My Get-Out-Of Debt Beginnings!

System

Thank you Martin, Martins Love Child, Milky_Mocha and Robnye for your good wishes -- It makes a big difference to not feel so alone -- I intend to use this thread as our debt diary as Martin suggests so I'm sure you will all be bored to tears by me fairly soon! ;D

I have just added Martins book to my Amazon wish list (in the hope that some kind soul will buy it for me for Xmas ) -- If not I will use any Xmas cash to buy it. I didn't know that it would help with the spreadsheet, which I have already downloaded. In fact my beloved and I filled it in as our first step (after which I had to go and have a little lie down )

I have had an idea and was wondering what you all thought -- I was thinking of moving to a "Cash Economy" ie when I get paid, taking out the money budgeted for food and cash expenses (petrol etc). That way what's in the account goes towards rent, gas & electric, c tax and debts and what we have in our hands is what we can spend. I am aware that one of our problems has always been being too free with the old "put it on the card" mentality and this would get round that wouldn't it? I may even go so far as to have separate boxes for each thing like food, petrol, etc?

Ah I can smell dinner -- Must dash! See you all soon

Kat

Martinslovechild

I am aware that one of our problems has always been being too free with the old "put it on the card" mentality and this would get round that wouldn't it?

Kat,

Sounds like a good plan. I would go so far as to say leave the card at home and take out only the cash that you actually require for a shop (plus a calculator if necessary). That way, there would never be any temptation to overspend.

deedee_3

Hi Kat,

Well done you for doing this. We're just going through the same process and have used this brilliant site as a starting point.

We have a failed business and also a bit of a if we've got it, spend it mentality and nothing to show for what we've spent.

We went to Debt Free Direct and they are going to handle talking to our creditors and sorting out repayment plans with them. I have also swapped our suppliers for utilities and recheck every 3/4 months that they are still our cheapest option. I have also opened another couple of bank accounts. When the wages go into our main one a standing order puts the spending money in the spending account, so I know that is all I have to spend. If there is any money left at the end of the month in the spending account I transfer it into the 3rd account which we use to save for things like birthdays and big purchase's like a new hoover.

Good luck with it all.

All the best Dawn x

System

Thanks Dawn -- Good Luck for you too!

Spendless

We went to Debt Free Direct and they are going to handle talking to our creditors and sorting out repayment plans with them.

Deedee is this a company that charges you for this service? You can get this done for free from somewhere like nationaldebtline.

Milky_Mocha

The cash mentality is a good way to go. I'm starting to do that myself. I was tempted into the "put it on the credit card" craze when I found out about nectar points.

Now those points don't matter so much to me anymore. Besides I found out (I think from one of my previous moneysavingexpert newsletters) that the rewards are probably just as good as shopping in cheaper stores anyway (eg Sainsburys vs Asda)

Another thing I've noticed -

I don't know what benefits your employer offers but I recently found out after years of working with this particular company that there is the option to receive vouchers for your shopping, for example you pay £95 to the company and they give you £100 worth of Sainsburys vouchers saving you £5. Moreover, the payment deductions are made before income tax thus giving more savings.

It does not seem like a great deal of money if you only shop for yourself and partner but i did my sums and over a year I was surprised at how much I could save. Plus those vouchers can be used for fuel also. Hence all my food shopping and fuel shopping is tax-free AND subsidised.

Anyway my point is, even if your employer doesn't offer this specific benefit it is worth finding out what you are entitled to. Surf the intranet and talk to your colleagues.

deedee_3

Deedee is this a company that charges you for this service? You can get this done for free from somewhere like nationaldebtline.

 

No they don't charge and were actually recommended to us by our local CAB. They have been excellent with us and they use an 0800 phone number (which I can't remember off the top of my head but will post it later)

I must say the MSE site has been a life line as well.

deedee_3

The web site is https://www.debtfreedirect.co.uk and the phone numer is 0800 977 5985

Hope this helps some people.

Debt_Free_Chick

The web site is https://www.debtfreedirect.co.uk and the phone numer is 0800 977 5985

Hope this helps some people.

Just to add to the list, there are debt management charities who will also help

https://www.payplan.com

https://www.cccs.co.uk

https://www.nationaldebtline.co.uk

The National Debtline has a wealth of information on debt management. In particular, they walk you through the process of dealing with your creditors, if you wish to go the DIY route.

Tishlamort

Debt Free Direct DO charge!
I was charged £2500