Keeping motivated while recovering debts...!!!

DebtFreeDaniel

Hi guys,

I'm having trouble keeping in the right mind frame while trying to dig my way out of debt. Every fortnight or so I go through the process of having a financial epiphany, keeping dead motivated for 10 days or so then being tempted at the weekend and 'justifying' my spending through past good behaviour. I guess I'm not the only one who does this and already know more than anything else the answer is having a bit of willpower.

Overall accumulated debts are roughly:

• £7,700 loan;
• £4,600 overdraft;
• £2,300 over 2 credit cards (with 8 and 11 month I.F. periods respectively).

£14,600 (roughly). :eek: Properly shocking when it's all added together!! I quit smoking 3 months ago and I've been putting that amount into an ISA - so far up to nearly £300. I understand that's counter productive as I'm paying interest on the overdraft but for me that's more a psychological thing until I can trust myself 100% not to fall back into smoking again!
Paying £154 towards the loan a month and aiming for £250 renumeration towards the overdraft each month (which hasn't been happening but with some serious number crunching is technically possible) in favour of CC's which I'm just making minimum payments towards currently (due to interest on OD).


Me and my girlfriend have always been extremely social people so not going on all the spur of the moment big nights out has been a real wounder, but what needs to be done needs to be done!!!


In essence, how do you personally stay motivated? All advice, tips & methods welcome!!!

tealady

Hi
I found that having a debt free date helped, especially when I was tempted.
Also having a small treats budget with the attitude when it's gone - it's gone.
Now - even though I am debt free I have a weekly budget, and if the money runs out mid week then that's just tough!!!!

DebtFreeDaniel

Thanks for your reply. I definitely think setting a budget and if it's gone, it's gone is a good idea. I've tried this in the past but just ended up giving myself my allowance a day or two early until it snowballed and I was well out of sync with my pay dates! Might have to give it a go with more discipline!

Really struggling to resist the temptation to take out a new consolidation loan. Weighing up the psychological advantage of being back to "zero" in accounts is worth the extra interest.

Oneday77

Have you cut up you CC's yet, if not do so. You cut up one and freeze the second in a mug of water to save for emergencies only.

To keep motivated work out how much you OD costs each month with out reduding it. Multiply that figure up by 120 months(10 years) and then work out how much you could save by clearing it off sooner. Seeing money go down the drain in the future without you even getting to spend it hurts and helps keep you striving to reduce the pain

icklepiggle

I'm reallystruggling with this too, good for a few weeks then almost have a week off which blows all my good work!!

DebtFreeDaniel

Exactly icklepiggle - alcohol really is the Devil's Nectar!! Not uncommon for me to check my balance in the morning and find out I've spent £90 on expensive shots, greasy kebabs and unnecessary taxi's! I've got a problem with restraint, I think the only way forward for myself is zero tolerance - it'll be tough, but needs to be done! Good luck on your journey!!

Aryndeneth

DebtFreeDaniel wrote: »

Exactly icklepiggle - alcohol really is the Devil's Nectar!! Not uncommon for me to check my balance in the morning and find out I've spent £90 on expensive shots, greasy kebabs and unnecessary taxi's! I've got a problem with restraint, I think the only way forward for myself is zero tolerance - it'll be tough, but needs to be done! Good luck on your journey!!

Have you tried budgeting for the odd night out and then only taking the allotted amount of cash with you, no cards? This worked really well for me but not so well for a friend who kept spending all the cash and then having a looooong walk home as no money for bus or taxi.

DebtFreeDaniel

Hi guys, just a quick update.

Felt I was underachieving at work/in my career so in the last few weeks decided to be proactive about it and take the biggest step towards cracking the debt cycle. Attended my first and only interview and was offered the position which I'm over the moon with as it's £5,500 more a year and half the commuting distance!

Now just need to keep the strict spending mentality and that's an easy £350 extra a month after tax to tuck away - fantastic!! :j:j:j