Don't want to repeat the cycle

Lucky_Idiot

Hi everyone,

I've read this, and other websites, for a little while now and have been encouraged to know that I am not the only one who has stuggled at times. The problem with me is that it always my fault, knowing that I'm over-spending, getting rounds in at the start of the month and borrowing at the end only to start the cycle again. I have a shocking credit rating and don't even qualify for pay-day loans. This should have stopped last year when I came into some inheritance. I bought a flat at auction and had plenty left over for the rennovation and the lease extension, with a view to make a cheeky little profit. This was until I then spent the money for the lease extension. Throw in a freeholder from hell and more irresponsibilty from me and I have never been poorer for the last 6 months than I have in my life, all the while my credit rating is getting hammered as I don't fulfill other commitments. Tomorrow I get the money in the bank (depending on what has happened with the buyer who banks with Natwest. I didn't try any rubbish with breach of contract (we were meant to complete Friday) as he has waited a long time without messing me around) and i don't want to repeat the cycle again because if I do i will lose this oppotunity to be self sufficient and not sure I would be able to forgive myself. Any advice would be great, I'll answer questions if needed.

mildredalien

Hi Lucky Idiot, don't worry you are certainly not alone! Just want to clarify - are you saying that once you complete with your buyer you should be able to pay off all your debts and don't want to get back in the cycle again? Or will you still have some debts to service?

A good idea would be to fill out a statement of affairs (SOA - http://www.makesenseofcards.com/soacalc.html) and post it here with your income and expenditure and any debts you will still have. (The SOA page should have a 'format for MSE' that you can copy and paste in, but make sure to delete the link at the bottom as that can prevent people posting it).

You'll need to be brutally honest about what you currently do spend in each area, so people can then give you some advice about what you could cut down so you don't end up taking out more unnecessary credit!

Do you know what you have been spending your money on that has racked up all the debt? You say you have been irresponsible - what with? Just spending more than you earn, buying frivolous items, gambling, expensive projects that never work out? It's important to work this out so you know what to watch out for and stop yourself spiralling downards again

Lucky_Idiot

To clarify, I will have no debt and money left over.

[edit] I'm not sure how to go about filling out the form as I have no income as such but it will be a lump sum that I will have to live from as well as make a living from.

mildredalien

Well that makes for a good start! I'd still recommend posting an SOA so you can get a handle on what your income/outgoings will be and get some advice about where you might be able to make savings. Alternatively, sometimes an SOA can really make you wonder what on earth you are spending your money on when you apparently have £500/month left over after reasonable outgoings but never seem to see a penny of it... yes I speak from personal experience