Determined to detox alot of my debt in 2010!

PinkButterfly_2

Thanks for all your comments!!

I am also going to start ebaying from tonight again - I managed to make £200+ from of my little stint from last year - but it just takes up so much time uploading and blah blah. But have to clear out space and better to make some money then no money!

The debts have accumulated over the years after being married - family just became enormous!! Birthdays and festivals - from this year, I am done the whole being-a-newly-wed-so-I-will-buy-you-a-nice-big-present-as-you-are-my-new-family. It has all added up. Plus I silly-ly took responsibility for the shopping spree for presents for our first trip in ten years to visit family and the out-laws in Asia last year! AHHHH! AND FOOD! Omg, I had no idea feeding people costs so much money!! Better to take people out to a restaurant than inviting people round for a full course dinner.

So many balance transfers later and everything and I had stopped spending on my credit cards for a couple of years (I had broke this habit a few months ago but should have this "new spend" cleared soon). The no spending didn't have that much of effect as the interest rates were so high but I was blind to this. I have elimated two credit cards though :-). Just wish I never had them in the first place!

There have been 'demands' for payment on certain things from hmm, an out-law, like £200 here and there and everywhere over the years, and I just have to stop doing it.

But I still want to get a car, I just feel so claustrophobic sometimes w/o that extra bit of independence where I don't have to rely on anyone.

But I also want to get my debts down considerably this year. Taking as much overtime as possible at work! Tiring but worth it as I have no commitments with kids at the moment.

It depresses me because as you say, I don't have many household bills, or at least any that I contribute on a regular basis, nor do I have anything to show - but money just goes on to things that I need to track down fast!

Next month- well being careful now anyways as funds are low at the end of this long month - am adhering strictly to my spending diary! Need to know where my money is going! No eating out or anything! And lunch from home!

PinkButterfly_2

OMG - I just did one snowball calculation and this is what came up!

It will take you 1200 months to pay off these debts if you snowball correctly. During that time, you'll pay £16,277,211.00 in interest.

OMG please let this be a miscalculation - will check it out on another website.

gingerwhinger

PinkButterfly wrote: »

OMG - I just did one snowball calculation and this is what came up!

It will take you 1200 months to pay off these debts if you snowball correctly. During that time, you'll pay £16,277,211.00 in interest.

OMG please let this be a miscalculation - will check it out on another website.

Ha ha. I think you might have done it wrong:rotfl:£16 million in interest?!

Bestthingsinlifearefree

PB,A spending diary, will help you see were the money is going and help restrain unnecessary spending. Make small positive changes, step by step.Good Luck!

HairyHandofDartmoor

Definitely do a spending diary and include EVERYTHING, from magazines, lunches, toiletries, newspapers, chocolate bars, as well as big things. It's amazing how everything adds up over time.

Be less generous with your new family. You sound like you could be trying to buy their affection with big presents because you feel a bit insecure with them. Could this be the case? Remember if your husband loves you then so should they, presents or no presents.

Keep track of every penny, get the debts down and then you can afford the car you crave and the independence it will give you. And you want to have kids one day but not in debt. So each over-generous present you give or unnecessary purchase you make is taking you one step further away from your car and kids!

PinkButterfly_2

I really need to reassess this snowballing thing - I did a calculation on a different site and it was abit more different (phew!) but I didn't understand it! The calculations went for ever and the payments did not total my budget for repayment for the month.

Just prepared three items to on ebay for 10 days from Thursday!! Preparing the uploads takes time - just hope they sell for something!

I need someone to be my Guru and tell me exactly what to do - need to figure out my own way of snowballing!

Blah blah blah. I feel depressed.com

Tixy

What I did for the snowball calculator (and what may help) is to work out a statement of affairs using the makesenseofcards site. Put everything in the costs that you spend aside from debt repayments, so include entertainment, luxuries everything. Then it will give you a total amount available for debt repayments each month.

This result can then be converted straight into the snowcalc on the same site.
It worked for me but you need to make sure the 'amount left for debt repayments' is what you intend to pay over to your debts before you start the snowcalc.

Good luck with ebaying.

PinkButterfly_2

HairyHandofDartmoor - Thanks you for your advice. Rest assured that I am not trying to buy anyone's affections with presents! I am quite secure in that respect! Just as a 'new couple', for the first couple of years, we would buy presents for everyone for birthdays (and there were a few big birthdays) and festivals and we also experienced a baby boom in the family and also weddings - which obviously adds up - I just didn't realise by how much! It is more of a cultural tradition to buy the everyone a little something, which includes extended family that we would see on a regular basis. Trust me the family is big! Even if you spend £5 on each present, if you are buying for a lot of people, it adds up! But obviously was spending more than £5! Also buying lastminute.com also adds up as it is more expensive in the shops- so when I know in advance, online is always cheaper!

I have already reduced the list of who I buy presents for so that will help inevitably. The traditions are over!

Also like you say, I have to put myself first now and have to be really tight for my own sake!

Tixy - many thanks for your advice. I think once I do a spending diary, it will help me to get an accurate reading from the snowball calculator.

gingerwinger - Trust me, even I couldn't close my mouth when I saw that figure.

Bestthingsinlifearefree- Thanks for your encouragement! I really need to get this spending diary going and stick to it!! This blog will help me.

THANK YOU ALL FOR YOUR ENCOURAGEMENT SO FAR!

PinkButterfly_2

Note to self: 4 items up on e-bay, starting auction at 99p !! I hope they sell- a couple of tunics and a brand new skirt from Next on sale. Need to take more pictures tonight. Think I may do a weekly upload....

Bring on payday next week so I can calculate everything properly...

Headache.com

PinkButterfly_2

An update - and feeling very uneasy! Have used up my last bit of annual leave to go through my things for ebay - which I have not done for a LONG while...Advice needed: Should I take a consolidating loan over 4 years (if I get accepted) and cut off all my credit cards for good! Will be at a rate of 7.7%...and can pay off extra when I can - monthly repayments work out to be 577.59 paying £3796 as interest over 4 years....My idea is that if I clear my OD with the loan and cut off my credit cards and pay them off, at least then I am four year (or less, depending on repayments!) away from paying off my debt.

1. Loan
Remaining balance: £11,419.84
APR 6.4%. Ends in August 2013
Monthly Payment: £294.28
Note: Can overpay with no fee which will reduce interest rate and term
01/09/2010 - Balance is £9,614.43

2. Credit Card
Remaining Balance: £9,061.88
Lifelong balance: 8.9% I think!
Monthly Payment:£50
Interest incurred last month was £60.66!
REALITY CHECK: Did not think the interest would be so high on this one. Had planned to pay minimum on this until I have cleared the other cards. Think the interest rate is higher on this.
01/09/2010 – Haven’t checked the balance but anticipate this being higher rather than lower as I have no increased my payments

3.Credit Card.
Remaining balance: 2,882.63
Lifelong balance rate of 5.9% (need to double check, either 5.9 or 5.6!)
Monthly Payment:£65
Min payment: £57.65
Interest: £14.02
Need to reassess?
01/09/2010 - Balance is £2448.28


4. Credit Card:
Balance recently transferred: £2,200
3.9% for 6 months with fee (around £50)
Monthly Payment:Will pay £60 – £70
Minimum Payment for balance of £1600 qwas around £40 with interest of around £6.
The plan was to pay MP and put money aside in savings and then pay the balance within the 6 month period, if not earlier. Will be making an additional payment of £200 + this month


5. Overdraft:
(a) usually £1700 at of every month (!!)
(b) Student Account still has £1200.
(a) was charged around £30 for interest last month!

POOP


[6. Monsoon Card - £526.68 – Forgot to add this on at my last assessment but am paying this off at the end of the month so not including in balance below]]
[7. Mint Card: £2146.85 – this was also cleared at the end of my last assessment and was kept for spending and paying at end of the month – will also slash this off by £1,000 by next payday - not included below as I hope to clear it in the next two months]


TOTAL DEBT: £28,263.51
TOTAL DEBT: £23,798.12

MONTHLY PAYMENTS: £479.28