I've bitten the bullet.

danielleindebt

welcolme alison, congrats for wanting to sort things out and taking the 1st stepps to sorting it out.

im quite new here and everyone is gr8. hope to hear from you more.

alisonjs

I've just finished my phone call with the CCCS debt counsellor. She was lovely - didn't bat an eyelid when I told her the monumental size of my debt.:p

We went through my incomings and outgoings and if I work to the budget she has drawn up I can manage it all without a DMP or an IVA, and she thinks I'll be debt free (IF I STICK RIGIDLY TO THE BUDGET) in around 2years 6 months - which is a revelation to me.:j I'd envisaged being in this hole for 10 years or more.:T

Now I need to wait for the budget to come through, and then approach my debtors and ask them if they will help me, by not charging interest for a period of time, to let me get myself back on top of things.

And all of this isn't taking into account the fees I'm claiming back from my debtors using the Reclaim Your Unfair Bank Charges process, and any payrises I might get from work. So I might be even better off, even sooner than I thought.

Life suddenly doesn't seem so bleak - to think yesterday I was seriously contemplating packing a bag and running away And I mean, seriously contemplating it.

Sticking to a budget is going to be hard, bloody hard. But I hope there'll be support here for me if I need it.

newlywed

That's fantastic news. Great that you don't have to do a DMP.

But just remember how you felt with all this mess and make sure you are determined not to feel that way again - then your budget will be easier to stick to. I'm determined never again to have to pay 90% of my wage to credit cards and loans and know that when my debt is cleared (about 5 years) then I will have a big chunk to be able to save every month and spend on worthwhile things.

Crown

Morning Alison,

Great news! Im so glad you posted yesterday and I dont want to say " We told told you so" but I bet you feel a lot better today after the call

I know you are waiting for the official budget list from the CCCS but the offer is still here if you want us to help you cut back your budget.

Well done on the progress so far. Hope you stick around now you have started the debt free journey :T

alisonjs

Thanks guys - and thank you so much for your support. I needed it so much yesterday. I'm off work today still as I had to stay home for the CCCS call, and am contemplating using the afternoon to sort out a new Basic Bank account (any suggestions welcome - not First Direct or A&L unfortunately) and work out how I am going to arrange a transfer of DDs and salary and then divvy up my money into pots for each expenditure each month.

How do you manage your 'pots'? How do make sure you spend only the budgeted amount each month for each thing - food, travel, etc etc etc? Do you use Microsoft Money or anything? Or is there something free I can download?

Crown

Software wise I have tried many different programs but to be honest they are more a pain in the backside and you end up not doing it properly anyway.

I use a simple notepad for my spending diary then type it up into a spreadsheet when I get a chance (to be honest I havent typed up anything in 2 months!)

I dont use the pot method. to begin with a looked at my SOA and then picked out the priority bills. I then looked at cutting costs on EVERYTHING else.

I have moved phone, mobile, and Internet providers, will be changing gas and electricity once I have cleared my arrears. moved Insurance, changed brands of food. stopped buying Gillette Razors when the cheapo disposable ones are just as good really.

I see it as a challenge. If I save £25 on my Insurance premium that pays for 2 Months TV Licence. and so it continues. I have saved probally at least £300 a month so far doing this and this is before actually even cutting back as such and working extra.

There are so many ideas available on these forums and advice from people that you cant help but save money by reading them.

kippers

Well done and good luck with your budget. This forum is great for support and advice.

I use excel to list my outgoings and incomings, you don't need an expensive package, as 'crown' has just said, a pen & paper will work. Write everything down you spend and you will be surprised how it mounts up.

Don't spend because of pressure ie xmas/birthday presents, spend what you can afford only (not what everyone else expects you to spend). It's hard at first but you do get used to it and it becomes normal to you.

On a positive note you discover the 'free' things in life (Libraries, parks, quality time with friends & family etc) and you discover cheaper options (ie cheap kids cinema on saturday morn if you have family).

In other words things may look bleak at first but you learn to live a whole new life and when you have paid your debts in 2-3 yrs time you will feel fantastic!

Good luck

misspoppy

Hi

Well done I've only just read your thread and what a difference a day and a phone call makes.

regards banks I love the co-op cashminder account, I called them and the set it up there and then and it all came through in less than 7 days just before christmas. You get a debit card (electron) and great internet banking unlike Lloyds that give you no option to pay people online.

Good luck I'm glad you made that call.

Reya

This made me smile so much, Alison: seeing the change from page one of this thread, to page two. What a difference a phone call makes. I'm so glad to see the stress taken off your shoulders, even if only a bit

Kippers mentioned using Excel to keep track of figures. That's what I use, too. I've written a simple spreadsheet that I put all my incomings and outgoings into, and it keeps track of how much is left. It's become a challenge every month now to see if I can increase that remaining balance (mostly through crafty food shopping) so I can overpay my credit cards by as much as possible each month.

If you don't have Excel or Works, then there's a great free office software package available from Open Office. It includes equivalents for Word and Excel, and you can download it from here: http://www.openoffice.org/

If you're not sure how to use a spreadsheet, there are some good basic tutorials online, such as this one: http://www.k12.hi.us/~tethree/01-02/tutorials/ss/home3.html

fermi

Glad things are looking brighter for you.

The last page of this document lists all the 'Basic Bank Accounts' available, and what facilities can be used with them.

http://www.fsa.gov.uk/pubs/public/bank_account.pdf

Good luck, and keep us posted.