Looking for the light switch!

jaffacakegal

Hi,

Second time at trying a diary, I went a bit AWOL last time, hence the further increase in debt

As the title suggests, I'm not quite sure I've had my LBM. I know that I need to make changes but I don't feel quite willing to change my lifestyle especially when it doesn't feel extravagent anyway!

Hopefully, if I can keep up to date on this, some kind MSEs will give me the big kick up the bum that I need

At a glance, my current debts are:

Halifax OD: £600 (0% until Dec)
Natwest OD: £400 (with fees about to rocket next week )
Halifax CC: £700 (I pay this off every month but I've maxed out this month so won't be able to cover this and the Natwest)
Friend: £2500 (no interest but want to get rid asap)
HMRC: £700 (gave me a rebate I wasn't entitled to and I know they will want it back shortly - currently ensuring my Natwest isn't even worse off!)

I know I need to do an SOA. I know bits I can cut out, or cut down, it's just being motivated to do it!

At the moment I have decided my best, and safest, option, is to get a Zopa loan. The repayments are manageable (if I cut back!).

If anyone has any other suggestions, would be welcome. Or if you have a foot to swing my way feel free :cool:

JCG

Cornucopia

The motivation is this:-

1. You will feel better if you are not juggling debts against each other.

2. Your income will go further (possibly by as much as a third) if you are not constantly cycling it through debt.

RosiePuddingPaws

Sorry to hear you're struggling. Just remember that Martin does not recommend transferring debt to a loan unless you are sure that you are not going to build the debt up again. Only you can know if you will make the necessary cut backs in your lifestyle to pay the loan. I would hate for things to get worse for you if you are not sure you will be able to achieve the changes you need.

RPP

Mockingjay

I'd avoid a loan personally. Having debts all over place isn't ideal but paying them off will hopefully give you extra motivation.

Have you tried snowballing?

Cornucopia

The OP is probably snowballing-resistant because they want to pay off the large amount to the friend first.

I would ask the friend how long, realistically, they would let the OP hold on to the loan. Then snowball the rest, closing cards and accounts as they are cleared.

jaffacakegal

hi,

thanks for the responses!

I know a loan isn't the best idea, in terms of cutting the amount of interest I will be charged, however it's seeming like the safest option for me. I think if I had to be disciplined in transferring money to the debts I might not do it.

The other option I thought was a 0% credit card, but most of my debts are in overdrafts so didn't think a balance transfer was possible?

Is snowballing just paying off the highest interest ones first? That would be hammering the Natwest one then!

Taken little steps to changing my mindset, cancelled the fat fighters membership (never followed anyway so £5 a week to stand on scales and feel bad about my failure ) and planning on cancelling my aqua card - which I was only using as a last resort when Halifax maxed out.

Cornucopia - I currently pay my friend £50 a month. She hasn't asked for the money back, and has even in the past said she will write it off. But I couldn't do that, and the friendship isn't the best at the moment so I would rather not having it hanging over me. Also the rates on the loans were cheaper for £5k which would clear everything, rather than less then still continuing the monthly payment to her.

Going to look into my budget tonight and start to seriously look at cut backs and what I can do! I will not be defeated!!

JCG

Cornucopia

Yes, snowballing is paying the debts off in sequence - starting with the one that costs the most (in interest/monthly payment terms).

The advantage is that as each debt is eliminated, more money is released to pay off faster.

jaffacakegal

Right, so I've decided for the time being to see how I get on without having to resort to a loan.

I did a quick budget for the 4 weeks from payday (next Thurs) and I had an overspend of £50 from what I will be paid so definitely need to be more strict with myself. This one was what I would LIKE to spend (i.e. including a medium-large alcohol budget!)

Luckily I will be getting some birthday money this month which will also help a lot, but with a wedding, hen do, spa day (bought by someone for my birthday but I'm bound to need to spend money!) and a visit to family 200 miles away (petrol costs :mad:) most of this will be taken up!

JCG

Cornucopia

Don't worry too much about exceptional events - especially if being frugal might spoil the occasion.

What you're looking for a is a realistic budget for the typical month, one that you are comfortable with, which works to address the issues.

To re-iterate what's been said above. There is nothing wrong with getting a loan. However, your overall position is within what could be resolved without one. The downside of a loan is that you may still find yourself with debt building on CCs/Overdrafts alongside your loan, unless you budget effectively.

jaffacakegal

Thanks Cornucopia

I've always tried to not think about the money issues when I am invited to places - I figure that if I am making a genuine effort to cut back, there are more mundane areas of my life that I could start off with!

Such as FOOD! I spend soooo much on food! Should make a list, go and look on the old-style money saving board... still doesn't stop me! I love meals out, if I could I would go out twice a week or more! As it is, in a usual month I probably go out once.

But it's the shopping that gets me. I'm on my own, with just a cat, but I can spend £60-£90 on a shopping trip in the supermarket to be fair this lasts a couple of weeks or more. I think I just HATE food shopping cos of all the temptation, so I avoid it for ages, then go and totally stock up, eat well for a week (cos all the food is going out of date and needs eating up) then eat frozen/dried stuff for a few weeks.

JCG

Cornucopia

If you went to Lidl/Aldi, you should be able to eat very well (loads of fresh fruit & veg) for £20-25 per week (not including the cat - but they sell pet food, too).