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  • FIRST POST
    • Nicnak
    • By Nicnak 10th Sep 17, 8:30 PM
    • 33Posts
    • 35Thanks
    Nicnak
    Debt Free Year
    • #1
    • 10th Sep 17, 8:30 PM
    Debt Free Year 10th Sep 17 at 8:30 PM
    Hi,

    I've pretty much buried my head in the sand over the past 15 years about debt and what it means. I've always seen it as 'normal' to have debt for things, and never thought twice about it. Recently though, I have wanted to think about cutting down my work hours, and I just can't. I can't be the mum I want to be to my 4 year old because I need to work to make sure I can pay the bills and debts. That is when it hit home, that I can't continue like this. I am having a wedding reception in December, which I know is going to take up most of my 'spare' cash, but from January 2018, I will make a difference to my debts.

    Currently have
    £485 0% credit card. It was £2000 in July, So I have been ensuring that I am working on it.
    £7500 Tesco loan at 3.2% - Paying £220 a month and due up in Three years
    £17,450 car loan. Car is in negative equity and I'm stuck in the PCP. The car also is over mileage and has damage. I am 10 months away from handing it back, but with excess mileage and damage, I am thinking this might not be the best idea. Currently paying £351 a month for this luxury that I am thinking I don't need. (I shouldn't have got it, but I did, I can't change what I have stupidly done, and now need to work on the best options).
    I spend money every month on things I don't need, and really need somewhere to record and focus on what it is I am doing, and the inspiration to keep going when I see progress is being made.

    I've started a written diary as well to try to help. If I pay off these debts, then I know that I will be £500 better off. In April, my phone is due up for renewal, and I have already looked at the SIM only deals which will take it to the £500 a month mark.

    i am going to try to earn some extra per month to pay off the debts, which in the short term might reduce the time I have with my daughter.

    Here goes...

    I really need to do this now.
Page 1
    • Nicnak
    • By Nicnak 10th Sep 17, 9:15 PM
    • 33 Posts
    • 35 Thanks
    Nicnak
    • #2
    • 10th Sep 17, 9:15 PM
    • #2
    • 10th Sep 17, 9:15 PM
    I've started on Christmas planning too.

    Always save up my Tesco vouchers to buy some wrap ups gifts. My daughter has been asking for a Disney doll and saw it in Tesco direct. I have enough vouchers to buy it! £17.50, but a start in the right direction.
    • Nicnak
    • By Nicnak 12th Sep 17, 8:30 AM
    • 33 Posts
    • 35 Thanks
    Nicnak
    • #3
    • 12th Sep 17, 8:30 AM
    • #3
    • 12th Sep 17, 8:30 AM
    This Friday is pay day. Usually by Monday I am down to my last bits and then live in my overdraft.

    Does anyone have any ideas of how to stop this?

    I've changed jobs and usually get paid on the 28th. To be paid on the 15th is new to me and also means I'm not in my overdraft this month. My bills come out after the 28th so I really red to curb my spending to ensure I can pay my bills.

    Any helpful suggestions as to how to do this?
    I've started online shopping to prevent buying things I don't need.
    • Scott_Weiland
    • By Scott_Weiland 12th Sep 17, 11:03 AM
    • 545 Posts
    • 1,124 Thanks
    Scott_Weiland
    • #4
    • 12th Sep 17, 11:03 AM
    • #4
    • 12th Sep 17, 11:03 AM
    Good luck with your journey Nicnak.

    I would have a read of both of these they can help. If you are going to online shop sign up and register with topcashback.co.uk anything you buy online try and go through TC.

    Next do an soa if you google SOA and money saving expert forum. Its an income expenditure form.

    http://www.moneysavingexpert.com/family/make-money

    Have you had a look at doing online market research surveys to try and boost your income.
    Debts 16274.64
    Cashback Earnings YTD £161.92 Survey Earnings YTD £435.18
    • Scott_Weiland
    • By Scott_Weiland 12th Sep 17, 11:08 AM
    • 545 Posts
    • 1,124 Thanks
    Scott_Weiland
    • #5
    • 12th Sep 17, 11:08 AM
    • #5
    • 12th Sep 17, 11:08 AM
    This Friday is pay day. Usually by Monday I am down to my last bits and then live in my overdraft.

    Does anyone have any ideas of how to stop this?

    I've changed jobs and usually get paid on the 28th. To be paid on the 15th is new to me and also means I'm not in my overdraft this month. My bills come out after the 28th so I really red to curb my spending to ensure I can pay my bills.

    Any helpful suggestions as to how to do this?
    I've started online shopping to prevent buying things I don't need.
    Originally posted by Nicnak

    re the overdraft its down to budgeting really, not overspending if your in it constant msybe consider the following would using an account with no overdraft be a better option. Perhaps set up an account with no overdraft, stop using the other account and pay a set amount in to get the overdraft down.
    Debts 16274.64
    Cashback Earnings YTD £161.92 Survey Earnings YTD £435.18
    • Tea&Kittens
    • By Tea&Kittens 12th Sep 17, 11:51 AM
    • 43 Posts
    • 98 Thanks
    Tea&Kittens
    • #6
    • 12th Sep 17, 11:51 AM
    • #6
    • 12th Sep 17, 11:51 AM
    Hey Nic
    Some of this sounds familiar - I similarly spent years in denial and constantly dipping into overdraft. Wishing you well in your journey to a debt free life!
    I started my debtfree journey on 07 September 2017:
    Barclaycard: 14382
    HSBC Credit Card : 2932
    MBNA : 2400
    Overdraft: 350
    A journey of a thousand miles starts with a single step. I'm on my way!
    • bloomfield89
    • By bloomfield89 12th Sep 17, 11:58 AM
    • 12 Posts
    • 12 Thanks
    bloomfield89
    • #7
    • 12th Sep 17, 11:58 AM
    • #7
    • 12th Sep 17, 11:58 AM
    Hi Nicnak
    If you post a statement of affairs (SOA) then I'm sure people will give some useful suggestions of where you may be able to save money.
    It is also useful to keep a spending diary where you write down EVERYTHING you spend. I did this last month & this has really helped me to rein in my spending this month.
    Alot of companies will allow you to change the date of your direct debit if you contact them.
    Debt Free Wannabe!
    Debt Sept 17 £10277.91
    • Nicnak
    • By Nicnak 12th Sep 17, 7:31 PM
    • 33 Posts
    • 35 Thanks
    Nicnak
    • #8
    • 12th Sep 17, 7:31 PM
    • #8
    • 12th Sep 17, 7:31 PM
    Thanks everyone.

    I do Quidco and find this does help but always gets absorbed into my overdraft.

    I have also started the diary, but not writing down everything I spend, so thank you for that. I think I need to do it. Make myself accountable. I have lowered overdraft to 0 before now, but always end up back extending it.

    Here is my SOA
    Joint for bills only: £650
    Childcare: £160
    Shopping: £120-£160
    Fuel: £100 (just looking at this as started a new job further from home)
    Car: £351
    Car insurance £45 - I did shop around for this, it was the cheapest I could get at the time.
    Loan 2: £220
    Credit card: £100 minimum but as much as I can
    union: £16
    Zurich pension: £100
    Coffees left right and centre: £100 a month (This will stop, but trying to be honest)
    life insurance £16
    Phone bill £50 (Due up April- going to SIM only)
    National Trust membership £5
    Bank rewards fee £3 (do get £8 back per month though)

    The joint purely has bills coming out of it. I actively try to reduce joint bills. I just waste money all the time.

    £2076 in total. Wow, I have never seen it written down properly with the bits I waste. I'm not surprised I am always in my overdraft.
    This doesn't include birthdays, Christmas and everything else a month throws at you.
    • Nicnak
    • By Nicnak 12th Sep 17, 7:34 PM
    • 33 Posts
    • 35 Thanks
    Nicnak
    • #9
    • 12th Sep 17, 7:34 PM
    • #9
    • 12th Sep 17, 7:34 PM
    Good luck with your journey Nicnak.

    I would have a read of both of these they can help. If you are going to online shop sign up and register with topcashback.co.uk anything you buy online try and go through TC.

    Next do an soa if you google SOA and money saving expert forum. Its an income expenditure form.



    Have you had a look at doing online market research surveys to try and boost your income.
    Originally posted by Scott_Weiland

    Thanks for this, Yes I do online market research, and I starting tutoring next week at £30 an hour once per fortnight. That should bring in enough income to pay for the shopping. Although I have a habit of spending cash. I need to get focussed.
    • zippygeorgeandben
    • By zippygeorgeandben 12th Sep 17, 7:49 PM
    • 661 Posts
    • 754 Thanks
    zippygeorgeandben
    Do you know how much you definitely have leaving your account each month for sure? I mean DDs, SOs.. not stuff which changes month by month.
    Well done on reducing the £2000 CC to £450 but it's 0% so you might have been better throwing it at another loan. But then again, I understand you wanting to wash your hands of a debt!
    End Sep 2016 End August 2017
    £8236.57 £4876.49
    (Tesco 4.8%) £222.61pcm
    £6185.75 £851.34 (Zopa 4.0%) £48.99pcm

    £5344.50
    £2890.04 (Sainsburys 0% until 06/19) £140pcm
    £2000.00 £1333.35 (Sister 0%) £133.33pcm

    Total debt
    £19.766.82 £11499.70 Original DFD May 2019.
    • Nicnak
    • By Nicnak 12th Sep 17, 7:57 PM
    • 33 Posts
    • 35 Thanks
    Nicnak
    Do you know how much you definitely have leaving your account each month for sure? I mean DDs, SOs.. not stuff which changes month by month.
    Well done on reducing the £2000 CC to £450 but it's 0% so you might have been better throwing it at another loan. But then again, I understand you wanting to wash your hands of a debt!
    Originally posted by zippygeorgeandben
    Yes, all of the above. The only thing that is variable is the coffees and birthdays and birthday meals etc.

    All the direct debits are set in stone.
    • Nicnak
    • By Nicnak 12th Sep 17, 7:59 PM
    • 33 Posts
    • 35 Thanks
    Nicnak
    Do you know how much you definitely have leaving your account each month for sure? I mean DDs, SOs.. not stuff which changes month by month.
    Well done on reducing the £2000 CC to £450 but it's 0% so you might have been better throwing it at another loan. But then again, I understand you wanting to wash your hands of a debt!
    Originally posted by zippygeorgeandben
    I agree about the 0%, but I just wanted rid of it. I now have £430 on it. I'm due some extra payment on Friday for doing so work over the summer. I will use this to pay some off something!
    • 117pauline
    • By 117pauline 12th Sep 17, 8:12 PM
    • 273 Posts
    • 4,392 Thanks
    117pauline
    I would check all your outgoings for the last three months to see where the money really goes. You don't need to tell us but it will help you see where cuts can be made.

    I find spending in cash focuses my attention. Recording everything is hard as well but will help you see a pattern. The other thing I would record is how you were feeling / situation / people to show if you spend when you are tired, stressed or with certain people.
    Don't get it perfect - Get it going
    Better Than Before
    • Nicnak
    • By Nicnak 12th Sep 17, 8:13 PM
    • 33 Posts
    • 35 Thanks
    Nicnak
    SOA:
    [font=courier new]Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 2
    Number of children in household......... 1
    Number of cars owned.................... 2

    Monthly Income Details

    Monthly income after tax................ 2000
    Partners monthly income after tax....... 1800
    Benefits................................ 0
    Other income............................ 82
    Total monthly income.................... 3882


    Monthly Expense Details

    Mortgage................................ 620
    Secured/HP loan repayments.............. 351
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 147
    Electricity............................. 25
    Gas..................................... 25
    Oil..................................... 0
    Water rates............................. 30
    Telephone (land line)................... 0
    Mobile phone............................ 50
    TV Licence.............................. 12
    Satellite/Cable TV...................... 0
    Internet Services....................... 38
    Groceries etc. ......................... 150
    Clothing................................ 0
    Petrol/diesel........................... 100
    Road tax................................ 0
    Car Insurance........................... 45
    Car maintenance (including MOT)......... 0
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 160
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 20
    Contents insurance...................... 0
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 30
    Haircuts................................ 0
    Entertainment........................... 0
    Holiday................................. 0
    Emergency fund.......................... 0
    Total monthly expenses.................. 1803



    Assets

    Cash.................................... 0
    House value (Gross)..................... 210000
    Shares and bonds........................ 0
    Car(s).................................. 0
    Other assets............................ 5000
    Total Assets............................ 215000



    Secured & HP Debts

    Description....................Debt......Monthly.. .APR
    Mortgage...................... 155000...(620)......1.94
    Hire Purchase (HP) debt ...... 17450....(351)......4.4
    Total secured & HP debts...... 172450....-.........-


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    Loan...........................7500......220...... .3.2
    Credit card....................430.......100.......0
    Total unsecured debts..........7930......320.......-



    Monthly Budget Summary

    Total monthly income.................... 3,882
    Expenses (including HP & secured debts). 1,803
    Available for debt repayments........... 2,079
    Monthly UNsecured debt repayments....... 320
    Amount left after debt repayments....... 1,759


    Personal Balance Sheet Summary
    Total assets (things you own)........... 215,000
    Total HP & Secured debt................. -172,450
    Total Unsecured debt.................... -7,930
    Net Assets.............................. 34,620


    Although I added my husbands, I didn't add his debt, as I am focussing on mine first. He's not ready to get his head out of the sand yet.
    • Nicnak
    • By Nicnak 12th Sep 17, 8:16 PM
    • 33 Posts
    • 35 Thanks
    Nicnak
    I would check all your outgoings for the last three months to see where the money really goes. You don't need to tell us but it will help you see where cuts can be made.

    I find spending in cash focuses my attention. Recording everything is hard as well but will help you see a pattern. The other thing I would record is how you were feeling / situation / people to show if you spend when you are tired, stressed or with certain people.
    Originally posted by 117pauline
    Thanks,

    I am already aware that my spending is stress related and that I need it to get the high. I had a high powered job, which I quit, but i'm still working under immense stress and want it to end. I can't see a way out without getting rid of these debts.

    I think writing it down is what I need to do.
    My excess tends to go on:
    Coffee and cookies at the weekend
    just 'popping' to the shops for one thing (10 later)
    alcohol
    buying random stuff from Facebook/ebay anywhere just because I want it at that time and it made me smile for that one second.

    I think it is deep routed with my emotional well being.
    The last time I got this low, I bought a mac on finance.
    • missmental123
    • By missmental123 12th Sep 17, 9:11 PM
    • 36 Posts
    • 99 Thanks
    missmental123
    Hi,
    I feel your pain!
    I have been over spending for years on holidays mainly but shopping too and have not much to show for it! I'm into my third month of budgeting now and although it's tough I am getting the hang of it. I can't bear to think of wasting good money down the pub any more, drinking expensive cocktails and I'm watching every penny I spend & recording it on an app and giving myself a weekly cash amount to live on.
    Good luck with it! Hopefully, we can break free from this horrible way of living.
    Total: Debt July '17 -£23,806.33 - now £22,273.81
    • blue_eyed_girl123
    • By blue_eyed_girl123 12th Sep 17, 9:25 PM
    • 45 Posts
    • 77 Thanks
    blue_eyed_girl123
    With the car, could you just phone them and explain the situation and see what your options are? I know they are determined sales people but maybe take a friend with you so you don't get drawn into sales techniques for another car. If you know what your options are, you can make a better decision moving forward .
    • Nicnak
    • By Nicnak 13th Sep 17, 6:12 PM
    • 33 Posts
    • 35 Thanks
    Nicnak
    With the car, could you just phone them and explain the situation and see what your options are? I know they are determined sales people but maybe take a friend with you so you don't get drawn into sales techniques for another car. If you know what your options are, you can make a better decision moving forward .
    Originally posted by blue_eyed_girl123
    Yep, I've tried this, but their answer is always the same to come back when I'm out of negative equity.

    I have a couple of options
    1) Voluntarily terminate in April, pay for mileage and damage and then get a deposit or loan for a new car at a smaller rate
    2) wait another 18 months and exchange for a cheaper car.
    3) in April, get a loan to cover the finance owed and this will reduce my monthly payment by about £100.

    I guess that's it!
    • Nicnak
    • By Nicnak 14th Sep 17, 6:10 AM
    • 33 Posts
    • 35 Thanks
    Nicnak
    So tomorrow is pay day.

    I'll be writing in here pretty much daily with how much I've spent and what for so I can see.

    I've already labelled Saturday a day in so no spending!
    • another casualty
    • By another casualty 14th Sep 17, 7:32 AM
    • 2,909 Posts
    • 4,617 Thanks
    another casualty
    Howdy !
    Glad you're facing up to the debt at last . It is far from easy as we all know
    I had a browse through this nice thread , but want to ask a few things if I may .
    On one of the last paragraphs above, you mentioned that you may get a loan regarding your car situation . Unfortunately I think you are in for a shock ! If you apply for loans ( apart from payday etc) , you will be declined . This is now the time imho to think about debt mgt / Iva etc. Mortgage and secured loans and council tax come first.
    The rest you must get help with now.

    Ditch the national trust . It's a charity. They have enough.

    On your s o a , I notice that you have no contents insurance .
    It's a necessary evil .

    There are other things that other folk will point out .

    One other thing : your husband needs to join up with you and get his head out of the sand .
    We don't know your ages etc so you may have plenty of time to get back on the straight and narrow .
    Sorry if I sound a bit o t t , but best repair the situation sooner rather than later.
    Best of luck
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