I've got myself into a MASSIVE debt in 9 months...

weebit

I know... I seriously need a good talking to, I know this. I'm not here looking for advice, just somewhere to get this all in the open.

Our trip to Cape Town started out as a wedding invite from my wife's friend and we decided to use it as an excuse to visit my wife's family. The cheapest flight was via Dubai and so we made the decision to spend a few days there. It all spiraled from there. I'm not trying to justify it, just write down my thought process so that I can prevent it happening again.

I have actually had a salary increase and in this past 12 months I have earned more than I ever have, and my wife is also earning more. It's just that our spending has also increased by a higher rate than our earnings increased. We need to get a grip on this. I've already cancelled some stuff this week to get a grip on our over-spending. Amazon Prime Video is gone, I've recently switch Broadband providers to a cheaper deal. We've got a discount on our Sky Subscription (I can't bring myself to cancel this because I work in TV and need access to the subscription channels), we also have the cheapest gas and electric available.

also, one thing I've forgot to mention, we currently share our housemate's car and pay a bit extra to be on her insurance, but when she moves out, my wife is really wanting to buy our own car. I'm not convinced we need one though. We live in London and public transport is amazing here. It can be more convenient for somethings such as supermarket shops, but I think shopping online is just as simple and prevents overspending on stuff you don't need.

One thing I've started doing in the past couple of months is walking part of the way home from work in order to get a cheaper tube fare. by walking out of zone 1 into zone 2, I pay £1.60 at peak times rather than £3.20. I sometimes get the bus home instead costing £1.45 (at 2014 prices, it'll be more for 2015). Once, I walked all the way home. It took me 2 hours though so I won't be doing that too often!

Basically, this is it. No more frivolous spending. We already have everything we want, we've had some nice holidays and enjoyed a load of gigs and music festivals. Now it's time to pay for the things we've previously enjoyed. I'm considering closing all my credit cards to make them re-payment only to stop me over spending. If the money isn't available to me, then I can't spend it. I've done it to one credit card already so I may as well do it to others too.

robotrobo

weebit wrote: »

I know... I seriously need a good talking to, I know this. I'm not here looking for advice, just somewhere to get this all in the open.

Our trip to Cape Town started out as a wedding invite from my wife's friend and we decided to use it as an excuse to visit my wife's family. The cheapest flight was via Dubai and so we made the decision to spend a few days there. It all spiraled from there. I'm not trying to justify it, just write down my thought process so that I can prevent it happening again.

I have actually had a salary increase and in this past 12 months I have earned more than I ever have, and my wife is also earning more. It's just that our spending has also increased by a higher rate than our earnings increased. We need to get a grip on this. I've already cancelled some stuff this week to get a grip on our over-spending. Amazon Prime Video is gone, I've recently switch Broadband providers to a cheaper deal. We've got a discount on our Sky Subscription (I can't bring myself to cancel this because I work in TV and need access to the subscription channels), we also have the cheapest gas and electric available.

also, one thing I've forgot to mention, we currently share our housemate's car and pay a bit extra to be on her insurance, but when she moves out, my wife is really wanting to buy our own car. I'm not convinced we need one though. We live in London and public transport is amazing here. It can be more convenient for somethings such as supermarket shops, but I think shopping online is just as simple and prevents overspending on stuff you don't need.

One thing I've started doing in the past couple of months is walking part of the way home from work in order to get a cheaper tube fare. by walking out of zone 1 into zone 2, I pay £1.60 at peak times rather than £3.20. I sometimes get the bus home instead costing £1.45 (at 2014 prices, it'll be more for 2015). Once, I walked all the way home. It took me 2 hours though so I won't be doing that too often!

Basically, this is it. No more frivolous spending. We already have everything we want, we've had some nice holidays and enjoyed a load of gigs and music festivals. Now it's time to pay for the things we've previously enjoyed. I'm considering closing all my credit cards to make them re-payment only to stop me over spending. If the money isn't available to me, then I can't spend it. I've done it to one credit card already so I may as well do it to others too.

Well I've met people & even helped them out on the odd occasion , but this is beyond a joke & I'm not convinced that this is not just a whined up, if that was me I would want the phone no for the Samaritans, still you keep saying your not after advice!,I'm just so glad the way I've been all my life & only had what we can afford , but I do wish you good luck for the future

peaceandfreedom

weebit wrote: »

After the wedding, we had increased our debt to an eye-watering £51,800! I just can't believe I took my eye off the ball so much that it spiraled this high.

I can - because you've said nothing so far in this thread that leads me to believe you've had your light-bulb moment.

You like to sit down, create fancy spreadsheets and detailed plans for paying off your debt but you are not actually prepared to DO anything concrete about it.

In a later post, you talk about saving 1.60 off your tube fare - which would be admirable if you weren't spending thousands on holidays.

Somehow I suspect your wife will buy her car. And I think you are going to end up bankrupt or on a DMP.

I have a little bit of sympathy because I used to hoodwink myself in the same way (all mouth and no trousers when it came to tackling my over-spending). But (if this thread is not a wind-up) you really need to get a grip before it's too late.

MrWillyWonka

Didn't you say you were expecting an inheritance from your wife's grandad and that would be used for a house deposit? As I understand it, he has died. Did an inheritance come out of this? This would be a good way to clear the debt.

FireWyrm

MrWillyWonka wrote: »

Didn't you say you were expecting an inheritance from your wife's grandad and that would be used for a house deposit? As I understand it, he has died. Did an inheritance come out of this? This would be a good way to clear the debt.

Didnt weebit say that this inheritance was £550 and that they are using this in South Africa?

MrWillyWonka

Thanks FireWyrm for positing this out.

weebit wrote: »

We're also planning on getting a mortgage eventually (after all the debt is gone). And not trying to be morbid, but my wife's grandad won't be around for long (probably another couple of years) and she is expecting an inheritance from him which would contribute towards our deposit.

weebit wrote: »

We won't need any spending money for Cape Town because my wife's mum is giving us 10,000 Rand (Apx. £550) from her inheritance from my wife's grandad.

I think you need to stop lying to yourself that all will be ok...

First you say you expect an inheritance which will go towards a house deposit but £500 isn't been worth mentioning and I think you were expecting something substantial, unless this is only part of the inheritance? This could have gone towards debt and at this rate I can't see how you are sustaining minimum payments.

Fletchasketch

also, one thing I've forgot to mention, we currently share our housemate's car and pay a bit extra to be on her insurance, but when she moves out, my wife is really wanting to buy our own car. I'm not convinced we need one though. We live in London and public transport is amazing here. It can be more convenient for somethings such as supermarket shops, but I think shopping online is just as simple and prevents overspending on stuff you don't [/QUOTE]

This is insane! I know sometimes people on hear can be a bit judgemental, and I usually have sympathy for those in debt. I earn twice as much as you, have a 5000 debt and am going without holidays, etc in order to pay it. I also live in London and sold my car, not because I couldn't afford it, but because it was a waste of money and it helped pay the debt down more quickly.

Seriously, you've had some good advice on here, now please please listen to it.

weebit

you know what? I am delusional. I've been funding my life by credit for many years. The last time i was "debt-free" was April 2002. I only know this because of my insistence on keeping records for everything. I'm tired of being in debt and I know i've been crazy with money this past few years, but i am going to do something about it. i've decided that i'm going to close many of my credit cards to stop the temptation to spend on them. If there is no "available balance", then i can't spend it. simple as that. I've already ear-marked 3 cards I can close straight away (Barclaycard, Bank of Scotland and Natwest) and make them repayment only. 2 more cards I can close after my holiday (they were used to pay for things such as car rental and tickets etc. and we need to present the card to collect them, therefore i need to keep them open for the time being). I WILL close them in February when I return. My wife also has 2 cards we could close also straight away.

I think this is a good start. I've realised now that I see the balance reducing on one card and see there is £250 available to spend, so i think "what can I buy with that", rather than "awesome, look at it reducing" like I should do.

koloko

Don't go on this holiday.

Or the next one.

Armorica

If you live in London and have no children or dogs/horses, you definitely do NOT need a car. Public transport is fine; get shopping delivered (especially at unusual hours this will be free). Hire a car for a weekend if you really must.

From your previous posts, you seem to be ok at watching the ‘pennies’ (utility bills, travel costs etc.) but not at the ‘pounds’ (flights, holidays, cars etc.). That has to change (and for your wife).

You arguably need a lodger, or to downsize into a smaller flat.