Debt Free by 40 Debt Diary

oakdale_minx

I've decided to take the plunge and do a diary to keep me motivated.

I'm 36 and since I've been 18, I've done the spend, debt, consolidate, spend, debt,consolidate cycle.

In 2003 I split with my partner of 14 years and I actually had 5k in the bank to furnish my new house. Stupidity and a desire to furnish it quickly along with reckless and inane spending means I now have 25,000 of debt, 5,000 of it on CC's and 20,000 secured......stupid, I know........

I joined MSE last September and made big strides. A bit of a lull earlier in the year and I've gone a bit backwards.

I was going to re-consolidate the 5,000 onto the 25,000........and my BF found out. We don't live together, but he stays here each night and picks up the post and wanted to know why he signed for a Special Delivery from the loan company.......it was the return of my ID I'd sent ........

He made me tell him what was going on and be-grudgingly I did.....although I only told him about the 5k, which he was appalled at - I couldn't bring myself to tell him about the other 20k. He has been good in that he helped me to find more ways to cut back, he thought I was saving each month, when in reality, a single salary, a house full of bills and a whole lot of spending has pushed my situation close to breaking point.

I want to be debt free by the time I'm 40. That gives me 4 years to get rid of the 5k unsecured debt and then try to get rid of the 19k secured (can that be done?)

I work full time and am now madly signing up for just about anything else I can find to get a few extra pounds to throw at the CC's.

I'll post an SOA in a few minutes, along with what I've done already to sort out the situation.

I have to say..........I'm already a regular MSE contributor, but because my partner doesn't know about the other 20k, and that I've managed to get all 6 of my work colleagues to sign up to MSE (and two of them use the boards), I want to hide behind a different user name as my normal one is too close to my full name. Silly I know, but this is a big step doing a diary when I've spent 36 years sticking my head in the sand and trying to sort out everything I've hit (financially) on my own.

oakdale_minx

My SOA
Income 1490

Mortgage 628
Council Tax 82
Water 34
Electric 35
Gas 35
House insurance 16
TV Licence 11
NTL 36
Car Insurance 31
Pet Insurance 13
Mobile 15
OU 50
Petrol 40
Food for 2 adults 200

Loan 238 9 years left at 7.9% secured
Next 10 100 outstanding at 15%
Capital One Visa 5 60 outstanding at 12.9%
Capital One Mast. 18 520 outstanding at 19.9%
Barclaycard 59 2000 outstanding at 19.9%
RBS 35 1500 outstanding at 16.9%
Mint 8 400 outstanding at 15.9%


I'm also permanently overdrawn 1200 each month with the Abbey.

I'll tell you all where I was before and how I've made inroads next!!

oakdale_minx

What I've already done to reduce my debt.

House insurance
previously 25 a month, changed to Barclays 2 months ago, now 16

NTL - was paying 50 a month for phone/TV/broadband. Called them last weekend, downgraded and now paying 36

Car Insurance
Had to start with no claims in my own name when I left my ex and was paying 60 a month, then 40. Now 31 and hoping to reduce when I hit three years no claims in November. I'll use confused.com to change .

Mobile

Dead money - I'm stupid. I have a fantastic tariff 15.00 a month and 50 texts and 750 minutes a month - but only fantastic if you ever use it. Asked T-Mobile about escaping and they said no. Have to wait until the end of Jan. Will then get a sim card and go PAYG

OU - Open University

i signed up to do a Masters Degree and the fee this year is 520 split over 5 months. I couldn't afford it so called them and they've agreed I can pay 50 a month until October and then review it from there.

Petrol
After my BF finding out, he has said he will start contributing and will put petrol in my car. Hoping that monthly cost will reduce hugely to zero.

Food/cleaning stuff/supermarket generally

when I joined MSE last September I was spending 350 a month on the two of us!!!!!!!!!! I've been cutting back each month and in June spent 200. I'm aiming for 160.00 in July and my BF has said he will contribute where he can (he eats at my place 7 nights a week and has never given me a penny so I'm glad in a way this has all happened) I'm a mad keen cook and cook everything from scratch, already meal plan (it's onthe fridge!), collect and use coupons, and visit the OS board more than once a day.

Loan

Secured. Was 9.9 %when I got it, over a 20 year period. I called in December to see about reducing the term and they also reduced the APR as well as taking the term down to 10 years.

Capital One Visa
was 29.9% . Called them last weekend and they reduced to 12.9%

Capital One Mast.
Was 29.9% called them last month and they reduced APR to 19.9%

Barclaycard
was 29.9% .Called them last weekend and they've reduced it to 19.9%

RBs - wouldn't change APR
Mint - wouldn't change APR

Abbey - 610 of that is bank charges and they have 7 days left before I file a claim for the return of the charges


I've also:

Capital One card from 2001 - old closed account - loads of charges at the time, I sent a DPA letter yesterday for the statements
Associates card from 2001 - old closed account - loads of charges at the time, I sent a DPA letter today for the statements

I'm a big freebie fan and any CD Wow vouchers are spent on a chart CD which goes straight on ebay. i've been an ebayer since 1999 and have sold off a few bits already. Transferred 27.00 today to my bank account.

Mystery Shopping

was taken on by IMS last month and have done three merchandising audits for them, so 63.00 will be due to me this month - any money from mystery shopping will be my 'spending money' for clothes/nights out, so I need to get those assignments!

taken on my Gapbuster this month and am doig a mystery shopper assignment this coming Sunday.

AQA - filled in their form today and did their Research test .

Yellow Pages delivery - signed up to be a Routechecker with them when and if they need me.

I have a poor credit report. I can't get a 0% card or an unsecured loan. I got a CCJ for £600 in 2001 and it has affected my credit worthiness since.

Phew....................don't think there is anything else to overload you all tonight with..........i'm on this site A LOT (but by my other user name!) so will hope to keep this up to date frequently.

snowstorm

Hi Oakdale_minx,

It sounds like a really positive step that you have taken, firstly by recognising and documenting here the amounts that you owe and secondly by holding a strong desire to clear your debts.

Mystery shopping also sounds a great way to bring in a few extra pounds.

Your boyfriend seems to be making the right noises with an offer to help towards petrol, however I can't help but feel he should offer to contribute in other areas, especially if he is staying and eating at your house pretty much full-time.

You may want to suggest something like you continue to feed him, he pays for insurance/petrol for your car in full and OU course? The only reason I suggest this approach is that I seem to remember that if he were to contribute significantly towards household expenses the potential might exist for him to argue for a percentage of ownership? (I may well be wrong).

Just a thought. Best of luck, I would say the £5k in four years should be acheivable. £20k of debt is a lot but will soon come down with good discipine built up by repaying the £5k. The main thing is you stick with it.

Hope this helps.

Kind Regards

oakdale_minx

cheers snowstorm......my BF owns his own place and is self employed, so money comes to him in huge chunks or not at all.........he admitted he had been taking the p*** though, where money for food was concerned. I'm rubbish at asking for money - I'd lend anyone a fiver (don't all shout please i'm roke remember!!) but I couldn't ever ask anyone to lend me even a quid or so. i'm hoping he doesn't forget his promise, as I'll find it difficult to raise it again. Even £20 a month from him would be good - I'd chuck it at the CC's.

snowstorm

Completely agree and is much easier said than done. I think I would find it really difficult to ask too. Best of luck with it though, hopefully he will remember.

Maybe you could spend some evenings at his, that'd shield your heating/electric bills especially in winter and might highlight that he's got no food at home!

Again, fine ideas, I know difficult to put into practice. Hopefully someone will come along and suggest a cunning way around this.

Kind Regards

gallygirl

Well done on coming forward! re the OU, I know you can't get direct funding from the OU, but have you considered applying to OUSET or Alumni to see if they can help?

oakdale_minx

I'll look into that ali - if I was doing a BA/BSc with the OU, I'd qualify for £200 study expenses, based on my salary (looked into that as well!) but doing postgrad courses don't count.

Daddyo

Hi there, My GF an I are currently trying to cut back and also look for other ways of bringing pennies in, so would be interested in details or links on your mystery shopping adventures please.

As regards your other half, personally we think its a bit rich to be appalled at your debt, yet on the other hand he wasnt contributing to food. (and we assume etc. !!)

Seems to me that a sit down between the two of you - a warts and all discussion about the situation you are in - would do you the world of good. He could get a grasp of what you are facing / feeling - and if he's a goodun he'll support you and not be judgemental.

With my GF i waited nearly a year from going out together, to tell her about my debt (£38k) - but it was the best thing I ever did. A problem shared etc.... She was ace and admitted she was not in the best of situations either.

Hence we are looking at PT jobs, mystery shopping, car boots, veggie growing, e-bay - allsorts.

How about broaching the subject of moving in to his ?? And renting out a room or two or even your house ? Or vice versa (got to say though - you gotta want the move !!! but him staying at yours every night is a good sign !!)

All the best !!!!!!!!!!!!!

oakdale_minx

Done my finances for the month ahead - car tax due which is a nasty unwanted expense.

With car tax due and the money due for mystery shopping during the month I will have £175 for groceries/petrol and going out etc. I've set myself a £120 food budget and £50 'spare' and I've got no nights out planned, so hopefully, as long as I am mega careful I can survive without hitting the credit card. If my BF pays for some more petrol during the month I should be ok. I hope.

Sigh.....£120........it's going to be hard, but i'm going to try to stick to it, I haven't much other choice this month.

I've just cancelled my pet insurance direct debit (12.28 per month with Tesco)

Using moneysupermarket, there are a few options for £6.50 a month, so it will save me £6 a month. Cancelling the DD with Tesco will stop the DD for July coming out. I'll set up the DD on the 1st of july with the new company at £6.50 a month instead of £12.28 and there won't be a break in cover.

Or should I wait until the 1st of August , save £12.28 on next month's budget and hope that my springer doesn't have an accident in July? If sod's law happens , I guess I'll still be ok with the Tesco policy for a couple of weeks? Or not??

oakdale_minx

Got home from work - received confirmation from the Natwest that my Step account is fully opened.

That's the parachute account sorted if the Abbey get horrible over the re-claimed charges.

I'll tuck away the letter hoping I don't need it, but knowing it's there if the Abbey turns nasty.

I'm at the letter before action stage with the abbey for charges in 2006, I've decided to send a DAP letter for my 2001-2004 statements. They will make horrible reading bankcharge wise, but should add up to a sizeable chunk. i've now got four bank charge claims - one at LBA and three at DPA - maybe debt free at 40 might happen afterall!