Hawaii before 50

RumPunch_2

Hello!

I’ve called myself RumPunch because that is the first drink I had on my last holiday. I am a holiday addict. I have also corrupted my husband and now he is a holiday addict too. But we don’t budget for them and now we have built up debt of £8,835.09. Here is our sorry tale.

Last October we went on an impulse holiday. We paid on our credit card. We already had a loan of £676.12 each month (wedding and new home) but we did have some savings. We usually paid our credit card off in full but this month we couldn’t.

Then we had Christmas. Again, the credit card bill was more than we could afford to pay off in full.

It could have been perfect timing, maybe there is a Santander spy in our house because Santander were throwing a 0% credit card at us. We transferred the balance from our Tesco card to Santander.

I should have read the warning signs then.... but I didn't.

Fortunately, we started saving £300 per month to pay the Santander card when the 0% rate expired in December.

So, that should have been ok, but then we had some unexpected, necessary expense in June. My father in law was having a form of chemo treatment, then he collapsed with pneumonia and was in hospital. We had lots of travelling and extra spending. Suddenly we had a very high tesco credit card bill again that we couldn’t pay. So, yes you've guessed it, we used the santander saving fund to pay the tesco card and started using the bmi card as purchases were 0% until September.

Then.... (this is where we should have been more aware) we decided to go on holiday again! We needed a holiday and it was my special birthday treat. We paid on the bmi credit card happily thinking we'd just pay it off in September no problem. We made the last payment to our £676.12 loan in August. We just thought the extra money would cover the holiday. Wrong! What a pity we just ‘thought’ and didn’t budget or check!

We got back from our holiday to the rain and cold, reality set in and I had my LBM.

The really sad thing is, I have been here before. I don't know why I didn't learn my lesson the first time. I’m not sure of the exact figures the first time, although I did have lots of spreadsheets that I would spend hours just looking at and adjusting. This forum wasn’t here then so there wasn’t all the excellent advice and support that there is now. I didn’t reduce the debt as quickly as some amazing people here are doing but I did take some drastic action. I rented out my flat and lived with my parents again for a while, I got a lodger, I did babysitting, I did extra evening and weekend work in a gym. And, finally, after many years I became debt free.

Which is why now, I’m determined that we are going to clear our debt. We are lucky and do have some savings and we both have a good enough income so if we focus and stick at it we can do it before Christmas without paying any interest. We need to budget for Christmas and then pay back the money we borrow from our savings. We want to be saving properly by February 2011 so next time there is an emergency, we are covered. We’re going to piggybank and set up accounts for the house, cars, holidays, Christmas etc. And we want to go to Hawaii before we are 50. That’s my mission. I’ve already paid my dues the first time round and they’re not getting a penny more interest out of me.

Progress
Last week I started taking action, old loose change banked, old currency exchanged and banked, new bank account with £100 bonus, switched electric and received cashback, changed gas tariff and matched cashback, downgraded sky package and 6mth half price deal, changed bt options and customer loyalty credit etc.
It's been a busy and productive weekend, shopping and cooking done so lots of frozen meals in the freezer, more old foreign currency collected and exchanged, 4 month budget done. It feels like more, but I can’t remember now which is why I really need a diary.

I know this debt is insignificant compared to some of the debt out there, and I know we are lucky that we have got some savings to throw at it to help, but any support along the way gratefully received.


LBM Aug 2010
£1,374.85 tesco credit card - ?%
£4,787.35 bmi credit card - 0% until Sep 10
£2, 672.89 santander credit card - 0% until Dec 10
£8835.09 total

clippy_girl

hello, greetings from another holiday addict :wave:

i absolutely love going holiday and that is also where most of my debt has come from! my problem is that i am in debt and still go on holiday. i can afford to go without adding to my debt generally but it means that the debt is never going to be repaid!

therefore i have decided to focus on repaying the debt before i go on anymore big holidays. although i have a holiday to south america booked for november which i booked before my LBM. unfortuately i will have to force myself to go lol i wil enjoy this as the last one for a while!

how long do you have to reach your goal of hawaii before 50?

RumPunch_2

:wave: morning clippy_girl. There'll be lots more of us. I know some people like their coffee, others clothes, make up etc, it's always been holidays for me. Just like you, I keep booking them! Now, I want to book them and not put them on credit.

We keep using our credit card because we collect the airmiles - they come in useful for the holidays! But now we treating it like a debit card, every time we spend on the credit card we transfer the money out of the current account so its vanished (like an old oak table).

I've got a few years before hawaii before 50 but I don't want to discuss my recent milestone birthday (I'm sure you'll work it out). Like my debt, my public age is not getting any higher from now on (nor is my weight!)

I really want to go to South America too, its on my list. I know it will be a struggle forcing yourself to go, but you can do it! Have you got a diary, I'll be checking your balance from now on!

Woowoo

Hi RumPunch, I found you!

I am also a fellow Holiday Addict!

My motivation is that I will be able to afford a holiday every couple of months once I'm free!

clippy_girl

hi, yes i have a diary, not very interesting though!

RoseRed

Holidays are wonderful! I'm dying for one right now. I've got a secondary goal to get a scooter after paying off my debt. I'm printing out a picture of the one I want and putting it on my study wall and in my purse, something to look at when I tempted to spend on tat or treat myself to something more I don't need.

You can exchange clubcard points for airmiles too. I don't think that they are the most amazing value but if you are not going to use the deals for anything else they can top up your airmiles account.

Happytogetdebtfree

Hi Rum Punch im an avid follower of woo woo diary and saw you had a diary so im joing tooooo xx happy busting of debt and happy hawai aim x

dacouch

Hawaii 5-0

RumPunch_2

Morning all, thanks for all the supportive comments.

Woowoo, I'd love a holiday every couple of months! That's a great incentive. We did think we might have a city break in October before we realised how much we already owed, so now the goal will have to be skiing in Feb.

I'll find your diary clippy_girl, I think they are all fascinating. However, even if others don't contribute it really is good to record everything for your own sake. Difficult to argue with what's written down in black and white. I'll look for yours too happytogetdebtfree. Think I'm getting addicted. Might be difficult to post as much when I'm back at work! I'm a teacher and I'm back on Monday

RoseRed, a scooter is an excellent idea. Years agao I used to have a City Express, I loved it! When I went to university my Dad thought it would be to hilly so I got a motorbike. Sadly, I never did my test. I'm cross now because that's another holiday we want to do, the Alp or Pyrenees section of the Tour de France on touring bikes!

We already use clubcard for airmiles, our airmiles have paid for return flghts Manchester to Gatwick, return flights Heathrow to Vienna and hotels in Vienna and Gatwick! Which is why I can't stop using the tesco visa card for shopping, despite the debt! I hope treating the card like a debit card and transferring the money spent out of the account straight away will do the trick. BA Miles are meant to be good too!

Happytogetdebtfree

Hey rumpunch well done and thanks yes mine called erm a fresh tax year or something, eugh at teaching 6 weeks off that will be a shock to the sytem going back to work my rels back friday but fresh starts monday lol ah the joys but i hope its been a nice 6 weeks off xx

Woowoo

Hi RumPunch

What age do you teach? My Godson starts school on Thursday he has only just turned 4 and still seems so little!

I have driven round the 13 bends in Alpe d'huez, France - there were so many cyclists struggling to get up there and collapsing at the top. It was tiring enough watching them from the comfort of my car!

Where will you ski in Feb, or will it be a last minute thing?

I keep checking the weather reports already, I need to get a grip it's still only August, I think I'm excited!