Joining the DFWs...time to sort this out!

georgeporge_2

Hello all!

I feel like I need to get everything off my chest, put it all out in the open and give myself a good kicking up the bum! Here's the low down:

Current debts:
Overdraft -£2,320.07
Tesco CC (0% interest) -£2,992.42
MBNA CC (lots of interest) -£3,760.81
Tesco Bank Loan -£18,996.32
Total = -£28,069.62

Dum dum duuuuuuum.

I can manage minimum payments (just), although lately I find myself relying more and more on PayDay lenders like Wonga. I know this is a bad cycle to get in, and has really made me sit up and realise I need to take control. My credit rating is low, due to a lot of recent searches (trying desperately to find somewhere to transfer my MBNA credit card debt to with 0% (paying £90 a month off and £65 in interest), and a couple of defaulted payments (due to poor planning rather than anything else.

One plus side of the low credit rating is that I can no longer get easy credit, so that temptation has been removed. I'm almost relieved by this, although I know it's costing me around £800 a year extra in credit card interest, and I lost out on a low rate loan because of it.

My main downfall is my lack of self-control, coupled with an amazing ability to justify to myself why I should buy things I want. Because I'm worth it
There is room for saving - Tesco is my enemy, it's impossible to go in there at the moment and just pick up the things I want. This is something I need to overcome. I'm a food snob too, again, something I need to overcome.

So really, I know where there is room for improvement and I know I'm stuck where I am for now. It's a dauntingly large sum of money and the timescale for paying it off is years and years (unless a large lottery win comes my way - which is unlikely as I don't play it). The idea of being debt free and even having savings makes me cry sometimes at its unobtainability (I don't think that's a word), but I just need to focus - eyes on the prize.

Whew, I feel a lot better for baring my soul to you all and I hope you'll welcome me on board the wagon. I'm off to budget, budget, budget!

George

nickih6221

I was in s similar situation after i lost my job but i'm on a debt management plan with the CCCS and it's the best thing i've ever done. ok so my credit rating is totally wrecked and i have been unable to remortgage as i have adverse credit but i will be debt free in 3 years and i feelso much better knowing my debt is actually coming down and not just staying the same due to high interest charges.

anna_d_2

Quite simply, you will have to stop being a food snob. You can eat well for less (as one supermarket would say).
You also need to meal plan to avoid nipping into Tesco and coming out with unnecessary purchases. Limit yourself to a once a week online shop if you still must use Tesco. Try Aldi or Lidl or Morrisons.

You don't have to beat yourself up but the "because I'm worth it" attitude has to stop too. You are worth having no money worries -take control of your life. No one can do that for you.

Can you post a SOA here? (Are you making your payments comfortably or are you struggling/ living on credit?)
People will be able to get a better idea of what the best route for you is when they see where your money goes.

Yes, Wonga is a bad idea - but you've acknowledged that now. Time to move on!

Tixy

Hi and welcome and well done for taking control.

Can you manage your finances and minimum payments without taking out any more payday loans?

If you can great. If not then you really need to look very closely at your finances and what you can change.

You say you struggle with self-control - do you think it would help to set up a monthly budget and then compare what you are actually spending to that - so you know at what point you need to start saying no to yourself.

Have you thought about doing your weekly/fortnightly shop online and having it delivered rather than actually going in store (its much easier not to be tempted by offers and things you don't need online).
Or if you currently grocery shop weekly could you try changing to shopping fortnightly or even every 10days to reduce the chance for overspending/being tempted by things?

georgeporge_2

Thanks for the replies/words of wisdom!

I can afford the repayments and more if I take control of my bad habits. I appreciate I'm in a much better situation than a lot of people, and I know all of the blame for getting in this situation lies with myself. I know also though that I can't undo what I've done (as much as I'd like to)!!

A food plan is something that has helped me recently, as 'nipping up to the shop for a sandwich' invariably ended badly. I'm preparing a week's lunches in advance, and freezing batches of stuff for dinner. I've also handed my debit card over to my trusty boyfriend for safe keeping, and he gives me an allowance per week which I try to stick to.

I have a spreadsheet which tracks my spending too (at least in my current account), and has a predicted balance. Should I not spend anything but necessary funds then my overdraft could be clear by August and I could concentrate on the nasty cards. This isn't realistic, but seeing the figures slowly changing from red to black is encouraging!

I'm 30 in August, I have a lot of friends turning 30 this year too, and my best friend is getting married in September, which is going to be quite costly. I appreciate that I need to budget these things in!!

I'm feeling motivated, just need to stick with it. It's like a diet, isn't it? More about making long-term, sustainable changes in your habits....

camuk81

George, keep looking at that spreadsheet, leave the cards at home so you aren't tempted.

My first month I sat down and looked at it and panicked. I keep it who I've bought from and why!

I keep mine to around 8 categories so I know what area's I'm spending inane now I moan when I have to cashpoint withdrawal fees by rip off cash points.

kerri_dfw

Hi Georgeporge, congratulations on making the first step to financial freedom It's a tough road, and there are no shortcuts, but we'll all make it to the finish line eventually.
I'd echo what others have said, meal plans are a great idea they allow you to plan what you're going to buy so you won't be tempted to purchase anything unnecessary. I'm also a food snob, I think the quality of what you put into your body is important, afterall that's what you run on. I've managed to cut my grocery bill by ordering a veg box each week, I split the cost with my housemate or order fortnightly if doing it by myself. This way I get fresh organic veg, I wouldn't get the same amount/quality for the same price in the SMs.
Another thing I've found really useful to cut down on my habits is to track days when I don't spend any money. In doing this I've found I save myself until a day I know I definitely have to spend money, by the time it gets to it I normally don't want the thing I craved so desperately originally.
Have you seen the "snowball" website? If you goggle it you'll find it, it's great for seeing how much you can save yourself by paying debt off in the best order.
Also have you spoken to one of the advise places? CCCS perhaps? They can give you advice on making a SoA and keeping track of your spending.

Oh and don't be too hard on yourself if/when you fall down, I've fallen down many times so far but just dust myself off, have a biscuit and carry on again You don't have to prove yourself to anyone but yourself.

I'm going to subscribe and look forward to reading your journey.
Kerri x