Here goes!

Ostrich2011

Hi

I have been in roughly the same amount of debt for the last 5 years and manage, but my light bulb momement was a few yrs after borrowing a signifcant amount of money interest free to pay off a credit card and then ran the credit card up so i was back where I started. If I hadn't done that I could be snowballing my way out by now. The other lightbulb was last week when a friend sent me a budget and I realised that i had never budgeted properly before... yes i did monthly budgets, but never worked out the big yearly things and that's why i fell short. I thought I was quite bright, but clearly I have been a muppet for the last few years.... then again why aren't we tought this. I have been in trouble since my university days! Also there is a relisation that my friends that seem to have an amazing lifestyle may not be able to afford it either!

I have felt sick all week, but now that I have done a YEAR budget and am going to build up a bit of a bufffer I am confident that I can get started on paying off my debts and I am very excited about being finacially free and able to do what I want - not being traped by circumstance!!!

Thanks to all of you who have posted... it's been amazing to see how well people are doing and how they are doing it and I read some of the threads from people who are debt free.... you can not beleive how much I want to get to that formum page (actually I am sure you can!!)

rugbychick81

Good luck! I am also guilty for forgetting the annual bills - MOT etc. Hopefully your annual budget will make life easier!

Ostrich2011

Thanks for reply! Yep we shall see. I have to get into the habbit of doing a buedget every month too i think! Hopefully become a spread sheet queen!

banwa

Hello Ostrich2011 and welcome :hello:(brilliant name btw)

I am sure you are like so many people on here, including me, who had never done a yearly budget. It had never even occurred to me. Just because our monthly incomings were more than our bills, I always thought we were okay to spend the surplus, not realising I hadn't accounted for all the other 'stuff' that you have to pay for. I couldn't understand how the debt never went away, and why we went over the overdraft before payday.

It's a real eureka moment when you realise, and you can start to look at where your money goes. When you know you have a tight budget, you make your money go a lot further.

Now we are paying a lot more off our debt, always have money in the bank at the end of the month and we really have only made minor sacrifices, and I think it is all down to this site and the ace people on it. I've said this before but I am glad we are going through the DFW journey, because I am learning so much that will be valuable to us for the rest of our lives.

I would recommend you get involved with some of the challenges on here. We have similar debts to yours and we are aiming to pay off 11k in 2011. Hope to see you there?

https://forums.moneysavingexpert.com/discussion/2926982

Banwa:)

rising_from_the_ashes

Ostrich2011 wrote: »

Thanks to all of you who have posted... it's been amazing to see how well people are doing and how they are doing it and I read some of the threads from people who are debt free.... you can not beleive how much I want to get to that formum page (actually I am sure you can!!)

Hi and welcome, I too was a muppet in the past and did exactly the same thing (loan to pay off cc then ran up again).

After many years of struggling on my own, I found these boards (wish I had done a lot earlier!). As you say, it's really encouraging to "speak" to people in similar circumstances who understand where're you're coming from and pick up tips on the way.

As Banwa suggests, try some of the challenges, I've signed up for a fair few and they're keeping me on track. Like you and Ruby I'm good at forgetting annual bills - each year I try to put money aside but always raid it when I'm skint. I'm now left with having to fork out for my car service, tax and breakdown cover at the end of Jan :eek: (Feb is going to be a quiet month!).

However, my budgets are now in place, I've set up pots from my main bank account (and have put money aside into them which I'll not be touching!) - have managed to get to the end of the month without any raiding, spending less money than usual and have cleared cc and £50 off OD. A way still to go, but it's a start.

Visit the boards regularly (it is addictive BTW) and it'll help keep you on track. Good luck:)

Ostrich2011

Thanks - hopefully the creativity will spead to some thrifty ways! I am a little competitive so I suspect the challanges are a good way to go.

I think I need to sort out a figure in mind to pay off this year so I have something to work towards! And post it so I feel accountable. That's next on my list!

My biggest problem is that despite paying about £514 on debts a month (I am going to up that figure) only £100 actually goes on debt and rest on interest. That made me feel really disenheartened! I can't get any interest free cards or lower rate loans. I called the CCCS about it, but the message from that was I should be able to manage and need to work on things, which I am working towards. I just wish I was making more of a dent! I am not sure weather to start on little debts so that it looks like I have less to manage and hope my credit card rating improves for bigger ones and I feel like I am having little victories or just throw everything at the big ones. I am going to start with HSBC though as that is highest interest and a smaller amount.

rising_from_the_ashes

You could post a SOA https://forums.moneysavingexpert.com/discussion/107280 with your income/outgoings for people to have a look at and see if there's any obvious areas you could cut down on (I tried this myself but didn't realise the obvious until someone pointed it out to me!

[Deleted User]

Ostrich2011 wrote: »

Thanks - hopefully the creativity will spead to some thrifty ways! I am a little competitive so I suspect the challanges are a good way to go.

I think I need to sort out a figure in mind to pay off this year so I have something to work towards! And post it so I feel accountable. That's next on my list!

My biggest problem is that despite paying about £514 on debts a month (I am going to up that figure) only £100 actually goes on debt and rest on interest. That made me feel really disenheartened! I can't get any interest free cards or lower rate loans. I called the CCCS about it, but the message from that was I should be able to manage and need to work on things, which I am working towards. I just wish I was making more of a dent! I am not sure weather to start on little debts so that it looks like I have less to manage and hope my credit card rating improves for bigger ones and I feel like I am having little victories or just throw everything at the big ones. I am going to start with HSBC though as that is highest interest and a smaller amount.

Are you currently paying only the minimum towards each of your debts? And the £100 is additional to the minimum?

If so, once you have paid the minimum towards each of your debts, use the £100 to snowball. Pay the £100 towards the debt that is costing you the most, the one with the highest APR. And keep doing this until your debts are gone, then use what you were paying towards this debt (minimum+100) towards the next most expensive debt.

If you post a SOA as advised above people here will be able to give you some hints and tips on how to make the best use of your cash.

Good luck.

May2013

Ostrich2011 -I am not sure weather to start on little debts so that it looks like I have less to manage and hope my credit card rating improves for bigger ones and I feel like I am having little victories or just throw everything at the big ones.

Hi Ostrich and welcome

I'm having the same dilemma ....I've decided to pick off a couple of 'quick wins' (for motivational reasons) then snowball the repayments and square up to one of the nasty cc balances with the highest interest rate!!
Since discovering this forum 3 weeks ago I've listened to all the fab advice, revisited my budgets and managed to free up another £50 to throw at the debt each month (I think it might actually be as much as £100 but need to see how the cash flow looks before I commit to it). I'm also keeping spending diaries and every £ that I under spend versus budget will be paid off something (£20 so far this month).
Your competitive edge could be a real advantage if you set yourself challenges....I'm finding almost addictive

Good luck....I look forward to following your progress

banwa - I've said this before but I am glad we are going through the DFW journey, because I am learning so much that will be valuable to us for the rest of our lives.

I couldn't agree more...I had my LBM in 2007 and don't expect to be debt free until 2013....a long journey but an invaluable lesson in life!