Day One

LeeSouthEast

£50 a month for entertainment is still £600 a year.

Sorry to bring that to stark realisation ... but in the fight against debt every little needs cutting back where reasonably able.

Smithy22

I know when you put it like that its a vast amount of money! I think I'm just currently a bit in the "oh my god my life is about to change beyond all recognition and I'm scared" phase so I'm trying to do the best I can. Bear in mind I'm probably currently spending over £300 a month on pure hedonistic pleasure ha so my new £50 budget is a vast improvement on that!

I do want to be realistic and although I'm commited I don't want to make the mistake I've made before of jumping in with both feet and caving in after a couple of weeks because I can't hack it. I suppose I'm still feeling my way and will be for a while.

It in itself is a great tip though - to think of eveything in terms of your annual spend on it as it really brings it home how much it could change your debt position in a short space of time. See I'm learning already! and your signature has just reminded me I haven't given blood in way too long, so consider it added to my "to do" list

LeeSouthEast

I nearly had a fit when I realised my LoveFilm subscription was costing me £187 a year. I kept it because it's still good value and keeps me entertained. It's considerably cheaper than buying physical DVD's!

I did have a fit when I worked out my mobile phone was costing me £540 a year. Was soon on the phone and have now got that down to £228. Still obscene, but much better than the former!

In the first few months it'll be difficult, but you will adjust. I deal with things best when I dive in with both feet. It is unreasonable of me to expect everyone to react the same, so I apologise for that, it was unhelpful.

Good luck regardless!

Smithy22

Ha it was far from unhelpful, it was the eye opener you intended it to be and for that I thank you!

I'm over emotional at the best of times (my friends say my bladder must be too close to my eyes haha) but today has been a tough one. Like I said before I know my debts are managable and my problems are not even comparable to some of the tuly remarkable people on here but its been a struggle non the less. It just seems so personal and raw to be "talking" about with strangers....but strangely carthic.

Probably time I went to bed so I can get ready for being crowned "worst novice waitress of the year" tomorrow :rotfl:

DawnW

Hi,
Welcome and congratulations on starting to deal with your debts - I have been there, and it it strangely empowering once you get going!

A couple of things stand out - as someone mentioned previously, £200 is a lot for groceries etc for one person - bulk cooking, meal planning etc really can save you loads of money quite quickly. See what you already have in your cupboards,fridge and freezer, and plan your meals for the week based on that - only buy what you need to go with what you already have, if you see what I mean. Remember breakfast and lunch as well, not just evening meals - you do take your own lunch to work don't you?? If nor, then stopping buying lunch out right now might mean affording an extra night out every now and then! It doesn't have to be sandwiches - I often take leftovers from last night's dinner, or HM soup for lunch. Leftovers might sound a bit gross, but it isn't - the people in my office are really jealous of my lunches!

My DD's mobile bill was stupid as she constantly went over her free minutes etc included in her package - so she phoned the company and asked for the tariff to be increased. By doing so, she got more free minutes and texts and now stays within the basic tariff which is loads cheaper than constantly going over the lower one - so that might be worth a try in your case?

Medical expenses - if it is prescriptions, a pre-pay certificate thing might be cheaper? Possibly worth investigating.

Finally, I notice you have a relatively small debt, £188 or so, at a high interest rate - throw all you can at that one, every spare penny (while still paying the minimum on the others of course). It will soon be paid off if you do that :j:jand that will make you feel great :T (I have been there, trust me). And once you have paid it, have a ceremonial destroying of the card, and a small celebration. Then start on the next one!

Good luck x

gfplux

Well done smithy22 on posting the SOA.
A good step would be to :-
Start a spending diary TODAY to find out exactly where your money goes. That knowledge will shock you but also give you power.
Good Luck

Debt_Free_Dreamer

Have a look at the 'Payment A Day' thread. It is great for motivating you to clear a debt. I cleared a big credit card following this thread around the end of last year.

Every time I was tempted to buy a sandwich at work, a magazine, another item of clothing I thought about the 'Payment a Day' logged on to my bank and made a payment instead. Even though some days the payment was only £1, other days it was much more and the debt was cleared. Some weekends I did not even venture out of the house as there would be no temptation to spend.

The main thing was focus!

Also, type all your Balance Sheet & Monthly Incomings and Outgoings into a spreadsheet and forecast forward for at least a year. (Jan, Feb, Mar etc., in the columns) This will allow you to see the value of the debt go down and forecast how long it is going to take to repay it all. This is a real motivator as it hits home how much you really owe and how much you can spend to help clear your debt each month.

And finally.... Welcome to the boards, you are making the first steps to success.

Smithy22

Hi,

Thanks for all the suggestions. I'm absolutely shattered but I've had a great day and made some extra cash to boot - which is going straight off my credit card tomorrow

I've dug out an old notebook so as of tomorrow every penny will be written down and accounted for. I've had a very strange week but I'm glad to be starting the next feeling more positive than I have in a long time.

This is such a dumb question but how do you realistically work out what your debt free date is going to be? Is it a simple case of saying that if nothing changes and you spend all your "surplus" on debt repayment this is the date your balances will be zero or is there a better method?

SazM030306

Good luck Smithy - you're in the right place!
Sarah
xxx

LeeSouthEast

Sounds like you've made a great start Smithy! Keep it up and keep us posted. Any time you feel like you need a nudge, just ask us.