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  • FIRST POST
    • remote_control
    • By remote_control 16th Aug 16, 9:19 AM
    • 178Posts
    • 823Thanks
    remote_control
    Facing up and cracking on
    • #1
    • 16th Aug 16, 9:19 AM
    Facing up and cracking on 16th Aug 16 at 9:19 AM
    Hi

    We are in debt and we need to face up to it as I do not want it to define the next few years of our life.

    In a nut shell, we moved to a house that was slightly over budget and did a lot of DIY.

    Debt as of July 2016 £20,485.45

    We don't act like we're in debt, we just carry on as normal. I am hoping this diary will help to change this.

    Feel a bit scared and tearful posting this!

    Thanks in advance for your support!!
Page 1
    • Pinkwhisk
    • By Pinkwhisk 16th Aug 16, 9:28 AM
    • 187 Posts
    • 454 Thanks
    Pinkwhisk
    • #2
    • 16th Aug 16, 9:28 AM
    • #2
    • 16th Aug 16, 9:28 AM
    Hi,

    It's good you've recognised your debt now, before it gets so big that only drastic action will help! Have you posted a SOA? That can help others to see where you can make cutbacks. Also you could look at the snowball calculator too, lots find that a good motivation for staying out of debt!

    I've subscribed

    Good luck!

    PW X
    • smallholdingsister
    • By smallholdingsister 16th Aug 16, 9:46 AM
    • 3,557 Posts
    • 27,746 Thanks
    smallholdingsister
    • #3
    • 16th Aug 16, 9:46 AM
    • #3
    • 16th Aug 16, 9:46 AM
    God bless and good luck.

    If the house is over budget do you have a spare room you could rent out?
    • remote_control
    • By remote_control 16th Aug 16, 7:53 PM
    • 178 Posts
    • 823 Thanks
    remote_control
    • #4
    • 16th Aug 16, 7:53 PM
    • #4
    • 16th Aug 16, 7:53 PM
    Thank you for your responses. I don't know where to begin with an SOA, I don't really know how I'd work it out. Our spare rooms are taken up by children!

    I felt motivated today and took a vague scrambled together lunch in instead of buying anything. That's £3 saved. Very pleased.
    • remote_control
    • By remote_control 30th Aug 16, 3:44 PM
    • 178 Posts
    • 823 Thanks
    remote_control
    • #5
    • 30th Aug 16, 3:44 PM
    • #5
    • 30th Aug 16, 3:44 PM
    Hi everyone,

    Debt as of August 2016 20,155.45

    I realised we're paying less and less each month with some of the debts (spread over 4 cards) as things are on minimum payment. So we've changed the direct debits to be on fixed payments totalling £620 a month across the 4 debts. This way I can also calculate an end date (as we are not adding to the debt) which is 3.5 years away. This is too long for me and since starting this diary I have been much better at not spending. Our downfall is food really. And eating out. And holidays.

    I forgot to mention in the original post that all our debt is on 0% cards. We recently moved the bulk of it to a card which is 0% until March 2019!!!

    Good news
    A couple of ebay sales
    Saved £60 on home insurance (stayed with same company but had to go through the faff of doing a comparison, getting a cheaper quote, ringing up original company, they matched it)
    husband has pay rise looming

    Bad news
    Car on the blink

    Happy money saving xx
    • little_miss_spendtoomuch
    • By little_miss_spendtoomuch 30th Aug 16, 5:07 PM
    • 232 Posts
    • 465 Thanks
    little_miss_spendtoomuch
    • #6
    • 30th Aug 16, 5:07 PM
    • #6
    • 30th Aug 16, 5:07 PM
    You're off to a great start
    Good luck on your journey x
    May 2015: £11685.56 / November 2017: £2076
    Credit card: £302
    Paid back : £700 / £2476
    • engineer amy
    • By engineer amy 30th Aug 16, 5:58 PM
    • 610 Posts
    • 1,112 Thanks
    engineer amy
    • #7
    • 30th Aug 16, 5:58 PM
    • #7
    • 30th Aug 16, 5:58 PM
    Afternoon Remote Control
    you seem to have a sensible outlook on this, so keep motivated and the pounds will soon come off the debt.
    As others have suggested, do a statement of affairs http://www.stoozing.com/calculator/soa.php


    Even if you do it for your eyes only and are completely honest with what is being spent, you will see where there are areas of overspending and what can be trimmed. You mention food and eating out/entertainment as two of the main overspends - add up what you have spent on these over the last month/3 months to get your benchmark figure. Then priority number 1 is to reduce these each month. Think of how you will feel in a year's time when you compare your food spend and realise you have reduced the spend by maybe 50%. I keep an old SOA, and redo one every few months. its amazing the difference in the amount of money I was spending on cr*p, or overpaying on poor deals. Now mine is trimmed down nicely and I have spare money for a few luxuries while still reducing my debt at a reasonable pace.


    If you are feeling really brave, post your statement on here. Other people may see areas for reductions that you hadn't thought of, or give you a few ideas.


    Good luck
    Mortgage = £113,495 (May 2009) £85559.64 Oct 2016
    Halifax CC 0% = £0!!! Car Loan = £0!!!!!
    PAYDBX16 #106 = 12377/12377 (100%)
    • remote_control
    • By remote_control 20th Sep 16, 9:58 AM
    • 178 Posts
    • 823 Thanks
    remote_control
    • #8
    • 20th Sep 16, 9:58 AM
    • #8
    • 20th Sep 16, 9:58 AM
    Hi all,

    I am bursting with excitement as I have finally found a way to see how much money I spend each month and where it goes. I know it sounds really silly but I haven't found anything that works for me before and I think I finally have. In the past I've wanted to do it really thoroughly and account for what each penny was spent on. But I was chatting with a friend who has a spreadsheet and she said she has a category that just says 'cash out'. And this simple idea has made all the difference. Previously I've been saving receipts, writing down where every penny is spent and trying to keep track. I know that having a category which just says 'cash' isn't perfect but if it means I can see where I am spending most of my money then that makes such a difference to me and I can post an SOA for you very soon. So I've done my spreadsheet for August and it shows we spent £259 more than came in!! I'm all fired up now to do lots of ebaying today and to try and use up the food in my cupboard so that doesn't happen again.

    Sorry that was a bit of a ramble!
    • remote_control
    • By remote_control 4th Oct 16, 2:21 PM
    • 178 Posts
    • 823 Thanks
    remote_control
    • #9
    • 4th Oct 16, 2:21 PM
    • #9
    • 4th Oct 16, 2:21 PM
    New budget spreadsheet going really well. Its silly but it's the first time I've seen in one place how much we spend a month on things. And this month we have spent £600 less than came in! Result! I can't wait to see how next month goes - excited!
    • NotNormal
    • By NotNormal 4th Oct 16, 6:14 PM
    • 192 Posts
    • 761 Thanks
    NotNormal
    New budget spreadsheet going really well. Its silly but it's the first time I've seen in one place how much we spend a month on things. And this month we have spent £600 less than came in! Result! I can't wait to see how next month goes - excited!
    Originally posted by remote_control
    Congratulations! It's not silly at all, I have a spreadsheet too. It's so easy to look at the bank and see that big number and think oh £3 for this won't matter etc. Take yesterday for example, I spent £10 on packs of ciggies even though I had baccy because it was "easier". So I'm going to refill the empties with rollies instead. Still easy to grab/no need to roll on the go but also no need to buy while out!

    I'm going to knuckle down with my spreadsheet in a minute because I've looked on my SOA and so much "spare" money that I never see.
    No more making the same mistakes!
    Debt Paid £549/£2735 20.1%
    • remote_control
    • By remote_control 6th Oct 16, 3:17 PM
    • 178 Posts
    • 823 Thanks
    remote_control
    The groceries have been a bit of a shock for me. But then the last time I wrote down what we spent we were only 2 people and now we are 4. I'm not going too over the top with writing down where every penny goes as when I do that I give up.
    • remote_control
    • By remote_control 17th Jan 17, 12:39 PM
    • 178 Posts
    • 823 Thanks
    remote_control
    Well unfortunately we had to buy a car so the debt went up. But we've been working really hard and have got it down to
    £23,823.74

    Still really ashamed by it but I can see it will be starting with a 1 soon!

    We've been keeping a record of what we spend and that is going well.

    Look forward to updating!
    • timetobefrugal
    • By timetobefrugal 17th Jan 17, 2:27 PM
    • 71 Posts
    • 189 Thanks
    timetobefrugal
    Hi remote_control don't be ashamed! We all have ups and downs and will be on this journey a while, things come up and set us back, just keep going
    Debt Total October 2017 £20,511.27
    • remote_control
    • By remote_control 20th Jan 17, 8:56 PM
    • 178 Posts
    • 823 Thanks
    remote_control
    Ouch last month was an expensive one. All food!
    • remote_control
    • By remote_control 13th Feb 17, 3:09 PM
    • 178 Posts
    • 823 Thanks
    remote_control
    Feeling a bit blurgh about it all. Scrabbling about to get £3 here and there on ebay. Think we're going to have to mega cut back on food as that is the only place left to cut back. I just can't quite face buying Tesco value! I just worry about the taste, quality and the ethics behind some of it. Anyway needs must and maybe if we just did it for a few months we can go back to normal own brand food!
    • remote_control
    • By remote_control 25th Feb 17, 8:32 AM
    • 178 Posts
    • 823 Thanks
    remote_control
    We're continuing on at a snail's pace. I am writing down bank balance and debt balance every morning in an attempt to keep it all fresh in my mind. A few small ebay sales here and there but then they always seem to be counteracted by something essential that we need. Have down-graded our shop so hopefully that will make a difference.
    • remote_control
    • By remote_control 14th Mar 17, 12:55 PM
    • 178 Posts
    • 823 Thanks
    remote_control
    Hi all,

    Been feeling quite down about it all and had a few sleepless nights. I have been reunited with my spreadsheet though as my computer broke but is all fixed now. This has really cheered me up. I have been writing down what we spend each month since August and looking back we spend less than comes in each month, we've just been paying too much off the debt and are constantly in our overdraft. New plan, pay a bit less off the debt and get out of our overdraft over the next couple of months. In the middle of balance transfers which always throw things up in the air a bit. This time next month we will have a new 0% card for 29 months!! Couple of ebay sales so another £10 in today.
    • remote_control
    • By remote_control 15th Mar 17, 6:50 AM
    • 178 Posts
    • 823 Thanks
    remote_control
    Another day, onwards and downwards! Decided I need to change my attitude and stop beating myself up. The debt goes down each month and while it's not as quick as I like it is going down. Just making lunch to take to work.
    • remote_control
    • By remote_control 21st Mar 17, 2:29 PM
    • 178 Posts
    • 823 Thanks
    remote_control
    My change of attitude has worked really well and I've started sleeping better! Little bits of money trickling in from Ebay and I'm sure we're saving money now we've downgraded our shop, won't see the results of that until next month when I look at what we spent in March.

    My new plan with the debt is just to think what the total number begins with, e.g. we're currently in the 21 thousands. I reckon once we get in the teens it's going to feel like it's going down a lot quicker.

    Thinking of plucking up the courage to post an SOA but I'm a bit embarrassed by it at the moment!!
    • DancingUnicorn
    • By DancingUnicorn 21st Mar 17, 8:34 PM
    • 118 Posts
    • 382 Thanks
    DancingUnicorn
    Hello!

    It sounds like you've had a bit of a tough start with a few setbacks but you're getting into some good habits and finding what works for you.

    I think an SOA would really help you, please don't be embarrassed about it! You don't have to share it, but if you do I've found people on here to be absolutely lovely and kind with their words and ideas for saving here and there.

    Did you ever try the own brand stuff? I can't bring myself to do it personally, but I do shop around for the bargains and stock up when I see them. I love home bargains, b&m, Iceland, etc and buy all my usual branded stuff at a fraction of the price and now refuse to pay any extra! Is this something you could try?

    Good luck for your journey, not long until your debt is in the teens!
    LBM: October 2016: £20,130 / Current: November 2017: £17,545 12.8%
    DFD: February 2024
    SPC#577 (2017: £60.58)
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