Debt is for losers.

edited 12 September 2010 at 9:06AM in Debt free diaries
4 replies 624 views
RoseRedRoseRed Forumite
118 Posts
edited 12 September 2010 at 9:06AM in Debt free diaries
I started a diary only a couple of weeks ago, however a lot has happened since then, including my light bulb moment, and I felt my diary was very chaotic. It was a useful exercise but I have decide to start afresh and try and get myself more organised. Part of my problem in the past is not having a structured, realistic plan to tackle my life. Apologies this first post is so long.

I started getting into debt when I was 19, I was having fun and as far as I was concerned I was only out of money when my credit line was completely exhausted. As you can imagine it took quite a while for this to happen. I made the usual mistakes, racking up charges, not noticing how much interest I was paying and consolidating many times only to run up the cards again. I also tried to buy happiness and self-esteem. My credit finally ran out about 5 years ago and I was approx. £27K in debt. Whilst I knew I had a problem and needed to deal with my debt I never had a real light bulb moment. Lots of flickers but no real action. My debt has come steadily down, but this is more due to making minimum payments and not being able to access more due to my credit rating being shot.

4 ½ years ago I met my wonderful fiance who I now live with. He is amazing and so supportive of me. He has very little debt, student loans and a credit card, although the main debt on the card is repairs to my car and covering for a disastrous period when several appliances went one after the other and we both needed expensive dental work.

I have now left work full time and am working part time, I went to college and am now about to start Uni. My lovely OH persuaded me to go for it as I had come to a cross roads in my career and become very down about my what to do next. I suffer from OCD and also have hypomanic and depressive episodes. He knew it is something I wanted to do and thought it would be great for my mental health. He has been right as I have improved dramatically.

I finally had a full blown light bulb moment on Saturday. It really hit me that even with my student loans and grants when we have bought what we need for out new place and made paid bills there will be nothing left. I could plod along and end up free of commercial debt in a few years but having replaced it with student debt. Alternatively we could hammer the debt and get it paid off meaning I only need tuition fee loans (at worst) for the remainder of my course whilst being able to enjoy a real life.

Our total debt as a couple (excluding student loans) is £11927, student loans are at worst £2K, I’m waiting for an up to date figure but I’d rather err on the side of caution. So I’m saying our current debt £13927, hopefully the accurate figure from the SL company will cut a chunk off that!

My biggest debt, which was my last consolidation loan (yes I ran up again) has 12 months left to run. I want to get all the remaining debt paid off my then.

The plan:

Whilst I’m aiming for a year I am going to look forward a month at a time, small goals to keep me motivated. This is not just about debt, I want to look better, feel better and get our home in order.

The 1st September seems like a good day to start, the beginning of the new academic year. I’m going to work out my goals and plans for the month today and post first thing tomorrow. I’m going to think of how wonderful it will be a year from now to be debt free and feeling great.
Debt at Highest: £27,000 :eek:
Debt at LBM: £13,927 :o
Debt now: £1656.61 :cool:


  • RoseRedRoseRed Forumite
    118 Posts
    Right, what do I want to achieve over the next month? I want to get everything under control so I know where I am. I want to feel a lot better and have more energy and enthusiasm for life.

    Get a realistic budget set up.
    Organise our bank accounts so everything is separate.
    Set up on clicks/surveys/dooyoo/quidco etc. Want to start getting an income stream set up for £10 a day challenge.
    Finish off ebaying/gumtreeing bits. Fingers crossed this will get me through this months £10 challenge alone.
    Have 15 NSDs.
    Complete the £10 a day challenge.
    Spending diary.
    Complete 10 craft bits ready for selling.
    Get organised with packing/design etc. for Etsy/Folksy shops.
    Do minimum of 30hours per week work.
    Tax return done and NI exemption requested.
    Investigate money making ideas to really ramp up my income.

    Start flylady plan.
    Get house completely cleaned, decluttered and repainted. Not as big a task as it sounds as we had a huge declutter prior to moving and have done some painting. Want to get the place ready to finish and furnish and get all remnants of the skanky old tenants and their pet hairs gone.
    Tidy the garden/outside area.
    Make a list of what we need/want so I can start scrounging for freebies, looking at carboots etc.

    Menu plan and eat a healthy diet.
    Take some exercise daily and do yoga/tai chi at least 3 times per week, even a gentle 10minute session rather than doing nothing.
    Shift 1/2 stone and tone up (see above).
    Build up a beauty routine flylady style so I'm nice and groomed.
    No booze for the month.
    Quit smoking and be at least 2 weeks smoke free by the end of the month.

    Spend at least 4 hours per week on my writing course.
    Relax with my craft work and finish off 10 projects (of which about 9 are already in progress).
    Learn to finish one task before I start the next!
    Spend time on the Living Life to the Full course at least twice a week.
    Private journal daily.

    It does look like an awful lot but I think this is doable, lots of things cross over to other areas and i'm trying to lay good foundations rather than set myself a target of earn x. I want to build up flylady style and work on what I am doing.

    I'm polishing off the last of the vino now ready for a booze free month, should do wonders for my waistline and energy levels, might tear my hair out though!
    Debt at Highest: £27,000 :eek:
    Debt at LBM: £13,927 :o
    Debt now: £1656.61 :cool:
  • Hiya! Found your diary. I'll subscribe if that's OK...

    Good luck with your plans for the month, just looking at your list has made me a bit tired! :T
  • RoseRedRoseRed Forumite
    118 Posts
    It does look like a lot but a lot of it overlaps. While my list today looks very long most of the tasks take very little time or are things we do anyway, but they will help me move forward with my goals and start to get everything under control.

    Plan for today:

    Drink more water! I've been feeling a bit listless and I think I'm dehydrated. I don't like the taste of the tap water here so I've filled up my filter jug and I need to get a few pints inside me.
    Eat my healthy lunch and breakfast I made ahead yesterday.
    After dropping hubby off do a quick house tidy with the timer.
    Wash up and put away.
    Shine my sink.
    Crack on with work for 4 hours and during lulls:
    Set up 2nd email addresses for me and OH for surveys clicks etc.
    Start registering for surveys/clicks - get at least 5 done.
    Update my ebay listings and list 5 more bits from the stuff I found yesterday.
    Sort through OH work shirts and bin any that are gone, put any that need mending into sewing pile.
    Make chicken Paprika for tea - must get chicken pieces out of freezer now!
    Menu plan for the next few days and pop to Aldi for what I need when I go to get OH.
    Short yoga/tai chi session to chill out this afternoon.
    Finish the bracelet and picture frame I'm making for my mum while watching a film with OH.
    Relax in the bath with a face mask and body scrub.

    If I get going I should have most done by lunchtime, after lunch I can finish off chat work while surfing the net. All my other tasks are more enjoyable and relaxing. This will be a great start to my month so I'm going to get cracking NOW!

    Debt at Highest: £27,000 :eek:
    Debt at LBM: £13,927 :o
    Debt now: £1656.61 :cool:
  • Hello RoseRed,

    Your plans for September look good,I have also set goals for the month,small steps at at time.

    Good luck.


    Pay off £4865.16 in 2011 = £686.21=£4865.16.
    MasterCard= £275.27/£26.27.Debt to family=£1000/£220.00.
    Christmas 2011 £65.00/£1000. £2.00 savings £.68.00.
    NSD's January 16/18.
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