little_h's big dreams :)

little_h_2

Hi everyone, I'm little_h (just gone back to my maiden name yippeeedoooo!) and here starts my diary as I try and get my finances back on track in 2010.

My light bulb moment was on 30th October 2009 (reading a fantastic book called In the Red by Alexis Hall) and since then I have pulled my finger out and began sorting my money out.

At the highest, the debts were £26,780.

I have cleared £867 off my debts last month (credit cards) so that now leaves me with:

Mint card £4,970 - all at 0%
Virgin card £10,423 - £6500 at 6.9% life of balance, rest at 0%

Car HP £10,555 - 9.9% with 4 years to go

Total £25,948

I don’t worry too much about the car debt as I could sell this and repay the debt and have enough left for another car. The car is unbelievably economical to run – cheap to insure, cheap to tax, fuel efficient, servicing already included for 50,000 miles, new so no MOT needed for a bit. It’s also new and has proved very reliable which is a big worry for me as I drive almost 25,000 miles a year mostly on my own on motorways and often long journeys late at night. I also love that it has bluetooth for my phone and an ipod socket!

I love the car to bits, it is quirky and cute and fits in everything I need (I have a bulky unusual musical instrument to carry occasionally). It is also my “nice” thing, my luxury if you will, so that when I am feeling sorry for myself I know that I do have nice things (I have lots really but I am a petrolhead at heart so the nice car does shut me up if I am whining)

The credit cards have mounted up from various things. About £8k is on things I can actually quantify and justify (and re-sell if it really came to it) but the rest is accumulated overspending from when I was living away from home and paying rent but still also paying half of the mortgage after I separated from my husband, plus the cost of buying him out of the house and buying a few bits of furniture (I didn’t go mad, just a couple of bare essentials which I bought for as little as possible).

3 months ago I also changed my job to one where the dress code is extremely smart officewear, having spent 3 years in a very casual environment. So I spent a fair bit on getting a new working wardrobe. I also missed out on my last bonus from leaving my previous job which would have made big inroads into the credit card debt. All my own choice of course, but an expensive time. It was worth it to leave the stress of the old job behind plus I am now on better money with less travelling time, less stupid long hours and lower fuel costs to boot. I don’t like my new job very much yet but I am trying to give it a bit longer before making any big decisions.

A bit about me. I am 31 years old, earning good money with a supposedly glittering career in a dull finance-based role. I live on my own with a mortgage of just north of £200,000 which I had to buy my ex husband out of as we were unable to sell our house while we were separated. I am lucky that the mortgage is on a good tracker rate so has dropped loads in the last few months. Did I use the saving to tuck away for a rainy day or reduce my debts? No, I did not! Kicking myself very hard now! :rolleyes:

The house is lovely but it is rather too big for me and has a big garden to look after and needs a lot of maintenance and a few other bits doing to it before it would sell easily (again, if at all in the current market!). It is on a main road so in my view (and I have moved around a fair bit!) it needs to have everything else going for it so that people don’t discount it because of the road noise. Which isnt even that bad.

I had decided to sell up this year, so am focused on doing the work that needs doing (new bathrooms as the current ones really are beyond help, new windows and possibly a new driveway as the parking is so bad at the moment – however for now I will just get the planning permission for the drive and then leave this until I am sure I want to sell as it will be quite expensive) while trying to clear as much debt as I can. I have about £800 a month spare which I can chuck at my debts and use for doing the work on the house.

I also need to get my ex husband’s half share of the equity paid off as well. This will be about £20k – I couldn’t afford to buy him out of all this as well as taking on the existing mortgage so we have an agreement to say I would give him this if I sold the house or if someone else moved into the house. My boyfriend had moved in to help with the bills but it didn’t work out and he moved out again. We have started seeing each other again and it is going well but both of us agree that moving in together again is not an option in the short term!

In theory I don’t need to pay off my ex until I sell the house but he is making me feel very uncomfortable about the money since his new partner has come on the scene, so I just want him out of my life for good now (sadly under the patio isnt really an option!) so am hoping to remortgage as soon as possible. Of course with the current credit situation it is less easy to get a mortgage for the LTV I would need, let alone with my level of debt, so I have put this out of the equation for the time being.

I am in a quandary as in lots of ways I don’t want to move, I have moved around my entire life with my dads job and it has been nice to settle. I love where I live but the mortgage is such a huge commitment and I have to keep my high paying but soul sapping/exhausting job to be able to pay the bills.

I am so used to having credit. I love my car but fancy a new one. I love my motorbike but fancy a new one (and no, I don’t need both really but the bike is my passion that makes everything I work for become worth it, it is the only release I really have from my job and I can’t even contemplate getting rid of it).

A couple of my friends are in the same position although they earn more money than me and don’t seem to worry about being in debt. I had always been brilliant with money until I went away to university and got given a credit card with my student account. I had to take it as I wanted the free student rail card otherwise I wouldn’t have taken it. I started putting treats on it (always had enough to pay my other bills as I worked as well), things I really didn’t need at all, and so the pattern started.

I don’t really spend money on fancy clothes, handbags or shoes, which I gladly do without to keep my bike on. I am happy to keep paying my debt off for now and will be e-baying and car-booting as much as I can to put a dent in the credit card bills while I think about what to do next. I need to re-educate myself in a fairly big way so that I don’t feel that I can afford to spend £20k on a car just because I am feeling a bit down in the dumps!

I am pretty good about food, I cook from scratch a lot, no takeaways and I don’t go out very often. Again this was a sacrifice I have been happy to make so that I could indulge my passion and race motorbikes. I can’t afford to do that for the next couple of years and am OK with that as long as I have my road bike to keep the wind in my hair ☺

I am looking into starting a business doing accountancy related things from home. As mentioned above I am also a musician and my instrument can help me earn some good money by playing at weddings and functions so I plan to build this up too – I have only recently started playing again. I would love to give up my day job to do this, I could earn an OK living at it but probably not enough on a regular basis to keep the current mortgage going on my own. So for now, this will give me extra income to clear my debts. I have to be careful not to run myself too ragged with it all though as I have struggled with stress-related issues and depression before.

So this is me. It’s New Year’s Eve, and I am excited to be leaving the old crapola behind and I am so ridiculously excited about the new year, I could wet myself!

Happy New Year everyone :T :beer: :j

beanielou

Happy shiney new diary
Have a fantastic 2010.

Starry_Skies

Enjoyed reading your first post! Good luck and I look forward to following the rest of your journey

Happy New Year!

Starry Skies x

little_h_2

well, doing well so far. I got paid early this month (on xmas eve) and havent spent anything apart from essential food and petrol expenses.

This week I have been in the office on Wednesday so bought my lunch - I am trying to steel myself to stop buying sandwiches as this is mostly where my spare money goes and I feel dreadful about this. I shouldnt see a shop-bought sandwich as a treat, I should make my butties and spend the money on something else, or use it to cut my debts further but somehow I never manage to get organised etc. I will try and improve this year, even if its only a couple of days a week. The thread on the DFW board is helping no end!

I havent spent money on any other day though which has been great.

Tomorrow I am going shopping with my mum - I had some money for christmas and I desperately need new undies and socks so will use some of it for that, and a little treat of some new perfume if i can find something nice in the sale.

It will be a big challenge to stay focussed, I love shopping, even just wandering around and not buying anything, but if I see something I love I get tempted even if I can't afford it. I think Mum is realising that when I have bought stuff before, it has been stuff I couldnt afford so I think she will help me stay in control now she knows the issues a bit more.

I had a really lovely letter from my Granny yesterday wishing me a happy new beginning and thanking me for her christmas present. In the past i would have spent much more than I did this year.

This year I literally halved the budget even though I had more people to buy for, I chose presents more carefully and spent less on the people that don't deserve my energy. I felt obliged to buy for my ex hubby and his family this year as we were so close at one point but didn't even get a Christmas card from them this year so won't bother next year.

I have been over generous in the past. Last night I went for a free night in at my bf's - again this would have meant in the past that I felt obliged to spend a fortune on food and drink but he had bought everything so I didnt need to spend a penny. we had a great night and he has been so supportive of all my goals and dreams even though I have treated him appallingly at times this year :eek:

Last night before I went out I paid all the bills over that needed to go, so on Monday the rest of my direct debits will go out and the only money left in my account will be what I have to get me to the end of the month.

I'm also on an alcohol free month - which will save me money and should see off most of the half a stone that I want to lose.

Hope I can stick to it, I feel so motivated at the moment! :j

BEAT_THE_DEBT

Hii am with you on the alcohol free month!x

little_h_2

Update on yesterday's shopping trip.

I did pretty well!

I took a list and only bought what was on the list. I needed a couple of tops to go with jeans etc as I was using up cheapy tshirts and they are pretty much worn out now.

I was lucky enough to find 2 tops I had really wanted a couple of months ago (which I had managed to resist at the time) that were down to half price. I tried them on first to make sure and they were great. So now I have them, cheaper, and I don't feel guilty about it

I also found a couple of half price tshirts so I am done for a good few months now with my home wardrobe. Really pleased about this!

I was going to buy new jeans as I had mine taken up but they have since shrunk a bit too much. However I unpicked the hems yesterday and have found a way I can let them down a bit from where they were. Given they cost me £80 :eek: at the time I am pleased with this! (£80 was a lot but its next to impossible to find jeans that fit me and trying them on is so miserable!)

I needed new shampoo and conditioner so bought my usual brand. However I had read a good review about a cheaper brand and this was on special offer so I bought them as well to try at the weekends when it doesnt matter so much if my hair doesnt behave itself :rotfl:

As a result of this, I upped my Boots points just enough to get myself some perfume as I managed to save up more than £20 on my Boots card.

I am really really pleased. I still have a little bit of Christmas money left which will go towards some sheet music I need to get.

Most of all, I stayed in control and had planned my trip so I wasnt tempted to stray. I didnt go into French Connection or Lush or Oasis or Karen Millen (my usual downfalls) as by then I had everything I needed and knew it would lead to temptation I couldnt afford.

I bought mum a coffee in Debenhams - normally it would have been lunch somewhere like starbucks with coffee, sandwiches and cakes so about £12 if not more. She was more than happy with just coffee and it cost me £5 including a doughnut for me as I needed the sugar (was getting worn out with resisting everything!). OK I didnt need to spend the money but it was nice to do something for my mum given she had driven all the way to see me etc.

Starting my industrial level clear out today (when I can tear myself away from here that is :money:) and I have some motorbike stuff to get on ebay and books/DVDs to sell so will get all these photographed and ready for listing.

I also need to go to the supermarket so will get planning for this as I have a few bits to use up from the freezer

Back to work tomorrow :rolleyes: not impressed at all! But hey, gotta earn the money somehow.

The diary thing (both mine and those of others!) is definitely helping, thanks everyone!

little_h_2

oh and still alcohol free as well, result! :j

beanielou

Great day then

rupe34

loving your diary already - have subscribed :T

Good luck with all your plans for 2010!

little_h_2

Well I knew it would happen, after a really positive few days, the low was bound to strike at some point.

I’ve been working from home the last 2 days because of the snow and have surprised myself by feeling really lonely and down in the dumps about it ☹

I normally love being at home as I get to spend so little time here, but I think because I feel so guilty about not getting very much done, and feeling I should be stuck behind the screen being productive, I’m not enjoying it as much as I normally would. I think I mentioned before, I haven’t really got into the swing of the job yet but hoping to soon.

I’m blowed if I am doing a 25 mile journey in all the snow and risking my sanity (and the rest) on one of the most dangerous stretches of road in the country, when I am able to dial into my work computer from home.

On the plus side I have saved 2 days worth of fuel, plus I have had a NSD today :A

Acutally I’ve had a pretty tough couple of days thinking back. A very close friend is in a really bad way and I live a long way away and can’t do much to help without feeling I am swamping her. So this is making me feel sad. Bf saw how little I had in the fridge this week and is worrying about me. I explained I’d bought enough to get through the week but then got really upset because a simple recipe I was trying didn’t turn out, and the thought of wasting the food and not having anything else available to eat finished me off so I went upstairs for a big sob! :rolleyes:

It was a bit late for a takeaway really and I felt bad the only thing I could offer him for his tea after he had been working hard all day, was toast or muesli! :rotfl:

So yesterday I headed out in the snow to stock up a bit. I couldn’t get to the supermarket, it’s only about 3 miles away but it’s up a big hill which is notorious for people getting stuck in the snow. So I went to my lovely farm shop instead.

I haven’t been here in ages because everything is so lovely I used to spend a lot of money there. True to form, I came out a massive £17 lighter and really hadn’t bought much :eek: However I had forgotten how nice their ham is – it’s not expensive either and is so much better than anywhere else, plus it ticks all the locally sourced/ethically produced boxes too so hopefully this will galvanise me into taking the odd sandwich to work instead of buying lunch!

Last night I also cracked on the wine thing it was cold, we’d been out for a nice walk in the snow as I was going stir crazy from being in all day, we came home and had our lovely home cooked lasagne from the farm shop and it seemed too much to resist the wine that my bf had bought. He is struggling too. It seems we are fine on wine as long as we aren’t together!

So I am having a think as to whether I have cut back too much and if I am trying to achieve too many things at once, and then setting myself up for a big fall when I can’t achieve all my goals.

Hope everyone is well and managing ok with the weather. I live in north Essex and have about 4-5 inches of snow here, it looks gorgeous and I miss my dog as he loves going for walks in the snow, he likes to sniff the snow and it makes him sneeze. Daft boy!

beanielou

I think one of the most difficult things about our debt free journeys is finding a balance that is right for each of us.
Dont beat yourself up too much & enjoy the goodies from the farm shop.
Take care.