My LBM...

ShopaholicNoMore

Hi!

I've been reading these forums for a few years, and even posted about getting rid of my debts a couple of years ago - then I only had £600 on CC!

However, now it's £3000 on a 0% card and a £1500 overdraft. I had been keeping it to myself but eventually it became too much and I confessed all to my husband. He knew about OD but not the card. H was furious, but more because I'd been hiding it from him.

So, I've got to get rid of it. I've worked out a budget (I run a business and have done for 10 years but I've never actually worked out my income and outgoings before...idiotic I know, but the nature of my business means I get injections of cash three or four times a year and I always just think "woo lots of money" and spend lots in a few weeks and then run out!

Our bills etc are well covered and I can afford my repayments. When I get my cash in January I have allotted a certain amount to my debts, then the rest will be paid off by May.

But in order to pay it off, I need to stick to a strict budget. Budget is only for food, nappies and milk (two adults, one child, one baby) petrol, clothes etc.

Up to January, I have £80 a week. So far I've stuck to it for two weeks. Anything spare I'm putting into a pot for emergencies. I don't mind about not putting it to my debts just now, I just need to avoid running out of cash before January (when I get my next payments in) because if I run out I will end up using my cc. I am up due some money in December which should cover Christmas.

From January I have allotted myself £100 a week, with any spare again being saved.

On paper we should be really quite comfortable but I always seem to be chasing my tale. A couple of screw ups with self assessment tax and student loan payments has meant I've paid a heck of a lot to HMRC in the last three years, leaving me with not much left over!

So I'm going to keep track of my spending and hopefully posting on here will keep me focused.

ShopaholicNoMore

Oh and I've made a start on my plans by cancelling another credit card which I never use, and lowering the limit on my other one from £6300 to £3500. I have a third one which is the only one i ever spend on - i just used the others to transfer the balance between at 0%. Am keeping it for emergencies but will take it out of my purse to help me resist temptation!

redpete

ShopaholicNoMore wrote: »

...I've never actually worked out my income and outgoings before...idiotic I know,
...
A couple of screw ups with self assessment tax and student loan payments has meant I've paid a heck of a lot to HMRC in the last three years, leaving me with not much left over!

How can you fill in a Self Assessment without knowing your income & outgoings (expenses you can offset against income)?

brokemedic

Good luck with your debt-busting journey.. you're in good company...

I am sure if you post up a SOA, someone a lot wiser than me will come along and offer you more tips as to how to save further.. Sometimes I am quite surprised as to how much money can be saved lol..

bm

ShopaholicNoMore

redpete wrote: »

How can you fill in a Self Assessment without knowing your income & outgoings (expenses you can offset against income)?

because on January 27 (ish) each year i turn up at my accountant with a box full of paper work and he magically turns it into a set of accounts and fills in my tax return!

I've not filled in a SOA because i think we are pretty good in terms of bills - just switched car and home insurance to.cheapest providers and got refund back from being in credit with gas and electricity.

Mobile is a contract although i do have some insurance i need to cancel.

Have got a form to fill in for remortgage to hopefully get a good deal...just hope.my debts don't stop us getting a good rate. We've been on a ridiculous fixed rate for five years so will be saving some.from.that too.