Trying to sort things out

makinganeffort

Hello,

I introduced myself on the forum yesterday as I want to start to ort things out. I have spent a very depressed night thinking about the debts I've got and why I got there in the first place.

We recently moved into our now "forever" home. It needs a good deal of work - great location, good potential but small house with terrible layout. BUT this meant we could afford it. The lesson I need to learn is to WAIT and SAVE before doing anything to it.

Three issues I can see facing me:

1. How can I pay these back quickly and still leave myself enough money to live on (in the past I tried lumping off hundreds a month and then feel into overdraft when unexpected things hit),
2. How can I get my head in a place where I don't just go and spend because I fancy things
3. How can I learn to be HAPPY with what I've got now and not keep wishing for the day when the next things come.

I think that issue 1 will be manageable with support. Issues 2 and 3 are probably what got me here in the first place and are likely to take more time to fix (not sure how!).

I made a start last night on the pay things off after receiving some comments on my posted SOA. I have moved my utilities - I hadn't realised that when we moved and kept our old supplier they reverted us to the standard tarriff NOT the one we were on in the previous address. Quite cheeky I think!

I feel this will be a long hard mountain to climb up. Please help me.

Piquant_2

Hello and welcome!

You've started well, there are so many lovely people here who will support and help you. They've always kept me on track.

Well done, I'm looking forward to reading your diary.

Piq

jwil

Good luck!

If you've been spending to make yourself feel better, do you have a nice stash of 'things' which you can sell now to reduce your debt quicker?

2 and 3 are harder but can be done. Make sure you give yourself a little spending money if you've got some in the pot. I do surveys etc to earn amazon vouchers which I then use as my guilt free spending money and I can buy what I want with them.

Debt busting can be addictive Look for the rush of seeing the numbers go down rather than the rush and then guilt of a new 'thing'.

mamato3

Just wanted to stop by and wish you good luck on your journey from one newbie to another! It's hard to get started but there are some fantastic boards here for advice and support and the diary is a great place to get things of your chest! A spending diary has really helped me see where all our money has been going if not a little scary when you tot it all up at the end of the month!

I would subscribe if I could work out how too:) So I will just have to try and pop over to see how your getting on - keep posting it really does help to keep you motivated:)

makinganeffort

Several weeks in now and slowly feeling more in control. I do find it so depressing though that all my spare cash is being spent on paying back the mess I made - rather than doing anything nice. But I keep telling myself that in the long run this will be better.

I opened a virgin 0% for 20 months card. I plan to refinance my car loan with this - allowing me to clear the full debt 22 months earlier than with the loan and save £1500 (even with the money transfer fee).

I was also gratefully in receipt of a bonus from work, with which I cleared one card and part of another.

I have however kept back £500 for our holiday with the kids... Is this sensible or should I have paid the whole lot off the debts and tried to save this money seperately?


Current SOA

In (£3479)
Salary £2625
Input from partner to cover joint expenses paid from my account £720
Child benefit £134.8


Out (£3324.47)
Mortgage £1202.85
Council tax £144
Food £350
Fuel (&car) £125
Contact lenses £15
Mobile Phone £42
Sports (kids swimming * 2 + kids clubs + yoga class) £94
Standard Life £50
NSPCC £5
TV license £12.12
Account fee £17
Gas £60
Electric £60
Water £40
Monthly "allowance" £130 (£30 per week)
Unforseen purchases £150 (kids clothes, school clubs/trips)
School meals £32.5
MBNA £600
Virgin £100
"House" fund £100

Owe
MBNA £3500 - [STRIKE]£4620 [/STRIKE](0% to Sept.)
Lloyds £0 [STRIKE]£850 [/STRIKE](0% to Sept)
Virgin CC ([STRIKE]Car loan[/STRIKE]) £8975 0% 22 months [STRIKE]£12500 over 5 years, 8.9%, 46 months[/STRIKE]