Starting All over again!!!

Pinky15

Already started a diary a while back but need to get things together now and start again being honest with myself. Although I have paid £1000 off one of my credit cards we still seem to have no savings, and money seems to slip through our fingers meaning I am in the overdraft by around the 15th each and every month which therefore has a kncok on effect for the next months wages. Had my LBM about 6 months ago and feel I am making progress but am going to use this new diary to take a real look at where the money goes.
Here's a little background - 3 ickle ones ones, 1 hard working DH and me whom works part time. The trouble started years ago when we discovered credit cards and used them to fund expensive clothes and hols. Consodlidated with a loan but then spent on them again - (yes yes am very embarrassed to admit that). Now have started paying back exsisiting cards and will move onto to paying the loan off.
The reason I want to clear my debt is so in a few years I could own my own horse and so we can afford to extend our house to accomodate our growing family (much cheaper than moving).
The drop in house prices means we can't add to our mortgage. Last year the house was valued at £125000. We therefoe had around £65000 equity but when we approached HSBC they said it was only worth £90,000 - bummer eh - but I know this has happened with all houses so we will just sit tight anyway. I am going to also redo a new SOA and look at where our money goes. I am going to be honest and look at ways of paying off our saving while budgeting for unexpected bills and possibly saving a little each month if their is room for that. This weekend I am going to start a spending diary to account for all the money and where it goes.
I am already ebaying, shopping for clothes at carboot and Dh is doing overtime as much as poss. Thanks for reading if you are still here:rotfl:Does anyone know how to add my SOA?

Lemon_Tree

I and welcome back to the boards. don't feel too bad about consolidating most of us have done it and didn't learn, in fact it took me 3 times before i learnt my lesson.
I'm assuming you weren't talking about an intention of adding your debt to your mortgage, which generally isn't a good idea as you're turning unsecured debt into secured debt.
About your overdraft, i've just finished tackling mine, and i started by doing it gradually, my bank let me reduce the limit in £50 amounts so i would aim to be £10 or £20 less into my overdraft on the day before payday than i was the previous month, after a couple of months when i was consistently £50 or more under the limit i'd drop the limit. This way it's not a huge shock and you're gradually working on it. Luckily my circumstances changed last year and i was able to reduce it by more than £50 amounts so i've now cleared the whole thing. It's taken me 10 years to be finally clear of it, but i only really started tackling it properly 2 years ago.
Other people set up a savings account and put a small payment in there each day/month and when it has built up transfer it across to their overdraft, only you will know if this will make you less likely to spend what you've saved but it does mean you'll be paying higher interest on your overdraft until you transfer the amounts over. Just a few ideas.
i look forward to seeing more of your diary.

Pinky15

Hi Lemontree thanks for you response. Wasnt going to add the debt to the mortgage just thought of eventually using some of the equity for the house extension. Will have to wait until debt is paid off then hopefully prices may have risen.
When i have 2 mins piece for little ones will start my SOA. Well done on reducing the overdraft lemontree!
This week I need to - look at opening an account where I can transfer some money each month for car servicing an insurance etc so we aren't knocked for six when these bigger bills arrive. We have £300 in Quidco but its taking forever to get £2-3 per month if we are lucky - may look to transfer that each month as it goes in. I have a stack of stuff to ebay.