where to cut?

litespend

@pjread & @domino: yes the debt has increased this year, for no apparent reason, no major stuff purchased. It was on a Tesco 0% purchases last year, that's when it was increasing, and I've just transfered it to MBNA 0% balance transfers and closed the Tesco card. The idea was to pay it all back and not to have to do the transfer but I wasn't disciplined enough. I will pay some of it using the yearly bonus (unfortunately we're only getting 40% of it) but I was really hoping to go on a holiday with the bonus money, which won't happen. Partly this is where the frustration is coming from, realizing that I'm unable to manage my money.

@atlantis187: yes that's the one that I have Barclays Current account plus and I think it's a good deal, it also comes with a £300 interest free overdraft.

I've started the spend diary but I don't think I can go back so I'll just focus on everything from now.

Thanks everyone for the answers!

marathonic

litespend wrote: »

yes the debt has increased this year, for no apparent reason, no major stuff purchased.

The large expenses, such as your plumber bill, are not what tends to get most people into debt. It's usually the small purchases that mount up. You need a full SOA if you are working out that you've 500 left over after the major expenses every month and are still overspending and racking up debt.

eskbanker

litespend wrote: »

@pjread & @domino: yes the debt has increased this year, for no apparent reason, no major stuff purchased. It was on a Tesco 0% purchases last year, that's when it was increasing

[...]

I've started the spend diary but I don't think I can go back so I'll just focus on everything from now

Surely if the increase arises from spend on a card over the last year or two, you should be able to track it all exactly from the statements?

getmore4less

litespend wrote: »

I've started the spend diary but I don't think I can go back so I'll just focus on everything from now.

Why not you need to understand where the problem is not be in denial.

its not that much data and it will give you good base line for a budget

As has been said it won't be big things it will be lots of liitle thing on top of what you allready have accounted for.

Once you go though all the card transactions you will be left to think about the where all the cash went , do you know how much cash you used in 2013 so far?

pjread

[QUOTE=litespend;[URL="tel:63778037"]63778037[/URL]]@pjread & @domino: yes the debt has increased this year, for no apparent reason, no major stuff purchased. [/QUOTE]

I think in reality you need to write off the holiday you were after, at least until you can maintain a positive cash flow. Pretty much everything you listed looks more or less fine for the income level to me, so - and don't take this as a 'jab' at all - obviously it's being "wasted" elsewhere otherwise you'd be £500 up a month. Some of that isn't waste, but some probably is easily avoidable.

Presumably you were quite financially disciplined to build the deposit to buy your flat? Is it just a temptation thing because you know the cc will just let you spend what you like? If so freeze the card (either literally, or bury under a floorboard, or something that'll stop you using it!)

If it's any consolation, I've had 2 holidays in 10 years... Pop to chessington with the little one and buy a lot of icecream for a week, it'll cost a lot less long term (or at least hop on hotukdeals and see if there are any good/cheap holiday deals) Just make sure the cashflow supports whatever you do.

As Mr Micawber says in David Copperfield;

"Annual income twenty pounds, annual expenditure nineteen pounds nineteen shillings and six pence, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery"