LBM....now time to get to work!

Flossy87

Hi all,

I've been a lurker on these boards for a while now, wouldn't quite say that I've had a lightbulb moment....more of a gradual flickering!

I've been in debt for the best part of 4 years now brought on from thinking I could have it all and then a little bit more!

I'm determined to get the majority (if not all) of my debt shifted by this time next year so I've spent this evening totting up my debt and planning my budget! Boy does it feel good to at least have everything straight in my head and a plan on paper :j.

As it stands my debts are:

Mint card - £1400 (£1500 limit)
Barclaycard - £533 (£600 limit)
HSBC Credit Card - £347 (£500 limit)
Overdraft - £1290 (£1500 limit from student days)
Loan - £4524 (was £8000)
Store cards - £240

Total debt: £8334 :eek:

I have been making the minimum payments on everything with no missed payments so although my credit rating isn't completely terrible, the fact that I have so much credit (and am so close to my limits) is bringing it down.

I am hoping to buy a house with my OH in the next 3 years so really need to get my bum into gear to pay all of the above off and get saving!

This is a bit of a cathartic post really and to publicly put in writing my plan of action!

1. Keep a spending diary - I'm a nightmare for withdrawing £10 here and there so I really want to keep track on unecessary purchases1

2. Stick to my budget! I have been through my bank statements and worked out exactly what I have left over each month and have made a realistic budget to stick to. This includes stop bringing my bank card to work and bring packed lunches amongst other things!

3. Begin paying more than the minimum payments on cards! (I have included additional payments in the budget, but ideally would like to pay even more!)

4. Ebay - I started last week and have made £20 from a few bits and bobs that were destined for the charity shop....and there's plenty more to sort through!

....and that's about it for now!

Sorry this was such a long post, once I got started I couldn't seem to stop!

If anyone has any tips that have helped them along the way I'm open to more suggestions!

I think I'll try and post a couple of times a week as a way of tracking my own progress and keeping me motivated!!

If you read this far......well done:T:T:T

Bye for now

dresdendave

Well done for deciding to tackle your debts. Not enough details given to give much specific advice. General approach would be to make at least minimum payments on all debts and use any surplus to pay towards the debt with highest APR.

Give yourself a money makeover, such as: are you on the best deal for all your utility bills etc, are you paying for TV channels you don't watch, best broadband and mobile phone deals etc.

The more you can reduce outgoings the more spare cash for tackling your debts.

Good luck, all the effort will be worth it when you achieve your goal.

Note how I said "when" instead of "if". I have every confidence in you.

Flossy87

Thanks!!

I am on a prepayment meter for gas and electric (boo!) and can't get this changed as it is something that the landlord insists on.
Luckily I live with my dad and we don't tend to feel the cold since this time last year I think we've averaged less than £25 p/m on gas (obviously spent more last winter and almost nothing from May-October) and £35 p/m electric.

My phone contract is up next month so I'm looking round for a cheap sim deal as I'm more than happy with my phone.

The one vice we do have at my house is Sky tv - however this is included in the rent that I pay to my dad and I've negotiated a reduction with him in turn for doing all the cooking

I have approx £400 left at the end of the month (supposedly) where does it go? Hence the reason for the spending diary! This is after paying all of my bills so this is going to be focused on clearing debts - tomorrows plan is to categorise one according to the interest and focus on the most expensive!

My dad and I are going to do a joint grocery shop once a week, luckily we live close to a Tesco, Sainsbury's, Lidl and Aldi (which my dad loves) so we can shop around for the best deals for us. We are also getting all our dinners planned out for the week ahead which will stop me just popping into the supermarket on the way home from work and leaving £15 poorer!

I'm trying to maximise my NSD and will be bulk cooking for convenience as much as money saving.

Let's hope I can stay this motivated over the coming weeks!

MFWannabe

You need to do a proper soa so you can see exactly where all your money is going; especially the £400 per month you say you should have left over.
Include absolutely everything in your soa; do not miss anything off. I'm sure you will be quite shocked by the results.
If you post your soa on here then we can give you some good advice where you can make some cutbacks
Use the soa on www.makesenseofcards.com