Finally admitting something needs to be done!!

in Debt free diaries
12 replies 1K views
OK so for so long I have professed to be good with money, quoting Money Saving Expert to other people on numerous ways of helping them to save money while all the time not admitting how bad I was myself.

I have debt which started while at University where I'd just buy things because I though I could afford it. I had quite a bit of disposable income as my Student Loan covered my rent and so the money from my part time job was for spending. I started using credit cards and was pretty good to begin with, paying everything off straight away, making use of my interest free overdraft and generally having a good time. Thing is, when I graduated things didn't change. Although I got a decent job paying ok money, wasn't paying too much rent etc I managed to think maintaining my student lifestyle was plausible. 5 years on I've finally realised its not.

I have an overdraft and 2 credit cards which I wish to pay off as soon as possible. I also have a loan but am going to be bad and ignore that for now.

So the overdraft is currently -£873.24, Credit Card 1 is -£2159.67
and Credit Card 2 is -£1533.03 that's a total of £4565.94 which frankly makes me feel queasy when I think of all the things I've spent it on, namely nothing much of any value at all.

So I hope updating things on here will keep me in check. No one really knows about how much debt I'm in although I did let slip to my other half about how much (roughly, think I may have rounded it to 3K :eek:) was on my credit cards while he was discussing his desire to pay his off the other day. He didn't react too badly so maybe I'll tell him the full extent at some point.

I'm lucky enough to pay really cheap rent and have just got rid of the car as I need to lose some weight too so walking up the monstrous hill to work (25 mins at most, just need to get used to the incline!) is a far better option than driving and saves mega pennies. At least that's a start.

So, here goes....
NATWEST -£873.24, CC 1 -£359.67 / 2400.00, CC 2 -£1533.03 / 1600.00, CC 3 -£1800 (BT 0% interest for 20 months, ends March 2014) TOTAL DEBT TO SHIFT AS OF 20/07/12 £4565.94 :o
100 day pot £0 - 1 debt vs 100 days £0/£873.24 (started 22/07/12)
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Replies

  • unimaginative_user_nameunimaginative_user_name Forumite
    494 Posts
    Tenth Anniversary Combo Breaker
    Forumite
    Good luck! It's great that you are starting to tackle the issue before it's too late. I hope you and you OH can work together on this and keep each other accountable.

    You say you've spent the money on nothing of value. Do you keep a spending diary where you write down exactly where your money is going? If it's something you do regularly like buying lunch or coffee at work calculate how much this costs in a year. It can be frightening!
  • hi tiddles:wave:

    I started my diary recently and I feel so differenty about money now. I kow it's not been long but i'm finding it really helpful.

    Have you thought about completing a SOA? Also maybe updating your signature with your total so you can keep track and watch your progress.

    Good Luck xxx
    emergency fund:£179/ £1000 Uniform/car fund:£
    boys savings £
    Christmas £60 bday £40 holiday £

    Family loan £7000/£5425
    Credit Card 0% £2015.32 eon £435 overdrafts £1500/£1300
  • Thanks guys, people here are so quick to reply its lovely!! So people get themselves in debt yet deal with it and get back out so there's no reason I can't!!

    I haven't got a diary I write everything in religiously, I've tried once or twice to keep track but it's not something I've kept up. Must try harder and hope this diary helps.

    Weekend off, which I've only just started having after years of working in the hospitality trade. What to do what to do?! I've booked tickets to go to the cinema tonight which is a big treat at £18, I need to get some tea in too and have come across (thanks to another diary) Resourceful Chef which gives you get recipe ideas for different budgets. Aiming to get 3 meals for £15 so we'll see how that goes...

    Got some clothes I can put on eBay and some CDs to send to music magpie, I've known I've needed to get things sorted for ages so I've started doing these types of things but never properly followed through and actually sent the parcel off or listed all my spare items. That stops today!!!
    NATWEST -£873.24, CC 1 -£359.67 / 2400.00, CC 2 -£1533.03 / 1600.00, CC 3 -£1800 (BT 0% interest for 20 months, ends March 2014) TOTAL DEBT TO SHIFT AS OF 20/07/12 £4565.94 :o
    100 day pot £0 - 1 debt vs 100 days £0/£873.24 (started 22/07/12)
  • Just got back from cinema trip. TDKR Good film for sure. Had a good day today, met my dad for a coffee (which he paid for!) and used my new quidco high street checking in app, earnt myself 50p for a quick browse in a couple of shops. Had a look at some toiletries I need for a festival next weekend, should be able to get stuff cheaper from the net so will probs do that. Speaking of the festival I keep getting told I'll need over £100. I don't agree and setting myself a £40 limit including food. I don't even like drinking that much ATM so hopefully won't be too difficult.

    Did a four meal shop today too for £16.99 including some bits for the cupboard, happy with that. And that's all I spent all day as I'd already prepaid cinema tickets. Aiming for a NSD tomorrow!! Already feel better about the money situation. Just need to stick with it and watch my spending. It's 3 weeks until pay day so need to hit the grown running and not spend over the odds. Fingers crossed I manage!!
    NATWEST -£873.24, CC 1 -£359.67 / 2400.00, CC 2 -£1533.03 / 1600.00, CC 3 -£1800 (BT 0% interest for 20 months, ends March 2014) TOTAL DEBT TO SHIFT AS OF 20/07/12 £4565.94 :o
    100 day pot £0 - 1 debt vs 100 days £0/£873.24 (started 22/07/12)
  • I really quit writing on here on my iPhone. I'm
    No good at it!!:o
    NATWEST -£873.24, CC 1 -£359.67 / 2400.00, CC 2 -£1533.03 / 1600.00, CC 3 -£1800 (BT 0% interest for 20 months, ends March 2014) TOTAL DEBT TO SHIFT AS OF 20/07/12 £4565.94 :o
    100 day pot £0 - 1 debt vs 100 days £0/£873.24 (started 22/07/12)
  • mamanmaman Forumite
    27.1K Posts
    Part of the Furniture 10,000 Posts Name Dropper
    Forumite
    Suggest you use all the money the car would have cost to put against your debts. Take a look on the OS boards for ideas on meal planning and budgeting for food. If you're prepared to cook and eat fairly basic stuff (porage, pasta) for a while your debts will be paid off in no time.
  • Thanks maman, there has been some movement on the car front, my friend is selling her car at a bargain price (she's moving abroad) and my dad seriously thinks I should snap it up, so much so he wants to lend me the £900 it will cost. I don't need to decide until end of August and have also spoken to the OH about sharing the car rather than him replacing his (he has just found out it will need £400 spending on it in the very near future which he's not prepared to do). We'd share half the costs of running everything and he'd pay most of the petrol as his journey to work is a lot longer than mine. Could work out although need to add all those costs in. Need to do a SoA!!

    I'm in two minds. I pay £150 a month off CC1 and make the minimum payment on CC2, I have thrown a lot of money (£800 as I got some good expenses at work, think I may have to pinch a bit of that back though) at the Natwest overdraft this month already to bring it down to -£873. Figure I can just about afford another £300 (no expenses and car to think about) to the Natwest OD next payday and £300 the month after whilst still making all my other payments. This would mean come October I could start paying my dad back. Aaaaargh, decisions decisions!!!

    First NSD hopefully...
    NATWEST -£873.24, CC 1 -£359.67 / 2400.00, CC 2 -£1533.03 / 1600.00, CC 3 -£1800 (BT 0% interest for 20 months, ends March 2014) TOTAL DEBT TO SHIFT AS OF 20/07/12 £4565.94 :o
    100 day pot £0 - 1 debt vs 100 days £0/£873.24 (started 22/07/12)
  • Statement of Affairs and Personal Balance Sheet (This is just for me and it is without the potential new car costs)

    Household Information

    Number of adults in household........... 1
    Number of cars owned.................... 0

    Monthly Income Details

    Monthly income after tax................1270
    Partners monthly income after tax....... 0
    Total monthly income..................1270

    Monthly Expense Details


    Rent....................................152
    Council tax............................. 25
    Oil..................................... 0
    Telephone (land line)................... 0
    Mobile phone..........................16.50
    Loan repayment..........................201
    CC1 repayment...........................150
    CC2 repayment........................... 35
    Laser Eye surgery....................... 62
    Bank fee................................ 10
    TV Licence.............................. 0
    Satellite/Cable TV...................... 35 (at my mum and dads house, long story but defo needs to go)
    Groceries etc. .........................120 (this is to feed 2, attempting to bring this down through actual meal planning, I reckon I can easily do it for 80)
    Clothing................................ 40 (I like to think this is nothing but its not but it will be!!)
    Petrol/diesel........................... 0
    Road tax................................ 0
    Car Insurance........................... 0
    Car maintenance (including MOT)......... 0
    Medical (prescriptions, dentist etc).... 0
    Presents (birthday, christmas etc)...... 30
    Haircuts................................ 30
    Entertainment.......................... 120
    Holiday................................. 40
    Spotify................................. 10

    Total monthly expenses.................. 1076.50


    Assets

    Cash.................................... 0
    Car(s).................................. 0
    Other assets............................ 0
    Total Assets............................


    No Secured nor Hire Purchase Debts


    Unsecured Debts
    Description....................Debt
    NW OD.........................873.24
    CC1...........................2150.00
    CC2...........................1533.03
    Total unsecured debts..........4556.27......-


    Monthly Budget Summary

    Total monthly income.................... 1,270
    Expenses (including debts).
    1,076.50
    Available for extra debt repayments...193.50..........


    Ok so I think that's right, I know I overspend on entertainment and food, I need to work hard at bringing those down. Otherwise the car is a complete no no. Insurance would be £200 for my half, tax £75 and maintenance £10 a month just in case. Do able if I save elsewhere. I've been paying money into my OD account but then using that money again so need to make sure that stops. I'm feeling good about keeping it at -1000 this month. I've listed a load of stuff on ebay, have some music magpie things to send off and am calling in a £70 loan friend owes me for gig tickets. I have a festival this weekend with a strict budget and a couple of birthday parties and a wedding next month I need to save for (already got my outfit so at least theres not budgeting for that). I think seeing things written down is going to stop me spending and thinking its fine not to keeo track. That's what has got me in this trouble in the first place!
    NATWEST -£873.24, CC 1 -£359.67 / 2400.00, CC 2 -£1533.03 / 1600.00, CC 3 -£1800 (BT 0% interest for 20 months, ends March 2014) TOTAL DEBT TO SHIFT AS OF 20/07/12 £4565.94 :o
    100 day pot £0 - 1 debt vs 100 days £0/£873.24 (started 22/07/12)
  • mamanmaman Forumite
    27.1K Posts
    Part of the Furniture 10,000 Posts Name Dropper
    Forumite
    I'll leave it to others to comment on SoA but why are paying to feed two? How much do you and OH share finances?
  • I've always been pretty cagey about sharing finances, mainly because I've always hidden how bad I am with money! The 120 is what I easily down on food a month as I'm one of those who goes to the supermarket and picks up £20-30 worthy of stuff when all I wanted was a pint of milk and some fruit and that's easily twice a week or so. Need to get a hold of that and plan some meals. I tend to do the cooking anyway so he won't even notice!

    Had my first noted NSD yesterday and I've listed loads of bits and pieces on eBay. Fingers crossed plenty of it sells!

    I hope everyone else is doing ok and feeling positive, it's early early days for me but I've got a positive outlook for things. Hope this isn't too much positivity too soon :o
    NATWEST -£873.24, CC 1 -£359.67 / 2400.00, CC 2 -£1533.03 / 1600.00, CC 3 -£1800 (BT 0% interest for 20 months, ends March 2014) TOTAL DEBT TO SHIFT AS OF 20/07/12 £4565.94 :o
    100 day pot £0 - 1 debt vs 100 days £0/£873.24 (started 22/07/12)
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