Sharing Eureka Moments - Time to Face Up!

ShellyS

Good Morning All,

Today, I have ended the 'burying my head in the sand' mentality that has plagued me for the last 4 years.

I have always had an overdraft and a credit card, but following a new job and a relocation to a city from a small town, I thought I could live a new lifestyle on the same budget. :embarasse Climbing into 8k worth of debt and living off my income and credit - I was another one of those people who just went month to month without wanting to look at my bank statement, pressing just cash on the machine - never balance.

Then I realised, this is not what I want - I'm not that kind of person. With everything else in life I am so organised and calculated - so why couldn't I do that with finances? Why was money the weakness for me?

So I phoned CCCS and booked an appointment to speak to a councellor, set up a new bank account for transferring 'personal' spending money (with a bank I didn't owe a dime to) and leaving enough in my main account to pay off bills including a buffer for any unexpected rises or emergencies. :T

It's already like a weight has been lifted... I still feel shameful and worried, but I know as my incredibly supportive boyfriend reminds me, a journey of a thousand miles starts with a single step. :heart2:

I am currently paying all my creditors (albeit on some, minumum payments) and have been spending more than I earn, so the challenge starts today, I must continue to pay all my creditors on time and in full, then adjust my lifestyle to account for the rest of my income. Doable? Totally. From day ONE of getting paid, I must make the effort to start managing how I spend, not getting a week before payday and struggling.

So here goes, a new life, a new start. I feel lucky enough to have a support structure in my boyfriend and hopefully now, using this forum, some amazing rescources and people who are going through or have been through the exact same thing - and that is a comforting thought. :j

Shelly x

*Edit: I think this should be in Debt Free Diaries? Please do move if so! Apologies!*

Tixy

Hi Shelley

Certainly sounds like you have had your Eureka moment. All sounds like a good and organised plan.

If you are paying more than the minimums on some of your debts its usually advisable to target those with the highest APR first, and pay the minimums to those with the lower APRs. (unless you have a card with a small balance you can clear quickly in the hope of getting a better rate balance transfer).

Have you done a detailed budget for what you spend and if you find you can't account for some money then a spending diary is a good idea, its amazing how the odd magazine, coffee, lottery ticket, lunch out can add up to a big hole at the end of the month.

You sound like you have just the right attitiude (and just the right boyfriend!) to change your habits and get on your way to becoming debt free.

Good luck.

ShellyS

Thanks for your reply Tixy.

I am prioritising my debts based on the highest interests getting the most I can afford yes.

I have done my SOA and I quite agree - surprising how the little things can add up. I've assigned myself budgets for everything as realistically as possible.

The most shocking being lunches for work which I've managed to get down from 2.50 a day (stupidly buying at work) to making my own sandwiches buying ASDA's own wholemeal bead (50p a loaf and tastes great!) and ASDA reduced fat spread & ASDA's own crisps - meaning my new lunches cost is approx 40p per day (including sandwich filling of a pot of marmite lasting 10-15 days) - a saving of 2.10 per day, 10.5 per week, 42 per month, 504 per year!

I'm going to keep a spending diary, that's a good idea which someone else also mentioned to me, try and have as many NSD's as possible and fingers crossed I can clear this blip up and start a fresh.

Thanks again, I really appreciate it.