My name is Imelda, and I am a spendaholic

Imelda

Hi All,

I have been a lurker for a few weeks now and during that time I have thought that although I have debt on my credit card etc, it's all quite manageable. That was until today, I have read the posts regarding Loubie Lou losing her job and $17mma clearing all her debt and it has made me realise that I have just had my head in the sand. No one knows the debt I have, I have a good job and earn reasonable money (27K + 30% bonus) but don't seem to be able to say no. Eg nights out with friends and a holiday with my boyfriend (he would be devestated to know that my overdraft is as a result of our trip). I guess the problem is that I bought my flat last year and haven't cut down on my spending, I am still living the same lifestyle. Payrises and bonuses are about to be announced at work, mine is going to go completely on paying off most of my debts. I just want to know how, once I have paid them off, I can make sure I don't slip back into my own ways!

skintchick

Hello!

If you've been lurking then you know we want an SOA from you - be brave and post it! Then we can help.

xxx

fairylights_2

Hey Imelda

Actually, in truth, your debt isn't too bad. It may look a lot, but like you said you're on a good wage and should be able to clear it with your bonus (bit like us with ours!) BUT the trick is to learn to say no. If you get tempted to spend on credit and can't stop yourself, then CHOP UP all the cards that you currently use. When you've cleared your overdraft, go in to the bank and ask them to remove the facility. And tell your parents not to loan you any more money.

Maybe you need to sit down with your boyfriend and tell him this is a problem for you.

Have you read John Kent's thread about living without credit? There's a few good ideas there that might apply to you.

Yes, posting your monthly budget on here would be one way to find spare cash, but if you'll only spend when you've got it, then you need to deal with the root of the problem. What do you spend ON? Is it need, or self-esteem, or just a habit? Until you deal with why you want to spend, you're not going to be able to stop yourself.

You really aren't alone in this - I'd be surprised if at least some of your friends aren't in the same boat as you.

ps I'm fighting the "need" to go buy my daughter new clothes. She needs new shoes, but I know I'll spend ages - and a fortune - buying her things if I'm not careful. So I'm not going anywhere I could be tempted to spend.

climbgirl

Do post your budget and SOA so people on here can help you save money and make cut backs - they're marvels at reducing budgets!

In terms of cutting out the impulse buys and just saying no to things like holidays, it's all down to a matter of willpower I'm afraid! There are loads of little tricks you can use to help you, and lots of them will be in the threads here (like johnkent's thread on living without credit). You need to find what works best for you.

Some people say that it helps them to get a set amount of cash out every week and when it's gone, it's gone. Others say only spending on a card helps them as if they have cash, they'll spend it.

Keep a spending diary of everything (every penny!) that you spend, so you can track where it's gone.

Leave your credit cards and debit cards at home so you can't spend (hide an emergency fiver or tenner in your purse somewhere).

Budget in a treat allowance for yourself, even if it's something as simple as a cup of coffee or a magazine. If you have something to look forward to, it helps cut out the impulse buys. I'm really bad at buying my lunch at work - so I have a deal with myself whereby if I bring my lunch in 4 days a week, I can buy something on Friday.

Something that really helped me cut down on the impulse buys was working out my 'true' hourly rate of pay. I took my net pay, took off everything was essential - rent, utilities, food, stuff like that. then I worked out what my true hourly pay was - so if I saw a £30 bag I wanted, I worked out how many hours I'd have to work to get that bag. Puts it in perspective a bit more that way...

whatever works for you! good luck

D&DD

Hi Imelda I think by admitting you know your lifestyle has to change thats a first good step.Take a look at Martins budget planner that helps budget for things like holidays and other 'treats' too,things that seem to creep up on you!
I swear by a spending diary and it does take a few weeks to really see where the money goes but its worth it in the long run..

DopeyDora_2

Hi Imelda,

Welcome to the board. I'm a relative newbie too. Have been working hard at clearing my overdraft. It is now at a £900 limit & have been reducing it by £200-£250 a month over the last few months. Now it is under £1000, feels much more manageable. Yes, things are tight at present, and I don't have much spare cash, but I feel so much better knowing that by June all my salary will be my own (used to think that my overdraft was "my money" until finding this site & would always max it out). Breaking it up into chunks rather than trying to clear it all at once helped me a lot.

As you say, it's important to pay your dad back first if he needs the money by May. You then have interest free periods on 2 of your 3 remaining debts, so should try to make use of these whilst making sure you have saved enough to pay them off when the time comes to avoid paying the interest.

Once you have completed your SOA you should be able to see what you have spare to throw at your debts.

Imelda

Morning all, thanks for your replies! I have got my act together and sorted out my SOA:

Income:
1,760 per month (after tax)

Deductions:
80 Travel
90 Student Loan
18 AVC

Total deductions: 188

Outgoings:
Essentials:
518 Mortgage
87 Council tax (will reduce to 80 in April)
50 Maintenence for flat
50 electricity
9 Contents insurance
25 TV Licence (will reduce to 11 in April)
32 Water (should reduce in April)
5 Ground rent
100 Food and household items eg cleaning stuff (for just me)
100 Credit card payment (min payment is usually £50 but I am trying to pay it off)

Total for essentials: 976

Non essentials:
30 Petrol
7.50 Time out subscription
50 For lunches and collections at work etc
40 Oyster card for tubes and buses (trying to curb the taxi habit!)

Total for non essentials: 127.50

So that leaves me 468.50, which I know is still a lot and I am not entirely sure where is all goes, I can easily spend £100 per weekend on going out. I know this has to stop, I have no savings and so each year when the car insurance, service and MOT come around they all go onto the cards. Ideally when the credit card it paid off I will save that for christmas and the car. I feel so guilty now as having read the other posts I realise I waste so much money while other people aren't able to buy their children shoes.

Off for a cry now...

skintchick

Oh, don't cry!! (((hugs))) You do have the money there, whic is good, you just need to find out where it's going!

Start a spending diary - get a cheap notebook and write down every penny you spend for the next month - the longer you do it the better it is.

Then you'll know where it's going. Mins used to go on rounds in the pub on the debit card when I was drunk, so now I don;t take my card out with me, just the cash I have budgeted for.

That money leftover is more than £5,000 a year! So you have a great footing to get savings, debt-free and all that.

Work out your 'annuals' as I call them - the non-monthly spends like the car expenses, haircuts, presents, contents insurance, etc., and divide by 12 so you know how much minimum you have to spend to be able to pay those.

None of your spending listed seems that bad, although the food could come down IF you want to cut it, cos you're lucky that you dont; seem to need to right now.

If you want a quick fix to the spending diary, try going through your bank statements for the last couple of months and listing all your unnecessary expenditure. Painful, but enlightening!

Good luck x

Chortle_2

I'd say that you should definitely work out the annual amount you spend on the odd bits, like MOT/car maintenance/Christmas/Birthdays etc, divide it by 12, and set that money to one side each month - it makes it much easier to budget for, and when Xmas comes around you'll know exactly how much you can spend, and you won't need to put it on your cards! Plus, if you find a decent savings account to stash it in, it might earn you a few pennies in interest over the year (and no, before anyone says that paying debts is the priority over saving - its not saving, it is proper budgeting!)

The other thing to do is set yourself a budget amount for going out etc - use a spending diary for a while if you aren't sure how much you're spending on it now.

Then just throw ALL excess money at your debts, and you'll be debt free in no time!

One thing though - £50 p/month on lunches at work etc seems very high - check out the old-style boards for ideas for lunches etc you can make yourself, and save yourself a fortune!

highguyuk

climbgirl wrote:

Something that really helped me cut down on the impulse buys was working out my 'true' hourly rate of pay. I took my net pay, took off everything was essential - rent, utilities, food, stuff like that. then I worked out what my true hourly pay was - so if I saw a £30 bag I wanted, I worked out how many hours I'd have to work to get that bag. Puts it in perspective a bit more that way...

What a good idea!!! Wonder how long it'll take me to work that out...

Imelda: A message of good luck and support from me. Can I ask what your household maintenance is? Is this an "insurance" type scheme?

sparklymessygirl

Hi Imelda,

Just thought I would tell you how my approach to money and shopping has changed over the years. I think it is because I started to question what was important and valuable to me - I actually now find it quite difficult to spend money because I think about the environmental cost etc of what I am buying and also how long I have had to work to make that money (edited : just seen Climbgirl does that too). I have half an eye on what would happen if I lost my job or left it as well - I almost hate having to be reliant on money for the pleasure of buying things that I lose or don't take care of or just wanted at the spur of the moment. (This is how I was - not suggesting you are like that! )
I also read the book Your Money or your life - by Joe Dominguez and Vicki Robin and then I started reading books about simple living - I guess it helped me too that I have over the years become very interested in the natural world, woodland, the cycles of the seasons etc so I feel less interested in material goods (I used to be hooked on QVC :eek: ). I also avoid going shopping just as entertainment - it really helps to take yourself out of that kind of environment. Good luck - I would love to hear about any changes you decide to make.

Sparkly x (or should I say Saint Sparkly :A )