Rumbly's LBM

rumblytum

Hi everyone

I thought I had my LBM about 10 years ago. I paid off pretty much all of my debts in 5 years, and bought a house (deposit was DH's annuity).

Another five years pass - it wasn't my LBM. I was nearly £43k in debt plus mortgage. :eek: That was August last year. When I thought I'd had my LBM.

It seems these were all just glimmers.

So, I don't know what I owe, and I don't know if it's sustainable, but I sort of know what to do about it.

Putting out here means there is some feeling of accountability.

I'm at work, and I don't have any of the figures to hand, but I'm not going to put it off until tomorrow. My debt free journey starts here.

More on this later

rumbly

Sessie

Well done for recognising it. That's the first big step.

Now, as you say, it's time to be BRUTALLY honest with yourself. When you're working out your figures now, don't kid yourself, don't leave bits out but face your demons head-on. It's a remarkably good feeling once you've got it down in black and white, even if the figures are scary, because you KNOW what you're dealing with and can then put in place a SMART* plan to sort it out for good.

There are a TON of things you can do, a ton of different challenges to set yourself spread across these boards - such as setting yourself so many "No Spend Days" per month, meal-planning so you only shop for the items you need for that week's meals, Ebaying/boot-saling things you have that you no longer need like clothes, books, CDs etc.... All these things will help give you extra cash towards reducing those debts. And every time you do it you will feel that weight lift.

I'm not going to lie, it's not quick and it's not painless .. but it's a damn sight better than drifting along every day half-kidding yourself that it's all okay when you know it's not.

Congratulations! This site is a GODSEND and a mine of help and information.

I did really well when I was posting regularly, then thought I could sustain the effort without "checking in" and soon fell by the wayside. Now I'm trying to post at least every other day to "stay on the straight and narrow". Knowing that others are following you and maybe that you'll inspire someone to think, "well, if she can do it.. so can I..." is highly motivating!

Will be back to check up on you ...


* S - Smart
M - Measurable - plan so you can SEE the results you're getting
A - Achieveable - small steps will get you there.
R - Realistic - don't set yourself targets beyond your reach
T - Time-based - accept it took time to get INTO debt, it will take time to get OUT.

jwil

Good luck

beanielou

Happy shiney new diary
Keep posting!

rumblytum

Hi everyone

Thank you for your support, much appreciated. :beer:

So, since last posting I have:

• Shopped around for contents/buildings insurance
• Worked out the totals of all my debts

And they are:

• Storecard: 275.89 - Unknown APR, but probably the highest
• Overdraft 1: 4919.09 - APR 19.96%
• Overdraft 2: 2714.66 - Unknown APR - this is the account in use
• CC 1: 14951.34 - APR 20.65%
• CC 2: 9586.24 - APR 20.9% - Fixed repayments
• CC 3: 2027.44 - APR 19.99% - Fixed repayments
• CC 4: 5087.31 - APR 16.9%

TOTAL: 39561.97

I know where some of the debt has come from: buying a car, buying a musical instrument, buying furniture for the new house - but I can also say that the total amount is pretty much equivalent to the school fees that have been paid over the years - and these have now come to an end.

So I plan to pay off the debts in the following order:

1. Storecard
2. CC 2
3. CC 1
4. CC 3
5. OD 1
6. OD 2
7. CC4

The minimum repayments (inc. maintaining the overdrafts) is £1209.92 :eek::eek::eek::eek:
and just paying the minimum will give me a DFD of May 2017

I need put together a realistic budget to see if I can maintain that minimum payment. I don't think there'll be a snowball to start with, but my aim for now is put together a workable and realistic budget.

My short term aim for this week is to do a menu plan based on what is already in the cupboards/fridge/freezer.

Have a good week all.

rumbly x

rumblytum

Hi everyone,

Here is my plan for tomorrow (Friday):

1. Transfer contacts from old 'phone to new 'phone
2. Cancel Direct Debit and contract for old 'phone (new one is half the price)
3. Check best place to sell old 'phone
4. Sell old 'phone
5. Look up costs and funding for a stairlift for AgedP
6. Review what food needs using up in fridge
7. Review what food needs using up in freezer
8. Review what food needs using up in cupboards
9. Enter cash spending/finance receipts
10. Review budget
11. List 5 things on ebay
12. Reclaim work expenses
13. Check old buildints/contents insurance policy hasn't automatically renewed.
14. Read insurance documents for buildings/contents new policy

Let's see how I get on

Good evening all

rumblytum

Today I received £2.75 into my Paypal from mysupermarket - some kind of cashback reward for buying certain groceries. I didn't buy them on purpose, they just happen to be things I buy.
Anyhoo, I've transferred it straight to my bank, and then out again straight to Store card :j:j:A

I stuck it into my snowballing chart as an extra payment. I was going to say that it hasn't made any difference to my DFD, but that's not true is it? It's only a small amount, but lots of these small amounts all add up, and will bring it forward eventually. Look after the pennies.....

:T

Well, today has started well

rumbly x

rumblytum

So, here's how I'm getting on today - I'll keep updating this list

1. Transfer contacts from old 'phone to new 'phone I've started!
2. [STRIKE]Cancel Direct Debit and contract for old 'phone (new one is half the price)[/STRIKE]
3. [STRIKE]Check best place to sell old 'phone[/STRIKE] Squeeeee, will get £50
4. Sell old 'phone Waiting for documentation and packaging to arrive
5. Look up costs and funding for a stairlift for AgedP
6. [STRIKE]Review what food needs using up in fridge [/STRIKE]
7. Review what food needs using up in freezer
8. [STRIKE]Review what food needs using up in cupboards [/STRIKE] There's so much stuff to use up I won't start on the freezer just yet *blush*
9. Enter cash spending/finance receipts
10. Review budget
11. List 5 things on ebay
12. Reclaim work expenses
13. Check old buildints/contents insurance policy hasn't automatically renewed.
14. Read insurance documents for buildings/contents new policy

• Extra achievements: Cash back from mysupermarket transferred to Store card :T
• Ran out of milk, and combined the journey to the station with popping into Tesco Express. AND ONLY bought milk *miracle*! And bought a six pinter as it's better value per 100ml (and will be gone by the end of the weekend)
• Scanned the milk for the Shop and Scan points

rumbly x

rumblytum

Obviously I over estimated what I could achieve in one day while working at the same time.

Here are today's aims (will probably over egg it again, but at least I'm headed in the right direction!):

• [STRIKE]Look up costs and funding for stairlifts[/STRIKE]
• Transfer 'phone contacts from old to new 'phone Partly done - up to G
• [STRIKE]Enter cash spending/finance receipts[/STRIKE]
• [STRIKE]Review budget[/STRIKE]
• List 5 things on Ebay
• check old buildings/contents hasn't automatically renewed
• read insurance policy for new buildings/contents insurance
• reclaim work expenses
• cash rec
• [STRIKE]menu plan
• internet shop using mysupermarket to compare prices/cash back[/STRIKE]
• do some surveys You Gov x 1 - 50 points redeemed for monthly prize draw entries: Global Test Market x 2 - screened out, Global Test Market x 1 - prize draw entries: MediaView TV and Radio usage - entries into draw: Valued Opinions x 1 - £1 earned, Valued Opinions x 1 - screened out: New Vista Live x 1 - £2 earned: Toluna x 1 - 3000 points, Toluna x 1 - screened out: Nielsen survey x 1 - entry into prize draw: My Survey x 1 - 70 points, My Survey x 1 - screened out

Extra achievements: Subscribed to Approved Food thread to look out for bargains

Happy Saturday everyone

rumbly x

rumblytum

OK here it is in all its glory:

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Income from Employment (after tax) (Me). . . . . . . . . . . . . 2,688.71
State Pension (DH) . . . . . . . . . . . . . . . . . . . . . . . . 473.80
Private Pension (DH) . . . . . . . . . . . . . . . . . . . . . . . 657.38
Benefits (Inc. Child Benefit/Tax Credits & Income Support). . . . . 81.20

Monthly Expense Details

In Your Home

Mobile phones . . . . . . . . . . . . . . . . . . . . . . . . . . . 17.50
DH PAYG £5/month max; mine £12.50 just taken out for 24 months
TV licence. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.12
Internet/Home phone . . . . . . . . . . . . . . . . . . . . . . . . 20.00
Primus until April 2013 - 2.99 per month internet/12.79/month 'phone for free eve/weekend - use 18185 for daytime
Cleaning products . . . . . . . . . . . . . . . . . . . . . . . . . 15.00
Stuff like distilled white vinegar, rubber gloves, green scratchies, clothes, washing powder, dishwasher tabs, wul
Garden maintenance. . . . . . . . . . . . . . . . . . . . . . . . . 3.13
This is the monthly cost for having the garden waste collected with the bins - used for grass clippings/hedge clippings/weeds
Household maintenance . . . . . . . . . . . . . . . . . . . . . . . 5.00
Gas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119.00
This is the combined gas/elec cost with Scottish Power - just changed to npower this month, which is cheaper, but waiting to hear new monthly cost
Water . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22.70
Just changed to a water meter - £8 per month estimated for water, the balance for sewerage
Council tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131.00
Overdraft cost. . . . . . . . . . . . . . . . . . . . . . . . . . . 81.00
One overdraft is charged at £6 per month, the other is all the charges that get walloped on when we exceed the overdraft - we have been refused an extension
Home insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . 24.08
Shopped around in Feb and renewed
Mortgage/Rent . . . . . . . . . . . . . . . . . . . . . . . . . . . 813.05
SVR - can't shop around at the moment, not credit worthy
Mortgage life insurance . . . . . . . . . . . . . . . . . . . . . . 13.48
Life insurance . . . . . . . . . . . . . . . . . . .. . . . . . . 155.91
Mine and DH's - he's 66, so pricy
Food and household shopping . . . . . . . . . .. . . . . . . . . . 300.00
Drinks for home . . . . . . . . . . . . . . . . . . . . . . . . . 5.00
Furniture/Electrical. . . . . . . . . . . . . . . . . . . . . . . 2.00
Mobile 'Phone Insurance . . . . . . . . . . . . . . . . . . . . . . 21.98
14.99 for DD's iphone - she pays for 'phone, and 6.99 for my new 'phone

Motoring & Public Transport

Petrol/Diesel . . . . . . . . . . . . . . . . . . . . . . . . . . . 170.00
2 cars
Car tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21.25
2 cars
Car insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . 58.39
2 cars - shopped around at renewal
Car maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . 45.00
Rail/Buses/Taxis. . . . . . . . . . . . . . . . . . .. . . . . . . . 140.00
DD's season ticket to college
Breakdown cover . . . . . . . . . . . . . . . . . . . . . . . . . . 3.00
Autoaid £36 per year

Debt Repayments

Credit card repayments. . . . . . . . . . . . . . . . . . . . . . 1035.69

Savings & Investments

Pension payments. . . . . . . . . . . . . . . . . . . . . . . . . 51.28
Emergency Fund. . . . . . . . . . . . . . . . . . . . . . . . . . 20.00

Family

Pet food. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28.00
2 cats and g/pig
Pocket money. . . . . . . . . . . . . . . . . . . . . . . . . . . . 47.00
Pet insurance . . . . . . . . . . . . . . . . . . . . . . . . . . 18.70
2 cats - shopped around at last renewal

Entertainment

Family days out . . . . . . . . . . . . . . . . . . . . . . . . . 5.00
Cinema/Theatre trips. . . . . . . . . . . . . . . . . . . . . . 25.00
Books/Music/Films/Computers . . . . . . .. . . . . . . . . . . . . 5.00
Pet costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20.00
Vet
Hobbies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25.00
Drama groups
IT/Computing (antivirus, etc) . . . . . . . . . .. . . . . . . . . . 2.00
DVD rental. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.16
Lovefilm annual subscription for cheapest rental package
Eating out. . . . . . . . . . . . . . . . . . . . . . . . .. . . . 20.00
One take away a month
Toiletries. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25.00
Toilet roll/deodorants/shampoo/conditioner/hand soap/soap etc for 3 people

Clothes, Health & Beauty

Optical bills . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.00
3 people with specs
Haircuts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.00
For 2 women
Dentistry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.00
For 3 people
Fitness/Sports/Gym. . . . . . . . . . . . . . . . . . . . . . . 101.50
Me + DD full gym/swim membership + DH swim membership only
Chemist . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20.00
I suffer from depression and have regular medication
Chiropractor. . . . . . . . . . . . . . . . . . . . . . . . . . . 10.33
For me - every three months

Education & Courses

School fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47.16
For DD - £8 college fees/balance are musical tuition - it's what she plans to study

Big One-Offs

Birthdays . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45.00
Summer holiday. . . . . . . . . . . . . . . . .. . . . . . . . . . 55.00
Christmas . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40.00

Odds & Sods

Postage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.00
Miscellaneous . . . . . . . . . . . . . . . .. . . . . . . . . . 50.00


Total monthly income. . . . . . . . . . . . . . . . . . . . . . . . 3,901.09


Total monthly expenses. . . . . . . . .. . . . . . . . . . . . . . 3,940.41

rumblytum

So I'm not too far over, and should be able to make cut backs accordingly, to stay in budget and get a snowball on the go.

My thoughts and plans are as follows:

Increase income by using Quidco for purchases, investigate the Swagging thread, see if I can get some babysitting work and sell loads on Ebay

Now that the water meter is in place, always use water butt water for watering indoor plants, and be careful about water wastage

Menu plan to see if we can come in under grocery budget - already on a storecupboard challenge this week

Look into whether mobile 'phone insurance is worth it and whether it is cheaper elsewhere

Use cost cutting techniques when driving, shop around for cheapest garage

Cut down cinema/theatre budget

Leave a bigger gap between take aways

Monitor whether the toiletry budget is realistic

Reduce gym subscription to a cheaper version

Forget the holiday budget

Monitor exactly what the Miscellaneous budget is made up of.

That's my approach - all suggestions welcome

rumbly x