Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • jamie2017
    • By jamie2017 21st May 17, 10:01 PM
    • 23Posts
    • 62Thanks
    jamie2017
    30k Journey
    • #1
    • 21st May 17, 10:01 PM
    30k Journey 21st May 17 at 10:01 PM
    I am 24yo with £29k of debt. This is spread over a debt consolidation loan of £15,500 and a Barclaycard of £13,500

    I could lie and pretend my debt was due to various "high value" items which were essential e.g. rent deposits, not having enough to cover my rent as a student etc, but the reality is my debt is mainly down to bad budgeting and bad habits.

    I have now used YNAB for 2 months so I can see where the money is going and how out of control some of my spending is.

    I have had my lightbulb moment, when you have this sickening feeling everytime you go eat out, when the bill arrives and you feel physically sick knowing you have such high debt repayments that realistically you cannot afford this. When everyone around you has £700 extra a month (same work colleagues etc) as they do not have £700 minimum debt payments. The moment you feel genuinely guilty and sick to buy work shoes, because you worry about this mountain of debt behind you. Living with debt right now equals me feeling endless guilt 24/7, waking up feeling guilty, struggling to sleep with anxiety. I realise it really is not worth it.

    The scariest part is you bury your head in the sand because you know it is bad and you cannot emotionally stand up and deal with it, so it gets even worse. Well 2 months into YNAB, having recorded every single penny going in and out, and knowing every penny of debt I have - I have woken up and my head is firmly out of the sand. This needs to go because it is holding back my entire life.

    I got given an amazing opportunity to work in New York this year and my debt was the reason I refused it, I am losing out of amazing opportunities and life ambitions because I spend way too much on junk like Starbucks, or Amazon purchases I hardly use, or £7 lunches in the city of London. None of these things are worth it. Today is the day I commit to fixing this, and if anybody can provide me some top tips, some good threads to join, some challenges that work for them perhaps, please please do help.

    I will not record a SOA here, because I have already done all of that in YNAB and I have already reduced everything to the minimum (e.g. reduced BB, removed TV package, got mobile half price, compared energy and switched, cut out extras like netflix, cancelled unused gym etc). I have also attended a tonne of the YNAB classes.

    I really just need support & this will be a place I document my progress.
Page 1
    • emmie26
    • By emmie26 21st May 17, 10:26 PM
    • 482 Posts
    • 1,775 Thanks
    emmie26
    • #2
    • 21st May 17, 10:26 PM
    • #2
    • 21st May 17, 10:26 PM
    Welcome to the boards. It sounds like you have done some of the ground work already by reducing your outgoings as much as possible.
    I have been in the situation where you have a mountain of debt and nothing to show for it and realised the majority of it was spent keeping up with friends and not wanting to lose face.
    I found that the best way to keep myself motivated was to post in my diary as often as possible and this kept me on the straight and narrow because I felt accountable for my spending.
    Good luck!

    Total Debt: £24,359.79 £22,182
    debt reduced by 9%
    Debt free date: May 2019
    • moneyfacts
    • By moneyfacts 21st May 17, 10:46 PM
    • 67 Posts
    • 114 Thanks
    moneyfacts
    • #3
    • 21st May 17, 10:46 PM
    • #3
    • 21st May 17, 10:46 PM
    Seriously, half your problem is solved as your attitude now couldn't be better!

    Good luck and be positive.

    I was exactly where you are in my 20s. I paid it all off and charged my attitude to money (and life). The debt free journey does eventually become a pleasant one
    • Missu
    • By Missu 21st May 17, 11:01 PM
    • 450 Posts
    • 1,001 Thanks
    Missu
    • #4
    • 21st May 17, 11:01 PM
    • #4
    • 21st May 17, 11:01 PM
    Well done on your progress so far. Have you got a debt free date?
    Mortgage at 26/9/12 £92000
    Balance at 1/7/17 £54000
    Saving for Xmas 150/365
    • jamie2017
    • By jamie2017 22nd May 17, 10:32 AM
    • 23 Posts
    • 62 Thanks
    jamie2017
    • #5
    • 22nd May 17, 10:32 AM
    • #5
    • 22nd May 17, 10:32 AM
    DFD at the moment - I am pushing for 3 years time ie 22/05/2020. It will be a challenge but I do not want this to drag on for 10 years! I have been in debt since 2010 now, 7 years too long.

    I am going to kick start the debt free-ness by returning some Amazon purchases

    An Amazon Echo for £150 and some WiFi powerline boosters which never worked well so I turn them off anyway (£40ish). Proceeds will go to paying off the Barclaycard.
    • jamie2017
    • By jamie2017 22nd May 17, 10:34 AM
    • 23 Posts
    • 62 Thanks
    jamie2017
    • #6
    • 22nd May 17, 10:34 AM
    • #6
    • 22nd May 17, 10:34 AM
    Questions - did you guys sell everything you own, I almost feel guilty to own things like a PS4, or did you just accept what you had and paid down? Should I feel guilty owning things right now or is it ok to accept what I have, draw a line and move on from there?

    Also - any top tips for freeing up money in the budget e.g. cutting down groceries / eating out? I spend way to much there.
    • m_c
    • By m_c 22nd May 17, 10:43 AM
    • 64 Posts
    • 46 Thanks
    m_c
    • #7
    • 22nd May 17, 10:43 AM
    • #7
    • 22nd May 17, 10:43 AM
    Questions - did you guys sell everything you own, I almost feel guilty to own things like a PS4, or did you just accept what you had and paid down? Should I feel guilty owning things right now or is it ok to accept what I have, draw a line and move on from there?
    Originally posted by jamie2017

    My advise would be, if you're going to use it, keep it.
    Some people will see a PS4 as a luxury (which it really is), however if you've not got it, what are you going to do instead?
    You could end up spending more money on other things to fill the time, or the flip side is you may find something far cheaper or more beneficial to fill the time. Only you can make that decision.

    Also - any top tips for freeing up money in the budget e.g. cutting down groceries / eating out? I spend way to much there.
    Have a look at some of the other boards on here.
    • jamie2017
    • By jamie2017 22nd May 17, 11:29 AM
    • 23 Posts
    • 62 Thanks
    jamie2017
    • #8
    • 22nd May 17, 11:29 AM
    • #8
    • 22nd May 17, 11:29 AM
    Eating out I have pretty much stopped, but still the groceries are too high. Will have a good browse of this site

    I feel like selling the PS4 might be a silly idea, since I use it to stream a friends Sky Go, so it gives me access to movies + sports + all of my TV channels for free. Hence it is used literally every evening 6PM to Midnight by either me or my housemate & it saves me having a digital subscription (apart from the free BT TV). I could sell it in favour of a streaming device, but then I'd be foregoing gaming for 3 years, which would likely mean I visit friends places to game & then we end up going out / eating etc. So long term, probably not a money saver.
    Last edited by jamie2017; 22-05-2017 at 11:33 AM.
    • jamie2017
    • By jamie2017 22nd May 17, 11:40 AM
    • 23 Posts
    • 62 Thanks
    jamie2017
    • #9
    • 22nd May 17, 11:40 AM
    • #9
    • 22nd May 17, 11:40 AM
    I am going to look into selling old clothes, I have a tonne of things that don't fit me anymore. Might get some money to throw at the debt.

    Also might sell my external hard drive, haven't used that in a good 6 months!
    • jamie2017
    • By jamie2017 25th May 17, 3:48 PM
    • 23 Posts
    • 62 Thanks
    jamie2017
    Ok so £149.99 amazon echo returned - check
    £40ish powerline wifi boosters returned - check

    £189.99 towards the debt here I come.
    • Hiddenidenity
    • By Hiddenidenity 25th May 17, 4:34 PM
    • 4,739 Posts
    • 20,593 Thanks
    Hiddenidenity
    I haven't sold the gadgets we have. Although we don't have anything really and I wouldn't sell my childrens.

    I do list on ebay what we dont need/outgrown/dont use.

    As for grocery budget, we sit and decide on 7 meals for our dinners. Lunches are always sandwiches/soup/school lunches. Breakfast cereal, toast. Fruit.

    Write a list and stick to it. Don't be tempted in by offers and deals, its only cheaper if you planned on buying it anyway!

    I cant do a strict meal plan of a certain thing on a set day, as tbh this is where we've always failed when we dont 'fancy' that. Where as the 7 meals gives us the choice.

    Hope this makes sense.

    ETA: snacks are usually baked at home (flapjack/cakes/biscuits)
    DFW £1313.71/£7348.71 Rent Arrears £466.28/£3381.28

    Rock bottom became the solid foundation on which I rebuilt my life.
    • jamie2017
    • By jamie2017 1st Jun 17, 6:24 PM
    • 23 Posts
    • 62 Thanks
    jamie2017
    Managed to get a credit limit increase on MBNA (2k to 8k) and a money transfer offer. Moved £7600 from MBNA at 6.9%, with no transfer free, into the loan account.

    The loan account is 18.9%, so now £7600 has gone from 18.9% to 6.9%.

    My Barclaycard is also 6.9%.

    When my credit rating increases a bit more I will seek a zero percent transfer card, but right now I cannot get that.
    Last edited by jamie2017; 01-06-2017 at 9:30 PM. Reason: wrong word rating instead of limit*
    • jamie2017
    • By jamie2017 6th Jun 17, 1:35 PM
    • 23 Posts
    • 62 Thanks
    jamie2017
    Did a snowball calculator, looks like June 2021 ie 4 years to clear the debt and that is aggressive finance wise. It feels like a big black tunnel of hopelessness right now. Anyway...
    LBM: £29517.61 June 2017 DFD: DEC 2021 Total Paid 76.80/29517.69
    Barclays 76.80/13267.92 Loan: 0/8649.69 MBNA: 0/7600
    • Silver Queen
    • By Silver Queen 6th Jun 17, 1:44 PM
    • 142 Posts
    • 715 Thanks
    Silver Queen
    For about a year I earned minimum wage with high outgoings and commuting. The way I funded my "fun" was to sell things. For me, it was a case of weighing up whether I'd rather have the "things" or have good experiences. However, if you regularly use things there's no point selling them because you'll miss them and end up buying them back again for more.

    Something that you might want to attempt is to put all of your not-often-used gadgets in a box and hide it away for 28 days. If you find that during those 28 days, you end up taking it out of the box and using it, then keep it. If the gadget stays in the box, you probably don't need/want it. Then you can sell it and not worry that you'll miss it!
    • mobo1980
    • By mobo1980 6th Jun 17, 8:28 PM
    • 335 Posts
    • 1,769 Thanks
    mobo1980
    Hi Jamie and good luck with your journey !

    You have realised you need to change so can now move forward
    I have been in debt since I was 18 paid it off then got in debt again (silly me) but am now going forward - the debt WILL start going down now (I'm 37 now)

    Grocery wise do you have your own place ? live with anyone else ? I get by on 100 a month for 2 adults and a dog (don't live in London though!) I also have built a good store cupboard buying things when on offer etc !
    Good luck I will subscribe !

    Mobo xx
    CC1-£1729.53
    CC2-£4323.00
    LOAN-£14,519.05
    TOTAL DEBT £20,571.58
    Then there's the mortgage
    • jamie2017
    • By jamie2017 7th Jun 17, 12:45 AM
    • 23 Posts
    • 62 Thanks
    jamie2017
    Living with 1 other guy in London, when the rent comes to renewal I will look into moving to somewhere cheaper but I do love my flat, my housemate and the area. I am spending around £150 a month on my own on groceries!!! I have targeted to get this down to £100 this month. Next month I will look to reduce this some more.

    Honestly a lot of money goes on things like protein powder and supplements etc. Those things are not cheap...

    I am going to setup 2 of those IKEA boxes and stuff some bits in there. See if I touch it over a 1 month period, if not it's being sold.

    When I finally pay off my debts, the only thing I am keeping is an AMEX charge card that must be paid in full. Everything else is going!! Shocking really that a credit card offers £16,000 as a limit. When you get that amount you think I wont ever use it, and then overtime it creeps up and up.

    I was only earning low 20k a few years ago when I moved to London, and my rent was £850 a month, so I overspent just living. No excuses I should have budgeted and it is my own fault.

    I am hesitant to buy extra groceries for storage as my housemate will eat them haha, if he sees I have pasta / rice etc and he doesn't have any he will use it. I don't wanna be that guy who asks him to replace it. I get around that buy just buying what I need weekly.
    LBM: £29517.61 June 2017 DFD: DEC 2021 Total Paid 76.80/29517.69
    Barclays 76.80/13267.92 Loan: 0/8649.69 MBNA: 0/7600
    • mobo1980
    • By mobo1980 7th Jun 17, 7:32 PM
    • 335 Posts
    • 1,769 Thanks
    mobo1980
    Wow ! London prices are soo high ! ,it's just so tempting putting a few bits here and a few bits there on it though , exactly what happened to me and before you know it it's overwhelming.

    Totally understand where you're coming from with the groceries - no point stocking up for someone else to get the benefits !

    Mobo xx
    CC1-£1729.53
    CC2-£4323.00
    LOAN-£14,519.05
    TOTAL DEBT £20,571.58
    Then there's the mortgage
    • Reb2016
    • By Reb2016 8th Jun 17, 11:21 AM
    • 87 Posts
    • 101 Thanks
    Reb2016
    I think you are doing really well, you know where your problems are and are already taking action to sort them, so I'm sure you will get there.
    I started getting in debt 20's and have only just had my LBM, now in my 40's I hate to think how much I have spent on interest charges over the years, so it's wonderful that you have had your LBM, you will save so much money over the years.


    Reb
    Light bulb moment 6th June 2017 £13333.63 Debt now 12359.94
    DFD was October 2020 40 months now 31st May 2020 33 months Overdraft £450/£2250
    11/17 NSD September 9/4 in a row
    • jamie2017
    • By jamie2017 11th Jun 17, 2:17 PM
    • 23 Posts
    • 62 Thanks
    jamie2017
    Closed down my AMEX Gold Charge Card as the renewal was due and it costs £140 eeeeek!!! No fee to pay. Kept the BA Amex and a Gold Credit Card but reduced the credit limits to £1000 & stored them away.

    Opened up a Monzo pre pay card to try and manage my spending separate from my bank account.

    I am shifting away from using credit card for day to day spending. Using YNAB makes it manageable (so wasn't overspending) but I am hoping monzo gives me a lot more control.

    Also alongside this I am trying to get in better shape so I went to a weight watchers meeting today (budgeted for).

    I really wish I had a better credit rating and could get 0% deals to get everything interest free, sadly I've had way too many credit searches as I switched homes and it seems BT, British Gas, Virginmedia (for a price comparison) and EDF (switched for better deal) all hit me with a full credit check. Also EE, and MBNA (got credit limit rise to transfer 18.9% balance to 6.9%) are showing as credit checks.

    Anybody know how long for multiple credit searches to stop affecting your applications? Never missed a payment on anything.
    LBM: £29517.61 June 2017 DFD: DEC 2021 Total Paid 76.80/29517.69
    Barclays 76.80/13267.92 Loan: 0/8649.69 MBNA: 0/7600
    • Swampy3k
    • By Swampy3k 11th Jun 17, 5:09 PM
    • 173 Posts
    • 185 Thanks
    Swampy3k
    Well done Jamie on having the lightbulb moment! I am in a very similar boat to yourself with 30k debt but started using YNAB last year. 13 months later it's amazing the difference in my spending! I actually quite like to sit and look at YNAB and try and make the pennies stretch further.


    Don't feel guilty about having a few luxuries. a PS4 can be a good way to 'escape' for an hour or two from when you feel the pressure is on. Just don't be buying any games! or swap 2 oldies for a new one or that kind of thing.


    Try joining your local facebook selling community. great way to sell some stuff and avoiding the ebay seller fees etc.


    all the best!
    Barclaycard - £4742 £4742
    Tesco - £2125 £1085
    Virgin - £1650 £1375
    First Direct - £1160 £1081
    Bank of dad - £9000 £9000
    Loan - £8774 £6645
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

4,309Posts Today

8,673Users online

Martin's Twitter
  • Shana tova umetuka - a sweet Jewish New Year to all celebrating. I won't be online the rest of t'week, as I take the time to be with family

  • Dear Steve. Please note doing a poll to ask people's opinion does not in itself imply an opinion! https://t.co/UGvWlMURxy

  • Luciana is on the advisory board of @mmhpi (we have MPs from most parties) https://t.co/n99NAxGAAQ

  • Follow Martin