Debt Free By 30-ish Diary

bobbie78

Thanks for the words of encouragement Seaxwyn and chevalier I was starting to think I was just talking to myself so stopped posting for a bit, then was really chuffed when I just peaked at my thread and you'd replied straight away. I guess it is just a lot busier on here than it was before xmas and I'm expecting a lot from other people when we are all in the same boat really, just trying to keep going.

OK update, had a few days of spending on things I really shouldn't but I don't really care, because I'm really thinking about everything I'm buying now. OK I went to tesco today rather than make sarnies, and I bought a calender for 10 quid yesterday (it is beautiful though and I'm going to frame the pictures out of it eventually). The point is though when I went to tesco today I spent 3 quid on enough food for lunch, dinner and dinner tomorrow rather than just spender 10 quid on a sarnie, drink and cakes which I would have done only a few weeks ago.

They say it takes 31 days of consciously doing something to make it a habit and so that it becomes unconscious and second nature. I've been doing this "new me" since the 20th of December as I wanted to pre-empt the new year pressures so that I wasn't doing this for new years I was doing it for me and no one else. In that time I have quit smoking currently Two weeks, 7 hours, 8 minutes and 52 seconds as a non-smoker and 214 cigarettes not smoked, saving £48.25. I have moved all my credit cards around and cancelled the old ones, started for the first time in my life to think about what I am spending and live below my means. It hasn't all been easy mind, starting this new job has been really really hard, forcing myself to go in accountable to only myself I haven't been as often in the past 2 weeks as I should have. I am aiming to go in every day this week though or else.

I have spent years blaming everyone else for my debts, ex's, student debt, bad jobs not treating me right but to be honest I should have done this years ago and would be so much better off. I think we all have to come to a point in our lives either chosen through introspection, I have had a really really bad 2006 and made me realise I need to live for me not everyone else as I don't want to waste any more time on unworthy people as this life isn't a rehearsal, or forced by the CC people ringing every day and the debts being something in-escapable.

There have been a few times over the years where I had a light bulb moment for a week then went back to credit cards and not thinking, but this is the first time in my life where everything is clicking. I'm waiting for the next big crisis to appear and say - no you're not upset enough lets do this to her. This is getting quite mushy but I have been reading CAFCGirl's Thread and can relate on so many levels. I wanted to post this on my diary to remind myself how I'm feeling now so when the next big crisis comes along I'll remember there was 1 day of 2007 at least when I was contented. It is my 29th birthday in a couple of weeks and people keep asking me what I want, and to be honest there is really nothing I want, no object or thing (although I'm sure I'll go shopping tomorrow and want a million things) no new job, no new relationship, I'm good thanks but I'm sure I'll think of something soon that I really need and can't live without :rolleyes:

OK back to money, so today did my time sheets and expenses for new job, chased job agency to confirm on-call money, signed up for some mystery shopping and listed some dvds on amazon to go towards 2007 Olympic challenge.

Things I still need to do - attack my room, it is a terrible mess, make a time table of how I'm going to spend my time each week to schedule in time to do paperwork in the evenings, training for work, flylady tiding just to get into a routine of some fashion so I know what I should be doing each day rather than thinking I'll do the washing tomorrow, tomorrow, tomorrow until I have no clothes left. Kind of a budget for my time I guess, to go with the soon to be finalised budget for my money. Complete the re-sent aqa test after I failed the last one so if there are any vacancies soon hopefully they will keep me on file. Research setting up a LTD and get quotes for the right insurances etc so I can be ready for April. Update sig with correct amounts for shopping etc.

jumping_j11

I agree with the others, definitely pay off the loan and stop the savings: not only will you be rid of a big chunk of debt but you will also lose 2 outgoings - the loan payments and the savings plan payments.
You are doing really well, keep it up!
Its interesting, how many people, once they start to deal with debt, also start to deal with other things as well, as you are doing.

bobbie78

Been a weird week. Got the settlement forms for the savings thing so have to post them back to get the cash. Did some mystery shopping and after tomorrows lot will have £33 after expenses to go towards the gold challenge. Also listed some old ex rental dvd's I bought from blockbuster for 1 to 3 quid each on amazon and sold 7 dvd's in 24 hours!!! 3 of which were series and after postage and fees left me with £32.37 so for the first week of the challenge I have £65.37 in the pot. I have signed up for a few more mystery shopping jobs in the next few weeks, I just don't have anyone I can really drag out to do the pub food jobs which is annoying but I probably don't realistically have time to do them either.

I am also expecting 50 quid through quidco at some point as I signed up for an alliance and Leicester account, the confirmation email had my name spelt correctly but the paperwork that came through today had my surname spelt completely wrong, I nearly didn't open it as I thought it wasn't for me but it seemed strange when I got 3 letters to the same name and one had an A&L logo so I risked opening it. I rang them up (after having to find the right number as it wasn't on any of the paperwork they sent me) and they say they will re-issue everything with the correct name. I hope this means it will still end up tracking in quidco ok as that is the only reason I signed up for it.

I haven't been having much luck at work, I started this new job just before xmas and was sent a copy of the contract then, but it didn't include on-call pay. I stupidly started working there as the agency swore they would get me a new contract, then xmas came and went, but after nearly a month of chasing the agency they now want me to get my manager to chase it for them, even though they told me I'm not allowed to discuss money or contracts with the client, as that is what the agency is for and I don't think they want me to know just how much they are making off of me working there. So now I'm coming up to my first week of on-call with no agreed amount in writing and will have to go into work next week and try and get my contract sorted. I'm just worried they will change their minds as there doesn't seem to be a lot of work and say well no contract, no job, and just kick me off site. It is going to take some bravery and haggling but as this is my first contracting job there is always a learning curve so I'll know better next time (or just not try and go all this over a big holiday so it can go on this long).

So as until I get work sorted I'm holding off paying off the loans and waiting for my icici account to come through so I can stash the money from the redundancy in there. Then once I know this job is going to last 5 more months then I'll pay it off otherwise that will be my buffer until I get a new contract.

I'm going to try and get my aqa re-assessment done this weekend also to try and have another source of income, and try a few dry runs at matched betting before I actually commit to spending money on it. I also need to find the phone number for the tax credit people, as I've been paying back an over payment in instalments which I had noted Decembers payment as the last one and they have just taken another one, so I need to ring them and grumble and try and get that money back if they have taken too much.

I haven't been reciting the do I need it or want it mantra enough so have only had 1 NSD this week and blew mozzies weekly budget out of the water. However, I have not used the new credit card at all and have got a lot better than I was with the spending and sorting out paper work. It is going to be a long battle I think but I'm getting there slowly. Just need to sort work out a bit really then hopefully I can plan the next few months a bit better.

hypno06

Are you still successfully not smoking? Why not put the money you are saving in a jar as a visual reminder as to just how much you are achieving?

You seem to be heading in the right direction - keep up the good work, and stay away from Starbucks!!!!

bobbie78

yes the smoking is still going well :- Two weeks, three days, 5 hours, 36 minutes and 10 seconds. 258 cigarettes not smoked, saving £58.16.

Starbucks I'm just not going to mention in case I incriminate myself

bobbie78

Well no matter what the motivation, I have to say there are some people who really make it sound easy once they have their lightbulb moment. Reading some peoples debt diaries I think has given me a false sense of how this can be accomplished, and a less realistic understanding of just how much debt I am in. Just an underdeveloped sense of just how much hard work and sacrifice can be involved.

I have achieved a lot since I have started really, even though starbucks continues to be a problem and I have still spent too much at tesco. Well I'm not really sure if I have, I stopped doing my spending diary as it was making me too upset (I think that is the right word) as it was making me realise just what rubbish I had bought getting myself into this debt in the first place and just going through a big "if only I'd not done..." if only I'd quit smoking earlier, if only I'd not kept going to starbucks, if only if only.

I have taken the grocery challenge out of my sig as I wasn't updating it, I don't think I would have been over this month but as I'd stopped counting there is no point having it there taunting me.

I'm going away this weekend to visit some friends for my birthday and to have a curry and a few drinks, next weekend I have people visiting me but that shouldn't be as bad. Then it is pretty much feb so I will be able to re-assess how far I have come.

Until I get my contract resolved with work I'm just scared to pay anything off really as I don't know how long it would take me to get another job. This is something I will have to get used to pretty quickly if I'm going to keep doing contracting but it just seems like there are too many balls in the air at once.

I'm doing mystery shopping, selling on amazon and quidco and if and when everything clears will have made a couple of hundred from that which I wouldn't have had so I shouldn't feel so bad really but I do.

I guess it is just hard to break this pattern of spending without considering the consequences after doing it for so long. So when I do feel disheartened the first thing I'm doing is going out and getting food to cheer myself up. I'm getting to be the size of a house though so I hope I feel happier soon, that is just another addiction I guess like the smoking that I need to work on.

There are very simple things in life that I want, my own space, an unlimited supply of books, and a good chair to sit and read them in. That would be my little refuge from the world, it is a simple dream and yet living in a shared house with people who "don't read" they don't understand my need for solitude and think I'm weird for locking myself away in my room all the time.

So this leads on to my next problem, or potential to get myself into a lot more debt. I have a plan where by I buy a house which is 200 miles away from where I'm currently living/working. The location is due to the fact that as it is "up north" I could get a 3 bed house for less money than a 1 bed studio (bedsit) flat where I live. Also because I have a friend from uni living there who would help with the rent and help maintain it for me. She and her baby daughter would live there and I could have one of the rooms as my hide away, technically she'd be renting a room from me and it would be my main residence and I could find a way to claim back my current rent as a business expense due to the fact that my current contract is away from my home. I could just make sure my next job is closer to the new house so I could possibly live there too. Now this could be a horrible idea, just because it might change the relationship we have which would kill me, but I think as long as we have a contract and keep all the house stuff separate and official it will work out ok.

So apart from the fact I'm still having problems with the actual job contract, and getting a mortgage without a "proper" permanent job is a pain. How much would I need for solicitors etc, I have never bought a house before, and would this end up pushing me into more debt or not? I do really want to do this but I'm not sure if it is achievable realistically or not, or if I'm taking too much on at once when I can't even do a spending diary properly. If it meant selling the car and pretty much everything I owned I'd do it to get the house, but I need to realistically understand how much buying a house (and the white goods) costs. Also this wouldn't be a new build it would be a house as old as I am I guess, so will need to know what things to look for to stop it falling down.

This has ended up being a huge post, but mostly I'm just talking to myself I think to try and get some of what is bothering me out on to paper. I'm going to try and do my soa today to see what is achievable.

Seaxwyn

HI Bobbie

Gosh that's a big question and let's hope you get some good opinions from the wise bods on here. I am neither wise nor knowledgeable but I would say be really careful about making sure you can afford a mortgage as well as rent.

Having a mortgage is ten thousand times more stressful than paying rent, and you also have to have life insurance and contents insurance and worry about fridges breaking down, roof leaking et etc. If you are already finding it hard to meet loan payments, think how it would be if you had a mortgage as well....

What if your friend decided to move out and you became a landlord renting the place to strangers. Would that be so appealing?

I don't want to be negative, but my mortgage feels like a millstone round my neck and I wouldn't wish this onto someone else.

Seaxwyn

bobbie78

income 2,800 per month approx (depending if contract is renewed in 5 months)

outgoings
rent (inc water, elec, gas, council tax, tv) - 430
car insurance - 66 (expensive as have no no claims discount should go down next renewal)
car tax - 10
petrol - 60
food - 120
internet - 17.99 (locked in contract will change once runs out)
cinema pass - 10.99 (only entertainment)
hsa - 17.99 (dentist etc)
mobile - 40 (on contract for 9 more months)
car maint 20 (should be less than this but just in case)
clothes - 10
hair cuts - 10
xmas - 15
birthdays - 12

sub total 839.97

fixed monthly repayments
grad loan 179.00
car loan 258
student loans 135
virgin 200 (i'm guessing this is the min payment as I haven't had a statement yet)

total outgoings 1611.97
money remaining 1188.03

debts
Virgin card 0% till jan 08 - £8608.80
Graduate Loan 7.9% - £2137.89
Car Loan 9% - £11329.38
Student loan 1999 - 3% - £1353.30
Student Loans 00-02 - 3% £5519.10

I have only just started this job and haven't been paid yet (still sorting out time sheets etc) so it is an approx income after tax. Since 2005 I have gone from a 17k salary to what I'm on now by being made redundant twice, so it is possible I could pay things off as long as the contract is renewed in 5 months and they don't sack me at all.

Let me know if there is anything big I've missed off as I feel like I'm missing things. I guess it is because I don't have the 80 quid to axa I was paying and the 50 quid to the tax credit refund. Also I will have the money soon to pay off the car loan potentially as already discussed which will help things.

gallygirl

At least you're coming up with ideas... now you need to see if they work.......;)
At present you'd struggle to get a mortgage (at least one with a half decent rate). You'll need to show stability with work, e.g. back to back contracts etc. If you go on the mortgage forum there are some mortgage advisors who could help you more.
See this is a long term project......
Start doing some research. Re offsetting rental against tax - are you sure about this? Phone IR and ask - are you sure this would be acceptable if you moved from where your work is to claim somewhere else as your main residence?
What is the house price band you are looking at? What is the stamp duty rate for that? What are typical arrangement fees for mortgages? Do an on-line search for conveyancing costs. Phone around for removal costs. What about carpets etc.
Look round your flat, make a note of everything you'd need to buy. How much is it? What is typical council tax where you're looking? What would water, gas & lecy be compared to now. Buildings & content cover - do an online search for a price. What would mortgage be? What if rates rise by another 1.5% :eek: ?
Maintenance - I'd set aside at least £50 a month, more if older house.
How much rent would your friend pay? What if she can't afford it? If she is on HB & it takes 6 months to come through can you pay mortgage on your own? What if she meets soul mate & wants to move out?
Draw yourself up a budget takinga ll teh above into consideration - is it (really) doable???
etc etc...... I'd recommend you do all this research by yourself - you can always check results on here later. this will a) make you informed and b) stop you eating!!!!!

Well done on non-smoking!!!!!!

oakdale_minx

bobbie78 wrote:

yes the smoking is still going well :- Two weeks, three days, 5 hours, 36 minutes and 10 seconds. 258 cigarettes not smoked, saving £58.16.

Starbucks I'm just not going to mention in case I incriminate myself

Fantastic achievement on the smoking.

Don't beat yourself up about Starbucks. Take one thing at a time. I've also seen other diaries and thought - you've paid how much??? How fast???!!!

However, it is about you gaining control and it isn't a race to the DF finish line. Just little changes add up and you will get there. The smoking thing is a big step forward. As is the mystery shopping. And the selling on Amazon. More steps taken!!!

I'm already the size of a house, I'm afraid. I've spent so many years 'if only I hadn't eaten.....' but at the end of the day, you've taken the decision to stop, and you should be proud of that , without looking backwards with 'what ifs'. Can I have some of your willpower to stop me eating the biscuits??