ShoeAddict's Debt Free Diary

shoeaddict

Hello! I discovered this site a couple of weeks ago and have been reading it every day since, so I feel as if I know you all.

Anyway, I'm 27 years old and have now had what I know to be a lightbulb moment. I've been terrible with money all of my life - I don't know what it is, it seems to just burn a hole in my pocket. It's like I can't walk out of a shop without buying something... particularly if it's a shoe shop! :eek:

I've made huge improvements over the last year or so, and I have to say it's all down to my partner. He's meticulous with money, and he's made me see that ignoring red bills and not bothering to make payments is a very very bad thing. So I've cleared all of my store cards, my student loan is gone (thanks to some inheritance) and I've managed to save up for a two week holiday for both of us later this year (thank you Ebay! ) We've also just bought our first home together

But I know that because of this, I have become complacent about the debt that's left. And it breaks down like this:

Virgin Credit Card: £1,300
Overdraft: £1,300


:mad:

So, I'm starting this diary so that I can clear these two debts and not just let them hang around. I've got to change my whole way of thinking - at the moment I use my credit card and then pay off what I've spent, so I'm not eating into the balance that's been hanging around for ages. I also live in my overdraft, and haven't tried to pay it off! I've just transferred my c/c balance onto a new card so have 13 months interest free. So these are my aims:

1 - To put at least £100 per month on the credit card
2 - To start to eat into my overdraft by spending less money on rubbish per month

I already have budgeted £200 per month for food, eating out etc etc (which all goes onto my partners cashback credit card and then I pay him what I owe at the end of each month). I have also budgeted for travel, mortgage and general flat payments, payments into an ISA and a savings account plus my PAYG mobile amounts and my one magazine subscription, so I am determined to spend no more than £100 for the rest of the month. I don't have a car or any kids or pets so I don't know where it's going. Actually I do... magazines, shoes, clothes, coffees, the odd bits and pieces that you forget about until you check your bank balance. I am going to start a spending diary at the beginning of June and write down everything I spend.

Anyway, I'm sure I can do this! And I just wanted to say thank you to everyone who posts on here - you've been such a huge help and massive motivation just from reading what you've written. Wish me luck! :rotfl:

Lucy1982_2

Hi Addict

I love shoes to and have really cut down. Well I've not bought any in ages and as I've lost loads of weight most are to big for me now.... The joy on insoles :rotfl:

I have an overdraft as well, I clear it every month but end up in it again due to just living.... very irritating if you ask me. So I have opened an online saving account, with interest paid monthly so that I can transfer £50 into it when I'm paid, leave it there to earn it's interest and then just before payday I'm only to put it back into my current account.

This way I know I am going to be paying a minimum of £50 a month off the overdraft. (around £450 at the moment) Then any other money I have left is a bonus. Would something like this work for you?

Secondly have you done your SoA? There is a sticky thread on the DFW forum which explains how to do this. That way everyone can have a look and suggest areas for you to cut back on. Also check if you are getting the cheapest deals on car insurance etc. I managed to save about £31 a month when I switched mine, I also made £27 on Quidco as I got it through one of their links.

But good luck, I'll pop by every now and then to see how your getting on, by the way diary's are very addictive, I post into mine several times a day .

Enjoy yourself :T

ifstar

Keep a spending diary for at least a month, when you need to fill in what you have spent money on at the end of each day then it let's you reflect on whether it was worthwhile or not. If you are buying the same sort of item again then it will make you think question whether you need it.

Skint_Catt

Thanks ifstar - you just reminded me to do mine!!! :T

shoeaddict

Thanks so much for your replies guys. I've had a good couple of days - have been chained to the desk on a major deadline so haven't spent any cash! Wooh! Packed lunches for work and have managed to stay away from shoe shop-related temptation.

On the down side, I paid in my wages today and I'm still in the red of my overdraft by a couple of hundred quid. Was a bit depressing to see, and I'm wondering how I'm ever going to get out of the O/D.

Did anyone else have a bit of a slump after the initial excitement when you decide to do something with your debt? It's like, now you've started on the road you realise just how long and tough it is. Is that a normal feeling?

OliveOyl_2

It's a bit like losing weight (for me anyway....) Just because you are determined, because this time you really really mean it it should be solved inside 7 days surely?

Sadly it's taken me many years to put this weight on, and even longer to build up this debt.

But THIS time is going to be different, MSE is my very own weightwatchers support group.

In all the forums I have ever been on (including The Archers message board.:o ) I have never known such a friendly, positive, inclusive and supporting bunch of people. It's truly lovely.:beer:

shoeaddict

Thanks OliveOyl, what you say makes perfect sense! I'm going to have to be patient with this one! This site is definitely helping though! :-)

shoeaddict

Woohoo! Well, I haven't paid off any of my debt - yet - but I feel I am managing so much better!

Thanks to some very good advice on here, I have transferred my monster overdraft onto my Virgin credit card (0% until July 2008) and so I am in credit in my bank account for the first time in years. I have reduced my overdraft from £1300 to £100 (for emergencies) although with my new budgeting skills I know I won't need to use it! :T

I have kept a spending diary for the past two weeks, and have stuck religiously to my £20 a week budget. Before, I could have spent three times that on a pair of shoes without a second thought. :rolleyes: But now the thought of spending a large amount of money on anything other than clearing my debts makes me feel :mad:

Me and my OH (who has been wonderfully supportive) have also hugely cut down the amount we've been spending on food and stuff for the flat. We've spent about £70 between us in the last two weeks - before it was about twice that per week - and I did a big online shop yesterday... £75 for three weeks worth of meals and lunches! Woooh! Previously we were spending around £400 a month on food and eating out, so we're doing very well. Both of us have lost a bit of weight too, from not eating takeaways etc. Added bonus! :rotfl:

This weekend is Father's Day and we're going out for lunch with my family. But we've booked a pub, rather than a restaurant, cos it's cheaper and I'll be sticking to soft drinks to keep the cost down. I'm also giving him one of my DVD for his present that I don't want and I know he'll love.. Shhh!

I've also got into snowballing too... I've set aside £250 each month to pay off the debt, which means it should all be gone within 11 months - before the interest free period runs out! Wooh. And obviously any spare money I get will be thrown at the debt. I can't wait for my first statement, so I can pay off the first £250 - already set aside - and get the figure down.

So, although the figure in my sig hasn't come down.... yet.... I am an absolutely different person from who I was this time last month. I think I've actually learnt the value of money, and can't wait to start saving that £250 per month rather than using it to pay off debts. I am feeling very chuffed with myself. Hence the long post! :j

Em1982

Well done, that's great news! :T

Midnight_Sky_2

Hi Shoeaddict, just wanted to say hi and well done for what you've achieved so far.

Don't worry about feeling in a slump - it happens. For me, it normally happens not long after I've paid off a goodish amount to a debt, (normally just after pay day), then I have to wait ages until the next pay day comes round so I can tackle the debts again. How sad is that? Sshh, don't tell anyone! :rotfl:

Well done on tackling your debts, and I look forward to reading your diary.

Midnight x

shoeaddict

Thanks so much for the support you guys! I really appreciate it.

It's time for another woooohooo! as today I have paid the first installment off my debt. That's £250 gone! Updated my sig and felt really good doing it. Also I have reduced my overdraft to £100 but I'm not going to need to use it.

10 months until I'm debt free! Hmm... wonder if I can do it in less?!