How do you deal with the fear?

anna_d_2

Oh I suppose I just need some reassurance.

Cleared my credit cards today, and my Next account.
The biggest CC was barclaycard who I phoned to close the account. They, of course, tried to entice me offering to drop my interest rate by 6%. I stood firm, closed the account, cleared the balance and am awaiting my letter of confirmation.
My overdraft is greatly reduced. (I had misjudged interest payments on the CCs and because I had borrowed just under what I needed, not thinking things through) a reduction of the overdraft came to the bottom of the list - as the lowest cost each month. I do intend to have this cleared entirely by the end of the month when I receive a one off payment for something.

Part of feels like YAY, I'm on my way. Another part feels really scared - can I do al life without credit cards? I'm already panicking about my low (ish) bank balance and how we will get through to next week knowing I can't stick £30 of petrol on CC or whatever. I know this is where budgeting hits - so I have to give it my very best.

How do you deal with the fear?

GreenSaints

Hi,

I am slightly worried too, but you can only do your best to make sure you don't fall into that mindset.

Looking at your signature, you're already preparing yourself by making a savings pot, which is great

My way of coping is with chocolate!

Don't panic, you'll be fine

angel_islington

For me, it's forcing myself to remember that putting it on a CC means I still have to pay for it at some point. It's get very dangerous when you forget that trust me.

Have you got an easy way of checking your balance? Smartphone App or whatever?

anna_d_2

I check my bank balance very day - I can log in through my phone.
I love that my cards are gone - don't get me wrong, but it's the safety net I worry about. (Even though in recent years it was more of a stranglehold than a safety net).

When my one off payment comes in later this month I'm buying us a new bed (we need one and I won't pay credit!), clearing the overdraft and putting the rest in the pot. (I know we have a few expenses coming up in the next few months, car tax etc... ).

I think you both right - it's not falling into a trap of ever thinking it was my money to begin with and appreciating that I'm moving the right way.

Issuma

Hi anna d
This was the part I found REALLY scary knowing I had nothing to fall back on but it makes you think very differently about your money and shows you the difference between what you need and what you want, when you have a limited amount to spend you only buy what you need and learn to do without all the things you 'want' but don't really need.

We've done 2 years now with no form of credit what so ever it's very liberating and a great feeling to know everything we've bought during that time has been paid for cash and unbelievable for the first time ever we've got some savings as well - this is our emergency fund which we try to add to every month even if it's only a small amount.

Good luck on your journey !!!

princess*daisy

Hi :wave:

I had my LBM over Christmas and subsequently cut my CCs up in January. It was terrifying at first, as I had conditioned myself over the years into thinking that I NEEDED them. I didn't, of course. I'd just become used to spending beyond my means.

The first thing I did was to prioritise the things I did need to spend on for the month. This included making sure there was enough food in the cupboards, travel costs etc. Then I put £20 aside for minor spend "emergencies", e.g. forgotten birthday cards, unplanned necessary bus trips etc. I figured that anything else I didn't have I could do without, as long as bills were paid and I could eat for the month! Then, make a budget for each month and STICK TO IT.

It is scary at first, but it definitely gets easier. Even after just 3 months, I'm astounded as to why I ever felt the need to use credit cards in the first place! Of course, there will always be the possibility of major cash emergencies that you cannot plan for on a tight budget. I would suggest putting some money to one side for a bigger emergency fund if you can, but if not then just concentrate on the here and now. Don't spend hours worrying about things that might not happen - just concentrate on improving your current situation, keep reminding yourself that you are doing well and remember that the small things you do count just as much as the big things.

Good luck

rising_from_the_ashes

Budgeting is absolutely crutial ...... I've been in / out of debt for over 15 years - tried consolidation / selling the house etc and ended up falling back down again and again as I spent whatever I had each month and didn't put anything aside to pay annual things or budget at all!

I set up some budgeting pots at the end of last year and I transfer the set amounts on payday - for me, I treat them as any other bill payment and once the money's gone from my account, that's it, it's gone! (could also be done with one account if you keep track of how much belongs to each budget)

It's hard atm as trying to get enough put away to cover things that fall in the first 1/2 of this year, but it should hopefully get easier as time goes on & I can reduce the amounts to "normal" levels.

Good luck

pennypusher

You could try getting a credit card and putting it in water and freezing it so that you only use it in emergencies. However if you save some money for any emergencies that come up you probably won't need to use it.

anna_d_2

Thank you all.
I think someone here mentioned an envelope plan. I think when the money comes in I'll divide into envelopes - groceries etc, Activities (Football for my son, Slimming World for me) and not think "oh the money is there, just spend it".
DH and I have a had a big chat about the emergency fund and strict budgeting. The last few weeks have shown me we can eat well on 2/3 of the cost I used to spend and I've cut out lunches at work etc - bringing food in instead. I'm enjoying cooking more from fresh (working out cheaper because I batch cook) and baking which is quality time with my daughter.

I just have a bit overriding "if it goes wrong" what will I do feeling? I know this will ease as the months go on and the feeling of knowing no bills are coming in (bar that only monthly loan repayment) will be amazing. I had started to feel my heart sink when the CC bill arrived.

rising_from_the_ashes

There was a thread on envelopes recently https://forums.moneysavingexpert.com/discussion/3798553

You still need a fair bit of willpower (which I sadly lack!) as I found it too easy just "borrowing" money from them as the money was easily accessible ......

[Deleted User]

I'm scared too and totally understand what you mean. I'm just heading into the first month of paying for everything off my wages and I can manage this month with about 50p left.

I'm petrified at the thought of only having 50p left and hope my calculations are correct. God only knows how next month will go, I've a funny feeling I'll slowly drift into an overdraft situation.

At least you have a DH who you can chat to, all mine does is mention the money I have saved up for a court case and how we can use that. He's itching to use it and can't see the bigger picture. It's really !!!!ing me off because it's my money saved for a particular reason and will secure my/our future, if we have one with all this financial stress.

Good luck with your journey and keep strong.