I'm Betty and I'm in debt!!!

Bad_Weather

Hi everyone...I’m Betty (well call me Betty) and I’m in Debt...ill imagine you all saying Hi Betty back...

Today was a revelation and a half... I knew I had debt but I though...I have a decent job...I still enjoy life...I WAS SORTED! Reality...its spiralling out of control...I’m 26 and the only thing I’ve got to my name is a car...

IVE Decided that I’m sick of renting with my lazy/messy flatmate and want a nice wee flat of my own...why don’t you do it Betty I hear you cry??? Because I have zero savings...my parents have zero money...I have no guarantor...and I’ve a good wee bit 'o' debt...am I painting the real picture...

This reality check...has made me take a good look at my finances and debt and made me open my envelopes...not good....uhhh ohhhh....I’m sinking and starting to really affect my life…

Sorry if I’m boring but this is debt therapy...i cant talk to anyone about it... my parents would worry themselves ill (and their already ill)...my mates think debt is the 300 quid she has on their Credit card that their going to pay next month and are bailed out loads by their parents....my man thinks being skint is not having his usual 3k in his bank account...or 200 quid on a Credit Cards...

SO the PLAN...are you ready debt free wannabe's?

1) Clear my Debt
2) Try and earn extra money (how this is going to be achieved...???)
3) Get some savings
4) Get a Mortgage
5) Live happily ever after and skip into the sunset...

Okay my debt:

1) Car (a family friend lent me money): 800 o/s (200 pm)
2) Student Loan: 1,200 o/s (127 pm)
3) Overdraft: 2k...currently maxed out
4) Credit Cards:
Credit Card 1: 5,600
Credit Card 2: 2,400
Credit Card 3: 300

THE PLAN: Read closely as this is where it gets complicated...

1) Clear Credit Card 3 -300 next month
2) Balance transfer 2,400 of Credit Card 2 to Credit Card 3...0% until Jan
2010 with small fee
3) Balance transfer 2,400 of Credit Card 1 to Credit Card 2...don’t know full
details but its 0% until Jan I think aswell...

Pay min payments to 0% and hammer the 3000 until Jan...and then do some balance transfers in Jan...

If this is the wrong way to go about things then please advise...however I can't really apply for other credit cards as I got KB'd or have to built up a rating...

STEPS:
1) I TONIGHT have cut up my credit cards.... one... two...three...YEHHHHH....
2) I'm taking lunches to work
3) I'm stop going to carry cash on me as I SPEND IT!
4) I'm not buying ANY clothes for at least 3 months...(I’m trying to be realistic guys)
5) Economising in general…cheaper brands…etc

These might seem pretty small and petty but I swear between starbucks and lunches and crap I send easily a good portion of my money...

ANY ADVICE/QUESTIONS/COMMENTS please advice...otherwise I’m going to continue my diary and hope that I get somewhere….

TARGET: Debt free by June 2010.

Betty x

KatieShopstoomuch

Heya betty welcome! I'm sure others will be along with great advice for you but well done on faceing up to the debt and getting an action plan on the go. All your steps are fantastic especially getting rid of the cards! I've also went down to cheaper brands, got rid of the cards and stopped splashing out on new clothes once you see the debts coming down it's all worth it

Bad_Weather

Thank you Katie!

I had my head in the sand for so long and I'm hoping seeing it decrease and my bank balance increase will motivate me...as just now I make large payments only for a large chunk of interest to be plonked on top!

Fingers crossed and ill keep this up to date as its going to be my way of keeping my head out the sand! :money:

jacey98

Hi Betty

well you have done the first major big step to sorting it all out, the hardest thing is actually adding it up and admitting things are hard but it will all gradually get easier from now on. moving the money to interest free is def the best option as its easier when you see all of your payment coming off the total.

try ebay if you can to make extra cash i sold 16 items last week and made 230.00 just from clothes i dont wear anymore.

good luck with it all will pop back in soon:D

jc x

GeorgeUK

Hi Betty

I suggest you post a statement of affairs (SOA) in the main debtfreewannabe section so that others can advise on any possible savings you can make. Try to use accurate figures rather than just a guestimate - you'll soon see how much you could be throwing towards the debts each month. Just format for MSE and post up.
http://www.makesenseofcards.com/soacalc.html

The snowball calculator on that page should also allow you to see when you debt free date would be.

Lemon_Tree

welcome to the boards, and congratulations about having your action plan. One way i have saved money, and it does seem obvious is to use things up. Ie if you're anything like me you have loads of shampoos/conditioners/shower gels/ toiletries etc. so don't buy anymore (even if they're on offer) until you've used them up. Just think of it this way each bottle on the shelf is costing you interest as it's money you could have saved. I was so bad that it's taken me 3 years to buy shampoo & conditioner and i've still not had to buy shower gel. (and i dont' smell )

gargrave50

Welcome Betty, put up an SOA as suggested. Sometimes a fresh eye on your "spending" is good to suggest where you can cut back. Its horrible facing the truth but better in the long run. At least now you have a plan!!!!!

Bad_Weather

Thanks so much everyone!!!

I'm defo going to give the SOA a try! I'm facing the truth, things are actually worse that I originally though but I guess that's the 50:50 chance you take when you act like an ostrich! I don't even know what my interest rates are on my cards so I think I've got a long way to go yet!

Had a chat with my dad today and he discussed moving back home don't know if I'm ready for that! Don't want to go down that road but always an option!

I agree Lemon tree 100% re toiletries and makeup...you think because their not large items of costs that they don't count...I need eyeliner (sorry for the girl chat guys) but instead of running out and buying one I'm 100% certain I have one in my flat that will do me fine!

So far today I haven't spent a penny! Stuck to my plan and took lunch and put my change into a bank! Would normally be hitting the vending machine spending about 3 quid but I have no cash so I can't! Also realised if I walk home each night and get underground into work ill save about 25 quid each month...not major but everything counts right! Just need to make sure I don't walk by the shops...

horsechestnut

Look on the "Old style thrift thread" for tips on how to save money on every day things.
Also on the coupons thread, tesco take them even if you don't purchase the item sometimes.
If you do have to buy make-up, see if you can get a free gift with the purchase. I use Boots No7 and haven't bought a mascara for over 2 years because of freebies!
See also saving of points, Boots, Tesco, Nectar, etc.

Rainy_2

Lemon_Tree wrote: »

welcome to the boards, and congratulations about having your action plan. One way i have saved money, and it does seem obvious is to use things up. Ie if you're anything like me you have loads of shampoos/conditioners/shower gels/ toiletries etc. so don't buy anymore (even if they're on offer) until you've used them up. Just think of it this way each bottle on the shelf is costing you interest as it's money you could have saved. I was so bad that it's taken me 3 years to buy shampoo & conditioner and i've still not had to buy shower gel. (and i dont' smell )

:rotfl:Thought I was the only one!

:hello: Hi Hezybaby. Once your SOA's up I'm sure lots of advice will come your way as to how to shave a bit off your spending. There's a good thread on the DFW page - make £10 a day challenge. Look on there for inspiration to generate a bit of extra cash (sorry I would put a link on here to it but unfortunately I'm as technical as a satsuma ) and the boost your income article on the main site too.

Good luck!

novagirl

Hello Betty! Best of luck getting your own place
Have a look into cashback sites too as then when you really really do have to buy anything online, you can get a little bit of money back. (You can also make some free money along the way too so it's worth looking into when you get some time.)