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    • 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 4
    • LadyP01
    • By LadyP01 9th Jul 17, 6:11 PM
    • 84 Posts
    • 220 Thanks
    LadyP01
    Busy week.

    I processed all my expenses and already received 40 but it seems I spread myself about thin considering I had more expenses to pay out for so iv only paid 20 to my debt from it at the moment.
    I had to spend about 60 on more work stuff but iv already put a form in for that.
    I need to spend more out this week so I'll make sure that I put a form in as soon as I'm back.

    Wednesday was a no spend date but thursdays meeting cost 6 and then I needed food after as I was delayed and spend another 6.

    I also had a result in the make up department this week, I was given lots of free samples and a free facial so I have topped up my makeup draw. I was also considering swapping some of my expensive makeup for cheaper stuff but this showed me that when it comes to my make up it's worth continuing as it's about quality and they last longer then there cheaper counterparts anyway as you use less.

    Holiday is also officially cancelled! So after our get away this month I'm transferring the whole account into my debt. Hopefully I'll reach the 7000 debt line in august
    • dionysia
    • By dionysia 9th Jul 17, 7:45 PM
    • 63 Posts
    • 131 Thanks
    dionysia
    It sounds like you're doing the right things and making real progress! Well done on cancelling the holiday, a big decision but hopefully seeing that figure have a six in front next month will make it all worth it. Definitely agree on makeup, some items are fine cheaper but I've also had lots of 5 mistakes which add up!
    June 2017: owe 16,818.
    • LadyP01
    • By LadyP01 9th Jul 17, 8:00 PM
    • 84 Posts
    • 220 Thanks
    LadyP01
    Hey! Yh iv become really determined and actually I'm in my 6th month and it's all starting to become very normal and everyday. Saying no I can't afford things are easier and giving things up and compromising is also a lot easier to do now.
    • infected.1994_
    • By infected.1994_ 9th Jul 17, 8:11 PM
    • 3 Posts
    • 3 Thanks
    infected.1994_
    Pension
    Congrats and much respect for the way you have your expenditure under such great control!

    I have a question though, is it worth paying into a pension? or is it better to build your own pension (a small business, a buy to let property etc?)

    I'm 23 years of age, I would rather hold on to 20 per month, for the next 42 years and use the money to make me more money, or repay student loan or buy a house.
    • LadyP01
    • By LadyP01 9th Jul 17, 9:42 PM
    • 84 Posts
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    LadyP01
    Hmmm good question, I have a really good pension as I'm high up in my company so my company match whatever I put in even when it's over the minimum they have to pay. It's also pretty wealthy as I had that set up with my company years before it became the law.
    This for me personally is something I feel I need. I lost a parent before they hit retirement so we got a big pay out from there pension and it really made a big difference so for me it's an investment in either my future or for my children if I don't make it. Little bit dark but the truth is if that time comes that money makes a big difference.

    If you paid your 20 into a pension though it will convert to 40 as your employer needs to match it so it will double and you can get a pay out at retirement age and take a lump
    Sum instead of a pension. I'm not well informed but I believe that's a rough idea of what happens.

    I personally want to build my own pension aswell eventually. Like you say a small business or a small holding or stocks and shares. I'm years away from being at that stage but let's face it who woudnt want a healthy retirement.
    • LadyP01
    • By LadyP01 10th Jul 17, 7:43 AM
    • 84 Posts
    • 220 Thanks
    LadyP01
    Today is going to be high on spends but all expenses.
    And tomorrow even higher as I'll need lunch and dinner again on expenses.

    Feeling the pinch this month and I think it's because of all of the expenses and stripping my budgets to minimum so the challenge is getting through it.

    The oh has started to come around to the debt issues and face his own. It's tough and I can see it's a lot tougher for him then myself. It makes me happy that finally we are both clearing our debt so we can go into a house together debt free.
    • enthusiasticsaver
    • By enthusiasticsaver 10th Jul 17, 8:42 AM
    • 4,680 Posts
    • 8,870 Thanks
    enthusiasticsaver
    Looks like you are both tackling this with focus now. What I would say it will be easier to prioritise when you don't have debt so clearing this first is good. After that you will be able to decide whether holidays/meals out/new electronic goods or clothes are more important than saving for a house or starting a family. Both are enjoyable but it just depends on what stage of life you are at.
    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
    • enthusiasticsaver
    • By enthusiasticsaver 10th Jul 17, 8:51 AM
    • 4,680 Posts
    • 8,870 Thanks
    enthusiasticsaver
    Congrats and much respect for the way you have your expenditure under such great control!

    I have a question though, is it worth paying into a pension? or is it better to build your own pension (a small business, a buy to let property etc?)

    I'm 23 years of age, I would rather hold on to 20 per month, for the next 42 years and use the money to make me more money, or repay student loan or buy a house.
    Originally posted by infected.1994_
    If you don't pay into a company pension you are effectively turning down a payrise as most companies match your contributions up to a point plus HMRC top it up due to the fact that tax is reclaimed on pension contributions. It is the most tax efficient way of saving for the future. My Husband had been doing a job with unpredictable hours and lots of travelling since he was 23 and we made the decision to pay into a booster pension (10% contributions) which the company matched. Now 58 he retired last year and effectively his pension is only 400 less than his salary was which is easily enough for us to live off especially with the large tax free lump sum as a savings buffer. I seriously doubt anything else would have brought the same returns without an awful lot more effort. Buy to let's are not tax efficient and you have to deal with non paying tenants who sometimes trash properties and ongoing maintenance issues.
    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 17th Jul 17, 1:23 PM
    • 84 Posts
    • 220 Thanks
    LadyP01
    How wrong was I after my budget setting this month! I really thought I had squeezed myself dry with everything going on but I have managed to make some massive changes still.

    PAID another 500 off so it's currently sitting at 8607.00 this is money from my holiday account as we are no longer going.
    I have more in there but i have some expenses and the weekend away so I'm going to leave a little pot until I'm confident I won't need it.

    6 months and I'm at 8607 I just can't believe that it's actually working. You have a dream and a plan to do these things and then something comes up and you always think o well i NEED this so I'll have to break the budget or borrow. Things have come up in the last 6 months. Iv had major car dramas that I have luckily already planned for and used my car money to sort. Iv had to purchase a new phone and repair an old one but I factored this cost in at the beginning knowing eventually the time would come to do so. These savings and forward planning made these hiccups effortless financially even if it gave me a headache finding the best deal.

    Also this week I need to get myself some toiletries so I'm making a list today and I'm off to hunt down some bargains. I'll buy a few gifts while I'm in there so I can add to the stocking fillers.

    Iv started planning out my august budget so I'm prepared for next month as it will be pay day in 10 days so won't b long and then I can make my next payment and get that debt figure into the 7000's
    • LadyP01
    • By LadyP01 24th Jul 17, 10:42 PM
    • 84 Posts
    • 220 Thanks
    LadyP01
    Nearly at pay day... 3 full days to go. I have one weigh in, petrol for one day needed and maybe some food and that is it for the month. Friday will be the day to sort out what was left to add to debt at the end.

    Purchased all my toiletries and was so disapointed with the cheap deodorant I got that iv had to buy another in the sale and I'll rotate the two until the cheap one runs out. Won't try that one again you live and learn, it was a big brand one at a reduced price but wasn't for me.

    I'm really happy about July I think iv tackled a lot this month that will make a difference down the line.
    • enthusiasticsaver
    • By enthusiasticsaver 24th Jul 17, 10:57 PM
    • 4,680 Posts
    • 8,870 Thanks
    enthusiasticsaver
    It looks like you have really got on board with clearing this debt so well done on keeping focused. I think you did the right thing re cancelling holiday.
    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 28th Jul 17, 7:25 AM
    • 84 Posts
    • 220 Thanks
    LadyP01
    It's pay day!
    Ended the month with 14 left so I'll be adding that onto the debt. I'm really excited about this month as it will see me go down to the 7's which will feel amazing.

    Holiday is over now and we kept costs pretty low across the whole weekend, stayed within my budget.
    This month I feel needs to be a quiet month might set up a challenge with my partner to only do free things together. I'll speak to him about it.
    • LadyP01
    • By LadyP01 31st Jul 17, 12:55 PM
    • 84 Posts
    • 220 Thanks
    LadyP01
    New month new budget.

    Iv been paid and worked out my budget for the month and it's looking good. Still need to speak to the oh about doing a free activities only month which I think could be really fun so maybe lots of swimming as that's free for us in august and walks.

    Iv paid off 900 to debt bringing my total down to 7707!!!!!!!! The dream is to get to 1000 debt repayment a month but I can't see it happening as I can't stretch my budget that far at the moment but 900 is a brilliant amount to reach.

    This month I'm going to look Into eBay and see if I can make any extra money that way. Iv worked out my repayments for my target of being paid off in may and my last repayment will be 400 in may so my new aim is to see what I can do to get that 400 paid off earlier, it's 44 extra a month so I'm sure I can start closing that gap somehow.

    So still feeling amazing about this whole debt busting climbing that hill at a steady pace.
    • LadyP01
    • By LadyP01 7th Aug 17, 10:35 AM
    • 84 Posts
    • 220 Thanks
    LadyP01
    Having a bad morning. Feeling like it's all getting on top of me.

    I thought my money was all spent at one point as I hadn't put it into its allocated pot yet but sorted it all this morning and it's fine so one relief.

    I'm having another debt problem I thought my oh had his light bulb moment when he confided in me over his debts. Obviously I was supportive but ever since I haven't seen a change in his behaviour he's still going out all the time and we have discussion after discussion about priorities. The truth is I feels like there's no commitment to putting our future first. He's just living in the here and now and I'm unsure what to do. I don't want to nag every time he goes out with mates as that's a.not fair and b. Will only end up with a resentment between us and eventually separation. I can't continue watching him go out spending money they needs to go towards our debts and worse I can't be sacrafising everything as a couple to support him for him to then go out with mates and spend it and that's how I see it, us working hard to get it sorted and going without and then him spending all the money he's saved off with his friends. I also know that sitting on it and letting it build up isn't healthy for us either but I don't know what step to take next, iv tried explaining every time that there's no money to go out and show him that There's no money and it ends in an argument so now I'm thinking leave it a few weeks and see what choices he makes but will it work? Is it right? I'm unsure I just don't know what next step to take.

    Help from anyone who has been in this situation would be great.
    • Cherryfudge
    • By Cherryfudge 7th Aug 17, 11:09 AM
    • 892 Posts
    • 3,811 Thanks
    Cherryfudge
    I haven't been in your situation but I wanted to offer a bit of support. For a start, you yourself are making good progress (it must have been scary thinking the money had gone but you kept your head and found it - you've got your wits about you).
    I'm guessing you and your OH aren't really going out to things together? Therefore him going out with his mates may be some sort of escape/head in the sand/denial. His debts are a bit of a thunder cloud on the horizon - as long as he can't feel the storm, perhaps he's hoping it will go away.

    However, thinking longer term, as a couple you will need some sort of social life. Do you have a socialising pot in your budget? And do you have one for you personally? It doesn't have to be huge, but if you know you can get out of the house from time to time it will help. (Sorry, I haven't looked back through your thread and you may already have said).

    You are talking of 'our' debts: are they in joint names? This sounds hard but if possible you need to keep your name off his debts if he's making them worse not better. Otherwise you'll be liable, which will put your finances and your relationship under greater strain.

    You'll need to chose your time to talk to him. As you say, if you nag when he's about to go out with his friends, it will just create a problem. Maybe you could encourage him to keep a spending diary so he can see where the money is going, or ask him to comment on your spending so he knows it's not just him who is affected.
    • LadyP01
    • By LadyP01 7th Aug 17, 7:34 PM
    • 84 Posts
    • 220 Thanks
    LadyP01
    Hey cherry fudge! Thanks for popping by! Massive help. My close friends advice is confront him but i know that's because there just seeing it from my side and not his and I'm trying to be open minded and see if from both our sides and act accordingly.

    Thankfully all our debts separate so neither one of us impacts the other. We also both have a social fund. What's happening is he's overspending on the social fund because adjusting hard.
    I understand, if all my friends were going out all the time and I couldn't afford to go I'd be down about it. I'm lucky as my friends are great and if one of us has no money we make plans that are free or cheap. We all have bad months and other commitments and we understand that. Unfortunately my oh friends don't so I feel the pressure on him more.

    I get angry when he's over budget and he's still going out with money that can go to his debt as it defeats the object and that's what I'm struggling to deal with. I feel it's my buisness because we're a team with a future but is it my buisness? We live together but share no bills. He spent his social fund on the first week of the month on friends and left nothing for us to even have a coffee or drink at the pub together at any point and this bothers me.
    • Cherryfudge
    • By Cherryfudge 8th Aug 17, 9:48 AM
    • 892 Posts
    • 3,811 Thanks
    Cherryfudge
    He really is thinking it will never come to the crunch, isn't he? Although he knows he has debts, he is getting away with them so far and is happy for that to go on so he doesn't have to change anything. He may also feel he'll lose face if he can't socialise at the drop of a hat.

    Sometimes this sort of thinking is founded in how we grew up. I bet his Dad was similar! (Very cheeky of me as I have never met either of them but we default to what we learned subconsciously when we were small). If that's the case, it may be his parents could afford it, were happy with it or lived with debt and he's learned it doesn't have consequences. Well, he thinks it doesn't. Or it might just be that he's scared of looking the numbers in the face and this is a way of avoiding that.

    Anyway... you are the one who did the budget and for whatever reason, he's not bought into it. That's hard on you because you can see all the reasons to be careful and the consequences of your choices. Having built in a socialising pot is good because of course you need to keep up friendships, get away from the house etc. Doubly hard when he hasn't left enough in the funds to go out with you. But I don't think he's thought of that. He just expects the money will come from somewhere because that's what's happened so far. Maybe book a date with him right at the beginning of next month so at least you get your time together!

    We can't change our other halves. So many people here struggle with the same problem. You have made the budget and it's there for him to use if he choses to: meanwhile stick to yours and perhaps let him hear you celebrate as you pay more off! I'm not sure how you sort out bills as you don't share them (I'm not being nosey) but as long as he is paying his share I don't think that's a worry.

    Just one more thought: is there some free or low-cost activity you could both go to? Geocaching or rambling or some such? It would give you time together, a non-pub based group of friends and limit his spending while you're both involved in it!
    • LadyP01
    • By LadyP01 8th Aug 17, 10:27 AM
    • 84 Posts
    • 220 Thanks
    LadyP01
    Hey thank you that makes me feel better I think your right about the buy in, he's says he doesn't believe it's possible to be debt free but I know it is I just want him to believe in me.

    Maybe I just need to focus on mine and go ahead with what I'm doing and he needs to make his own decisions.

    You were also correct about the parents thing. Both parents have always just spent money as soon as they had it so that's the behaviour he has.
    Also we both out in equal amounts to rent and that pays for everything including our food.

    There's lots of free things we planned to do. I guess I should see it as I'm saving money aswell, instead of we're saving money so he can go spend that money with other people and save none for me. That's how I see it and I'm being selfish and I know I am.
    • Cherryfudge
    • By Cherryfudge 8th Aug 17, 10:45 AM
    • 892 Posts
    • 3,811 Thanks
    Cherryfudge
    Perhaps when he sees you succeeding in paying off your debt, he will be more hopeful about his? It's difficult to change something until you can see there's a pay-off.
    • LadyP01
    • By LadyP01 22nd Aug 17, 9:32 PM
    • 84 Posts
    • 220 Thanks
    LadyP01
    Been missing for two weeks. No big money spending or melt downs. I feel like it's very much second nature now and that I don't feel so anxious about my future as I can see me really getting to debt free freedom.

    I decided to come on a post as it's been a while and mortgages propped up again and iv been thinking about my future. It's just nice to come on a remind myself that I am working towards that future. Even if it feels like I won't have the house I want I know that actually I will because I'll be in an amazing position. It's just a waiting game and it's worth waiting for.

    I sometimes feel pressure because of my age and not having a house or being married like all my friends are but in reality one of my friends is actually married with a mortgage and kids but that's it. So am I behind? Really? No I'm doing things by my own pace. Just need to remember that
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