Enjoying the journey to becoming debt free - paying back the credit cards

fedupandskint

Is that a contradiction in itself? Belt tightening is going on but I know I need a little leeway at times over the next 6mths. Each week won't cost this much but I had to factor in some treats along the way. I've learnt enough over the last couple of years to know I won't go mad with treats any longer and I know I can control myself and my spending.

This is what I've come up with so far. I realise it looks pretty generous which is ok overall as I know not every week will cost this much, maybe 2 weeks out of each month the most.

Weekly spends budget
Include coffee once a week and a maximum of £5 treat per fortnight eg on a bargain (allow myself to include clothes in this?)
Coffee = £4.80 per fortnight maximum (one week may be £0 and one week may be £2.40 and one week may be £4.80)
Treat for self = £5 maximum budget

Weekly spend budget = £10 for all treats to include coffee and any food out as lunch with mum. Budget now called this;
Treaty budget per month £40 maximum

Grocery Budget
Budget set at £100 per month maximum for next 6mths to include food, cleaning and dog food out of this budget

Estimated Budget Totals between Oct - March 2013
Grocery = £600
Treats = £240

Right that already looks better.

fedupandskint

Today's plan while I'm stuck at home recovering from the virus making me feel like I have no energy, my chest feels tight when I do anything and full of cold generally - why not face up to doing a proper budget?

For the first time ever I'm going to write down all my outgoings, see what the balance is and what I have left over for food, petrol, debt repayment and where I can trim off some more for repayments.

fedupandskint

Budget done and boy is it tight. About time I faced up to what goes out and what's left over and that's not much at all. For so many year's I've been afraid to do this and have left it alone. While I'm feeling motivated in this new phase, it's a good time to do it. It has made me realise that it is possible for me to pay back those credit cards and the money I owe - something I have wanted to do for so many years, get my credit rating improved and close down those cleared paid off cards.

Have written down all outgoings and budgets for petrol, food and treat (as above). The next 6mths are going to be tight beyond compare, after that hopefully the next 6mths will be a little less tight but still tight all the same. Luckily I'm used to living on a very tight budget in most areas - the main budget change now is to stop spending on clothes and aim to not buy anything between now and Christmas. Now that is a test of heart and mind! Not sure if I'm strong enough to avoid the manager's reductions for under £5 - it'll have to be good and something I'll wear, notice how I didn't say something I need?

Of course 'Do I need it? Will I wear it? Will I use it? CAN I AFFORD IT?'

How could I forget!

Then in a year's time I will be much much better off as the plan will have paid off a lot and then its onwards to see if I can pull that DFD closer than where it is now of July 2015.

fedupandskint

After the budget shock I decided to find out the final piece of the repayment plan. I rang the final cc company to see if they would reduce a rate and the flatly was told 'NO'.

Had to change my plan, once discovered the huge APR rate on this card as it made me feel agitated and slightly sick and very low about how I could have ignored this for so long when it is 29.9%.

This is part of the facing up to it process and not let me fall back down into ignoring it all again.

I have set up an overpayment plan to get this card down now and look into transfering it as soon as the other card is paid off as the APR is at least 10% less on this one. That APR rate made me feel so stupid for ignoring this debt for so long and the CC company living off my money.

Once this card is paid off I will have the biggest smile on my face at this achievement and even bigger when its closed down for good

While I still feel unwell and definitely not up to much, I decided to list a couple more items on fleabay to get some money rolling in and declutter the house to hopefully pay for the car service and also go on cc's. Have a massive pile to list which is a job I've put off for ages - took the shock of the APR to set me off to do it. A little start made and a couple of listings a day I think will work my way through the pile while hoping someone wants the things I bought when I felt down, fed up and looked for happiness in material items.

It's been an up and down day today. I now know the mountain I'm climbing and there's no alternative way. There's no way I'm ignoring this anymore and its onwards towards becoming debt free.

Enchanted21

Hi there x. Just wanted to post that I'm enjoying your diary. I have gone right back to the first one and am just about half way through :-)

I love the way your mind is so organised and logical, it's lovely to follow your progress x

I will try to catch up soon to 'today' so I can post with some background knowledge x

You are doing really well and it's only March 2011 :-) Xx

Enchanted21

Ha ha..... Forgive me, maybe half-way through was a little ambitious :-)

I'm a quick reader..... I will soon catch up. It's like a novel, I can't put it down Xx

Enchanted Xx

fedupandskint

Enchanted21 wrote: »

Ha ha..... Forgive me, maybe half-way through was a little ambitious :-)

I'm a quick reader..... I will soon catch up. It's like a novel, I can't put it down Xx

Enchanted Xx

Too kind!

Never realised I sounded that logical, what a lovely compliment. Maybe I should consider publishing it as an ebook!

fedupandskint

More fleabay listed now with a couple of watchers - good stuff onwards and upwards as they say.

Found out a old phone to sell - checked the mobile value checker and discovered somewhere to take it in town for a valuation at the weekend otherwise will send it to the one I've used before so should be a minimum of £40 for that coming in for possibly car MOT payment

fedupandskint

I have a bid on one item! More watchers too. Hete's hoping for some sales. Feeling a bit more positive about things after doing this and keep thinking of more items to go on over the next few weeks and months.

Working real hard to keep positive and pay off those cards as soon as I can

fedupandskint

Feeling alittle bit better this morning thank goodness - have taken all week off to make sure I am properly back to normal after feeling run down and coming down with something for weeks now and wI am properly fed up of feeling this way. Funny when I take proper care of myself always that I feel like that, maybe because I can notice it more these days. Anyway hoping to continue feeling better.

Just checked fleabay and 2 items now have bids - great! Happy about this, the stuff thats going on there is stuff I don't need, doesn't fit, never wanted, bought years ago when life was different and I was very different, looking for a quick fix by buying material goods.

Happily decluttering over the next few months and happily paying the debt off - who'd have thought I'd reach this point? Really glad I have.