My Journey to becoming debt free

mrs-t-w

I'm new and have decided to start a diary on here to help keep myself motivated.

I have built up debts of £21070.50:eek: and have recently joined a DMP to try and get them cleared. Some of these debts are joint with my OH but mainly mine.

Getting CC was the worst mistake of my life and I wish I had never had them - as they started most of this debt. If I hadn't of had them we would of had one small loan which would have been paid off by now

When we got married nearly 5 years ago I paid for some of it on a credit card then applied for a few more cards over the year or two to take advantage of the 0 % interest and then fell pregnant and needed a new boiler which all went on credit cards and a small loan of £1500 we were managing payments fine untill the interest started then thing got a little tight and with needing a new car (secondhand) we decided to get a bigger loan to consolidate all the CC, previous loan and a car. I should have cut up the cards at this point but keep one "incase of an emergency" and another still wasn't completly cover by the loan as the car cost more than expected. I put afew bits on the card again (car tax etc) and then all of a sudden they've built back up again.

I am really ashamed of my self for letting debt built up this far but untill my OH hours were cut and I'm now on maternaty leave and our income has been dramatically cut and I was forced to sit down and look at it, as I couldn't meet all the monthly payments that I realised how much debt I/we were in and after trying everything have had to join a DMP.

I'm naturally a bit of a worrier and broke down when I realised how much my debt had grown but i'm trying to start 2011 with a positive mind and by having a DMP not only am I starting to clear my debts but am also changing my spending habbits so that I will NEVER get in this mess again!!!!

Today I have started the make £10 a day challenge - initially to get some spending money for a camping holiday in May (Paid for with money given to us for christmas and very much needed for the wellbeing of the whole family after a tough 2010 with no break) If i am successful then I will continue this to help with clear the debts.

Here's to a happy 2011 and the very first steps of my long journey to becoming debt free :T

BEAT_THE_DEBT

Well done for facing uo to your debt that is the hardest part. Baby steps and determination i think is the way.x

startagain_2

Welcome to the board and a little support network that I am sure you will find invaluable in the times ahead. Your story is a very familiar one and I wonder just how many people (including me) have built up even more debt with the same cards after getting a consolidation loan? But there you go, it is so easy to do.
Good luck, I shall be following your progress.....
SA

mrs-t-w

Thank you startagain and beat the debt for your support.


Just had a slight blow and found out my OH isn't getting paid this week:mad: and our mortgage goes out today leave us with no money at all for the week:(.
So this week is really going to be a test to have 7 NSD (although I do need nappies for my baby, hopefully my mum will get these and i can pay her back)

January is our first month with the DMP fullly up and running and a new back account - before we always had our overdraft to fall back on or a CC (which is partly why I'm on a DMP now) so when OH gets paid next week I will have to start and put alittle bit by every week incase this happens again or something else (e.g. the car) as at the moment we have nothing to fall back on.

Although in away this bleep is slightly posative because before I would have got worked up and upset that Oh hadn't been paid and so we have nothing in our account but to cheer myself up i would have gone and bought something on the CC if not for me then for the girls. I know there is no sense or logic in that at all and at the time I didn't really see what i was doing. Where as now yes it's annoying and atleast there was enough to cover the mortgage but i'm concentrating on others thing to do or ways of using up the food we've already got rather that buying more. And i'm going to ask my mum to get the nappies so that I don't go and add on a few extra items.

Just hope I stay this possative for the rest of the week - Keep focusing on my Making £10 a day challenge too.

2011 may be a difficult year but it's going to be positive one:)

startagain_2

Unfortunately, when you are down and struggling, it seems that the carp just keeps coming along one thing after the other. I know when I have set my budget for the next couple of weeks and think that there may be a little spare for a treat, something will happen (or not) to put the kibosh on it. Take last week... the IR issued an incorrect tax code to my employer and I was short paid by £25 as a result... my food budget!
It has taken me a good while to get things balanced with regards to a monthly budget - I was made BR two years ago and it is a hard climb uphill afterwards, but without CCs and Loans, so much safer.
I am sure you will get there - as is said so often on these forums. it is owning up to it that is the breakthrough. It means that you are actually going to do something about it and not let things snowball any more.
Good luck and I hope you get through the week without any more problems.
SA

mrs-t-w

Ok so this last week has been tough emotionally more than anything. My girls have been poorly with coughs and colds so I’ve been stuck in with them which has helped to be honest with OH not being paid last week I haven't been any where to be tempted to spend.

But have felt really guilty making excuses as to why we couldn't go to a family party on the weekend – There was just no-way we could afford to go as it was fancy dress and we would have had to buy a present for some one we don’t normally bother with, plus the drinks at the venue were really expensive.


And I know this may sound really ridiculous and petty but most of my family including my OH (free upgrade) have got new mobiles this last week or two and I’ve really struggled with the not getting one. I was always the first to get a new phone and before I had children would change my phone every six months at least. I managed to go 17months with my last phone and this phone I’ve had for 15 months but it’s on a 24month contract and there is nothing I can do to get out of it or change my phone. I spent two evening frantically searching online for a way I could change my phone – I did find one way which involved using different bits of cash back to pay off my old contract and starting again on a new contract to get a free phone. But stopped myself from just signing up there and then and went to sleep on it. The next day I just told myself this is ridiculous wasting money for nothing, some of the cash back I would receive anyway and need it for our break away and when my contract is up there will be a newer better phone around any way.

I know it silly getting jealous over new phones but this has made me aware of how I really need to change my spending habits. I am very proud of myself though for not just getting the new phone once I had found a way, as I would of before.


I also feel really guilty about making the money I have in the last couple of weeks from cash back and selling old DVD’s and games and keeping it for holiday spending money and not using it towards our debts. But if we don’t have a break away I think this family might start to fall to pieces, we’re only going camping in Somerset in May and we haven’t had a break for 2 years now. I had a really rough pregnancy last year and couldn’t go very far at all, I had to go in a wheelchair just to go shopping. It was tough on my Oh have to do most of the tidying and cleaning at home and my little girl who was only 2 would look after me rather than the other way round.
OH has says he hates having time off work and staying at home doing ‘jobs’ he said he might as well be at work. He gets really short lately and often my little girl gets the brunt of it – Some days I just sit and cry. I think if we don’t have a break with the route just being the same we really would be going our separate ways by the end of next year. Since just booking the break my OH and DD are getting along much better.



Anyway got to keep going and try and stay positive and keep reminding myself that all this saying NO will be better for us in the long run – Once were debt free and can say Yes to things with out feeling guilty or building up more debt.

mrs-t-w

Why why why does everything need replacing all at once:( - Our washing machine broke down over Christmas and now our TV has stopped showing any picture and we need new saucepans.

I think it’s because we got married and moved in 5yrs this year and everything was bought around the same time that it’s all giving up the ghost together or maybe it’s because now I’m on a DMP and have no credit I can’t just go out and replace things when I would have before, that I’m really noticing things. Which ever it is it seem everyday we could do with something else.


I was in a real panic when my washing machine packed in over Christmas with a two month old and a 3year old I have tones of washing all the time. I was extremely pleased the machine had lasted as long as it did to be honest it was second-hand when we got it 5 years ago but didn’t know how I was going to manage without one. Luckily my Grandad come to the rescue and took me to buy a washing machine, I am sooooo grateful to him. I went with him thinking he was going to lend me the money but he said there was no need to pay him back he’d rather see us happy now than put the money by for when he’s gone and can’t see our faces. (A little depressing to think of but I can see where he’s coming from).

My TV has stopped showing a picture although it flashes up blue when switched on. My daughter was distraught this morning when she couldn’t watch it. Luckily it’s only our bedroom one and we will have to adjust to just having one TV for the time being. At least there shouldn’t be too many arguments of which channel to watch as my OH tends to watch what I’m watching if I’m down stairs.

As for everything else it’s a case of deciding what we really NEED and not want and trying to buy or replace that.


It’s only the beginning of my second month after starting a DMP and I can’t believe how little I thought of money. Don’t get me wrong I would always think about paying it back and where it would fit best (CC, Catalogue or OD). But as long I had the credit to buy something I thought nothing of buying it. Where as now I’m thinking of where every penny is going. It’s going to be a LONG road but at least I’m going in the right direction.
:):)

mummychicken

How awful for things to break at the same time, have you tried your local FREECYCLE ? You may just get lucky. Good luck in chipping away at those debts.

beanielou

Keep plodding!

mrs-t-w

Thank you for the support.

I love this forum - when I’m feeling really down and don't know where to turn or how to carry on, I come on here and either write about what’s bothering me or read through and comment on some other threads and I come off feeling like a weight has been lifted.

Everyone is sooooooooo supportive and no judgemental, it’s really comforting to know that others are going through the same thing or have been through it and come out the other side.

Thank you Thank you