always in debt

Malky

One phrase I saw on here one day which has stuck with me ever since I became debt free 3 years ago

When buying something, do you want it or do you need it?
If you genuinely need something then buy it. If it's something you want, then save up and buy it later.

brokemedic

Wow.. I am impressed..:T it certainly makes you realise how the little things add up.

I have a loan as well. Was wondering whether I should save and pay it off as that would free up a £138 each month that I could throw towards my debt but having read your story, think I will just keep that as it is and then throw any spare money at my high interest credit cards.. (20% ouch)..

Do you think it was just the money you allocated for "treats" that kept your motivation up or were there any other things you did?

I would love to think that I could cut my debt by half by this time next year.. How did you manage to slice so many months off your DFD if I read it correctly?

Fortheloveofmoney

I need to pop out now so I'll post more later. Car is going for an MOT.

Fortheloveofmoney

Ok I'm back. The car passed :T

Anyway to answer your questions. As I couldn't overpay the loan I concentrated on the credit cards. As I said, 1 was paid off using the mortgage consolidation so I just concentrated on the other. I threw everything I had at it until it was paid off. I then started saving to pay off the loan (it had penalities for paying it back early) and the OD was 0%. Once I had enough to pay off the OD I did so and then kept saving until I had enough to clear the loan.

It's called snowballing. You throw everything you have at the debt with the highest APR whilst maintaining the minimum payments on the other debts. Once it's paid off it frees up more money to throw at the other debts and you just keep going. This is how the DFD date changes.

I was using approximately 50% of my salary to pay off debt (excluding the mortgage).

Yes having a generous allowance helped me but I never ever went over it! I knew it was generous and made sure that once it was gone that was it.

I found paying back my debt addictive. It was such a fab feeling to see it going down every month. Snowballing really worked for me but I also moved the debt around to get the 0% deals. I'm not sure how easy this is now with the credit crunch.

The feeling I had last April went it was all paid off was so fantastic!! I love that after essential bills, the money is ours to do what we like with.

We got married last October and had a big (not very MSE) wedding and a really fabulous honeymoon to the Maldives. All of this was paid for from savings. Our honeymoon was the first holiday I've ever had that was fully paid for upfront. All of the others in the past had been put on a cc .

I was made redundant in April this year and have had no luck getting another job. It's ok though because we just live off hubby's money and we also have 6 months expenses in the bank in case something happens to his job.

None of this would have been possible if I hadn't learned the lessons I have here.

There is light at the end of the tunnel you just have to move towards it.

geoffky

flfm....well done..hard work but to be able to have money that's all yours again must of been a powerful feeling

Fortheloveofmoney

Thank you. It was and still is.

brokemedic

Thank-you for that. It's great to hear stories like that and especially with such a large figure - shows that it is doable (is that a word) and that you have still managed to sustain it. I think at the back of the mind is that I will revert to my old ways once I have paid off all my debts and then back to square one..:cool: It's happened to me before. Having said that, I wasn't using this website and the support is phenomenal and very welcoming. Fingers crossed it will happen this time.:rolleyes:

Having said that, I made a long journey today. Stopped off at a petrol station to fill up with petrol. But only filled up with enough for the journey as it was so expensive on the motorway. Previously, I would have filled a complete tank and it would also have involved a large coffee and almond croissant - partly as a treat and partly me convincing myself I needed the energy burst. I asked myself did I really need it and the answer was no.. So hopefully my waist line will also benefit from all of this as well.

Thanks for the info - it's great to hear other people's stories..

Off to my night shift so have a good night..

brokemedic

Ames

You're also more efficient if you don't fill right up cos you're carrying less weight. (wonder if my fuel consupmtion will fall when I've lost the 7 stonen I need to?!).

It's good that you're changing your way of thinking, that's the way to do it I think, you need to change the way you look at things, not just your budget. It's like dieting or getting over an addiction, you can go through the motions and have some short term success or you can really work at it and have success that'll stop you getting in trouble again.

brokemedic

I never really thought about the fuel consumption like that but yes, it is more efficient. Any other tips?? I know absolutely nothing about cars etc..

It's the long term that I am worried about as I have been down this path a few times and I just can't sustain it. I think I might start a diary here as it keeps me so focussed and debt free orientated but I feel like I need to do something to make it permanent.. if that makes sense..

On a positive note, just finished a night shift which would have involved treats of magazines in bed before sleeping.. No magazines so that's £4 saved already. Hopefully the first of many NSDs. I didn't even buy milk as I will just wait until I get into work tonight for my coffee to wake me up again.

Does that make me sound really tight?

brokemedic

Ames

There's an article on here somewhere about how to cut your fuel consumption just by changing your driving and htings.

It doesn't make you sound tight, it makes you sound MSE!