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  • FIRST POST
    • Nicnak
    • By Nicnak 10th Sep 17, 8:30 PM
    • 422Posts
    • 1,746Thanks
    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 2
    • blue_eyed_girl123
    • By blue_eyed_girl123 14th Sep 17, 6:17 PM
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    blue_eyed_girl123
    How much is it to come out of negative equity? Also what level would your deposit be? H2B and I bought a V4uxh4ll V1v4 for £2k less than new price at 3 months old with 1387 miles on the clock . Might be worth looking at smaller car options (depending on your size of car now ). Hope this helps.
    • Nicnak
    • By Nicnak 14th Sep 17, 7:04 PM
    • 422 Posts
    • 1,746 Thanks
    Nicnak
    Hi, it is just over 4k to come out of negative equity. Then i have the excess mileage and damage.

    I do want to go to a smaller car, just can't see how paying around 6k and then having to put together either a loan or deposit will help, if that makes sense?

    Not considered an IVA. I'm still able to get lower interest loans and 0% credit cards. I am also pre approved by Barclays for 30k. I actually have a very good credit score as I have regularly met every single payment, and on the surface have 'spare' cash every month. That's the issue that I have is the spending of this instead of paying off the debts.

    I do have contents, but it is tied up with house so I just put the total amount in there.

    I am trying with my husband. I can't force him to be in on this, although he is on board with me, I need to pay off my debts and make progress. I'm responsible for my spending and how I just waste money every month.

    Thanks everyone for their comments so far. I really appreciate your help.
    I have looked into a lot to try to improve the situation, and I am aware when everything is due up.

    xx
    • enthusiasticsaver
    • By enthusiasticsaver 14th Sep 17, 7:37 PM
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    enthusiasticsaver
    That soa shows a significant surplus so I guess this is inaccurate and something you aspire to rather than the present situation?

    Does your husband also put in £650 and as the bills only amount to £917 where does the extra £400 go?

    Why is your husband not paying for half the childcare and food too?

    If your outgoings are £2076 and your income only £2000 this is not sustainable. Was the Tesco loan a consolidation of old debt?

    For future reference, not that you need reminding now, PCP deals are the very worst way to buy a car. Expensive, inflexible if the car or finances change in any way and poor value. That, along with the fact you seem to be shouldering the lions share of the bills, childcare and food is the reason you are in debt. Address that and stop wasting money on coffees and your finances should mean that part time work would be possible.
    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 14th Sep 17, 7:41 PM
    • 4,672 Posts
    • 8,833 Thanks
    enthusiasticsaver
    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
    Have two separate accounts, one for bills and one for discretionary spending so you have the fixed amount there waiting for the bills to come out and you don't spend from that account. I am confused though as I thought that was what the £650 was for. Do you have a joint bills/household account with your husband and a personal account for your debts and other spends?
    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 14th Sep 17, 7:46 PM
    • 4,672 Posts
    • 8,833 Thanks
    enthusiasticsaver
    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 As the bills are £917 you are paying 70%
    Childcare: £160 Does your husband not pay half?
    Shopping: £120-£160 Does your husband not pay half?
    Fuel: £100 (just looking at this as started a new job further from home)
    Car: £351 Choose cheapest way of getting rid of this asap ideally without taking another loan. 0% credit card maybe?
    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.
    Originally posted by Nicnak
    As your income is only £2000 is this correct or should the food and childcare be included in the £650?
    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
    • Nicnak
    • By Nicnak 14th Sep 17, 8:14 PM
    • 422 Posts
    • 1,746 Thanks
    Nicnak
    Hi,

    Ok, will try to answer all the questions!
    I agree on the PCP by the way.

    We have a joint that simply has bills and nothing else. I pay £650 and he pays £600. We pay a little extra to cover swimming lessons that i forgot about, and also so that we have Christmas as a 'month off'.

    Childcare is £320 so we pay £160 each.
    I added his wages to the pot, but it is my wages that come out.
    I always pay shopping, as I earn more than he does and feel that it is fair.

    Hope I answered everything? I think the excess surplus purely is because I added his wage to it.
    • Nicnak
    • By Nicnak 14th Sep 17, 8:16 PM
    • 422 Posts
    • 1,746 Thanks
    Nicnak
    Have two separate accounts, one for bills and one for discretionary spending so you have the fixed amount there waiting for the bills to come out and you don't spend from that account. I am confused though as I thought that was what the £650 was for. Do you have a joint bills/household account with your husband and a personal account for your debts and other spends?
    Originally posted by enthusiasticsaver
    Yes, joint for both of us for anything house related and then personal for our own bills and surplus.
    Might think about doing the same though as you suggested. Thanks,
    • Nicnak
    • By Nicnak 14th Sep 17, 8:17 PM
    • 422 Posts
    • 1,746 Thanks
    Nicnak
    That soa shows a significant surplus so I guess this is inaccurate and something you aspire to rather than the present situation?

    Does your husband also put in £650 and as the bills only amount to £917 where does the extra £400 go?

    Why is your husband not paying for half the childcare and food too?

    If your outgoings are £2076 and your income only £2000 this is not sustainable. Was the Tesco loan a consolidation of old debt?

    For future reference, not that you need reminding now, PCP deals are the very worst way to buy a car. Expensive, inflexible if the car or finances change in any way and poor value. That, along with the fact you seem to be shouldering the lions share of the bills, childcare and food is the reason you are in debt. Address that and stop wasting money on coffees and your finances should mean that part time work would be possible.
    Originally posted by enthusiasticsaver
    Tesco loan was paying off an old debt at a lower interest rate and in less time.
    • blue_eyed_girl123
    • By blue_eyed_girl123 14th Sep 17, 9:05 PM
    • 50 Posts
    • 100 Thanks
    blue_eyed_girl123
    I see what you're saying about the car, but comparing the short term and long term options, would you save money in the long run paying the £6k now and swapping to a smaller car, rather than waiting to pay off the car. I think you should talk to your partner about this. If you have any issues with your credit and are linked financially, it will potentially affect both of you. Even if you don't ask him for money, I think you should explain the situation .
    • Nicnak
    • By Nicnak 15th Sep 17, 6:25 AM
    • 422 Posts
    • 1,746 Thanks
    Nicnak
    I see what you're saying about the car, but comparing the short term and long term options, would you save money in the long run paying the £6k now and swapping to a smaller car, rather than waiting to pay off the car. I think you should talk to your partner about this. If you have any issues with your credit and are linked financially, it will potentially affect both of you. Even if you don't ask him for money, I think you should explain the situation .
    Originally posted by blue_eyed_girl123
    Thanks,

    I have no idea how to solve the car issue, I honestly don't know what to do for the best.

    He does know about all my bills and debts, but I'm. It involving him in laying them off. He has his own debts and I need to stop my spending habit and deal with my emotional connection with spending before I try to preach to him about what he should be doing.
    • Nicnak
    • By Nicnak 15th Sep 17, 6:26 AM
    • 422 Posts
    • 1,746 Thanks
    Nicnak
    Today is payday!

    I was supposed to be at a family meal tonight, which was a planned thing from months.
    It's been cancelled so I'm going to put the money I'd already put aside for it onto my credit card.

    Here goes. I can break this cycle.
    • Nicnak
    • By Nicnak 15th Sep 17, 7:12 PM
    • 422 Posts
    • 1,746 Thanks
    Nicnak
    Today I've paid:
    £140 off my credit card (I got paid an extra £200 this month)
    £160 to childcare
    £600 to the joint (cut it down slightly as it's not needed)
    Family meal was cancelled
    I did buy a £2.50 lottery ticket (first one in a year, only because it's a huge jackpot) not a regular occurance for me.
    I've set myself 10 tasks to do this month that will help me be debt free and stop spending.
    • Nicnak
    • By Nicnak 16th Sep 17, 6:08 AM
    • 422 Posts
    • 1,746 Thanks
    Nicnak
    Today will need to be a no spending day.

    I have lots to mark and do at home so I don't need to go out.
    • Nicnak
    • By Nicnak 16th Sep 17, 12:35 PM
    • 422 Posts
    • 1,746 Thanks
    Nicnak
    I started the day really well and positive.

    I have avoided going to the usual places where I spend money, but i'll talk you through the thoughts I have when I spend. I hope that they make sense, and by writing it down, I don't go ahead and do what I normally do.

    in June/July I did some exam marking. I purchased two wedding rings on my credit card and knew what I had to earn to pay it off.

    I got my final payment yesterday and paid off the credit card, but now I am thinking that i 'deserve' a little £25 treat after the endless nights of on screen marking I did. I have already spent the money I have earned by paying off my credit card. I don't have £25 excess for a treat, but my emotional thought is that I need to have the treat because I worked so hard for it.

    I do not want to buy the item. I know exactly what it is I want to buy. I also know that I want to be debt free and £25 here and there mounts to hundreds.

    I can break my usual cycle of buying. I know I can do this. I don't need the item and every month when I am debt free, I can treat myself.

    This is so hard for me. I'm not sure anyone else feels like this with spending? This is what gets me in my overdraft every month.
    • enthusiasticsaver
    • By enthusiasticsaver 16th Sep 17, 2:43 PM
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    • 8,833 Thanks
    enthusiasticsaver
    You need first of all to get out of the mentality of spending with a credit card. Use a debit card instead as you then get out of the habit of thinking to yourself you can delay paying for it by using a credit card instead. Only exception to this is if you pay the credit card off in full each month which you obviously don't. This way you save for what you need and pay for it with your money rather than the credit card companies.

    Same goes for overdrafts. Do not go overdrawn. Only spend what is in the account.
    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
    • blue_eyed_girl123
    • By blue_eyed_girl123 16th Sep 17, 4:22 PM
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    • 100 Thanks
    blue_eyed_girl123
    Didn't mean to suggest that you preach to your partner but sometimes joint support can work better . With treats, why don't you try and have yours but cheaper, I love going out for hot chocolate and cake, but sometimes we make it at home for much less money. Or try and do a treat for £2.50 rather than £25. Don't give up
    • Nicnak
    • By Nicnak 16th Sep 17, 6:46 PM
    • 422 Posts
    • 1,746 Thanks
    Nicnak
    Didn't mean to suggest that you preach to your partner but sometimes joint support can work better . With treats, why don't you try and have yours but cheaper, I love going out for hot chocolate and cake, but sometimes we make it at home for much less money. Or try and do a treat for £2.50 rather than £25. Don't give up
    Originally posted by blue_eyed_girl123
    You didn't come across like that.

    I know I have the emotional attachment to spending, and it's my overdraft and car, and loan! I got myself into this and need to get out. He tells me to stop spending, but then I just hide it.

    Today turned into a NSD. My mum has a plum tree and asked me to make her some jam. She gave me the sugar too so I didn't have to buy anything. I've spent my afternoon watching and making jam.

    Tomorrow's test is the gym for the swimming lesson. It always ends with coffee and breakfast. I've already bought ingredients for breakfast and not going to take my purse with me.

    Hopefully I can have two NSDs
    September 6th 2017 start Updated 4th NOV 17
    Credit Card £430 now: £0 Tesco Loan £7500 = £6891 Car loan £17450 = £16,748 Total = £25,330 £23,749 EMF #252
    Sealed pot challenge #589
    Pay off all your debts by Christmas #170
    • savetosave
    • By savetosave 16th Sep 17, 9:46 PM
    • 88 Posts
    • 182 Thanks
    savetosave
    Hi
    Maybe take coffee in a travel mug or flask tomorrow.
    Good luck
    • Nicnak
    • By Nicnak 17th Sep 17, 8:05 AM
    • 422 Posts
    • 1,746 Thanks
    Nicnak
    Hi
    Maybe take coffee in a travel mug or flask tomorrow.
    Good luck
    Originally posted by savetosave
    Thank you. I do this for work to save money, but didn't think about the gym
    September 6th 2017 start Updated 4th NOV 17
    Credit Card £430 now: £0 Tesco Loan £7500 = £6891 Car loan £17450 = £16,748 Total = £25,330 £23,749 EMF #252
    Sealed pot challenge #589
    Pay off all your debts by Christmas #170
    • Nicnak
    • By Nicnak 17th Sep 17, 6:05 PM
    • 422 Posts
    • 1,746 Thanks
    Nicnak
    Two days of no spending!

    A full weekend! That's unheard of from me!
    September 6th 2017 start Updated 4th NOV 17
    Credit Card £430 now: £0 Tesco Loan £7500 = £6891 Car loan £17450 = £16,748 Total = £25,330 £23,749 EMF #252
    Sealed pot challenge #589
    Pay off all your debts by Christmas #170
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