Just joined- working my debt snowball :)

DebtIsDumbCashIsKing

Hi, I'm Ian from Newcastle and here to introduce myself! I've been subscribed to Martins newsletters for quite a while now but thought I'd join up to the forum since I'm on my way to becoming debt free (house aside).

Back in December I had £18,158.23 in debt which consisted of 6 credit/store cards, 1 loan and an overdraft. Basically being stupid with my money. My circumstances changed job wise over the past few years and income dropped quite a bit and I resorted to relying on debt as a means to get by.

I'm now in a decent paid job working my nuts off (many hours!) and 100% focussed on clearing my debt. I guess I got sick to death of being skint and being 33 now I felt it was time to sort things out.

What really kickstarted things was listening to The Dave Ramsey show over in the USA (dont want this to sound like a SPAM post but it's influenced me so much). Most of you probably wont have heard of him but he's huge over in the states and runs a syndicated radio show along with financial classes etc... all based on getting out of debt and building wealth.
I listen to the radio shows most days on my iPhone (there's an App you can download) and it keeps me motivated to reach my goal.

I started this January and my debt is now down to £13,648.22. I've paid off 4 of the credit cards, the personal loan and will tomorrow finally clear (and cancel!) my overdraft of £2000- had this since as long as I can remember! I'm left with 3 credit cards.

Hoping to be clear in approx 12 months and I just cannot wait- it'll be quite an achievement for me personally to be debt free (house aside) for the first time in many, many years!

Good luck to everyone else in the same position

bertone0377

Well Done! You have already achieved so much, keep at it!

asparagus1968

wow,impressive! remember to we'd like to hear any little "tips" you may have,or the story of how you've paid off so much so soon,kep up the work!

Queenie2012

Well done, you are off to a great start

DVardysShadow

DebtIsDumbCashIsKing wrote: »

.... (dont want this to sound like a SPAM post but it's influenced me so much). .... (there's an App you can download)

Sounds like spam.

DebtIsDumbCashIsKing

Thanks for the replies peeps! I can understand some people thinking this may be SPAM but it's simply that I've been so motivated/inspired by the show that I'm keen to tell people. Told my mam and I think she thinks I'm mad ha. Still- being in debt is "normal" and debt free "weird"; so aiming eventually to be classed as weird!

Some tips that may help people:

1) I create a budget (on excel spreadsheet) and "spend every pound" each month before I get paid. Try to stick to it rigidly with various categories such as: food, clothing, entertainment, toiletries etc... Each category has a maximum percentage salary ratio (recommended by Dave)- for example clothing is 2-7%. If I get a big wage I'll go up to 7% (normally less) but any other spare pound is then allocated to debt repayment (on snowball basis).

2) I also use an "envelope" system for every day expenses such as: food etc.. This means putting the associated money (according to budget) into an envelope (I use small brown "dinner money" type envelopes!) and only using this money for it's said purpose. Once the money is gone then that's it. No cheating. I'm still getting used to this and it's not easy but it works without doubt- all part of being disciplined.

3) Pay using cash for as much as possible- you "feel" when using cash. Debit card etc.. just isn't the same. It doesn't feel like real money.

4) Some good quotes "act your wage not your age", "tough times don't last but tough people do", "Too many people spend money they haven't earned, to buy things they don't want, to impress people they don't like", "We don't need to increase our goods nearly as much as we need to scale down our wants. Not wanting something is as good as possessing it".

And one of my favourites (Dave special): "Live like no-one else, so later you can live like no-one else!"

Key thing though is you can only do all of this when you've had the "I've had it moment"- when your simply sick to death of being skint, swamped with debt etc.. and want to change your life.

DebtIsDumbCashIsKing

Just remembered- first step before starting debt snowball is building a baby emergency fund (supposed to be $1000 but I converted mine to £650). So I've got this in a savings account and idea is if any emergencies happen (fridge breaking down for example) then there's money there to use rather than using a credit card etc.. (I've cancelled all cards anyway).

There's various "baby steps" but I wont baffle people with them yet!

Bublin1

Hi OP, would just like to say that I have recently started to follow Dave Ramsey too and I like being 'weird' now too. Not quite living on beans and rice but I have recently discovered cous cous and veg - ha ha ha.

I saved £1000 for Baby Step 1. The way I see it is a thousand is a thousand, the exchange rate doesn't matter. He based it on the fact that most 'normal' emergencies shouldn't cost more than $/£1000 to pay for.

DebtIsDumbCashIsKing

Bublin1 wrote: »

Hi OP, would just like to say that I have recently started to follow Dave Ramsey too and I like being 'weird' now too. Not quite living on beans and rice but I have recently discovered cous cous and veg - ha ha ha.

I saved £1000 for Baby Step 1. The way I see it is a thousand is a thousand, the exchange rate doesn't matter. He based it on the fact that most 'normal' emergencies shouldn't cost more than $/£1000 to pay for.

Hi Bublin1, didn't see your reply until now since I haven't been on here for quite a while. Good to hear you're on Dave's plan also! How you getting on? I've just (almost) paid off my Creation credit card (what a crap company they are- glad to get them out of my life) which leaves my down to my final Credit card (Virgin)- balance of £6600. So in total so I'm far I've paid off around 6 credit/store cards, loan and overdraft (tore up all cards and closed accounts obviously as well). Debt down to £6600 from £18150 approx back in Dec 11. Feels good, this final card will take a big push though with the balance being so large.
Just gonna have to knuckle down and hope I can have a good run at work (I'm in car sales- which does give me some moral dilemmas when it comes to Dave's ethos etc...- I just make sure I treat people fairly being honest & transparent at all times). The way some people talk about customers make me sick sometimes though.

iclaudius_2

DebtIsDumbCashIsKing wrote: »

Hi Bublin1, didn't see your reply until now since I haven't been on here for quite a while. Good to hear you're on Dave's plan also! How you getting on? I've just (almost) paid off my Creation credit card (what a crap company they are- glad to get them out of my life) which leaves my down to my final Credit card (Virgin)- balance of £6600. So in total so I'm far I've paid off around 6 credit/store cards, loan and overdraft (tore up all cards and closed accounts obviously as well). Debt down to £6600 from £18150 approx back in Dec 11. Feels good, this final card will take a big push though with the balance being so large.
Just gonna have to knuckle down and hope I can have a good run at work (I'm in car sales- which does give me some moral dilemmas when it comes to Dave's ethos etc...- I just make sure I treat people fairly being honest & transparent at all times). The way some people talk about customers make me sick sometimes though.

Hey you're killing it! Amazing progress. You'll see we're also Dave converts. His method differs from much of the advice on this site and I have to say the focus on behaviour over maths really seems to be the more effective way.

Best of luck!

yourstruly

Very encouraging, just starting out with Dave Ramsey TMM, can't wait to dump the debt and get back to basic common sense. Would encourage anyone to give it a go, it shouldn't be the norm for us all to be in debt.