More dimmer switch than lightbulb!

Catseyez

Morning,

For the first time last night, I went through all of my old statements and worked out how much debt I've been in over the past six years or so. I realised I had a problem with my spending during the Summer 2003 but it wasn't until this year that I decided to 'know' exactly how much debt I have and to pay off as much as I can before Christmas.

In the past I didn't open statements and used to try 'not to think' about how much I owed on credit cards. Thankfully, things have changed and I'm now on track! I've also looked at all of my statements to see where my money has gone. A small portion went on travel but most of it went on clothes, books, bags...just 'stuff'!!

In my defence, I have been a rate tart since 2004 and have been using this site to get the best deals. However, it doesn't account for the odd tenner here and there used to buy magazines, Starbucks tea, a DVD, new CD...not to mention feed my diet Cola addiction (now in 'rehab'!). Those tenners turned into hundreds!! What a waste!! It's amazing how the little things soon add up. My diet Cola addiction was costing me 50p-£1 a day, depending on whether I bought a can or bottle. Over the year it soon adds up.

Now onto my actual debt. Today, I owe £2,500 on only one credit card which is at 0%!!! At the start of the year, it was just under £4,500 spread over two cards (also 0%). On top of my credit card debt, I have to pay off my car. I have 12 months left (spread over 3 years) at £100 plus a final payment of £3k.

I'm sure a lot of you may think that was a bad idea, but it was actually the most financially viable thing to do at the time. I needed a car for work and had never owned one before, so didn't have any no-claims. Yes, the car was new but it came with free insurance for the first year. It also had £1k off the usual price in the week I bought it. I had shopped around for ages and had I opted for a loan, or credit card to pay for it, I'd have had to borrow more money up front, which I was loathe to do.

So my debt is:
CC - £2,500
Car - 12 months of paying £100 plus £3k final payment in May 07.
Total: £6,700 :eek:

On top of having paid about £2k this year to pay off some of the credit cards, I've also saved £2,700 towards my car. Hopefully, I'll have paid it off by August, if not sooner.

To get this far, I've made the following changes:
1) Always open my statements and file them away. I never had a filing system before and statements would remain unopened for months.
2) Check my online accounts almost daily (I've become a little obsessed about seeing the debt reduce and the savings increase).
I think these are the most important changes, as facing up to the situation is the first step in becoming debt free.
3) Pay credit card bills on time via online banking. What a revolution that is!
4) Have more or less given up the diet cola addiction, saving me between £5 and £10 a week. I probably only have about two a month now.
5) When I go for a walk in my lunch-break, I leave my purse behind.
6) Credit cards don't leave the house
7) The credit card I do use for spending (and pay off in full every month) is reserved for online shopping only. I have deliberately not remembered the PIN number so can't use it in shops.
8) Have bartered down my Vodafone contract from £28 (inc VAT) a month to £10 (inc VAT). Still on the same tariff of 100 x network mins anytime and 100 txts a month. This will start in May as I have only recently been able to release myself from the old contract.
9) Reduced my car insurance by another £100 (also paid in full at the start of the year so as to avoid hefty interest).
10) Log on here daily to get inspiration from other DFWs!!!!!

Other steps I will take to get the debt paid off even sooner are:
1) Claim back NI as I have overpaid
2) Sell old 'stuff' in the local paper free ads. If that doesn't work, Ebay. Books will go on Amazon or Green Metropolis
3) Send my old mobiles to environfone.
4) Read magazines online or friends' copies!
5) Continue to work unsociable hours so as to not have the opportunity to go out and drink my money away. Or eat it away for that matter. That's another weak spot...curry, Chinese, Italian food...and red wine in restaurants with friends!
6) Stay single for a bit longer. It's so much cheaper than dating! :rotfl: Yes I'm female, but I'm not one of those who insists that the man has got to always pay.
7) Claim back 'unlawful' bank changes that added to my debt problems.
8) Add to my £2 pig. Have £14 so far but it's taking a while because I'm not spending to get any change! :dance:
9) Continue to log on here daily...can I join the DFW club please southern scouser?

Apologies for such a rambling post but this has been a truly cathartic experience. You're all great by the way, I love the way everyone is so supportive! :beer:

Catseyez
-x-

Annie_Fanny

So I'm not the only one! I am still on one bottle a day (500ml) but am aiming to cut down to one can a day from tomorrow. Diet Coke is costing me about £6 a week - over £300 a year!!!! I don't know what it is about the stuff really - I mean it is pretty nasty stuff and probably really bad for me. I am obviously really addicted to the caffeine!

Well done on all your other changes by the way!

Zabl

You are doing fab and showing all us newbie DFW's the way ahead....
I've onyl just started to make headway with my debts, but haven't had a full wattage lightbulb moment yet and do go away for weekends still....but have decided today to look for 2nd job and Ebay the whole house this week plus try n do a couple of carboots too

Keep up the good work )

all_hours

Could you buy a big 2 litre bottle and fill a 500ml bottle with it each day or would you drink the whole 2L bottle in one day?

Annie_Fanny

I wud drink the whole lot and consequently feel like I had taken some speed! Not that I do drugs! Ha ha ah!

Catseyez

And once the bottle's opened, it starts to go flat so isn't any good after one day.

If Annie is anything like me, she can probably taste the difference between brands wearing a blindfold. Unfortunately, if you're addicted to diet Coke, the only way is to cut down the amount bought. Going to a cheaper brand just wouldn't be the same!

amosworks

Annie_Fanny wrote:

Not that I do drugs! Ha ha ah!

You say that like it's a bad thing?