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    • Second Time Lucky
    • By Second Time Lucky 4th Dec 17, 10:57 PM
    • 10Posts
    • 1Thanks
    Second Time Lucky
    Time to change the habits of a lifetime
    • #1
    • 4th Dec 17, 10:57 PM
    Time to change the habits of a lifetime 4th Dec 17 at 10:57 PM
    Hi All!

    As with many, long time lurker on Debt Free Wannabes, first time poster!

    I went through a DMP about 5 years ago, got myself debt free and then swiftly racked them all up again. I am determined to crack it this time and really change my habits. I spent my 20's having a jolly old time, travelling and partying and had no real desire to look at the 'boring money stuff'. When I was going through my DMP I had a commission based job and so even though my entertainment budget was tiny, when I had a good month I found a way to eak out a bit more fun money when I should really have been throwing this at my debts.

    All of a sudden, all of my friends have settled down and have bought houses and I find myself pining for a bit of security and a place on my own away from the dramas of housesharing. I've been trying to 'sort out my debts' since I started at uni, but I don't think I have really been throwing myself at it. Not sure if it was a full on LBM, but last week I wrote down all the money I spend on debt repayments each month and it just makes me feel a bit sick, all the better things I could be doing with that money!
    I now have a set salary (which used it be super annoying as I'd always overspend counting on a 'good month' next month) so I am determined to get my debts sorted once and for all and not get back into this position again!

    I've completed a SOA below, any comments welcome! Hopefully I have completed it correctly!

    A couple of explanations
    I pay a set 600 per month rent which includes all bills which is nice as means I know exactly each month what I need to pay so in theory I should be much better at budgeting!

    An annoying thing that I haven't accounted for however, wasn't sure best way to add it. I'm going on holiday at the end of the month with a friend. I booked it in another moment of denial about my debt issues so I have 440 to pay for accommodation whilst we are there plus spending money. I looked into cancelling, but as it is so soon I would lose all the money I'd already spent and my friend would be gutted, but I have vowed now no more holidays until I had paid off my debts!

    I owe my Mum 2700 which is on a 0% card of hers until the end of next year, she lent me the money to pay off the last of my credit cards which were at high interest rates. Thus committing the consultation sin, I then proceeded to rack then up again I REALLY don't want to tell her I'd done it again, so want to keep they repayments at 300 even though I know I should really be throwing more at the ones with horrendous interest rates.

    Also- my overdraft is not 0% I have a daily charge of about 3, but wasn't sure how to add in bank charges!

    Looking forward to making it happen!

    [font=courier new]Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 1
    Number of children in household......... 0
    Number of cars owned.................... 0

    Monthly Income Details

    Monthly income after tax................ 2400
    Partners monthly income after tax....... 0
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 2400


    Monthly Expense Details

    Mortgage................................ 0
    Secured/HP loan repayments.............. 0
    Rent.................................... 600
    Management charge (leasehold property).. 0
    Council tax............................. 0
    Electricity............................. 0
    Gas..................................... 0
    Oil..................................... 0
    Water rates............................. 0
    Telephone (land line)................... 0
    Mobile phone............................ 36
    TV Licence.............................. 12
    Satellite/Cable TV...................... 4
    Internet Services....................... 0
    Groceries etc. ......................... 200
    Clothing................................ 40
    Petrol/diesel........................... 0
    Road tax................................ 0
    Car Insurance........................... 0
    Car maintenance (including MOT)......... 0
    Car parking............................. 0
    Other travel............................ 52
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 0
    Contents insurance...................... 0
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 35
    Haircuts................................ 6.25
    Entertainment........................... 160
    Holiday................................. 60
    Emergency fund.......................... 0
    Total monthly expenses.................. 1205.25



    Assets

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


    No Secured nor Hire Purchase Debts


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    118188.........................2593......129...... .99
    Lending Stream.................125.......60........1325
    Lending Stream.................402.......195.......1325
    Overdraft......................2300......0........ .0
    Mum............................2700......300...... .0
    Vanquis CC........................980.......45........39
    Total unsecured debts..........9100......729.......-



    Monthly Budget Summary

    Total monthly income.................... 2,400
    Expenses (including HP & secured debts). 1,205.25
    Available for debt repayments........... 1,194.75
    Monthly UNsecured debt repayments....... 729
    Amount left after debt repayments....... 465.75


    Personal Balance Sheet Summary
    Total assets (things you own)........... 0
    Total HP & Secured debt................. -0
    Total Unsecured debt.................... -9,100
    Net Assets.............................. -9,100
Page 1
    • Second Time Lucky
    • By Second Time Lucky 4th Dec 17, 11:22 PM
    • 10 Posts
    • 1 Thanks
    Second Time Lucky
    • #2
    • 4th Dec 17, 11:22 PM
    • #2
    • 4th Dec 17, 11:22 PM
    So spending today hasn't been great, which is one of the reasons I wanted to start this diary to get a bit more accountable and see how everything all adds up. I work out of the office a few days a week which I think is often where I end up spending unnecessarily. I'm able to expense dinners, but not lunches so I need to watch these more carefully.

    3.10- Sandwich from Pret for Lunch - day on the road today so just grabbed something, need to be more organised.
    28.00 - Dinner with some friends in London, but as I was in for work it meant that I saved the 13.00 I would normally spend on a train ticket. I had two glasses of wine as my friend was drinking, I should have been a bit stronger and had tap water/a soft drink.

    I'm travelling up north tomorrow, travelling 1st class so will get fed on the train for lunch and then will be able to expense dinner so want to try and keep it as a NSD if possible.
    • starting_again_in_the_sun
    • By starting_again_in_the_sun 5th Dec 17, 8:17 AM
    • 49 Posts
    • 180 Thanks
    starting_again_in_the_sun
    • #3
    • 5th Dec 17, 8:17 AM
    • #3
    • 5th Dec 17, 8:17 AM
    Hello Second Time Lucky,
    Well done for facing your situation and asking for help.

    You are in a relatively fortunate position, as you have a healthy surplus. However, some of the interest rates are huge! Is your overdraft really interest free?

    Would it be possible to reduce the amount you pay to your mum? This would allow you to clear the other debts more quickly.

    Your grocery budget can definitely be reduced, so can entertainment.

    Good luck!
    • beanielou
    • By beanielou 5th Dec 17, 11:14 AM
    • 49,035 Posts
    • 182,036 Thanks
    beanielou
    • #4
    • 5th Dec 17, 11:14 AM
    • #4
    • 5th Dec 17, 11:14 AM
    Do you really have £400+ left at the end of the month?
    Sure you dont need to tell you but you really need to get rid of lending stream ect ASAP.
    Lou~ Debt free Wanabe No 55 DF 03/03/14.
    **Credit card debt free 30/06/10~** **Weight loss 2 stone 2 lbs **

    "A large income is the best recipe for happiness I ever heard of" Jane Austen in Mansfield Park.
    ***Fall down seven times,stand up eight*** ~~Japanese proverb.
    It starts with you, it starts from now. *** It is ok to be me.*** ***Keep plodding***
    • Second Time Lucky
    • By Second Time Lucky 5th Dec 17, 11:37 AM
    • 10 Posts
    • 1 Thanks
    Second Time Lucky
    • #5
    • 5th Dec 17, 11:37 AM
    • #5
    • 5th Dec 17, 11:37 AM
    Thanks guys!

    Yes I think this is my issue, I always get to well before the end of the month and I've run out of money and end up topping up with payday loans. I really really should be able to live within my means, but somehow I always overspend. I'm hoping writing it all down here will give me a bit more accountability.

    My credit rating is shocking, hence the high interest rates. Absolutely keen to get the horrendous lending stream ones gone asap. My overdraft isn't interest free and I'm charged £3 per day for it so really not interest free but wasn't sure where to add this in.

    I actually used to pay my Mum £400 per month so have already reduced this but really don't want to tell her the extent of the other debts as she'll be really disappointed that I've got myself into this state again. I've told her I've just got 'the last few bits' to pay off.

    As you say, it should be possible to tackle these, but I just need to face reality and have a good few months of living frugally. I've been in this situation for years and so have just been avoiding facing it.
    • patman99
    • By patman99 5th Dec 17, 12:00 PM
    • 8,118 Posts
    • 9,542 Thanks
    patman99
    • #6
    • 5th Dec 17, 12:00 PM
    • #6
    • 5th Dec 17, 12:00 PM
    Are there any penalties for paying off the lending stream debts early?. If not, then pay off the outstanding £125 this month, then next month throw £200 at the other with the view of clearing it the following month.

    This will free up £255 a month that you can use to reduce your overdraft.

    Your overdraft is costing you £21 a week, or, £1,100ish a year in fees alone.
    Never Knowingly Understood.

    Member #1 of £1,000 challenge - £759.94/ £1000 (that's 75.49%)

    3-6 month EF £240.61/£3600 (that's 4 days worth)

    Do you/your spouse earn less than £197 p/w ?. Fill-in Form R85 and get your Bank interest Tax free.
    • Second Time Lucky
    • By Second Time Lucky 5th Dec 17, 12:40 PM
    • 10 Posts
    • 1 Thanks
    Second Time Lucky
    • #7
    • 5th Dec 17, 12:40 PM
    • #7
    • 5th Dec 17, 12:40 PM
    Thanks

    So no fees on the Lending Stream so definitely getting this one sorted. Makes me feel sick thinking about how much they cost!

    Overdraft is with Halifax so I've just realised it's actually 1p per £7 that I'm paying in fees. I was thinking I would attack the 99% interest 118118 account first before the overdraft. I'm not sure how to work it out, but I was thinking that as I am living in my overdraft some of the month I pay less in fees as there in money in the account?
    • Second Time Lucky
    • By Second Time Lucky 5th Dec 17, 12:42 PM
    • 10 Posts
    • 1 Thanks
    Second Time Lucky
    • #8
    • 5th Dec 17, 12:42 PM
    • #8
    • 5th Dec 17, 12:42 PM
    Thanks

    So no fees on the Lending Stream so definitely getting this one sorted. Makes me feel sick thinking about how much they cost!

    Overdraft is with Halifax so I've just realised it's actually 1p per £7 that I'm paying in fees. I was thinking I would attack the 99% interest 118118 account first before the overdraft. I'm not sure how to work it out, but I was thinking that as I am living in my overdraft some of the month I pay less in fees as there in money in the account?
    • ladymay
    • By ladymay 5th Dec 17, 1:28 PM
    • 711 Posts
    • 3,313 Thanks
    ladymay
    • #9
    • 5th Dec 17, 1:28 PM
    • #9
    • 5th Dec 17, 1:28 PM
    Hi Second Time Lucky! Just popping on to wish you luck and for a bit of cheerleading - you can absolutely do this
    Debt 14/04/12: £15736.77
    Debt 09/12/14 ZERO POUNDS
    Debt 15/10/17: £1714.40
    Debt 14/11/17: £1631.61
    Moving back to the UK 05/01/18
    • enjoyyourshoes
    • By enjoyyourshoes 5th Dec 17, 1:37 PM
    • 809 Posts
    • 990 Thanks
    enjoyyourshoes
    Hi

    time to change habits of a lifetime? Hey, sound like words, easy to say but by the looks of things really impossible to do.

    The epiphany didn't last long, PaM such, dinner in London and 1st class on the train?

    Add that lot up and compare it to the debt to your Mother, I think you may be taking the P*ss.

    You need to work out your life priorities, put these into financial terms and start 'doing the things right', to meet these objective.

    Also know where you are financially every day by accrueing fore future costs and reconciling bank account daily with spends. Then analyse and scrutinise spending to meet your life obj.

    Really simple stuff but hard to maintain, but well worth it when how you have benefited by compound interest.
    Debt is a symptom, solve the problem.
    • Second Time Lucky
    • By Second Time Lucky 5th Dec 17, 2:05 PM
    • 10 Posts
    • 1 Thanks
    Second Time Lucky
    Thanks LadyMay!!

    Yup, this is why I started this - to change things and to get a grip on my lifestyle overspending.

    Lunch was an error- no preparation and therefore had to get sometime on the go, I was in London for work anyway and hadn't seen these friends in months so used the opportunity to catch up without having to see them another time and pay for the train ticket in myself. 1st Class train is paid for by work, so actually a good way for me to have a NSD as no food to pay for!

    I completly agree, I am looking at everything that I spend now to get to my long term goal of being debt free! I definitely have a problem with spending money on things I don't need, particually when it comes to food and entertainment, so I am hoping writing down every amount will make me think twice before opening my purse.
    • Second Time Lucky
    • By Second Time Lucky 5th Dec 17, 2:09 PM
    • 10 Posts
    • 1 Thanks
    Second Time Lucky
    Also... I just realised my SOA was more aspiration as what it should be, rather than what it actually is. I'll have to take a look back at my bank statements and work out where my overspending is.
    • Second Time Lucky
    • By Second Time Lucky 6th Dec 17, 9:03 AM
    • 10 Posts
    • 1 Thanks
    Second Time Lucky
    NSD yesterday whoop! Hoping for the same again today
    • Second Time Lucky
    • By Second Time Lucky 6th Dec 17, 8:08 PM
    • 10 Posts
    • 1 Thanks
    Second Time Lucky
    Spend all day trekking around shopping centres for work so lots and lots of temptation around to spend on either things or snacks/coffees! Managed to swerve all the normal spends. My face moisturiser had run out but rather than grabbing the first one in Boots I compared a couple across stores and managed to only spent £3.50. So not too bad a day really, plus did nearly 16,000 steps so a bit of a work out as well!
    • Second Time Lucky
    • By Second Time Lucky 7th Dec 17, 10:58 PM
    • 10 Posts
    • 1 Thanks
    Second Time Lucky
    Another day, another day walking around shopping centres full of temptation. Managed to avoid any purchases and when my train was delayed also resisted getting a coffee so a NSD, whoop! Plus, doing some market research tommrrow so an extra £50 that I’m going to put straight towards the lending stream once it’s cleared.
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