Help!

gymbunny_3

Post deleted

rugbychick81

I think the best place to start is by posting your incomings and outgoings (SOA).
You won't regret tackling this... Buying my house was the best thing I ever did!

gymbunny_3

Thank you Rugby chick.
Have started doing it. The trouble is, I am so bad at budgeting. I start the month with good intentions.... and then realise half way through the month I have overspent so need to use my credit card to bail me out.
I wish I was more disciplined.......

Chamone_2

I was in a simlilar position a few years ago when it was much easier to apply for credit cards. Bizarrely this situation arose after I had bought a house- as soon as I got a mortgage I was inundated with offers and it was overwhelming. 7 cards later I was stacking up debt like no-one's business.

At the time I wasn't particularly great with budgeting but once I started monitoring my income vs outgoings, I soon became quite obsessed with it. At one stage I had big charts on the wall showing the amount of debt I owed to each card - watching those numbers/charts shrink was a great feeling.

These days, although I wouldn't say I'm as obsessed, I love the feeling of total control that comes from knowing you have £x to play with this month after paying bills/mortgage/etc.

If you're bad with budgeting and know deep down that you won't stick to one that you set yourself....cut up the cards. Throw away anything that will allow you to spend on your credit card.

When you get paid, pay your other bills and work out a monthly sum that you can afford to pay off your credit card. Set this up as a standing order and then if you have any extra, throw it at the card.

Also I can recommend googling the 'envelope' method of budgeting- it's proven to be very effective and will allow you some flexibility rather than a strict rigid budget.

gymbunny_3

Thanks Chamone. I have only one credit card to use to pay for stuff. The other two have two respective amounts on there. I will definitely look at google to see envelope budgeting.
This is the first month in about six months that I haven't done a balance transfer - my debt over the past month has gone down by £800 but I have a long way to go.
I am going to have to be really strict this month and try not to go out as much.

January20

gymbunny wrote: »

Thank you Rugby chick.
Have started doing it. The trouble is, I am so bad at budgeting. I start the month with good intentions.... and then realise half way through the month I have overspent so need to use my credit card to bail me out.
I wish I was more disciplined.......

I used to be like that. Basically, you need to get in control of your finances rather than let it all happen to you.

I did two things that helped me: I worked out an SOA (never posted it and won't post anything until my cc balance is £0 ) and set up online banking. Then I set up an excel sheet in which I input everything that comes out of my account on the exact date. I check my bank account nearly daily. I also input my salary on the excel sheet on pay day (I get various amounts every month) and work out how much I have left after I have paid all the bills.

Since the beginning of 2011, I have gone one step further and set up another excel sheet in which I input every penny I spend on a day to day basis (I mirror this in my diary as a spending diary) It is an eye opener how much can be spent in a couple of weeks! And I am not frivolous anymore (that's what I like to think anyway lol)

So I would say:
- Set online banking if you haven't done so yet
- Work out a detail soa
- Use a spending diary
- Don't take your credit card with you when you go shopping
- always ask yourself; "do I need it" "will I use" and "can I afford it" before buying something, then walk away and see if you'll want to come back to buy it.

The hardest part is to start this process. Then you get hooked on it.