I want to be debt free

dancingfairy

I defnitely second or third the spending diary idea. Unfortunately it is tough trying to run a household on one income but you ought to just about be able to manage it - just doesn't leave much room for fun stuff.
The areas that strike me are perhaps you could get yourself a better deal on your mobile - it could free up 15 to 20 a month - try and get a better deal from your current provider - more minutes, less per month or else go elsewhere if you can get a better offer.
Perhaps you can also go down a package on the sky/cable? or go for a combined deal if that would work?
Anyway don't panic- it's fixable.
df

dancingfairy

Have you got room for a lodger at all? a friend to stay for a bit might just help with the bills?
df

helen_melon_2

Thanks for the advice
Currently trying to switch line rental away from BT to save me £4 a month, it's a start

Then going to see what savings I can cash in to clear credit card.

Would you recomend paying off as much as I possibly can each month or doing it little by little? (for over draft)

helen_melon_2

I use my mobile all the time so my deal (600mins, unlimited browsing and text) is the best deal for me before I was spending between £70 and £100 per month on it!

Lodger? One bed flat unfortunately.

Jesthar

helen_melon wrote: »

Thanks for the advice
Currently trying to switch line rental away from BT to save me £4 a month, it's a start

Then going to see what savings I can cash in to clear credit card.

Would you recomend paying off as much as I possibly can each month or doing it little by little? (for over draft)

Oh, as much as you can! After all, the overdraft level and credit card limit will still be available for emergencies when you have cleared them, but you won't be paying interest on them!

sarahs999

helen, an emergency fund is great, but, as Martin says elsewhere on the site, only when you've already cleared your debts. You might never need the fund but you do need to clear your debts. It's also madness to be having mortgage payments returned, and presumably big charges made, and risking mucking up your credit file, when you've got the money sitting there in an account! My advice is raid the account. Use the money to pay off the card. Then don't use the card again or if you do, make sure the balance is paid off each month.

Overdraft wise, it's tricky, and it really depends how organised and full of willpower you are. I'm about to start paying off our joint overdraft of £1,000 and my plan is to save up the £1,000, and then put it into the account on payday - so we pay off the account to take it to zero, and then our money goes in, and we have to make it last the month. No going into overdraft land again. FOr me this is the best way but some people do it bit by bit, even getting their bank to play along by reduicing the overdraft by £100 each month.