My Debt Free Diary! ♥

fairycake_x

Hello .. x

I had the 'lightbulb moment' yesterday at work reading some posts on here about the banks cancelling overdrafts..
I'm 19, have my own mortgage with my lovely boyfriend and we both have well paid jobs, if we didnt have any debt, the money left over a month would be great!! heres my story..

My boyfriend got depressed when we moved into our home last year, we dipped into our overdraft by about £200, which we could deal with .. but as you know, £200 becomes £400 so on and so on.. We ended up with £ 1500 ish o/d! Mum leant me £800 to clear one of them .. Gradually i just went back into it, My boyfriend didnt dare look at the bank (due to depression!!) so i had to do it all by myself, he was always willing to look but i know he couldnt cope!!

A year on, last month i had £2900 overdraft!! *feels sick*, a CC £1500 ~ which i'd used to pay off my overdraft (but went back into it anyway!!), & a loan £1000 that i'd used to pay off my o/d too! I just didnt learn my lesson!

I got really down last month & my mum leant me £1000, that has cleared the overdraft on our joint account were our wages go.. leaving me to pay 1900 .. i've got it down to 1450! & now i am paranoid they are going to take it away from me, i am trying to pay it off, but just hope i am quick enough .. im feeling so anxious and just want to get my o/d gone asap. I have a livejournal that i am doing my daily money update, i am using ideas from this forum PAD, £1000 in a hundred days & i have lots of pennys to count! (i started this last night and had £40!! )

I cant tell you how relieved i am to find this forum, its amazing! and helped me so much, just reading everyone else's posts make me feel like im not on my own anymore, i cant wait to clear it all, little by little! I have a completely different view of things and just want to save !! ~ i've learnt my lesson!

:eek:Current Debt :eek:

Mum - £1000 (start paying back £100 a month from next month!! hope fully more ..we will c)
Overdraft - £50/1500:mad:
Credit Card £35/1500
Loan - £583/1000
Make £1000 in 100 days (started 8/7/09) - £12.57

crapwithcash82

Hi Fairycake, just wanted to say hello and welcome!

This site is a great place for inspiration and the diaries are fab for keeping each other motivated. I also find you get loads of ideas from other people too, on how to make extra money, where to save, where to get bargains etc.

I'm sure you'll be debt free in no time with the help of all the friendly MSE'ers on here!

CwC x

gargrave50

Good luck fairycake. The diaries are really motivating and help to keep you on the straight and narrow!!!

Lemon_Tree

hi and welcome to the boards, it took me a long time to clear my overdraft and they only way i did manage it in the end was to keep reducing it's balance so that i couldn't go back up to what it had been the month before. I started in £10 steps reducing it by £50 every 5 mths then kicked it up and at the end was managing to knock significant lumps off of it so it took me about 18mths of real effort to clear £1650, most of which came off in the last 6 months. You can do it and you're doing it for the same reasons i was - i was also terrified they would just cancel it.

wendz86

Hi,

Just wanted to wish you good luck!

I am also paying off a overdaft and a loan from my Dad. I have been paying my dad in monthly payments and have been using any extra money i make to put towards the overdraft.

Just keep trying to move in the right direction and no take steps back and you will do what you need to.

fairycake_x

Ooops havent done my diary like I promised myself I would!

Had the weekend! - Tried hard not to spend any money, although we did go to the cinema! Spent £12! After payday, we have agreed we will do this every saturday night.. its £12 and we just sneak cheap sweets in! teehee! Its cheaper than what we used to do on saturday nights and we still feel like we are treating ourselves!

I've been feeling a bit down though, I just want this overdraft gone! I'm so anxious for payday I could wipe at least £400 off it, but have to wait 15 days .. noooo! just want to do it now!

Had an ebay binge and sold a few bits - made £54 already from saturday, not much but £54 off od! - also transferred £40 from savings towards it, just made me feel a little bit better! so thats £94 off!

I just feel like i'm not doing things quickly enough! I just want it gone! I'm going to ask my dad nicely if I can start paying him back in september not august, just an extra 100 to it!

Just want to conquer this stupid overdraft so i can close the account! :|:| rar..

also loving the competition forum on here, i cant believe how much people have won! definatley inspiring me! .. and keeps my mind off my debt!

..x

Fire_Fox

Have you completed a Statement of Affairs yet?

fairycake_x

My income: 999
partners income: 1053

Spends
--x--
Mortgage - 598
Council tax - 100
Personal Loan - 97
Gas/Electricity - 65
Water - 35
Virgin (tv, phone and broadband! (and sky sports..)) - 77
Tv Licence - £12
Mobiles (mine and his inc insurance) 65
Car Finance - 150
Car insurance - 50
Clothes - 100 ( i have cut down lots!) i may not even spend that anymore..
Petrol - 160
Road Tax - 10
MOT - we havent been putting anything away, its a brand new car so it doesnt need an mot yet, suppose we should start putting bits away!
Home insurance (buildings and contents) - 35
Life insurance - 7
Xmas etc - we dont put away! we need to really, but any spare goes to od!
Haircuts - i do mine myself so i usually only spend £5 a month!
entertainment - 150
emergency fund - eeek. none!
credit card - 25

Should have £316 left over.. how depressing! i should start trying to get rid of some of these payments! i need to lower some of them but dont even know where to start!

Fire_Fox

Don't know where to start? Well that is what we are here for! :T Start with the largest outgoings, as those have the most potential for big savings. Cut up your credit card and leave your debit card at home, so you don't have any money with you to spend on clothes. Why don't you join the crazy £100 clothes challenge?
http://forums.moneysavingexpert.com/showthread.html?t=1381291

No food on your SoA? Even if you don't actually budget for things monthly, like Xmas, divide the yearly spend by twelve so you can see what you really have available.
http://www.makesenseofcards.com/soacalc.html

Insurances: Join a cashback site such as Quidco or Topcashback. Use a price comparison site to find a cheaper price then clear the cookies and switch via the cashback site for free money! :money: Buildings and contents should be around £20 a month, cancel the phone insurance and get contents away from home or accidental damage on your home insurance. Don't know much about car insurance but that looks a lot.

Entertainment: what is this for at £1800 a year??!! :eek: You also have Sky Sports adding another £600+ to that.

claire0788

Hiya also for your overdraft, when you pay money to it does it reduce your overdraft limit or does it just make the available balance increase ?

For example the overdraft is 1500, you pay 100 does it change to 1400 or just 1500 and you have 100 available ? (i know what i mean but im making no sense! lol)

If its the 2nd one then phone up everytime you pay money to your overdraft and ask them to reduce it so you cant spend it again