Debt Diary 2008

BelfastGirl_2

Hi everyone! I've been reading a lot of the posts on here for a while, and thought it was about time I introduced myself!

I'm 36 years old, live on my own (except for my dog!) and have owned my house for the last 10 years. I have a reasonably good salary for Northern Ireland, but as I'm sure a lot of you can understand, somehow it's never been enough! And so I find myself currently sitting with almost £12000 debt on credit cards and a little over £12000 outstanding on a loan..... And honestly little to show for it. Around this time last year, I had my light bulb moment, when I realised that when I paid out all my bills and the minimum on my credit cards, I was left with around £100 a month to live on. I couldn't even afford to go to work anymore - £40-£50 a week in petrol - never mind do things like eat! So I took action!

I was fortunate that in my last job, when I left they offered me the option of joining their bank of "as-and-when" staff. It's the NHS, so always short staffed and relies a lot on agency and other staff. Quick phone call to the manager (why have I not been being offered shifts?) and I started getting regular hours with them - night duty at the weekends after the 9-5 mon-fri of my regular job. I started by doing 1 night shift each week, now I generally do 1 night every other week, and 2 the other weeks. I took a fortnight & 2 days off my regular job a few weeks ago and in that time, did another 10 night duties! This has been a complete life saver, in many ways.

I set up a basic spread sheet to track the credit card balances and the interest being paid each month (lovely to see the bars on the bar chart get shorter as the months go by, not so nice to see the interest take a huge chunk out of the amount I am paying each month!) All to keep me focussed and motivated. And it's working. I applied for the 6.5% lifetime balance transfer barclaycard. Got a letter saying "no, but have this 0% for 12 months", but when I phoned to activate the card, turns out it IS the 6.5% lifetime rate! So just transfered what I could out of the A&L (MBNA) account. I also have a loan with egg, which allows for payment breaks of 3 months in a year. So have just taken a 3 month break - allowing me to use that money towards credit card debt - almost £900 over the 3 months.

I've also started a spread sheet to follow my monthly spending - more motivation to cut spending! I can't believe how good it feels to be starting to plan for the months ahead. For example when I am paid tomorrow and next week I'll be paying off a loan from my mum of £200, £450 off an overdraft with one account I don't use (O/D facility due to be reviewed end of Oct!), £200 off an O/D of another account I don't use (clearing it in full), and a total of £800 to the credit cards. At the end of September I'll get the oil tank filled (around £300 - I have £200 in account with my provider), pay off another £200 off that O/D, and be able to pay £700 to the credit cards.

I AM in debt, but for the first time in my life I feel like I am in control of my money. My goal is to have my credit card debt reduced to £10000 by Christmas. Which would mean I've reduced this debt by £5000 in 12 months (or by 1/3!).

Jenny

Buffythedebtslayer

Wow Belfastgirl you will fit right in here no problem! that is impressvive work!
welcome to the board, I am sure in no time at all you will be doing challenges and allsorts!

Buffyxx

deedee_3

Hi ans welcome to the board.

:T You've done an incredible job so far, well done you :beer:

BelfastGirl_2

Thank you both for your words of encouragement!

I should add that after a year of doing the extra work I am going to reward myself with 2 weekends off at the end of Sept/start of Oct! I'm really going to enjoy restful sleep!

BelfastGirl_2

You know what they say about best intentions! Let me explain.

I got paid a few days ago from my second job - £150 short! Quick phone call made to the manager - it turns out it wasn't short - I'd cancelled a shift early in the month to have a night out with old friends. But what an impact on my budget! Then my washing machine broke down (AAAAH!)! I haven't got anyone out yet to look at it - I'm hoping my BF will have some idea of how to fix it, and hopefully the parts will be cheap! But if he can't fix it, then the cost of calling someone out is going to have to be found somewhere.

Then the truly awful thing! I haven't bought myself any clothes for about the last 10 months now, wanting to use every spare penny I can to reduce that debt. I was down to my last pair of "half decent, OK for work" jeans. I was in the local shop getting some things and bent over to get bread from the lowest shelf, and....yes! You've guessed it....RRRRIP!

So it was out to the shops to get some new jeans the next day. I am pleased with what I got - a lot in the sale (and for a change things that I've already worn, instead of how I used to be - finding things still in the bag, 6 months later with the tag still on) - but a total of £133 spent. I would be sitting here very pleased with myself if I had, as part of my budget, an allowance of say £150 for clothes this month, but I didn't. It was spur of the moment, and yes I did need a pair of jeans, but if I'd stopped there it would have been £20. In the grand scheme of things - and looking at the budget over a year - it's working out at a little over £13 a month for clothes, which isn't excessive. But I am beating myself up a bit that it wasn't planned spending, and that it was done this month when things were already extra tight!

I'm recognising that this is a reflection of how I got into this mess in the first place! I was forever going shopping when things were getting on top of me (what is it with shopping and getting some king of emotional fix?!) The thing that I'm worried about is that now that I have kind of thrown my budget out the window already for this month, that I'll continue to spend, spend, spend. Anyway, seems like the £200 I had sent over to clear that O/D will just have to come back to my regular account to cover living expenses. Now I'm going to have to rethink the next couple of months repayments....

RAS

Hi

Firstly, you maybe did not get it quite right but you can still get it right tomorrow and the day after.

In practice, being really strict tends to lead to a splurge when there migh otherwise be a trickle.

Thought for the way forward.

1. Take another look at the stuff you bought. if you still want it keep it. If not can you take anything back? Quickly.

2. You need to avoid clothes emergencies if possible. Think www.freecycle.org, jumble or table top sales and charity shops or get together with mates and have a swapping session?

You might also get an emergency replacement for the washer on freecycle too?

Once you are back on track, put a small amount away every month, even if it is only a fiver, and get out to buy stuff, even if only knickers, before distater strikes.

reminds me I NEED socks as i do not think I have any left without holes. Alternatively a new pair of shoes might be cheaper, as they are wrecking holes in the socks.

RosaBernicia

Hi BelfastGirl :wave:

Sounds like a great start to me, good luck, I will be looking out for your updates. (I'm also familiar with the "I can live on £100 this month and clear a card, oops no I can't" pattern!)

RB xx

Jules

RAS wrote: »

1. Take another look at the stuff you bought. if you still want it keep it. If not can you take anything back? Quickly.

2. You need to avoid clothes emergencies if possible. Think www.freecycle.org, jumble or table top sales and charity shops or get together with mates and have a swapping session?

You might also get an emergency replacement for the washer on freecycle too?

Once you are back on track, put a small amount away every month, even if it is only a fiver, and get out to buy stuff, even if only knickers, before distater strikes.

Hi BelfastGirl,
I'm just down the road from you!

I agree with RAS, anything you don't need, take back. I have lost count of the times I have done this!

Again freecycle, its amazing what people list, someone had a washing machine listed, not sure if that was last week or this. Even list that you want one.

A budget for clothes is a good idea too. I put £10 away each month and it does come in handy.

reminds me I NEED socks as i do not think I have any left without holes. Alternatively a new pair of shoes might be cheaper, as they are wrecking holes in the socks.

Freecycle?

Jules

lilly81

Im new on here but its good to read what your doing as it gives me hope of getting sorted

savingholmes

Keep up the good work! You've set yourself some really tough challenges and come through it - inspiring.

I have recently joined freecycle - got a bed so far. Normally I would have just gone out and spent £150 on it even if I did not have the money. Sympathise on clothes... it is tough to scrimp there and in my view they do so much for self-esteem it is important to get some balance....

BelfastGirl_2

Thanks to you all for your words of encouragement!

I've decided to keep the clothes - I like them and I'm looking good in them, even if I may say so myself - as you say, savingholmes, the self-esteem issue is a big one. I'm thinking that since I'm wanting to get myself debt free, that shouldn't mean that I become completely obsessed with it, to the point I don't allow myself anything, or any flexibility. I'm the type of person that if I go on a diet, I put on weight, because I get so obsessed with it, all I do is think about food, and eat more!

I suppose what I'm trying to say is, this process of getting debt free is a marathon rather than a sprint, and I need to pace myself. Setting challenges is good, but only if they're achievable, otherwise I'm likely to get pretty down when I don't reach those goals, and run the risk of giving it up entirely.

So it's now a new day, and a new month. So I'll put these things behind me and when I get home from work later, I'll work out another budget for the next couple of months.

Oh! And I'm going to bookmark freecycle and check it out later too!