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
    • Penny2016
    • By Penny2016 10th Jul 17, 4:06 PM
    • 1Posts
    • 1Thanks
    Penny2016
    I need to be Debt free again
    • #1
    • 10th Jul 17, 4:06 PM
    I need to be Debt free again 10th Jul 17 at 4:06 PM
    Hi,

    I hope I am doing this right, I am new here.

    So I'm in £1800 debt, I understand this isn't bad in the grand scheme of things, (I also have an £80K mortgage but that's not my issue)

    So after being in debt most of my adult life, I eventually took out an IVA which finished a few years back, and here I am once again in debt. My debts weren't racked up wrecklessly, I have £1500 on a credit card that I used for necessities and vet bills a catalogue bill of £300. It mounts up too quick doesn't it.

    So I'm putting a stop to it here and now, I plan to clear my debt by June 2019, sooner if I can.

    I have spent this afternoon reading through threads and will continue as it gives me hope.

    Now begins the hard work of earning more and spending less
Page 1
    • EssexHebridean
    • By EssexHebridean 10th Jul 17, 5:04 PM
    • 7,439 Posts
    • 39,047 Thanks
    EssexHebridean
    • #2
    • 10th Jul 17, 5:04 PM
    • #2
    • 10th Jul 17, 5:04 PM
    welcome Penny - and well done for wanting to get things sorted - that's the toughest bit done right there!

    From what you've said the problem is that when you cleared your debts before you were given a straight solution without doing any of the groundwork. What we generally suggest to people on here is to do the groundwork first - so sort out your SOA (Statement of Affairs) - the link is in the "sticky" thread at the top of the board and maybe if you feel brave enough post it in here - we can take a look over it then and see if there are any savings you might have missed. Make the SOA as honest as possible - and it needs to reflect your situation as it is now rather than what you *think* it should look like. That then gives you your budget to work from - and you need to live with that and tweak things as you go along to make sure it works - that also gives you what your surplus is each month so you know what you have to put against debt - plus if you know you don;t really have that amount left each month you can track down where it's going via a spending diary.

    The key is to actually keep track - of what's coming in and what's going out - and to plan ahead. So if you know your car insurance is due in January next year - you need to budget enough money to set aside each month between now and then that you will be able to pay it upfront. From then you budget 1/12th of the annual premium plus 10% to cover increases - follow? Same with things like car tax, annual maintenance costs, other insurances, or anything else that might otherwise take you by surprise. If your budget is correct there should be almost nothing in the way of a financial surprise - and the ones there are should be covered by your emergency fund.

    The fact that you say your new debt has gone on necessities suggests that your budget didn't work last time - which is why I'm suggesting that as first port of call.
    MORTGAGE FREE 30/09/2016
    Sainsbugs 0% card: 22/12/16 £1229.00/£412.21
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

4,209Posts Today

7,542Users online

Martin's Twitter
  • Byebye! I'm about to stop work & twitter, to instead spend glorious time with Mrs & mini MSE. Wishing u a lovely summer. See u in 10 days.

  • WARNING Did you start Uni in or after 2012? The interest's rising to 6.1%; yet it doesnt work like you think. See https://t.co/IQ8f0Vyetu RT

  • RT @JanaBeee: @MartinSLewis Boris is the anomaly (coffee), the others are versions of normal (beer). Lots of same candidates = vote share d?

  • Follow Martin