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  • FIRST POST
    • motivated
    • By motivated 28th Jan 17, 4:51 PM
    • 2,193Posts
    • 3,036Thanks
    motivated
    Debt Demolisher
    • #1
    • 28th Jan 17, 4:51 PM
    Debt Demolisher 28th Jan 17 at 4:51 PM
    Hi MSE ers

    Have plucked up the courage to admit that I cannot cope financially.

    Long story short. We are £82,590 in Credit card and Loan debt basically spent on nothing but shopping, holidays, clothes and household things.

    We are not in arrears or any CCJs at present but fear this will not last.

    I completed the step change debt remedy tool thing today and it advised me to ring them on Monday Petrified at the thought of phone calls, bailiffs at my door and threatening letters etc. I don't even know what to expect about the process etc.

    What do I have to show for it all NOTHING

    So angry with myself but I do feel a little easier as it seems I have woken up and am willing to face it all, pay it all off and remove a lot of the stress I have every month.

    Myself and My OH both work and are both willing to pull together to sort this sorry mess out. I am hoping that keeping a diary and soaking up some excellent tips and advice will see us through to the end.

    I have seen some excellent advice and encouragement given on here and have thoroughly enjoyed reading all of the advice and diaries.

    One day I will be advising others (I hope)

    Please be gentle with me
    M
    Last edited by motivated; 30-05-2017 at 10:33 AM.
Page 8
    • Bobarella
    • By Bobarella 16th Mar 17, 10:36 PM
    • 10,465 Posts
    • 69,321 Thanks
    Bobarella
    Your doing great. Keep going!
    " Your vibe attracts your tribe"

    Debt neutral 27/03/17 from £40k in the hole 2012.
    Roadkill 17 £56.58 2016-£62.28 2015- £84.20)
    RYSAW17 £1900 2016 £2,535.16 2015 £1027.20
    • motivated
    • By motivated 17th Mar 17, 7:31 PM
    • 2,193 Posts
    • 3,036 Thanks
    motivated
    Fridaaaaay
    Weekend already wow time flies.

    Had a good day again today. Heard from BC today regarding 1 account. (We have 2) . Anyway when I logged into my BC account last night I realised they had added interest and a late payment charge Promptly got in touch with them with one of my intelligent letters and quoted lots of things that I learnt on the DMP thread.
    Reply today from them saying "all interest and charges refunded and all interest and charges stopped from now on" feeling quite chuffed at the minute.
    The second BC account has moved to missed payment today so it looks like this is the next one I will have to deal with. Bring it on lol

    Budget done for the coming week. Weekly things paid and monies shifted around the accounts, some added to my 2nd savings account which is building nicely, grocery money sorted although I don't need very much due to my Ocado delivery in the week. Still keeping the grocery money though and will add what I don't use to one of the savings accounts. Gas and Electric topped up and we are sorted for another week.

    This debt busting is becoming addictive.

    So far so good with our DMP, things are ticking along nicely and this has ended my week on a high

    Hope you are all looking forward to the weekend too.
    M
    Emptying my lake with a teaspoon
    Short term goal £410/£1796

    Weight loss 5/24lb

    • motivated
    • By motivated 19th Mar 17, 6:11 PM
    • 2,193 Posts
    • 3,036 Thanks
    motivated

    Second BC have replied and also said "late payment charge refunded and all interest and charges stopped from now on"

    Feeling smug again. I know I shouldn't be but at least I know that every penny I pay off my debt will reduce the balances from now on.

    Just 2 loans to deal with now, hopefully we will hear from them this week and they will go easy on us too.

    Sunday evening already it only seems like 5 minutes ago that I said yay it's Friday. Time flies when you're having fun eh

    Nothing too exciting happening here but at least things are calm and relaxed. Going to have a nice hot bath look at ordering mother in law some flowers for Mother's Day. Wish I could send my mum some sadly she passed away 19 years ago now. Feels like yesterday. and then find something decent to watch on TV. Just a chill out night I think.
    Enjoy what's left of the weekend people
    M
    Emptying my lake with a teaspoon
    Short term goal £410/£1796

    Weight loss 5/24lb

    • boxofpaws
    • By boxofpaws 19th Mar 17, 8:20 PM
    • 399 Posts
    • 1,646 Thanks
    boxofpaws
    You sound so positive, well done on your successes with the two Barclaycards
    Debt 03/01/17 = £42000
    Debt today = £31900
    • motivated
    • By motivated 19th Mar 17, 8:59 PM
    • 2,193 Posts
    • 3,036 Thanks
    motivated
    You sound so positive, well done on your successes with the two Barclaycards
    Originally posted by boxofpaws
    Thanks BOP
    I also had a result with MBNA too
    Just Halifax to follow suit now I hope Fingers crossed I will hear very soon
    M
    Emptying my lake with a teaspoon
    Short term goal £410/£1796

    Weight loss 5/24lb

    • motivated
    • By motivated 22nd Mar 17, 10:41 AM
    • 2,193 Posts
    • 3,036 Thanks
    motivated
    Hi all

    just realised I haven't updated my diary (smack on hand) time flies by so quickly when you're having fun

    Not much happening on the debt busting front to be honest, I will feel like I have actually done something with it on the 1st when my first payment goes to SC. Its sitting nicely in one of my savings accounts ready to be shifted back to the correct account for the DD.

    Struggling a little with budgeting. I have run low on funds this week. We have obviously overspent this week somewhere. We still have money to last until Friday but its less than I have had at this time of the week. Have lapsed this week and need to reign it in again. Will need to keep a spending diary to keep track of everything.
    I had the free trial of YNAB a while ago but I couldn't get my head around it. I know there are some on here that swear by it. Should maybe look into this again.

    It just goes to show how much we must of been spending pre LBM without giving it a second thought.

    Oh and yes I am supposed to be working at this precise moment, but no one is around and when the cats away

    M
    Emptying my lake with a teaspoon
    Short term goal £410/£1796

    Weight loss 5/24lb

    • motivated
    • By motivated 23rd Mar 17, 9:23 PM
    • 2,193 Posts
    • 3,036 Thanks
    motivated
    Wow another week gone, I'll be debt free before I know it at this rate

    Another budget to do ready for the week ahead and will be taking this one seriously. I may be being too unrealistic with it. I may drop the weekly amount I am sending to the savings account for yearly things, I think I am trying to run before I can walk to be honest. Will give it a try and see how it goes. Definitely need to sort it so as not to have to dip into our emergency fund unless it's a real emergency.

    Lots of housework to do at the weekend. Need to catch up on jobs that I have gradually let slip. I plan to write a list of jobs that need doing and work my way through it.

    Debt wise, I still haven't heard from Halifax regarding loans and if I haven't heard anything by Monday I may see if I can pluck up the courage to ring them
    I know SC would have been in touch with them by now, I suppose I am just looking for reassurance that they will accept the payment plan with SC and then I will know that all is in place and I can just work my way through it all via out DMP.

    Am off for an early night, feeling shattered tonight. Will watch a bit of TV in bed as this helps me to drop off.

    Night all
    M
    Emptying my lake with a teaspoon
    Short term goal £410/£1796

    Weight loss 5/24lb

    • Treadingonplaymobil
    • By Treadingonplaymobil 24th Mar 17, 5:09 AM
    • 860 Posts
    • 7,186 Thanks
    Treadingonplaymobil
    I reckon it took me the best part of three months to get to grips with YNAB. A month of tracking spends, a month of attempting to budget and realising our numbers were wildly off, and a month of rejigging how we arranged our various on- and off- budget accounts/debts, dealt with cash withdrawals and allocated our savings pots. But doing all of that has been genuinely life changing and allowed us to get a grip on our debt in a way we couldn't have begun to before - we were so oblivious to our spending that I don't think we could have started to pull our way clear of debt without working through that process.
    £67,031.92 is a frightening number indeed... The debt free diary of one family and their enormous debt
    LBM debt on 12th Feb 2017/DFD: £58,608.13/1st Dec 2026
    debt on 2nd Aug 17/DFD: ££55,243.13/1st April 2025
    • motivated
    • By motivated 24th Mar 17, 7:52 AM
    • 2,193 Posts
    • 3,036 Thanks
    motivated
    Thanks TOPM
    I am going to look at YNAB again at the weekend give it a go and stick with it. If I get stuck I will give you a shout
    M
    Emptying my lake with a teaspoon
    Short term goal £410/£1796

    Weight loss 5/24lb

    • motivated
    • By motivated 25th Mar 17, 10:10 AM
    • 2,193 Posts
    • 3,036 Thanks
    motivated
    The sun is shining today, what a beatiful morning and a lovely start to the weekend


    Debt wise nothing much happening. 6 days until my 1st SC payment goes. I'm actually counting as I'm anxious to get out the starting blocks. It makes me feel like I am in limbo as I'm just waiting for something to happen.

    I have also been looking at You Need a Budget, I had a free trial a while ago and it expired. To be honest I didn't do much with it it seemed too complicated. It says you have to pay yearly and it's in dollars. I think it works out around £36. Not too expensive I know but I'm a little hesitant whether to sign up just in case I waste my money. I'm in debt in case you wasn't aware


    Plans for today
    • Walk dog - Done
    • Laundry - Done
    • Housework - need to get motivated for this one
    • Clean bathroom
    • Ironing
    • Spend some time tidying the back garden. A chance to enjoy the weather
    • Look at sim only deals as I can upgrade now but want the cheapest deal out there.
    • MSE time
    • Need to clean windows but I hate that job

    Hope you have all got the sunshine too
    M
    Emptying my lake with a teaspoon
    Short term goal £410/£1796

    Weight loss 5/24lb

    • foxyloxy11
    • By foxyloxy11 25th Mar 17, 11:09 AM
    • 202 Posts
    • 1,126 Thanks
    foxyloxy11
    I just use a book myself and work out my own budget system. I have done it for years. If you're reluctant to part with cash, start with paper and a pen. list all your outgoings/money coming in and work out what you have left. That is your budget. Then anything that goes in or out of your bank keep a record and make sure you add or subtract it from the budget. simples !!!!
    365 day penny challenge - £90.00/£667.95
    £1000 Emergency fund challenge #225 - £540.00/£1000 Stage 1
    • motivated
    • By motivated 25th Mar 17, 11:37 AM
    • 2,193 Posts
    • 3,036 Thanks
    motivated
    I just use a book myself and work out my own budget system. I have done it for years. If you're reluctant to part with cash, start with paper and a pen. list all your outgoings/money coming in and work out what you have left. That is your budget. Then anything that goes in or out of your bank keep a record and make sure you add or subtract it from the budget. simples !!!!
    Originally posted by foxyloxy11
    I may well try this foxy. I've never been good with numbers hence the mess I'm in

    I have sort of a weekly budget. I pay our virgin TV weekly I pay a set amount each week then when the bill comes at the end of the month it's paid for.

    I top up our gas and electric on a Friday or Saturday pay the TV licence weekly and I pay for the groceries So I suppose it's sort of a budget. (DH gets paid weekly)

    I use my salary to pay for the SC payment and whatever's left I add to our emergency fund or the others savings account.

    I want to start saving for household things or even a short cheap break away ( would love to be able to do this one) so I may look at opening a third savings account for this and add whatever I can to it however small.

    I have a new notebook and pen set so I will use this to keep track of our incomings and outgoings. If I can do it without another bill to pay for such as an online budget then it can only be a good thing eh.
    M
    Emptying my lake with a teaspoon
    Short term goal £410/£1796

    Weight loss 5/24lb

    • boxofpaws
    • By boxofpaws 26th Mar 17, 9:55 AM
    • 399 Posts
    • 1,646 Thanks
    boxofpaws
    Good morning Motivated,

    I've just read through your last few posts and you sound so similar to me I had to reply. It's been 3 months for me now and I only really feel now like we're getting into the swing if it. We have adjusted and readjusted our budget endlessly. I think the key is not setting ourselves up to fail. Set targets that are achievable. And enjoy it.

    Paws
    Debt 03/01/17 = £42000
    Debt today = £31900
    • motivated
    • By motivated 26th Mar 17, 10:02 AM
    • 2,193 Posts
    • 3,036 Thanks
    motivated
    Good morning Motivated,

    I've just read through your last few posts and you sound so similar to me I had to reply. It's been 3 months for me now and I only really feel now like we're getting into the swing if it. We have adjusted and readjusted our budget endlessly. I think the key is not setting ourselves up to fail. Set targets that are achievable. And enjoy it.

    Paws
    Originally posted by boxofpaws
    Thanks BOP

    I do think our budget is a little out of sync with reality. I am trying to save a bit too much each week which doesn't leave much for fun things. I will readjust and hopefully it will sort itself out.

    I think I am trying to run before I can walk to be honest slow and steady is what we need I think if we are going to succeed on this DMP journey and also be able to live a little.
    M
    Emptying my lake with a teaspoon
    Short term goal £410/£1796

    Weight loss 5/24lb

    • Cherryfudge
    • By Cherryfudge 26th Mar 17, 10:35 AM
    • 591 Posts
    • 1,790 Thanks
    Cherryfudge
    I agree with you both - am currently trying for a realistic food budget. That's not easy in a house of four adults! Apart from that things go out on DD and I switch unnecessary electrics off - but I remember Martin of blessed fame said budgets don't work (or words to that effect) - start with what you actually spend and work back from there: it gives much more realistic amounts.
    • motivated
    • By motivated 26th Mar 17, 10:44 AM
    • 2,193 Posts
    • 3,036 Thanks
    motivated
    Thanks cherryfudge

    We have had so may years of buying what we like when we like and thinking oh I'll pay that off next month Clearly our plan didn't work. Was in that mind set for too long.

    I am just sitting here now with good old fashioned pen and paper working out exactly what I need yearly like car tax insurance MOT and Christmas (never go overboard on this one) kids are grown now so no big expenses there.

    I can put the funds I need for these out of my salary along with the DMP payment.

    The DHs weekly wages will cover the groceries and the gas electric. I will then save a small amount each week from this to save up for treats etc. This is why I am thinking of opening another savings account. How many is too many?

    In my head it works out perfectly but reality tells a different story
    M
    Last edited by motivated; 26-03-2017 at 9:35 PM.
    Emptying my lake with a teaspoon
    Short term goal £410/£1796

    Weight loss 5/24lb

    • Cherryfudge
    • By Cherryfudge 26th Mar 17, 9:39 PM
    • 591 Posts
    • 1,790 Thanks
    Cherryfudge
    We have had so may years of buying what welike when we like and thinking oh I'll pay that off next month Clearly our plan didn't work. Was in that mind set for too long.
    Originally posted by motivated
    I think I need to reread The Money Diet because I'm pretty sure Martin wasn't advocating that!

    It's tricky isn't it... clearly if I had no money I'd have no option about sticking with what's in the cupboard and what the food bank could give me or friends were happy to feed me. As I have money I have to work out my own spending limits, and it's proving less than easy. Trimming the food budget gets sabotaged by the family or I forget something and sabotage it myself. Paint that on a larger canvas and you have your situation where all the budgets have to be set... hope it's going well, there's a lot to be said for a quiet morning with pen & paper.

    I remember when we first set a limit to our food spending: I'd been keeping receipts and knew we got through IRO £120 a week. Off the top of my head, and sure it was impossible, I suggested we try to stick to £100 to feed 2 adults and 3 children. It worked so well we stuck to it for years though as time went passed the cleaning materials fell off that budget and onto general spending! Maybe looking at what you've spent, chopping off a percentage and trying from there is a way to go forward?

    Paying from next month's pay is the danger point, I think. Next month is a theory that has no substance.

    No idea how many savings accounts is too many.
    • Stb
    • By Stb 26th Mar 17, 10:02 PM
    • 50 Posts
    • 72 Thanks
    Stb
    Hi, I tried Ynab last year and didn't get it. Then I really really needed a budget, tried it a second time. It's clicked and wow what a difference. After a month or so I'm subscribed and happier with money than ever before. Well worth another look if you think it might help.
    Virgin 0% CC £1092
    Overdraft £0 at 27.02.2017
    Savings target £2000 by year end
    • motivated
    • By motivated 27th Mar 17, 6:20 AM
    • 2,193 Posts
    • 3,036 Thanks
    motivated
    Hi, I tried Ynab last year and didn't get it. Then I really really needed a budget, tried it a second time. It's clicked and wow what a difference. After a month or so I'm subscribed and happier with money than ever before. Well worth another look if you think it might help.
    Originally posted by Stb
    Hi Stb

    If I get some cheeky free time at work today I will have a look again

    We definitely need something that we can see in black and white so to speak.
    I know some people swear by it

    I'll let you know how I get on.
    M
    Emptying my lake with a teaspoon
    Short term goal £410/£1796

    Weight loss 5/24lb

    • motivated
    • By motivated 27th Mar 17, 9:40 AM
    • 2,193 Posts
    • 3,036 Thanks
    motivated
    Have just managed to open a third savings account

    I now have:

    • Main bank account where both wages go in to.
    • Top up debit card account - This is great as I only put on there what I can afford to spend in the shops etc.
    • savings account 1 - For Emergency Fund
    • Savings account 2 - For Yearly expenses such as car insurance, car tax, MOT etc
    • Savings account 3 - Household things and a short break away (God willing)


    I have set up a weekly standing order from our main account into the yearly expenses account. I have worked out exactly how much I need and have divided the total into weekly amounts.
    Also a monthly standing order to this account for our SC payment. I get paid on the 15th and the payment doesn't go until the 1st.

    I will be adding what I can to the third savings account as and when possible.

    Hopefully my plan will work out just fine and I will see the balances growing.

    1st Stepchange payment is due to go on Saturday,then I can update my signature

    Where was all this organisation years ago. My mum used to say I was a slow starter

    Edit: Just received a text from Halifax saying 'don't forget your payment of £xxx is due on the 6th April'. I have a feeling this is the SC payment they are going to receive as the amount is less than my loan's contractual payment and I normally would've paid them on the 15th. I hope it is as I still haven't heard from them regarding our DMP.
    M
    Last edited by motivated; 27-03-2017 at 9:56 AM.
    Emptying my lake with a teaspoon
    Short term goal £410/£1796

    Weight loss 5/24lb

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