Compingirls onwards and upwards diary

Compingirl

Hi Guys,

So I decided enough is enough and its about time I got a diary of my own to let off steam on so here it is.

Hi my name is Compingirl and i'm a spendaholic chocoholic there, its out in the open. I had my LBM in Jan 2008 when I realised we owed over £40k on top of our huuuuugge mortgage. its taken OH a little while to get on board i'd say his LB is now flickering but soon goes off when he wants something so I tend to do this on my own.

Here's a bit about me, happily married, lovely home, 2 teenage DS, 2 cars & down to our last fish. Over the years weve had (& still have lol) some major car troubles which have cost us dearly, we've had some lovely holidays which I realise we are still paying for and the £40k of debt we managed to rack up during our 20 years together hasn't been caused through a reckless spending spree, its been a case of over spending a little each month and relying on credit cards to bail us out.

Ive overhauled my finances and can't get costs down any more. For the last 2 years we've actually been stickin to a budget and saving for car expenses, christmas and holidays which are none negotiable ie OH works hard and refuses to give up our annual jollies so I save a fair chunk each month to go towards them.

Im lucky our income still covers our expenditure (just) OH works hard and has a great salary I work part time and bring in extra money with e-baying and mystery shopping which goes straight towards paying extra off the debt.

So, i've been without my laptop since before Christmas and this has given me chance to think about what we really owe and ive decided to take our car loan and recent bed purchase out of my equation. The reason for this is
1. the car will need replacing soon and we will need another loan to pay for it, I think we will always be like this
2. the bed is on 18 month 0% credit and was a 1 off purchase
3. these combined payments are £410 per month which means although my debt total is going down nicely the credit card debt isn't and its giving me (and OH) a false sense of security ie ooh we paid £5k of the debt last year arent we great lets book a holiday when really we've made our payments but the credit cards have actually gone up!

So, i'm ready to put a very expensive year behind me and really work at getting my CC debt down this year. I'm not setting a figure but I want to end 2010 owing closer to £10k than £20k even if its £14,999.

So they say confession is good for the soul here's mine:
As at 31.12.09 we owe (all at 0%):
Card 1 6384 Mar 2011
Card 2 3261 Mar 2010
Card 3 5849 May 2010
Card 4 1664 May 2010
Card 5 2677 Sept 2010
Card 6 2058 Mar 2010
OD 300

1st 3 belong to OH last 3 are mine Ive applied to BT cards 2&3 onto card 1 as its got the longest 0% but I had to do them this month but figured it was worth it not to have to apply for more cards to BT onto. Card 4&5 are actually the same card but with 2 x 0% deals running together so my priority is to pay card 4 before the 0% runs out or I will end up paying inerest on it as any further payments will go to the other 0% balance.

So thats my first goal. Clear/pay as much off card 4 as I can before May and if not cleared by then I will try and BT it with card 6 which I hope to BT in March.

All advice on my horrible financial mess are gratefully received, do you know I do feel better for getting that off my chest! off to update my new slimline signature lol
thanks for listening cgx

J_pink

Hi compingirl,

Great to see your first diary post and well done for getting it off your chest.
It would be really helpful to see your monthly outgoings broken-down to really devise a plan for clearing the debt this year. You mention the debt comes from overspending each month (we call this living like a rich person - when we are not!) and it's a hard habit to break. As a fellow wife of a hard working hubby I can very much understand your OH's need for the finer things in life. Mine has an obsession with prestige cars (!) :eek:


What seems to be clear is that you have a great approach to your card - juggling. My advice to you would be:

• Do NOT take any more loans out - you might have to drive a little tin wagon until your debts are clear. What is the situation with your car/debt?
• Look at your greatest spending amount, is it the groceries? Treats for the family?
• The holiday is actually a big -fat -lump -of -debt - present! It's stopping you from paying off more debt and is a short term feel good measure. Can you be invntive and think of a really cheap holiday this summer? Go camping, hire a caravan, have a road trip! Do you pay for your daughters holidays? Could they save there own spending money?
• Try and gently talk your hubby round into your way of thinking. Work together as a team, devise a repayment "plan" together and discuss what you could both do to save money each month. Car boots sales, giving up luxury things like the gym, beers down the pub, meals out. You just have to be inventive and thing of new (free) things to do as a couple.
• Get the girls involved - you could put a chalk board up in the kitchen and have a competition for who is the most money-savvy each week!

It's really, really important that you stop kidding yourself that you need luxury items. You will feel so good if you can get by without.

Please do get in touch, I would love to offer my support or just be here to confess to! J_pink (I have a diary too) x

Compingirl

Ah thanks J Pink, congrats on the wedding I will have a look for your diary too. Ive noticed one glaring mistake in my opening thread and reading your post has made me laugh ive got 2 boys!! What was I thinking??? Wishful thinking for the daughters I never had lol! Yes, my 2 DS is what I meant so tee hee to that one.

You have hit the nail right on the head with when you say living like a rich person. We were definitely doing that a few years ago but not now, or I don't think we are.

As for cars, yes my OH has a passion too - man thing? Our car loan is £316 per month and has another 18 months to go. OH had a near fatal crash & commutes 400 miles a week so insists on nice car. Thing is with high mileage its started to be expensive now the warranty has ended, just before xmas we paid £980 for 4 new tyres, 4 disc breaks and break pads:eek: thats the 3rd big car bill we had in 2009! So OH is making rumblings about changing car - i'm just trying to put him off but is it false economies?

Mine is all paid for thankfully and I will run it till it stops! as for holidays, believe me i've been down that track. I would be happy with a week in cornwall with the kids but OH wont budge. Its got to be 2 weeks and hot! TBH I love holidays too, don't we all, and I now save £400 per month to afford us that luxury.

I will post a full soa soon- but I am currently looking at changing energy and broadband providers so will sort them out 1st. We have a £600 monthly cash budget (this covers kids activities, dinners, bus fares, parking, clothes, haircuts, occasional nights out and everything else!) and a £700 food and petrol budget but given OH spends at least £200 petrol per month minimum. I know this is quite generous and when we have to we can really bring this amount down but can't live like that for more than a month at a time. I pay over on most of the cards about £500 in total off the CCs each month and top this up with any extra income we may have so I should be able to clear £6k CC debt per year without doing anything extra. I am going to try and go the extra mile and get closer to £10k of debt gone in 2010

2009 was very expensive for us. We forked out at least £2.5k in car expenses, had to buy 2 new beds, & to top it all the washing machine broke too - thats why the cards crept up again. I am determined not to let this happen in 2010 and to stop me spending I am going to pay any exra money I get straight off the cards to resist the temptation of spending it.

So, this diary is to keep me on track and shift this debt once and for all!
cgx

J_pink

Hi Comingirl - and thank's for your post! So your main outgoings are:

£500 Groceries
£600 Lunch, bus fare, meals out etc
£200 Petrol
£400 Holidays
£200 Car repairs
£316 Car loan

That's £700 on your hubbies car every month. Could you keep paying the loan off and buy a new, small ecoonomic and safe car at a low APR? Could your hubby change jobs and get paid mileage? My OH drives the equivalent each week but gets paid mileage and it's a company car. Or is he self employed?
It seems soooo much money for one car! What's you APR for the loan?

My advice would be to CUT the credit cards up. If something breaks, make do with second hand off ebay! Just until you've cleared your debt! Have your £1100 (and that's a hell of a lot to live off!) each month and stick to it. If your running low...re-budget. Learn to live without the credit cards.You really do not need them.

Shopping: Your grocery bills are £125 a week? Could you try making large, fill the family for fiver meals? Things like sausage casserole, corn beef hash, chilli and rice with garlic bread, home made pizzas. These are all so cheap to make.
Now I totally avoid buying any ready meals at all. My cupbaords get replenished with "essentials" like stock cubes and gravy, rice, and vegatables. I buy Essentials magazine for loads of cheap meal ideas...it's a great mag for getting through your debt repayment year! Branded foods are a waste of money. You would be best shopping at Sainsbury's and buying their high quality own brand stuff.

Your holiday budget is also huge. £5200 a year. Could you research hot but cheaper places to visit? Do you tend to book in advance? Is there any way to avoid the kids holiday season...For what it's worth i use www.tripadvisor.co.uk to compare the same hotels. Try www.skyscanner.net to compare the flights.
Last years holiday to Egypt was £1000 pp package holiday with thomson. I booked the flight and SAME hotel seperatly (on Thomson's website stangely) and it cost £500 pp. The SAME HOLIDAY! They were making a 100% profit on all the holidaymakers booking packages...

You have a got a brilliant attitude to be able to pay your debt off this year. If you can discuss ways to save on the car and your family holiday and get you OH on side, then you will save even more.
Saving on your food shopping bills will do more, per month, than any phone and broadband deals but it all helps. Only use the essentials - try and cut down on your household energy. Give up any pricey haircuts and clothes. I've shopped at primark and debenhams sale for 2 years - my wardrobe still looks nice!

I know I sound harsh (I'm a teacher afterall!) - think of me as your harsh but fair fairygodmother. Good luck and let me know how you get on x

Compingirl

tee hee always wanted a fairygodmother can you make it all better for me please?

I know my budgets are huge compared to some, I darent post my SOA it gives me palpatations! but this is how we live.

We went to Egypt last year - loved it! Yes I think the holiday fund is way over but, we went to try and book a holiday on 2 Jan & I told the woman a £3 - £3.5k budget and she nearly laughed us out of the shop! Silly woman said, well ive got this one at £6,200!!! Problem is, both kids count as adult fares so no discounts there and as you will know being in the profession, unless you want a 2 week hol your only options are Easter/ 6 week hol. Mine are taking GCSEs so I can't take them out of school and TBH they have had so much sickness this school year I wouldn't dare ask! So at least this way I budget and if theres anything left it pays for clothes etc. OH will not compromise on his hols. He says we might only have another couple hols with DS1 & he wants to make them count. If I didn't save this would end up on a CC. It has in the past. Saying that, Im all up for saving a few quid and am happy to investigate booking flights/hotels separately so thanks for the tip.

As for food, don't get me started! :eek:they are like vultures!!! I can promise you I never buy convenience foods, I do lots of home baking - hence the rotund figure lol and always buy shops own basic brands apart from coffee and baked beans! Before my DFW journey (and my new found baking skills!) our bills could easily total £600 - £700 per month! I spend around £400 now, I tend to do 1 or 2 big on line shops and top up once a fortnight. I'm a dab hand at rustling up something out of nothing and we have spannish omelette every week lol!

Again, the petrol is reduced from what it used to be now OH drives a diesel car. Sadly no compromises there either. Mine is a little run about and I use about £50 per month in petrol.

I never use the 0% cards, I just tart them about every year, but from past experience if we tend to overspend it ends up on the overdraft and when I come to do a new tart its so easy just to add an extra £500 to the amount to clear it. I think because they are all 0% I don't worry about them the same, I know this is not right and this is what I am focussing on this year and my promise is NOT to increase the cards at all this year!!!

I know it sounds lame and that we are not prepared to compromise or go without but we do want to be DF its just going to take us a little while longer I guess.

Anyway, talking of tarting my OH BTs have been approved so next month I will be down to just 4 CCs yay!

Finally, after a very lean time ive managed to pick up 3 MS, and have sold a book and game on Amazon so thats £60 heading my way and I will pay it straight off card 4!!

Kids are both feeling (and smelling!) a lot better today - ive forced them into the bath! TTFN cgx

WorkingHardDFW

Well done on posting and fessing up. One subscriber here looking forward to progress.

The single most important thing I've found is living within your means. My OH wouldn't compromise on holidays. Whilst we did go for driving holidays for a few years it never been cheap but it has been needed. We work hard and need the break when it comes. Our budget is similar to yours for a family of five. It does feel a lot every month but much better than sticking in on a card which we've done in the past.

Apart from clearing a CC having money put side to pay bills is great. Mind you the real world comes along and socks it at us all the time though - cars are particularly trying!

I'm with you on the car loan as well. Our loan isn't included in the figures as well because mainly because we'll also have it for the forseeable future. OH gets a car allowance which covers the loan. I'd rather not have it but as you know OH has a car thing:p

Its living within your means which is the key and slowing bring the debt totals down.

You've done so well to date, keep posting and keep going, we're all supporting you:cool:

hypno06

Wotcha!!

:hello:

Compingirl

Hi Hypno! You found me!
So Im up and at 'em this morning -
been in loft and retrieved game to send to Amazon buyer
made long, long list 'to do' when I go MSing this morning
have taken a leaf out of DT's book and had a quick pick up whilst OH out today will hoover etc when I get back.
Going to make my last CC payment on OH PO card (ive BT'd rest) and close that down today
Arranged to meet mate at gym to get me off my backside
and started diet - again! We go skiing in 4 wks and trousers are a little snug!
Yay, snows gone, kids are on the mend, life is good - if not a little wet!

catch you later cgx

WorkingHardDFW

Sounds like a productive day - enjoy!

Compingirl

Marvellous day :j
MS went great so nice little b-day pressie for someone tucked under bed

Paid final £150 on OH PO card so can now send letter off to close that one.

Price checked some items in sales and can claim £75 back through card account cover - that means I can shop guilt free next time

and have even stuck to diet :A OH not working tonight (he's a drummer:D) so we are going out to pictures minus kids yay! might even have a gin or 3

have a lovely evening peeps cgx

beanielou

Great day indeed
Well done on PO card.
Enjoy the pictues~what you going to see?