Time to change a habit of a lifetime. twirly's road to debt freedom

twirly09

Hi all, I say lifetime, im only 20! So im counting since Ive had my job in 2007.

Im at University, i did a foundation course last year and am starting my first year of my degree next month.

I was stupid and maxed out my overdraft (£1000) last year, plus a student credit card (£350). I also previous to that ran up (through pure naivety) a £300 debt with halifax in bank charges but that stands at -92.53 now. I also have a credit card from the second i turned 18 (when i was earning about £600 a month and could afford it) with a balance of £200 on it and currently only paying the minimum on that!

I earn £210 a month (which doesnt sound much but i work just saturdays) so when i have a little bit of overtime its usually about £300. + my student loan, i dont know why last year i felt skint! So its time to make a change, pay off the credit cards and the debt with halifax ( that one by xmas) Well thats the plan. after that, make sure i finish the first year of my degree without going for a overdraft increase and i wish to finish it no more than £250-

I have an arrangement with halifax for £30 a month but with pay £40 for the next 2 then clear it in the 3rd. Then i will close the bank account.

The only other outgoings apart from above i have it £20 a month train fares, £25 a month phone bill (due for upgrade in January so will shop around) and £30 hair cut. (this one seems a lot but i wont change as ive found a hair dresser i wish to have forever lol)

:A

Ive just signed up to ebay and plan to spend tomorrow searching my room for things to sell

Thanks for reading, sorry if ive rambled on. Any advice on how to get started shifting these debts would be great

twirly09

So today, after just 4 hours sleep is the first day to paying everything off and changing my compulsive spending habits! Looking around my room the amount of crap I have, magazines... I mean I read it all online why do i go buy a magazine as well. My mum buys a magazine each week I steal! so dont need to buy one myself, that will probably save me about £5 a week!!

I started a sealed pot today and put £5.22 in it

Oh and I snowballed my credit cards and was given a DFD of May 2012 ... which isnt long I know. But if i carry on the way I am spending too much and only paying minimum I'll be leaving uni in 2014 with a mountain more debt. Changes will happen!

Although ive been given May 2012, this doesn't include my 1000 interest free student overdraft. So I am giving myself a target.

April 9th 2012 I wish to be debt free, and Also have reduced my overdraft by 500. I know it's doable as long as I make the change now and not in 3 months time!

9th april is special day to me, so will be nice to start a fresh debt free (other than the overdraft) life by then.

twirly09

Well, here i am talking to myself. Sorry if i look like im rambling!

Im going to put together a budget spreadsheet for uni but just trying to put together a list of everything I may need to include. Any ideas just so i dont miss things.

ani*fan

Hi there twirly09 :wave:

I'm so impressed you're dealing with your debts now. If I'd had a fraction of your maturity at that age, I would not be in the mess I'm in now! Well done!

I'd recommend you start with a budget, called a Statement of Affairs on here. Work out everything you have to pay out, and all the money you have coming in. If it changes from month to month, work from the minimum amount you will get. Everything else is a bonus.

If you stick the figures up here then all the good DFW peeps will be along to help you cut your costs and figure it all out.

Congratulations on making the decision to deal with it now. :T

See you around

AFx

twirly09

Thank you for your reply

I will work out a statement of affairs now Is there a template anywhere?


T
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david_hellier

twirly09 wrote: »

Well, here i am talking to myself. Sorry if i look like im rambling!

Im going to put together a budget spreadsheet for uni but just trying to put together a list of everything I may need to include. Any ideas just so i dont miss things.

Good luck at uni. There are some spreadsheets you can download free at www.d-an-g.co.uk

twirly09

david_hellier wrote: »

Good luck at uni. There are some spreadsheets you can download free at www.d-an-g.co.uk

Thank you

Decluttering

Hello Twirly, I came for a quick peek at your diary after seeing you post on the Sealed Pot thread. I'm 20 too but I've not got any debt as yet (give me 10 years, I'll be snowballing too!) but I just thought I'd drop a message to confirm you're not talking to yourself.

I like the debt free date of 9th April, 9 is my lucky number, I hope it brings you some luck too

twirly09

Decluttering wrote: »

Hello Twirly, I came for a quick peek at your diary after seeing you post on the Sealed Pot thread. I'm 20 too but I've not got any debt as yet (give me 10 years, I'll be snowballing too!) but I just thought I'd drop a message to confirm you're not talking to yourself.

I like the debt free date of 9th April, 9 is my lucky number, I hope it brings you some luck too

Ha ha, thank you. I quite regularly talk to my self. I get the response i want that way.. like "shall i buy that top" "yeh why not, you've only got a wardrobe full of things you dont wear... " sigh! My clothes collection doubled last year at uni as i was living 30 seconds from primark and had an extra wardrobe to fill. .... :eek:

That needs sorting though next week as I have to pack to move back to uni.

I swear my insomnia is back (ive suffered since 2007 and as you can see i started this diary at silly o clock this morning.) ive had 4 hours since since monday morning and in 5 minutes its wednesday CRAZY!

Tomorrow is a hectic day, mums birthday on thursday and I left just enough money in my purse to get the last presents for her giftbag ive made up. Its got all sort in it, hand creams, keyring saying "to a special mum", cd, chocolate from the dog (lol) and tomorrow im getting chocolate from me, a bottle of wine and paracetamol, the paracetamol isnt to go with the wine lol its a little joke we have). My mum has arthritus and fibromyalgia and many other things! So the wine is to numb her pain on her birthday and the painkillers are for the hangover the next day lol. Sounds like ive gone mad a bit, but some of these things dad is (he doesnt know it yet) paying me back for! As i sorted out little brother with a present for mum too. Just too organised!

When he pays me back, ill pay it off student credit card, I want to get that under 300 asap!

Anyway, its now wednesday, Mums birthday tomorrow now! and little brother also collects his gcse results :L what a day :S!

enough of my rambles!

T
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twirly09

Another late night and early morning. paid £2 off my student credit card. Not much, but its a start. Going shopping later, then any change will go in my seal pot

T
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twirly09

Update, went into town got the last of mum's presents. had 14p change in my purse when i was done and that went in the sealed pot taking me to £5.43 i do believe.

Then went into work to discuss holidays and I got asked to do 4 extra hours on bank holiday Monday That extra money will go towards the debts. I'll get that at the end of September just after ive started back at uni so defiantly will be handy to have the extra to pay off the debt.

Feeling a bit down though, I just realised its only 3 weeks till i go back to Uni and although I cant wait there is one person at home I miss more than anyone else ( secretly have feelings for this person and cant reveal them) and I hate the idea of maybe seeing them once or twice a month, I'll be lucky if i even get that this year with my new timetable Mustn't dwell, I keep trying to remind myself that going to Uni is me making a life for myself.... staying around pining over this person will only lead me to go spend more (on chocolate probably!!) and put on a million stone and be really unhappy.

Anyways, since ive started this i've managed to pay £17 off my debts and stick £5.43 in my sealed pot. Not bad for 2 days!

T
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