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  • FIRST POST
    • LadyP01
    • By LadyP01 23rd Apr 17, 10:10 PM
    • 84Posts
    • 220Thanks
    LadyP01
    £16,000 debt, turning regret into positive action.
    • #1
    • 23rd Apr 17, 10:10 PM
    £16,000 debt, turning regret into positive action. 23rd Apr 17 at 10:10 PM
    So here i finally am, writting my debt free journey out for you all to read.
    I had my LBM back in febuary when i finally relised that my attempts to be debt free were failing me. I had just purchased alot of holidays and spent alot of money redecorating, i soon relised i was undoing all my hard work.

    When i relised something needed to be done this was my financial situation:
    Loan - £10,000 - only had £800 paid off
    Credit card 1. -£2,900
    Credit card 2 - £2,600
    Overdraft - £40

    I decided to get a loan total out of £16,000 this was obviously a little more then i needed but i put i decided to borrow more to start an emergency fund from day 1 so that i avoided having to borrow on credit again.
    I cut off my overdraft so that is gone, so now i just have a £16,000 loan!!!!!!!

    This is now technicly my second month moving into my third month of debt busting and so far im really pleased with how hard iv worked. Iv decided to use a savings account to hold all my savings till september with the hopes of having £10,000 to make a dent in that loan on a repayment. Then i can pay off the final £6000 on a 0% credit card and continue paying it off interest free.
    My progress so far in my savings account is: £5,645.60

    I have a long way to go!!!! But i feel i have been doing some massive savings already to knock away my debt. I really want to be debt free in 2018 and im desperate to make this happen.

    I will do a spendings break down on here later i forget what you call it to show how im spending my money. Iv been coming up with lots of ideas to save myself money and get back into the black.

    Thank you for reading, hope i didnt go on to much... Need to keep this motivation going

    Quick update:
    Its now June and i have officially brought my debt total down to £9428

    Keeping motivated
    Last edited by LadyP01; 03-06-2017 at 11:36 PM. Reason: Update
Page 2
    • Lumanous
    • By Lumanous 1st May 17, 6:24 PM
    • 128 Posts
    • 323 Thanks
    Lumanous
    Just popping in to say good luck with your journey! Shall keep checking in you're not alone, dealing with mine alone so we can all commiserate and support each other!

    No, my username is not a typo
    • Bobarella
    • By Bobarella 1st May 17, 6:41 PM
    • 10,454 Posts
    • 69,667 Thanks
    Bobarella
    What a pain about the taste card. Things on auto renew are very annoying.
    " 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
    • LadyP01
    • By LadyP01 1st May 17, 9:40 PM
    • 84 Posts
    • 220 Thanks
    LadyP01
    May update
    Thanks lumanous, sometimes alone is better i guess, helps keep you focused as you dont rely on other people. Im determined to be debt free for myself.

    So annoying bobarella. I had two things auto renew. I managed to get money back on one. Least with the taste card i can earn that money back with very little effort.

    So money crunch time i have done my finances this evening.

    Loan--- £16,000 now sitting at £15,527.12

    Iv paid £323.62 off on the loan and put £386.60 aside to chuck at the debt in an overpayment.

    Currently i have £2839.59 in total cash ready to make a payment on the loan... I also have just under £200 to add to that from another account aswell.

    I also have £2687.17 that i dont have access to until september but as soon as i do i will be putting that onto the debt.

    So in total that would bring the debt down to: £9840.12

    I just need to get the 0% interest cc out so i can be sure i am not paying any nasty interest.

    That means with the £640 i have to throw at my debts i will meet my target for next year.

    • Bobarella
    • By Bobarella 1st May 17, 9:48 PM
    • 10,454 Posts
    • 69,667 Thanks
    Bobarella
    Horray to that!
    " 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
    • LadyP01
    • By LadyP01 3rd May 17, 7:08 PM
    • 84 Posts
    • 220 Thanks
    LadyP01
    Good few days all nsd i did have to buy some bits for work but i will get all that back.

    Last month i got a refund onto my card of £400 i left my credit cards -£400 in credit to me as im going on holiday at the end of the month and i wasnt sure if my hotel had taken the money yet or would take it when i arrived. This morning i decided to go back and check and a brilliant result- the hotel is already payed for. So i can add that £400 to my debt busting. I just need to work out if its better to leave the money on my card for when i take out the balance tranfer... Or ask for my credit back first? Any recomendations on what would work out financially better? Im thinking getting it back in cash is better but im open to advice before making any changes.

    Also turned down a work do. Its an expense i dont need this month so iv decided to go without. Save save save. Also need to chase up an expense claim im still waiting on.

    Feeling really confident about getting this loan paid off... All going the right way.
    • Bobarella
    • By Bobarella 3rd May 17, 11:40 PM
    • 10,454 Posts
    • 69,667 Thanks
    Bobarella
    So the card is in credit by £400 and you want to transfer debt onto it? I can't see why you couldn't do that. The £400 will just come straight off the total which is good isn't it?
    " 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
    • LadyP01
    • By LadyP01 4th May 17, 12:01 AM
    • 84 Posts
    • 220 Thanks
    LadyP01
    Yh thats what i was thinking so it would just be ok to do the transfer and leave that on it.
    • LadyP01
    • By LadyP01 11th May 17, 7:08 AM
    • 84 Posts
    • 220 Thanks
    LadyP01
    Its been a long two weeks with no days off so i havnt done anything in regards to my plan to change things. Hopefully my day off this week i can.

    Iv been away for work and my tiredness meant i spent money on a drive thru - not good for the budget or diet. Luckily all my expenses are being paid back to me in cash but its all gone abit crazy so i need to sit down and work everything out.

    Im so exhuasted but wanted to pop on to be accountable for my spending and help refocus.
    • LadyP01
    • By LadyP01 13th May 17, 10:02 AM
    • 84 Posts
    • 220 Thanks
    LadyP01
    Im back!!!!! What a two weeks that has been. No days off and works been so intense but finally im free and feeling like iv just broken up for school holidays when in reality its just one day off.

    I was really worried about my spending as iv not been keeping track i had to use different funds to pay for different things while i waited for my money. To say i felt anxious about my budget would be an understatement.
    Did the bills today and checked the funds and im right where i need to be. Admitedly i cant do much else outside of the preplanned activities i have for the rest of the month but thats ok anyway.
    Calling the bank today for the first small payment on my loan and requesting the offer available to me from my credit card so fingers crossed by tonight that will all be ticked off.

    I can feel the tenseness in my shoulder slowly lifting as i type all this and know that actually i have this budget thing covered.
    Also going on holiday and i have more then i need in my holiday account so this has also left me feeling relieved.

    Best get on and get this list ticked off
    • LadyP01
    • By LadyP01 15th May 17, 6:59 AM
    • 84 Posts
    • 220 Thanks
    LadyP01
    Great weekend,

    Paid off £3000 on the loan. Coudnt get the 0% offer as i was in credit so iv had to call to get them to pay me the credit and then i can get the offer.

    Once all that moneys moved around and sorted ill be able to do a debt total as ill be paying a substancial amount off this month.
    My boss mentioned to me there was a bonus in my pay this month. No idea what it will be, possibly £100 so that will come in handy for paying abit more off.

    Iv spent a bit of money this weekend out of my clothes fund. I havnt touched this fund since i started this journey in february. Im happy with my purchases just need to make sure its a one off. You get a high when you buy things and its addictive, i believe this now more then ever as after one purchase iv now caught the bug and want to buy more but i cant.

    Iv also spent the weekend pondering my beauty spending drought. Iv not brought any beauty products since february. So for 4 months iv had enough to get me through. Admitedly at the begining of the month i felt i would need to get 2 items, i have lasted may without purchasing but these will need to be brought in june. Im just really impressed, iv changed the way i use my products and mixed them up. I feel to different amd everythings lasted longer then before.
    Iv been following a frugal couple in america who have some rules for being frugal one of which is to not purchase anything without carefull consideration. Iv applied this to my next beauty purchases seeking out the best deals that will last me the longest rather them the cheapest that will only last 1 month.
    • Hiddenidenity
    • By Hiddenidenity 15th May 17, 7:06 AM
    • 4,230 Posts
    • 26,372 Thanks
    Hiddenidenity
    Well done you seem to making big progress
    • LadyP01
    • By LadyP01 25th May 17, 5:52 PM
    • 84 Posts
    • 220 Thanks
    LadyP01
    Just back from my holiday. Spent a little bit more then planned but that was due to me cutting my spending budget far to much. Luckily i still had money i had already saved for this holiday so all even in the end.

    Iv applied for the 0% money transfer all ok and awaiting payment into my bank. Iv also gained access to the money i thought i woudnt be able to access until september so just awaiting it all to be approved and ill clear the loan.

    Payday tomorrow so will be sorting my budget out over the weekend.
    • LadyP01
    • By LadyP01 28th May 17, 5:56 PM
    • 84 Posts
    • 220 Thanks
    LadyP01
    Bank holiday weekend just a reminder about the situation im in.

    Went for a walk and looked at houses and relised that i wont be able to afford one of these dream homes or not anytime soon. Makes me sick to think of the situation that iv let myself get into. Iv been flushing my future down the drown just spending money on dinners and material things when i should have neen saving and sorting myself out.
    I remember being in £2000 worth of debt and i clawed my way out about 7 years ago and i vowed to never get back into debt and look at me now i just let this all get out of control and for me to be in a situation where im buying a house i need to be plus what im currently minus... Long road ahead ��
    • LadyP01
    • By LadyP01 30th May 17, 9:50 PM
    • 84 Posts
    • 220 Thanks
    LadyP01
    Iv been looking into my end game for this debt and i think i need to be even tighter with my finances.

    The biggest area i think i can change is gifts. Iv always saved for gifts and been really savvy with my purchases but i just cant continue. I always went over my budget and that budget was over £1000. Iv already made headway with some gifts, iv been really strict and gone from £30 per person to £3. I need to plan more in advance. Iv managed to pick up some gifts for my friends and there children from bootfairs and charity shops. I managed to get mint condition childrens books that are collectable for 20p each and i know my friend will be pleased. I also got a series of books for another friend all mint condition for a £1 for the set. Im more proud of these purchases as i feel they have more thought in them. Iv popped them all aside for christmas.
    Looking ahead close family will be hard so iv set myself a mission this month to collect some cheap trinkets for stocking fillers, colouring in, games, lego, socks, beauty products anything that is cheap but good quality to keep the costs down. Then i can buy them all one big gift each and be done.
    Im now a charity shop convert and actually think the quality of items in them are good. Im unsure why i thought otherwise when we have only ever sent off good quality stuff that can be resold.

    I think this is really important to tackle so i can hit my targets.

    Second i want to try and get my monthly spending down to £450 including rent, petrol and social spending. Maybe next year i will cut the holiday spends aswell as the presents. Its one year if im tough i can be in a house by january 2019 before im 30.

    Just need everyone to keep me motivated and stay on track.
    Lots to think about this month.
    • Hiddenidenity
    • By Hiddenidenity 30th May 17, 10:17 PM
    • 4,230 Posts
    • 26,372 Thanks
    Hiddenidenity
    I know you want to and like to but can you not cut how many people you're buying gifts for?

    In our family now we don't buy everyone.

    The adults do a secret santa so you're only buying one good gift, then the children have a budget of £10 each for relatives and £5 for friends.

    Home bargains/b&m/quality save all have fab games/toys for under £5. I also buy the 10 books for £10 from the works and use as gifts.

    £stores usually have nice candle gifts in and foody items.
    • LadyP01
    • By LadyP01 31st May 17, 7:02 AM
    • 84 Posts
    • 220 Thanks
    LadyP01
    Thanks i was going to try all of them and savers for some good cosmetics.
    Luckily adultwise its just my partner, one parent and one sibling and then two kids. All other family members are one present from everyone.
    The kids are at a crafting stage so i might make some bits aswell for them so they can play and paint the items themselves.

    My troublesome area is the parent and partner i usually spend about £200 on each of them. We have spoken about cutting back as noone has money this year but christmas is really important to us and we have never compromised so i think if i start now i can get some bargains so it still feels like christmas.

    Also get a back up present for a boy or girl as theres always a secret santa you havnt thought about
    • enthusiasticsaver
    • By enthusiasticsaver 31st May 17, 7:26 AM
    • 4,674 Posts
    • 8,840 Thanks
    enthusiasticsaver
    I second the suggestion to cut back on presents. We agreed on this a few years ago with friends and relatives and I just buy a small something for my mum and stepdad, I buy for my brother, husband, 2 daughters, son in law and granddaughter. All other family members and friends get cards. Saves hassle and money. 8 Christmas and 8 birthday presents is all I need to think about now.
    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
    • LadyP01
    • By LadyP01 31st May 17, 9:45 PM
    • 84 Posts
    • 220 Thanks
    LadyP01
    Thanks i will be cutting back and i probably need to cut back more.
    I find a joy in gifting and its sparked more from the bargains iv found. 20p a book. the kids are all getting a book and somekind of toy that i find thats a bargain and thats it. They get so much from everyone anyway.

    Sticking with the idea of completing as much as i can this month bdays and christmas. Once this is done i can stop paying money into my christmas savings as i wont need them, bringing me closer to my goal of only spending £460 of my wages every month. Hopefully by august that will happen.
    • LadyP01
    • By LadyP01 3rd Jun 17, 11:28 PM
    • 84 Posts
    • 220 Thanks
    LadyP01
    An emotional evening.

    In February i realised that i was in £16,000 of debt and the very thought of it made me feel sick with regret on how i had got there.

    Im now on my 5th month of my journey and after all the work i did in may i can now confirm my new debt total is...

    £9428

    I have cleared over £6000 debt in this time. Iv worked hard and gone without. I have changed the way i see money and its value and iv stuck to budget. Today i feel great. Hard work pays off and im a third of the way there.

    My affairs look like this:
    Christmas pot: £330
    Clothes and maintenance: £347.13
    Car fund: £395.77
    Presents £356
    Iv stopped the direct debit to christmas and presents now as with my latest plan to shop smart i wont need to pay in any extra. In fact i should be able to put alot of that towards my debt.
    Clothes and maintenance i will keep till i hit £500. This is for dentist, optitions,hair cuts, work clothes, shoes etc and i think i need a filling and my uniform needs a revamp even though im hoping to see what i can get from charity shops.
    Car also needs to continue to cover insurance,mot and any maintenance i need.

    With the cuts iv made i have relooked at my finances and i have £800 to throw at debt every month. This is pushing me to what i feel is the limit but i will keep going further.

    I am having a mini celebration this evening and high fiving myself as i feel i have started to achieve something.
    • LadyP01
    • By LadyP01 6th Jun 17, 7:13 AM
    • 84 Posts
    • 220 Thanks
    LadyP01
    Iv been out and about getting some bargain stocking fillers. Saved a fortune so far all to go towards the debt.

    Im trying to cut down the food now. Theres been a few occasions where i would get a top up shop of fruit and veg but instead im trying to just use less or go without and try something different. This is my new focus area.
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