oh my life...... Light Bulb moment.

shaz1963

Evening Mimi,

Been sitting thinking tonight about my financial situation and started reading your thread.....good luck with your plans for getting debt free!!!!

My plan is to sit down this week and get a plan in place for my creditcard debt...Ive just turned 50 so I need to get on top of it!!

I was reading with interest when you had mentioned a spending credit card, I have one of those that I have used about twenty times in the last month with christmas shopping and expense, this card may be the first thing I have to deal with...:(

Hope you have a good week,
Shaz

MiMi66

Well, I've not posted for a while and sadly I've done damage to my finances in that time too. So glum and fed up with myself about it. I shall update my figures and do a new SOA but in brief I've topped my worst ever debt amount. It actually went over £35000. I have started shooting it back down and am at about £33700 now. Spent several hours looking over it all today and trying to understand my dreadful lack of self control. Ahhhhh. It's hard to look at yourself that way isn't it.

I need to have a bit more income to make my repayment plan work. I called a agency today about having student placements. My son is not impressed but I think we need to be creative in raising a little more money.

I am hoping to pay back £615 a month and this leave us with about £600 a month for food, fuel, clothing, hair, lunches, unexpected costs, a movie maybe, and cats food.

So, not feeling bubbly tonight but still I know it's within my grasp to control and change things. I just have to do it and stick with it. Simples. I've never nominated a debt free day before but I am now. 1st December 2020. Just before my 54th birthday. Am sticking to it or even Debt Free earlier if I can.

MiMi66

I've updated my signature - so odd - my mortgage has gone down and my cc debt has gone up - like a seesaw. I wonder what it is about spending that feels so 'allowed', possible with cc i suppose and habitual. It's ridiculous that at my age - 49 - that I haven't cracked it yet. Even the shame of debt hasn't been enough at points to stop me - I guess in some ways it is similar to those people who are addicted to smoking, gambling or alcohol. You know its bad for you but the compulsion to do the 'thing' is too much woven into the fabric of how you might function. Rewiring needed! I am relentlessly certain I will do one way or the other though - even if it means selling up to clear debt - though that is my last resort. I have to remind myself I have about £115K in equity in the house - just an't access it!

I had a NSD to day - nice to do. Will try to do at least three of those a week and get back to planning expenditure again.

I wonder if people reading this will just be shaking their heads in frustration, irritation and bewilderment of how I can be so stupid as to make my debt problems worse - I wish I had a reasonable answer but there isn't one.

Just back tothe drawing board and if I can do it I shall be debt free in 2020 one month before I turn 54 (so I can say I got out of debt when I was 53) I don't count my mortgage in this - that is a different set of issues that I'll have to face - I am unlikely to work log enough to payoff the mortgage so it will almost certainly be a sell up and down size at that point.

Oh I feel glum and disappointed in myself.

I need a SOA template - has anyone got one I could fill in?

MiMi66

foxgloves wrote: »

Hello Mimi, I remember your thread from last year & how hard you were working to adapt spending habits to address your debts. I'm sure you can do this again now that your head is in the right place. For those of us who have been over-spenders, thete is always that knowledge that old habits might just resurface as a default setting. We've been debt-free since 2011 but I still post regularly on the DFW daily things thread as it helps focus my mind on my simpler lifestyle & what I need to do to maintain it. I can only say to encourage you that there is simply no bag of tat I could come home with now which would make me feel as happy as paying off that final bit of debt did.
Welcome back. Breathe, focus, accept support where it's offered & finish the job.
Good luck,
F x

Hi Floxgloves - I am back again after a mega blip - shamed and stressed. Your message from a few months ago is really soothing and reassuring and non judgmental - thank you again for it - it's made me feel OK a bit that I've fallen off the wagon, and that I will be able to regain lost ground in my debt repayments.

Isn't odd how debt can make you feel sort of dead inside. Like your options have been taken away - or rather - that you've given them away. Right I best sign off and stop before I depress anyone else. But thank you :wave for the lift your message gave me - a little light in the tunnel.

MiMi66

Statement Of Affairs

Monthly Income

Income Amount
Net Monthly Salary £ 2,241.00
Partner's Monthly Salary £ 0.00
Benefits £ 82.00
Maintenance £ 260.00
TOTAL MONTHLY INCOME £ 2,583.00


Essential Monthly Outgoings

Outgoings Amount
Mortgage £ 620.00
Rent £ 0.00
Council Tax £ 115.00
Electricity £ 86.00
Gas £ 0.00
Heating Oil £ 0.00
Water Rates £ 52.00
Telephone £ 10.00
Mobile Phone £ 30.00
TV Licence £ 12.00
Satellite TV £ 0.00
Internet £ 20.00
Buildings Insurance £ 0.00
Contents Insurance £ 25.00
Life Insurance £ 19.08
Groceries £ 400.00
Clothing £
Petrol £ 40.00
Car Tax £ 0.00
Car Insurance £ 0.00
Car MOT £ 0.00
Car Maintenance £ 0.00
Car Parking £ 5.00
Other Travel £
Childminder/Nursery £
Medical/Dental Expenses £
Pets Insurance/Vets Bills £ 56.00
Birthdays/Christmas £
Holidays £
Children's mobile £ 30.00
Mortgage insurance £ 15.78
Denplan £ 22.41
Homeserve £ 20.00
Scottish Friendly Son £ 25.00
TOTAL MONTHLY OUTGOINGS £ 1,603.27
NET MONTHLY SURPLUS £ 979.73 For CC payments and loan


Monthly Debts

Debt Total Debt Min Payment Rate
Overdraft £ 0.00 £ 0.00 0.00 %
Car Loan £ 0.00 £ 0.00 0.00 %
Credit Card Halifax £ 6,936.00 £ 70.00 0.00 %
Credit Card M&S £ 2,997.00 £ 77.00 0.00 %
Credit Card Virgin £ 8,361.00 £ 84.00 0.00 %
Credit Car Tesco £ 2,066.00 £ 43.00 0.00 %
Nationwide Loan £ 13,427.00 £ 255.00 3.20 %
TOTAL DEBT £ 33,787.00


Assets

Asset Value
Cash £ 965.00
House Equity £ 115,000.00
Shares/Bonds £ 200.00
Car(s) £ 0.00
TOTAL ASSETS £ 116,165.00

MiMi66

Ice just worked out that it's 57 payments of £615 a month to DFD. Plus any transfer fees for balance transfers along the way. Hmmmmm. Not too bad as I think at Chrsitmas I was working on a 60 payment plan of around 600 a month. There must be an error there somehow though as I owe £4K more than I did??? Hmmmmm it's late and my brain is a bit porous (that's a good metaphorical image for being empty headed isn't it!).

I wish it were closer to pay day so I could pay some off. Patience virtue etc etc.

Ah ha. Just clicked why my maths is wrong in part. I haven't calculated the interest on the loan into it. Which is about (estimate) £1000/1500 I think over the life of the loan. Bummer.

Verbatim

Welcome back MiMi66
Don't despair PLAN!
Was it Xmas that made you overspend? Last December you seemed to accept you would. If you start planning now for Xmas, (and any other occasions which make you want to spend), you won't have the same issue this year. At the moment you have nothing in your budget for Xmas and birthdays so you are setting yourself up to fail.
Is it just you and your son? Could you meal plan to reduce the grocery bill?
Good idea to take students or a lodger but make sure all profit goes off the debt rather than disappearing into the general bank account.
I hope you don't sell up. Your debts are unsecured with the interest charged over the years providing the profit for the lending banks. Your mortgage is different with your property lessening the risk to the lender/bank. So never sell your home to pay off unsecured debt!
Maybe join some of the challenges to keep you motivated: Ninja something on here is well spoken of. Sorry I can't be more specific. And perhaps some short term goals to give you a boost along the way?
Vx
Keep positive and keep posting. You'll get there.

AnnaDanishek

Hi All! I love your little donkey sellurgranny - is he a Devon Donkey Sanctuary one? Yes indeed divorce costs a bundle - never wise on that front for the average person - I paid my ex out of the house, so my mortgage is a lot larger than it was when we were married. I wonder if I will ever pay the whole thing off or just sellup and buy a cardboard box for retirement..

DebtFree2012

Hiya hun


Don't dispair. It'll all come out in the wash and the fact you're back is better than the alternative. Chin up. I've along way to go too but I've come a long way and had a happy time paying it off as I refuse to lose those years to debt. You'll get there.

MiMi66

Thank you Debtfree2012, AnnaDanishek and Verbatim - you all said the right thing in different ways.

I do need to meal plan more. My £400 food budget also is cat food and household cleaning items and lunch money. I have tried to cut back and have done but there is room for more cut backs. God I sound like a Tory ��

Divorce - don't get me started....... I do wonder if I made a huge mistake there but it is 13 years ago now that we parted, so not really healthy to dwell on that too much, I tend to think of it when I am low, and I think that the fact I've stayed solo pretty much ever since makes me wonder about whether I should have fought more for the marriage. Hmmmmm. None of that is very good motivation though.

And Vervatim you are right about not selling a house to pay unsecured debts. It is madness to do that isn't it but the temptation lie in trying to be rid if the pressure of too much debt and too little money. I won't or if I do it will be move and buy again. Mind you I don't think they'd give me a mortgage now.

Christmas and birthday money. Well by my working out I should have about £200 to try and put aside for that and the emergency fund and the unexpected. I forgot to write it in though. However my ex will stop paying child maintenance for our son soon yah so I need to somehow replace that money. Hence thinking about students. I would bank that money in savings or debt repayment. Maybe half into each.

So I have a plan again and I must be diligent and remember to log on here as it really does help to have the support to clarify my thoughts. I am in awe of the people who've achieve massive repayments like you DebtFree2012, absolute amazing. Hopefully that will be me in a few years time.

Sleep well all X