fendi-bag-lady sorts out her life (hopefully!!)

Pippilongstocking

Hello and waving to you as well - spotted you on the small things thread

I started a diary too and its so addictive putting money to extra bits of debt - just wanted to say goodluck - and well done on spotting where you are going money wise so early

I had my LBM at 40!!!!!!!!

Also a student (dont ask!!) and if you don't mind will keep reading - x

Pippilongstocking

PS
What I meant to say is this

I am keeping an online spending diary recommended by someone on small things

www.spendingdiary.com

Already after a week I can see where my money is 'frittering' away on things I think of as just a wee treat - dead easy to input everything - and its free.

Might help identify where the pennies are going??

SarahNeedle1872

My OH is exactly the same, always wanting to keep up with his mates... and then moaning when he's got no money!
Laura, the chances are that your friend is in a similar situation... it still surprises me how many people are in debt but don't see it as an issue.

ms_london

Hi Laura

Sounds like you are making amazing progress already, well done!!

What is the APR for your loan?

Definately look around for a cheaper phone contract come March when your current one expires, you may have to give them a months notice to cancel?? Could you get a combined mobile/broadband package?

Which account do you have that you have to pay £6 or £30 a month??? Can you change banks? £6 might not seem like much, but every little helps, and I am sure the 'perks' that you are paying for, dont even help you out in anyway. I would also look into your loan insurance, would it protect you being a student & in part time work? If it doesnt protect you, cancelit. Is there an early repayment penalty on your loan, and can you make overpayments on it?

My last debt was a loan, so I had to save for 8 months and keep the money in my account and could only pay it off in one lump sum (quite normal), so it meant I had £8,000 sitting in my account in the end. Thank god I didnt blow it, haha!

You do need to have some savings, but you would be better off clearing your overdraft, although 7% is a good rate - what does your OD charge you?

Also, might be worth putting some money away each month for car tax, MOT (which you havent included), and also take into account birthdays, doctors, dentist, holidays as you mentioned. ING accounts are great, I think you can have up to 10 accounts and they are good for keeping your money separate (for the different reasons, label one 'Car fund' for example) and easy to access the money. Set up DD from your account each month so the payments are made straightaway, then you know how much you are left with.

You need to allow yourself some 'social' money too, dont be too hard on yourself. When you have a budget, and see the money in hard cash rather than plastic, you find yourself trying to make the money you have in your hand go further.

Also, well done for saying no to your friend.

Keep up the excellent work xx

lonestarsky

Hi Laura

I saw you on the small things thread aswell so thought I'd pop over and say hi!!

You've been given loads of good advice so far - this is definitely the place to be if you want to ditch the debt.

When I was just younger than you are I managed to get my hands on eight (!!!) credit cards and racked up an absolute fortune yet had nothing to show for it. I'm now 29 and only have a manageable loan and my mortgage with my OH. I did manage to get myself in a bit more debt in 2007 but thanks to this forum paid it all off by the end of last year. So its definitely possible to overcome this, it just takes a lot of determination and strong will!!

Best of luck to you - I'll be following your diary to see how you're getting on xxx

Lemon_Tree

re the natwest, yes you can take the money out and still get the bonus as long as you still pay in the £100 per month (well that's the impression i'm under because that's what i'm doing). I had to order a card reader, once that arrived was then informed that i also needed a card and pin number, it took them about 3 months to get the card and number to me at the same time. but that should be just bad luck i'd hope and it's all working ok now.

tallyhoh

Do you really need the car?? They cost an awful lot of money, even when the actual car is paid for I worked out that mine costs about £200 a month before any repairs or new tyres.
Cut down on the cost of gifts, give your mates some of your now unwanted stuff, I am sure they will appreciate a fendi bag.

fendi-bag-lady

Hi everyone, thanks again for your lovely replies

debttornado - I know what you mean about the credit crunch I also think its become more socially acceoptable to admit your skint! Maybe your OH is changing his ways? I'm terrible at lending people money as I hate asking for it back....in fact my ex boyfriend owes me £120...he'll be getting a text from me very soon!!!

fayjmck - The spending diary website looks great. I love how they put things into little pie charts for you! I'm a bit scared though to find out just how much I spend on rubbish, it makes me so mad!!

SarahNeedle1872 - You were so right! My friend text me back and said she had been thinking the same thing! I'm so relieved, now I think back on all the things we've done that I couldn't really afford and wonder if she was feeling the same?

ms_london - my loan is 6.9% I can make overpayments on it but this just goes towards the interest 1st? Early repayment charge is 1 months interest. The account I have is a Halifax Ulimate Reward Account. It is joint with my mum (I used the overdraft though so I'm responsible for all of it) so its a staff account and only £6.25 a month instead of £12.50. The only other account I could change to is the reward account but I would be charged £1 for using the overdraft (which is everyday). Haven't really thought about switching as don't think anyone would give me an overdraft that high. Will definately look into my mobile contract and loan insurance.

lonestarsky - how did you manage to pay off all your debt? I get real inspiration hearing other peoples success stories!

Lemon Tree - Can't wait to get the card and card reader. Think I will just carry on with the standing order but withdraw it a few days later and hopefully I'll still get the bonus.

tallyhoh - Unfortunately I do really need the car at the moment as I'm at college and work in completely different areas and it would take way too long to commute. Hopefully I'll be going to uni after the summer and will then have to give up my job but I may look into getting rid of my car then.

Laura x

fendi-bag-lady

Went into the bank today and closed my savings account and transferred the money to my savings account then reduced my overdraft to £1650. Also closed down the share account and transferred the money to my overdraft.

Took on board what ms_london said and opened another bank account for my social/everyday fund. I now have 3 current accounts. 1 which is just to purely pay off my overdraft. The 2nd just for direct debits and standing orders and my new one for everyday. I have set up a standing order from my bills account into the everyday account for £50 a week which is what I'm allowing myself to spend on going out, clothes, food etc etc. I will hopefully be able to bring this down soon but £50 is a massive drop from what I used to spend, so I need to learn to cope with this 1st.

It's my mum, brother and sister in laws birthdays in March so need to be organised and do it on the cheap this year!

Set up a Quidco account today and joined the No Spend challenge for March so things are coming along nicely!!

Laura x

TDQO

fendi-bag-lady wrote: »

I have never ever said no to her before but I'm so tired of trying to keep up with everyone else and their spending and pretending I have more money than I actually have. But no more!!!

Laura x

I wish everyone on here would write something like this! :T :T :T

Well done on your progress Laura, looks like you're going to whittling down that debt quicker than you can say "burn-credit-cards-burn"