    • 2,252Thanks
    debtaghh
    I want to stop drowning
    • #1
    • 27th Jul 16, 10:00 AM
    I want to stop drowning 27th Jul 16 at 10:00 AM
    Hi,

    I am not sure where to start or what I want from this but here goes ...

    We are in major debt and things seem to be getting worse, I have been looking at this site for years and know there is no point me posting my soa as we literally can't cut back any more e.g

    food shop for fam of 5 £240- if you can help me reduce this then that would be great. I shop at Aldi, Lidl etc and have most shops locally.
    We just got rid of sky and have reduced mobiles, gas etc.

    We can't do an iva or dmp etc as we are in rented accomadation and I know estate agents can use guarantors etc but we don't have one plus they are not that keen as I have mentioned it before to them. Where we live , it's really hard to rent as there are limited properties and having bad credit would just go against us which we really can't do.

    Our biggest issues are that I do things that I end up regretting e.g booking holidays in the uk which still add up, book parties for the kids etc. I don't know how we got into so much debt but assume it must be down to this and i've never been on a good salary. My business has been hit badly and never recovered. I'm currently looking for a part time job but can't see this happening soon as I need it to be enough salary to cover childcare for my baby. My husband is on a good salary but works shifts which means I can't rely on him for childcare help and we don't have any family that can help us. I've tried working for direct selling companies and sell things on music magpie, ebay and gumtree ( I literally have nothing else to sell). I use cashbaack sites too and did do surverys but never seem to be eligible but will stary back with that- any recommendations for good ones? Or any ideas of making more money from home?

    We are due to go away soon and I would love to have advice on how we can save money on food whilst staying at a hotel, I thought I will bring snacks from home and croissants, drink cartons for breakfast but don't want to be speending loads on lunch and dinners.

    I also feel pressure from my family when it comes to birthdays and christmas time with regards to buying expensive pressies. We have a holiday booked at christmas too ( I know not ideal).

    I supoose I'm writng this to start afresh as I can't carry on like this anymore. I am severly depressed and wake up exhausted every day and have no motivation to do anything. I feel like we are drowing in debt. I am currently receiving cbt but in all honesty the crux of the situation is the debt is the issue. I'm sick of having regrets and living life like this so fingers crossed to new me, it' going to take years but here goes.....
Page 11
    • debtaghh
    • By debtaghh 9th Jun 17, 6:59 AM
    • 776 Posts
    • 2,252 Thanks
    debtaghh
    I am pleased to say all transfers have gone through and the barclaycard refund for the fee has gone through as well. I've updated all the spreadsheets. I need to really clear £2100 asap as from July I will be paying 10% interest, which means if I only pay the minimum because of the interest it will take 7 years to clear I don't think so! I am going to try and throw every extra penny into this as want to clear it asap.

    Wash load one is on.

    Just thinking about summer spending money and how much I need:

    We are staying at friends house for a few nights and normally treat them to a takeaway so will allocate £100 for this.
    We are then going away in the UK but it's self catering , we have some things already booked and paid for but still will allocate £250 for this break for meals , drinks and treats.
    I then will allocate another £50 for the whole summer holidays= £400 needed in total. I have this money in a pot. In fact I have a bit more than this which I may still allocate to holidays as I have reduced my food budget for August due to holidays so this money can go towards that.

    I am also looking at my spreadsheets again and they aren't realistic as they haven't included dd or ds bdays that are coming up and I need to buy them something plus we will have people over for this so need to allocate money for extra food.

    Off I go and try and play around with the spreadsheets again!
    Last edited by debtaghh; 09-06-2017 at 7:17 AM.
    Debt 16th October 2017: Cc £49,987- family £37,561: total debt £87549

    Current debt: Cc £46,572, Family £ 37,313: total debt £83,885
    • debtaghh
    • By debtaghh 9th Jun 17, 8:23 AM
    • 776 Posts
    • 2,252 Thanks
    debtaghh
    Sorry for all the posts today!

    I am after some advice. From July I will be paying 10.2% interest on my barclaycard balance of £2100 and am wondering if I shoud

    a) clear all my savings which are for emergencies, xmas and holiday and clear the balance and then use the cc as and when I need it for these
    b) keep allocated savings and just chip away at it and just put any extra money towards this
    c) hope we get another 0% soon that I can transfer it too whilst chipping away at it ( this is out of my hands and will be a waiting game)

    I know option a would save interest but I do feel a bit anxious about this so would appreciate people's advice
    Debt 16th October 2017: Cc £49,987- family £37,561: total debt £87549

    Current debt: Cc £46,572, Family £ 37,313: total debt £83,885
    • clearmydebts
    • By clearmydebts 9th Jun 17, 9:45 AM
    • 6,082 Posts
    • 17,551 Thanks
    clearmydebts
    Sorry for all the posts today!

    I am after some advice. From July I will be paying 10.2% interest on my barclaycard balance of £2100 and am wondering if I shoud

    a) clear all my savings which are for emergencies, xmas and holiday and clear the balance and then use the cc as and when I need it for these
    b) keep allocated savings and just chip away at it and just put any extra money towards this
    c) hope we get another 0% soon that I can transfer it too whilst chipping away at it ( this is out of my hands and will be a waiting game)

    I know option a would save interest but I do feel a bit anxious about this so would appreciate people's advice
    Originally posted by debtaghh
    Not sure this makes financial sense but my gut says keep your savings. From this month I am going to build up savings. I am not an anxious person in general but when it is coming up towards payday (1-2 weeks beforehand) I always get anxious when I look at my balance. I like to know that I can dip into them if there is a crisis.
    Total debt (starting September 2016): €21,973/€27,000
    BOI credit card: €6,000/€7,000
    Loan:€15,973/
    Savings: €0
    • debtaghh
    • By debtaghh 9th Jun 17, 9:54 AM
    • 776 Posts
    • 2,252 Thanks
    debtaghh
    Not sure this makes financial sense but my gut says keep your savings. From this month I am going to build up savings. I am not an anxious person in general but when it is coming up towards payday (1-2 weeks beforehand) I always get anxious when I look at my balance. I like to know that I can dip into them if there is a crisis.
    Originally posted by clearmydebts
    That is how I'm feeling. Like you said I'm not sure it makes financial sense but I think I'd feel more secure having the savings . I would also hate to have to use the credit cards again.
    Debt 16th October 2017: Cc £49,987- family £37,561: total debt £87549

    Current debt: Cc £46,572, Family £ 37,313: total debt £83,885
    • clearmydebts
    • By clearmydebts 9th Jun 17, 9:56 AM
    • 6,082 Posts
    • 17,551 Thanks
    clearmydebts
    That is how I'm feeling. Like you said I'm not sure it makes financial sense but I think I'd feel more secure having the savings . I would also hate to have to use the credit cards again.
    Originally posted by debtaghh
    Personally if I started using the credit cards again it would be a slippery slope to overspending. Whereas I hate to dip into my savings unless absolutely essential!
    Total debt (starting September 2016): €21,973/€27,000
    BOI credit card: €6,000/€7,000
    Loan:€15,973/
    Savings: €0
    • debtaghh
    • By debtaghh 9th Jun 17, 9:58 AM
    • 776 Posts
    • 2,252 Thanks
    debtaghh
    Personally if I started using the credit cards again it would be a slippery slope to overspending. Whereas I hate to dip into my savings unless absolutely essential!
    Originally posted by clearmydebts
    That's what I'm scared of, that if I start using the credit card for Xmas presents I won't budget as well. Where as if I physically only have £200 for presents then that's all I have.
    Debt 16th October 2017: Cc £49,987- family £37,561: total debt £87549

    Current debt: Cc £46,572, Family £ 37,313: total debt £83,885
    • clearmydebts
    • By clearmydebts 9th Jun 17, 10:00 AM
    • 6,082 Posts
    • 17,551 Thanks
    clearmydebts
    That's what I'm scared of, that if I start using the credit card for Xmas presents I won't budget as well. Where as if I physically only have £200 for presents then that's all I have.
    Originally posted by debtaghh
    We must have a similar midset! Lol
    Total debt (starting September 2016): €21,973/€27,000
    BOI credit card: €6,000/€7,000
    Loan:€15,973/
    Savings: €0
    • enthusiasticsaver
    • By enthusiasticsaver 9th Jun 17, 11:58 AM
    • 4,691 Posts
    • 8,808 Thanks
    enthusiasticsaver
    I would say keep your savings as at least you will then spend within budget.

    Spending on a credit card and increasing the debt regardless of the fact you have cleared some of it by using savings means you need less discipline as you have effectively given yourself permission to add to the debt and not necessarily within budget.
    4 weeks to go until early retirement in December . Debt free and mortgage free.

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • debtaghh
    • By debtaghh 9th Jun 17, 12:03 PM
    • 776 Posts
    • 2,252 Thanks
    debtaghh
    I would say keep your savings as at least you will then spend within budget.

    Spending on a credit card and increasing the debt regardless of the fact you have cleared some of it by using savings means you need less discipline as you have effectively given yourself permission to add to the debt and not necessarily within budget.
    Originally posted by enthusiasticsaver
    Thanks, I agree and will keep my savings and just chip away at my barclaycard as that way I will stick to a budget more.
    Debt 16th October 2017: Cc £49,987- family £37,561: total debt £87549

    Current debt: Cc £46,572, Family £ 37,313: total debt £83,885
    • reality_check
    • By reality_check 9th Jun 17, 12:57 PM
    • 687 Posts
    • 1,485 Thanks
    reality_check
    I would personally use savings to avoid interest charges! x
    • glass_half_full
    • By glass_half_full 9th Jun 17, 2:01 PM
    • 203 Posts
    • 494 Thanks
    glass_half_full
    Hi debtaghh,
    From a financial point of view reality_check is right, you would pay off debt with savings in fact Martin Lewis has posted about this http://moneysavingexpert.com/savings/pay-off-debts
    For me though, having an emergency fund has been essential in getting myself of using CCs. So if your savings are your EF then I would keep them.
    Last edited by glass_half_full; 09-06-2017 at 2:07 PM. Reason: mistake on link
    Total unsecured debt - £5,367 (October 2017) - Debt free Target February 2018
    • debtaghh
    • By debtaghh 9th Jun 17, 7:51 PM
    • 776 Posts
    • 2,252 Thanks
    debtaghh
    Hi debtaghh,
    From a financial point of view reality_check is right, you would pay off debt with savings in fact Martin Lewis has posted about this http://moneysavingexpert.com/savings/pay-off-debts
    For me though, having an emergency fund has been essential in getting myself of using CCs. So if your savings are your EF then I would keep them.
    Originally posted by glass_half_full
    Thanks, I know what you mean about the interest. That's why I didn't know what to do.

    I'm quite pleased with myself , it's only small but I was in the mood for chips from the chippy but I resisted and made potato slices instead! I've had another nsd and found 5p on the floor...every little helps.
    Debt 16th October 2017: Cc £49,987- family £37,561: total debt £87549

    Current debt: Cc £46,572, Family £ 37,313: total debt £83,885
    • reality_check
    • By reality_check 10th Jun 17, 8:09 AM
    • 687 Posts
    • 1,485 Thanks
    reality_check
    Hi debtaghh,
    From a financial point of view reality_check is right, you would pay off debt with savings in fact Martin Lewis has posted about this http://moneysavingexpert.com/savings/pay-off-debts
    For me though, having an emergency fund has been essential in getting myself of using CCs. So if your savings are your EF then I would keep them.
    Originally posted by glass_half_full
    I am never financially right and make my own rules rather than listen to tried and tested methods so probably best to listen to all the others advice
    Last edited by reality_check; 10-06-2017 at 8:11 AM.
    • debtaghh
    • By debtaghh 10th Jun 17, 8:24 AM
    • 776 Posts
    • 2,252 Thanks
    debtaghh
    I am never financially right and make my own rules rather than listen to tried and tested methods so probably best to listen to all the others advice
    Originally posted by reality_check
    I think for the sake of my mental health I'll keep some money in the savings as I know i'll just really worry and stress if I used it and once I start using the cc I think I would be scared. I normally would say you shouldn't waste money on interest but think you do need to look at each individual situation. It's hard as I hate the thought that I will be paying £40 minimum and £20 will be interest
    Debt 16th October 2017: Cc £49,987- family £37,561: total debt £87549

    Current debt: Cc £46,572, Family £ 37,313: total debt £83,885
    • reality_check
    • By reality_check 10th Jun 17, 9:24 AM
    • 687 Posts
    • 1,485 Thanks
    reality_check
    Does your credit card ever offer money transfers? I am with Barclays and every month they have balance transfer offers or money transfer ones. I don't have a penny in savings, and 2 weeks ago my boiler died and had to buy a new one...the deal was 1.9% so for every £1,000 for example cost me £19.00, if you have this then this could be an option?

    But I do know what you mean with having no available cash would make you feel uneasy, I am tempted to switch banks for the £150 you can get, but I have a £2500 overdraft and although I don't use it (anymore!) I am relutant to switch because I know if sh!t really hits the fan I have that money there, albeit at a £35 charge a month x
    • debtaghh
    • By debtaghh 10th Jun 17, 9:59 AM
    • 776 Posts
    • 2,252 Thanks
    debtaghh
    Does your credit card ever offer money transfers? I am with Barclays and every month they have balance transfer offers or money transfer ones. I don't have a penny in savings, and 2 weeks ago my boiler died and had to buy a new one...the deal was 1.9% so for every £1,000 for example cost me £19.00, if you have this then this could be an option?

    But I do know what you mean with having no available cash would make you feel uneasy, I am tempted to switch banks for the £150 you can get, but I have a £2500 overdraft and although I don't use it (anymore!) I am relutant to switch because I know if sh!t really hits the fan I have that money there, albeit at a £35 charge a month x
    Originally posted by reality_check
    Thanks for your reply. Barclaycard used to always offer me money transfers and I would do exactly that. Take a money transfer and then pay them back but I think they realise I do that and don't offer me it any more even though I have available credit.

    Hope your money situation improves too x
    Debt 16th October 2017: Cc £49,987- family £37,561: total debt £87549

    Current debt: Cc £46,572, Family £ 37,313: total debt £83,885
    • Supersaver88
    • By Supersaver88 10th Jun 17, 1:16 PM
    • 8 Posts
    • 20 Thanks
    Supersaver88
    Can't you keep an emergency fund and clear the rest of those savings and get rid of this debt asap! That interest rate sounds a killer!
    You'll reap the rewards later on with all the extra money not being spent on your debt and the added motivation and new behaviours you have I'm sure will mean it won't take you long to get those saving back up
    • enthusiasticsaver
    • By enthusiasticsaver 10th Jun 17, 1:51 PM
    • 4,691 Posts
    • 8,808 Thanks
    enthusiasticsaver
    In general the rule is if you have savings and debt then you use savings to clear debt BUT and that is a big but, this excludes an emergency savings account. How big the emergency account is though depends on circumstances and it is perfectly acceptable to keep just a few hundred aside if you don't have a car which is likely to need repairs within say the next 6 months or emergency house repairs which are likely to be expensive.

    Xmas you know you will need money for but if you have not booked a holiday then I would use those savings and delay booking a holiday and just do days out. I love holidays and would have loads if the money was there but when it was tight if we were doing a home improvement project or saving for a new car then we would skip it for one year and do one the following year and just do a weekend away in a travel lodge or a staycation (helped by the fact we live in Cornwall).

    So in short I would say if you have more than say £500 in savings why not use some of them to reduce the balance which will incur interest?
    4 weeks to go until early retirement in December . Debt free and mortgage free.

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • debtaghh
    • By debtaghh 10th Jun 17, 8:38 PM
    • 776 Posts
    • 2,252 Thanks
    debtaghh
    In general the rule is if you have savings and debt then you use savings to clear debt BUT and that is a big but, this excludes an emergency savings account. How big the emergency account is though depends on circumstances and it is perfectly acceptable to keep just a few hundred aside if you don't have a car which is likely to need repairs within say the next 6 months or emergency house repairs which are likely to be expensive.

    Xmas you know you will need money for but if you have not booked a holiday then I would use those savings and delay booking a holiday and just do days out. I love holidays and would have loads if the money was there but when it was tight if we were doing a home improvement project or saving for a new car then we would skip it for one year and do one the following year and just do a weekend away in a travel lodge or a staycation (helped by the fact we live in Cornwall).

    So in short I would say if you have more than say £500 in savings why not use some of them to reduce the balance which will incur interest?
    Originally posted by enthusiasticsaver
    Thanks, I have just under £1000 so I could use some which will help with the less interest and I won't feel stressed as I will keep some savings too. I think I will do this as that way I am clearing some of the balance.
    Debt 16th October 2017: Cc £49,987- family £37,561: total debt £87549

    Current debt: Cc £46,572, Family £ 37,313: total debt £83,885
    • debtaghh
    • By debtaghh 10th Jun 17, 8:47 PM
    • 776 Posts
    • 2,252 Thanks
    debtaghh
    I have been out all day but still managed to hang my washing out which is great as I hate having to waste money on using the tumble dryer.

    Today hasn't been a nsd as we needed fuel and milk but I didn't waste money on anything else like I normally would.

    I think this time I really have had my 'lightbulb moment'. My son would like to stay at a specific hotel for his birthday instead of having a party or many presents but on offer this hotel costs £120 for one night. In the past I would have booked this without thinking twice where as now I think that is such a waste of money and haven't booked it ( this is really good for me). Even other things like the no chips yeserday and on days like today when we get home late I would have got a Mcdonalds but instead we had cheese and beans on toast.
    Debt 16th October 2017: Cc £49,987- family £37,561: total debt £87549

    Current debt: Cc £46,572, Family £ 37,313: total debt £83,885
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