A DFW's journey to becoming debt free.

Sarah_wants_2b_debt_free

Ok guys, i'm sorry its a long one but i think i'll feel better when i have shared this with someone.

I have finally woken up and smelt the coffee. My debts are no longer manageable and its got the point where no amount of talking myself round will kid me into thinking that i am managing anymore. I am a disaster when in comes to money and its no ones fault but my own !

I think that i have well and truely had my light bulb moment....Well in reality it was about two weeks ago but i *think* I have made the first tentative steps on the road to sorting myself out.

I have always been c*ap with money, i had my first credit card when i was 18 and maxed it out not long after i got it. This was followed by store cards etc...have worked since i ws 16 so have always been able to service them. My dad intervened at one point and made me cut up the card and ring to cancel..which i did. I just wish i had paid head to what he said to me then.

When i went to uni things got worse..the £2000 debt I went with grew and grew until I left Uni with around £9000 on the *many* credit cards and an maxed out overdraft too. All in all about £11k.

Then to my first job..paid minimum wage i wasn't living at home so the debts mounted, again. I was using credit to meet credit commitments and buy food etc anyway by April 2008 i was in a real mess. My parents bailed me out at this point - paying off a welcome finance loan and some of my credit cards about £12k in all but then i stupidly wracked up another £6k on credit cards again which i told them i had destroyed. I still had my graduate overdraft at this point too. So instead of having a total of £14k debt i now have just over £20k and i can't keep up the minimum payments anymore.

Anyway thats all in the past but its how i got here so i suppose that you need to know.

I now have a better job and havent used any credit at all since February 2009 but it got to the point earlier this month when i was planning my monthly finances that i realsied that if i met all my mimimum payments I would be left with £10 for food and petrol after paying rent and all the usual outgoings. This is when i had my light blub moment....before i would have been in a panic about not paying my creditors but that day i just sat there and thought..well i need to live and whats the worst they can do...my credit record is shot to pieces anyway as i have been a bit here and there with my minimum payments so its not like i am hanging onto that!

I have got the ball rolling with the CCCS and i am about to start a DMP with them in October. I have sent all my creditors a token payment with my notification of a DMP letter so i am hoping that they wont be too harsh with their response. I wanted to start the diary really as i dont have anyone i can discuss this with - i dont think that my cat will really have any useful advice for me and also i want to do it to keep me focused as I think i need it.

I know i wont go back to how i was but feel i may need a push now and then to stay on the straight and narrow And any advise from people who have been in the same situation is always very motivating

Thanks for reading

S x

Oh just to add the loan from my parents isn't included in my DMP - That will always be paid in full no matter what happens

Primula

Didn't want to read and run, so just a quickie to say hello, welcome and good luck. You'll get loads of good advice and help on here from lots of lovely people.

Sarah_wants_2b_debt_free

Hi Primula

Thank you for the welcome...i've had a read through some of the diaries on here including your own ...all very inspirational !!


s x

Puddingpennies

Hi Sarah

I'm new here too, like you I got into a lot of my debt from the day I was old enough to get a credit card, ironically when I went to uni I was the 'richest' I have ever been :rolleyes: think I was the only student on the planet that did their weekly food shopping in marks and spencers and had two exotic holidays in one year!! Of course what I didn't realise then that my student loan really was a loan (not free money lol) and credit cards wouldn't go on forever!!

Just wanted to say hello, I've found so much inspiration here already its amazing what people can do, have a look at Dinah93's diaries titled 'the ultimate incentive...' she has cleared over £16,000 in 250 days, truely amazing and a really lovely story (you'll need at least 3 days to dedicate to reading all her posts!!!)

PP

Sarah_wants_2b_debt_free

Hi PP,

I have started to read Dinahs thread and your right its very inspirational...and looks as though whe has her happy ending too

S x

Sarah_wants_2b_debt_free

Bit of an update from today.

Since sending my notification of a DMP letters and token payments on Saturday i have been feeling a bit up and down really. One minuite i think yes i've done the right thing then i'm thinking ...oh my god what have I done and then feeling guilty !!!

Heard nothing from anyone yet ...its far to early yet but i am torn between wanting to hear and not...nothing like being indecisive hey ?? ha-ha !

I have however set myself a bit of a challenge. My boyfriend wanted to take me away last week but i couldn't afford it so i had to make some excuse and say i couldn't go I haven't told him about any of my financial problems - i just dont feel i can as he has his own business and is so good with money and i am officially pants.

Anyway if i can raise £225 by payday ( 15.09.09) i might suggest that we go camping for the weekend - and will give me something to look forward to I'm not normally what you would call a camping person but i would like to give it a try !! . Also i think it might help as things haven't been great recently as i've been so stressed with my finances and not having the courage to speak to him

I want to try and set myself a challenge every month to either pay a lump sum to CCCS or for the odd treat ! Both i think will make me feel better about the situation.

Any suggestions for how i can do it. I have a few bits to put on eBay but not sure where to go after I have done that??


s x

true27

Hi Sarah!

Just wanted to say hello and congrats on the LBM - its a feeling like no other, isn't it

The guys on here are brilliant, if you post up up an SOA they will pick it to bits - in the nicest possible way!

Good luck! xx

Sarah_wants_2b_debt_free

Thank you true27

I have done an SOA - any advice would be appreciated. I think that i have cut back as much as i can but fresh eyes are always good

Just a couple of things to point out - the £80 in pets is my horse and this includes his insurance, shoeing and feed when required. I am very lucky in that i do not need to pay any livery costs for him as he his kept at a very good friends farm FOC. He is the only thing that keeps me going and as much as i know i should i can't bear to part with him as we have been together for 4 . 5 years.

My Gas and Electicity may seem cheap but this is what i use i live in a new build flat which is very energy effecient . I hardly use the heating even in the middle of winter ( i am a middle flat so i also pinch everyone elses heat as well )

My mobile and internet are linked I am on a 30 day rolling contract with O2, its really good value and i never go over the £9.85 basic tariff. My internet is linked in which means i get cheap 02 broadband as a mobile customer.

The gym is 25 per month but i cant get out of this until november as that is when my 12 months is up

It is showing that i have £275.18 free for debt repayments but £219 of this is paid to my parents for the laon they took out for me and the remaining £54 will be paid to CCCS for my DMP.


Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household.........
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1338
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1338
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 450
Management charge (leasehold property).. 0
Council tax............................. 74
Electricity............................. 20
Gas..................................... 20
Oil..................................... 0
Water rates............................. 25
Telephone (land line)................... 11.5
Mobile phone............................ 9.85
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 7.34
Groceries etc. ......................... 123
Clothing................................ 10
Petrol/diesel........................... 110
Road tax................................ 10
Car Insurance........................... 38.93
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 80
Gym ..................... 25
Contents insurance...................... 8.2
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 5
Haircuts................................ 5
Entertainment........................... 10
Holiday................................. 0
Emergency fund.......................... 10
Total monthly expenses.................. 1062.82

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 900
Other assets............................ 0
Total Assets............................ 900

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
Sainsbury......................2600......60........15
RBS............................1800......40........17
VANQUISH.......................500.......25........39
barcalys overdraft.............2150......0.........0
halifax........................500.......15........14
parents loan...................12000.....219.......0
ADDITIONS......................1300......66........42
Total unsecured debts..........20850.....425.......-

Monthly Budget Summary
Total monthly income.................... 1,338
Expenses (including HP & secured debts). 1,062.82
Available for debt repayments........... 275.18
Monthly UNsecured debt repayments....... 425
Amount short for making debt repayments. -149.82
Personal Balance Sheet Summary
Total assets (things you own)........... 900
Total HP & Secured debt................. -0
Total Unsecured debt.................... -20,850
Net Assets.............................. -19,950
Created using the SOA calculator at makesenseofcards. com.
Reproduced on Moneysavingexpert with permission, using IE browser.

Sarah_wants_2b_debt_free

Ok well today i have heard from one of my creditors - Very formally known as Additions direct.

It basically a notification of intention to proceed. I assume that my account is going through their in-house debt collection procedures first of all. It is dated the 11.08.09 so after i sent my DMP notifiaction letters so possibly crossed in the post all though not sure where it has been all this time !!

Ona brighter note i have felt a bit more positive today I have also made £3 towards my £225 ! I did a pinecone research survey, i normally get sent the luncheon vouchers but i have signed up for paypal instead....only £223 to go ....haha !!

Think the plan tonight is list some stuff on ebay or at least take the photos, cook , sort out the horse , dinner for the OH ( a concoction of bits i have in the freezer ) and then start tidying up as i have friends coming over for the weekend and the place is a real mess....argh !!...



Hope everyone has had a good day !!

s x

Puddingpennies

Talking of concotions for dinner.... I'm not spending any money on food this week, last night I had pasta, with a tin of chopped tomatos, an onion, some garlic, mixed spices, and oddly... a tin of beans turned out quite nice I was surprised since I cant even cook! Amazing what you can knock together if you really put your mind to it, and it was my lunch today, and dinner tonight. Its quite possible that I've gone a bit overkill with the pasta.

Primula

Your SoA looks good to me. You could possibly shave a bit off your groceries if that's just for you. Check out the OldStyle Board for lots of inspiration. It might be an idea to speak to your bf re your predicament, he will then understand when you say you cannot afford something, you really mean it. Check out Jordan's diary re telling her OH. Very different story from you, but have a wee look anyway.