Fresh start for 2017

GirlupNorth · 29 November 2016 at 2:43PM

I have finally started a debt-free diary!

So, basically here goes...well, I was sort of debt free in June 2016. Sort of, meaning I don't count my mortgage and student loan as actual debts. I had cleared my overdraft and overdraft.

Anyway, to cut a long story short, a friend had lent me some money to pay off my credit card as it was getting me down (I since got a new card with a lower limit). I felt really bad so I applied for a loan to pay them back, but they didn't want the money back and refused. This was great, but I somehow still got the loan (which I then spent as it was burning a hole in my pocket) and used my credit card again. I have now somehow ended up with two loans and a credit card balance...so it's all gone down hill again!

I have since frozen my new credit card and refuse to even take it out of the freezer. I try and pay what I can, and am not too worried if it takes me ages to clear as I'd rather have money to live on than being skint each month. It's quite a low APR of 11.1% and they don't ever chase me for anything as I bank with them which is great.

Anyway, I thought keeping a diary would help to keep me motivated. I also want to save some money in 2017 as I don't have any savings at all, hence why I kept getting the credit card out.

Loan 1: £2,400
Loan 2: £2,000
(the payment amount for both loans each month is approx £204).
Credit card: £980.

I earn around £1,500 a month and my outgoings are about half that so I usually have around £700-800 a month spare for groceries/living etc. I have also cancelled the extra money going into my pension so I should have some extra to pay off the credit card until I move jobs, hopefully in the new year, will see! I have a small overdraft of £200 for emergencies, which I'm not in at the moment.

I've had a very expensive year with fancy weddings, events and travelling which hasn't helped and also have weddings next year abroad...need to change my habits and get saving so I'm not caught out again...I think I can pay extra back on my loan if I need to, so will check that as well.

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Bobarella · 29 November 2016 at 2:54PM

Good luck GirlupNorth!

GirlupNorth · 29 November 2016 at 3:11PM

Thanks!

I'm also going to work out what food I've got tonight, before going shopping. Usually I will just do a big pointless shop on payday (today) then it will affect me for the rest of the month...

No longer!

kittycatfan · 29 November 2016 at 3:18PM

let us no if you managed to get your shopping down i spend way to much on food about 130 a week for four of us

GirlupNorth · 29 November 2016 at 3:26PM

I will do! just chatting to colleague about it. That's where most of my money goes to be fair, on food, eating out and snacking so really need to get back into the habit. We also have a kitchen here and a microwave, so there's no excuse! I'm also quitting Starbucks unless it's a planned coffee date with a friend...:)

System · 29 November 2016 at 5:30PM

Definitely check to see if you have ERC's on your loan, it's good to sit and get a good view of your finances as in 'can I overpay on this?' 'which debt is costing me the most' etc.

Do you do any cashback/cost saving things like Qmee, e-rewards, consumer pulse etc? xx

GirlupNorth · 30 November 2016 at 6:23PM

Well, was off sick today as haven't been feeling myself and have been feeling lightheaded when I've walked home this week. Feel a bit rejuvenated now. I also found out I have a job interview this month - it's slightly less pay, but definitely more interesting & will be very busy (with some international travel! Definitely a good excuse to curb my spending). So have lots of prep to do for that.

I also finally got round to tidying my flat as I've been feeling really lethargic, and sorted out my kitchen and fridge. Going to be more frugal with food as I hate waste, but living alone it's inevitable.

I always feel more motivated once I have a tidy home and everything is in place, makes me feel nice and calm.

Need to start being healthier as have put on weight, but believe it's hormonal for various reasons.

Onward and upwards, also paid a chunk off my credit card as I got paid and we got some back pay for something...bonus

:j

Bobarella · 30 November 2016 at 8:26PM

It's always nice to have a tidy home, you can truly relax when things are straight. Good news about the job interview.

GirlupNorth · 5 December 2016 at 2:01PM

Well, I thought I would give getting a loan a go and it was so fast! Went with NatWest as already bank with them and it was approved straight away. I had tried in the past, but was declined. I should also get the money tomorrow which will be amazing.

I know this is bad, but I have two other small loans and a credit card and just like everything being in once place. Also the monthly payments are less and I wont have to worry about interest on a credit card or trying to pay bits and pieces off now and again.

I should also have at least £1000 left once I have paid everything off so am going to put this in to an emergency fund as I literally don't have any savings at all. So feel a bit better now, even though it's disturbing how much extra money I have spent this year on a decent salary...ah well, live and learn! and I'm not discussing my finances with anyone now so it's all private and I don't need to feel guilty for going back into debt.

On a positive note, I've started a food waste challenge so am bringing all lunches and snacks to work, using up what I have at home and not buying extra food. I am also on my week 2 of no Starbucks/chain coffee shops and just using the coffee machine at work.

Feel calmer now and even if I get paid slightly less for my new job I'll be less worried and can still afford the one loan.

Phew!

Happy Monday

System · 5 December 2016 at 2:47PM

Glad to hear you're feeling good! Did you reduce your monthly outgoings a lot with your new loan? Great to have the pressure off, now to make sure you stay on track and don't get in more debt!

GirlupNorth · 5 December 2016 at 3:12PM

Hi - Not a lot, but at least the credit card will definitely be paid off in full rather than deciding each month how much to pay etc. I'll still keep the card, but just for absolute emergencies, it's currently frozen in the freezer! determined not to overspend ever again, and it will give me the motivation to start saving properly as well...

Fresh start for 2017

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