Starting over again- Take 2

Shelbi

Hi MSE world, I’ve been MIA for so long I don’t even know where to start…I didn’t hit my target (to be financially free by 31.12.2013) in fact I went in the opposite direction, by November I got my debt down to 3k I could almost see the light…then I got hit with a further debt of £21600 odd….cue panic despair, panic, self-loathing and general attitude of sod this (reckless behaviour) which meant further abuse on my credit cards….the result an increased debt figure of a whopping cc1 £2456.77 cc2 £5865.00 and a fixed settlement of £21615.00 total debt owed £29,936.77:eek:…even just looking at this makes me want to go out and try and forget my troubles…talk about from the frying pan into the fire. I can make jokes now but the last few months have been challenging I can tell you.
Some saving graces are I’m ready to deal with this head on now I can’t keep putting it off and chances are no one is going to save me, so this is me announcing to the world (MSE one) that yes I’m in trouble but I’m going to dig myself out of it again once and for all. So things working in my favor are all my debts are at 0% at the moment cc2 is good till Dec14 and cc1 jul14 (I think) I know I’m not getting charged interest this month and will keep checking to be sure. The 21k if fixed and am paying off over 4 years. I won’t be doing this for that long the idea I have is to keep paying the instalments as agreed whilst putting any other surplus income into a savings account this way it can earn interest and when I have a decent amount I can approach my creditor and see if they will be able to settle for this sum and write off the rest, failing that at least these savings are growing quicker, 6% &1.75% rather than 0% so it’s helping me pay off my debt a little in the savings pot I have
£4000 odd which can also be used to offset the cards as they come out of term. I know my logic is strange but bare with me. I’ve never been good with not having a safety net just in case and I genuinely feel better knowing I have access to funds just in case. Wow this is even worse when I have it written out in front of me…so anyway this is my confession and now I’m back to try sort this out once and for all…take two!! Wish me luck, I’m going to need it!!...x

The Action plan-
To do as many challenges as I can and most of all cut back and spend less where ever possible, back on the bike and when I do cycle to pay the daily amount of travel I would have used to my card. Keep paying the minimum payments on my credit cards along with a payment a day using the virtual money pot idea, any additional income and what’s left in the bank. As many NSD as I can muster…general frugal living. I need to do a statement of affairs and sort out a proper plan but I guess first step DFW road to rehab is showing up and putting myself out here!! So here I am again…ready for battle x

Shelbi

Just working on my SOA and looking through debts, income & outgoings..found that because of payments made Dec- Mar (monthly payment £450.25) Debt 3 is actually £19811..ok so its still colosal but hey its smaller than I thought, so can update signature and feel a little better.Virtual sealed pot payment made to cc1- of 70p, tiny but an offering...Okies off again to finish SOA and a general budget for the year...will post later once i've sorted it...enjoy the sun everyone x

Shelbi

Day 2 of Take Two- Good start to the day paid over my ebay proceeds, so thats £31.22 to cc1. looking to have a spend free day... Actually am hoping to make it to the weekend so 5 days with my purse strings held tight...maybe slightly optimistic but im game...fingers crossed!! Hope your all enjoying the sun x

Shelbi

Day 3 of Take Two- Awoke and made a payment of £132 to cc1. aim for the day, to not spend anything. cycle into work, make lunch. and spend time thinking of ways to boost my income...Pay day isnt for another week or so..hmm too far away. Have a happy Tuesday everyone x

Shelbi

Day 5- made payment to cc1 of £3.04 & another £1...nsd went well aside for top up of my oyster, needed to venture into the city and a £1 to man who asked me for change...beautiful day so ill take my bike..once I get back the train fare saved is going to the cc. Lunch made, motivation on....lets go...have a fun and frugal day mse's x

Shelbi

belated happy financial new year everyone!! Ive been MIA again but opened my post and had the shock of my life...the dreaded annual credit card statement...well not so much dreaded but was a real eye opener. So whilst reading to check if my NW cc is still interest free i found the annual breakdown for the year, guess its the credits cards version of p60. Have never notice this before...the scary thing was the statement ssaid that my expenditure for the year was 18k which means ive squandered 18k and paid off 16 k with out even realising it. in addition to my debts, I do use it to pay my rent to build up points but that only counts for about 9k where did the rest come from...i guess thats just living expenses but way too high. So today i am enbracing the MSE ways. If I can pay back 16k and not even realise

Shelbi

opps hit send..if i can pay back 16k and not realise then i can dig myself out of this mess easily and much quicker than i think. SO it begins. I need to watch my frittering money more carefully thats for sure. so MSE things to do today. Cycle in, make lunch, bank cheque £32 and £20. pay to cc. so far this month have paid £530 to debt monster. Need to work out remaining outgoings for this month and see what else i can send there. This month ive been frivolous I need to take control. Have a parking fine refund pending so that will be nice. oh and all credit cards will be left at home, today is a no spend day. From now on I use cash, at lest then i can track it and will be less likely to use it...18k on what? I think this is another light bulb moment ...aka kick up the pants...have a fab and frugal day guys x

Shelbi

Happy Good Friday folks...updates as to whats happened past week or so, Peddle fell of bike, need to get that fixed extra £3.20 to get to work was lovely to read on the train though. Car MOT & serviced for £150 (very happy with this) got a family discount (not family)...bless my mechanic, very nice man hope his blessed with lots of business. need to pay balance for my Thailand trip (been & gone) & for my bestie hen weekend (in the summer), guess ill do that next pay day. Paid my share of solicitor fee so hopefully will have my name off of my mortgage. To say ive lost patience is an understatement, but lets not go there. Having a girls night in tonight, cheaper than clubbing this bank holiday weekend & just as much fun. Email from Qu$co to say that payment pending £8.00 very nice. Need to head to the bank & bank some cash received. need to pay rent. payment to credit card made of £65 this morning. Waiting on payday to see whats left in my accounts to chomp into the credit card. have to admit haven't really used a budget this month so have lost track. Looking forward to a cash injection...Am feeling really optimistic recently and happy. feel everything is moving in the right direction at least. right off to bank and quick food shop...hope you all have a fab day x

Debsnewbudget

Well done Shelbi.
Just keep on going and you will get there....
Not to sure about you going to the bank on a bank holiday though :rotfl:
I have subscribed and will keep watching your progress

Shelbi

Hi Debsnewbudget,Thank you....ah yeah sadly didnt realise till I got there:o (silly me) now to shop with £90 burning a hole in my pocket eek...am resolved to nab only a bottle of vino & a snack offering for tonight..have a good day hun x:beer:

Shelbi

Afternoon...Totals updated this month...really not lookng as good as I would like, still didnt get my peddle fixed so was train today, meeting a friend in town so will be train tomorrow. I really need to get a handle on this..Had a spendy day- oyster top up, flowers, lunch, breakfast...not MSE at all:eek: . I really do need to get a handle on this and I want that debt gone preferably by the end of this year but as thats unlikely I can at least put a little dent in it! actually make that a big dent. Time to get serious again and see this through. worked out £472.88 in my account, need to reimburse work £212odd but the rest I will endavour to save & throw on CC1. small but itll help. My goal is to clear this once and for all...excited for the weekend payday so I can throw somemore on getting financially free again...gonna be a rough few months ahead...frugal hat on purse stings tightened (lord help me & my spendy ways)...off to do a budget will post later..happy Tuesday everyone x