Not a LBM but awareness of heading towards debt crisis

themarsbargirl

18months ago I made the decision to buy a static caravan and live in it for 9years and save a deposit to buy a house. Somehow I've got myself deeper and deeper into debt, periodically relying on payday loans to bridge the gaps in my budget.
I don't think I've had my LBM yet, but I know I will hit debt crisis in 2014 if I don't do something about my debt now. I struggle with the financial world as I feel I don't quite understand how it works.
My Debts-
Ladder Loans-500
Credit Card-3550
Overdraft-900
Dad (capital to buy caravan)-8000
I'm waiting for a capital one credit card to arrive with a 0% rate until may 2014, i plan to put all the spending I can on that and siphon the cash to the ladder loan and then balance transfer what I can of my cc to that until may so I can lower the interest and pay off more capital. Notsure what the credit limit on the cap1 card will be yet though.

My goal for 2014 is to reduce my unsecured debt by 1000-this doesn't include Dad as his debt is treated as a mortgage by me.

Piquant_2

Hello and welcome to the diary board! It can be done with a lot of determination, but that lightbulb does have to be on, not flickering! Good luck in the new year.

Eyes_wide_open

I wasn't at rock bottom when I had my lbm but could see what the future held if I didn't do something.

You still have scope for getting out of your situation however having the relaxed attitude could also lead you to think - oh I'll sort it out tomorrow. If tomorrow never comes your lbm may be at a time when your situation is dire.

I hope your lbm comes sooner and you see that life can be so much fuller when you're not having to think / worry about pdls, interest juggling ( except for saving rates) and owing money to family.

Good luck with your goals xx

Eyes_wide_open

Btw have you considered doing an soa - lots of incredibly helpful people who could assist with your budgeting x

themarsbargirl

Thanks guys, Eyes Wide Open I have considered an SOA but can't/won't post one just yet for 2 reasons-1 I don't have a computer at home and it doesn't work on my mobile and 2 I doubt I'd be able to do a true SOA, it would be figures of what I'd like them to be.
Ironically trying to live frugally is probably one of the reasons I'm in this mess, I struggle to pass up a bargain and my food hoarding tendancies don't help. I did a freezer inventory tonight to meal plan for january andalmost all my meals except for pizza are from previous batch cooking exercises.
Another dangerzone for me is washing up/housework. I can't describe how much money I have wasted on convenience food just because I couldn't be arsed to wash up! I am brilliant at cooking from scratch and feeding myself on very little money if I just keep up with the dayum dishes.

R.E shuffling cards for rates, is it best to apply for a new 0% card before or after cancelling the cap1 card?

themarsbargirl

Had a nice lazy morning in bed, lovely treat! Weighed myself this morning - 13 st 6lb. Not planning on actively losing weight as I think I'd struggle to both concentrate on weight loss and money saving, but I do want to track my weight, while no more yummy sugary things are being bought this month I do have plenty left from xmas!
Right I need to-
Check online banking
Go to sainsbugs and buy water, kitchen towel, baccy/filters/papers an fuel and NOTHING ELSE.
Washing up
1 Hour of housework in 4x15 min chunks
Take all rubbish to communal skip
Eat from meal plan.

themarsbargirl

My bank card declined when i tried to withdraw cash for january's envelopes, as i'd checked the money was in the account before going out it is a MAJOR grrr!double grrr for being new years day so i have to wait till tmrw until i can talk to my bank and sort it out.
Only managed 15mins housework...but have eaten from the meal plan!
Tomorrow will be better!

Piquant_2

Tomorrow will be better. There are always setbacks. It's how you deal with them that count!

themarsbargirl

Thanks Piq!
Todays plan of action-
1. Check online banking
2. Call 2nd hand bookshop to find out if they are buying today
3. Sort out books
4. Sell books
5. Pop into bank and find out why my card is declining
6. 15minwashing up
7. 15min housework
8. take rubbish to the skip-i have no excuse as it's not raining!

themarsbargirl

So, yesterday I found out that the reason my bank card declined was because the bank had reduced my overdraft to 500. So that was me hitting debt crisis. Fortunately my dad was able to help me out and gave me 400 putting me back to the point I thought it was. Dad offered to clear the whole overdraft but I turned him down, tempting as that would have been.
So I've realised that I am slowly drowning and going under. My overdradft is now priority once ladder loans are cleared.
SFD today.
Oh, and I made 15 selling my books, will be going towards ladder loans!

debtfreeoneday

Hi - just popping in here, well done for taking control of the finances.. you are doing great just by doing this diary and tracking your money.

I too am not a fan of housework, but just put some load music on and get moving, find it helps with the weight loss as well sometimes as I hate exercise as well! :-)