Stuck on a merry go round

wiggly

I've been a member here for many years, and yet here I am AGAIN.

So, on the face of it I have enough "spare" money to pay off extra to my debts. So why, please, do I run out every sodding month?

Can someone share with me a really good method of recording everything I spend this month? Everything I've used makes it such a massive task I inevitably give up. When I spend £x at Sainsburys but some was clothes and some food, I never have the receipt to split it out again so I abandon it

I have mounted up, yet again, about £8200 of debt :mad: and I really want to get rid of it.

Is the advice to not save if you have debts? I have a stocks & shares ISA that all I seem to do is take money out to pay off debt (and it's all I've ever done with it).

Just feeling a bit lost and need some guidance really. I don't know what to do for the best. I like having a sum of money I can know is there if I need it, but in reality I just use it to pay off a debt. I don't have a surplus though in reality.

I have a store card (highest interest) which I'm clearing off at the moment (first priority). I then had 2 credit cards which I've just transferred to the lowest % one (£8200) and after that I'm lost.

I never have enough money for things like a car service. Or for any random things but I'm trying. Last year was the first year that I've not put xmas on a credit card so I know I'm making some good changes but I'm just stumped a bit now.

I would like to think about having another child, but right now I can't see how I could build in paying off debts to enable that to happen. My monthly payment to the CC is £220. The store card (next) is a bit unknown as I can never work out their method of statementing online (which I guess is their plan, to confuse!). I only use it in the sale though!

Any suggestions welcome.

FireWyrm

Have a read of this : http://forums.moneysavingexpert.com/showpost.php?p=65079353&postcount=50

Then download this : https://www.dropbox.com/sh/58m07i0jklqny0e/n3c1E0QUVw

Get one of these : http://www.amazon.co.uk/Mini-Spiral-Bound-Jotter-Notepad/dp/B00BJMKOJ0/ref=sr_1_13?ie=UTF8&qid=1395933524&sr=8-13&keywords=small+spiral+bound+notebook

Rule some lines in it and fill it in religiously.

FinanciallyUnsavvy

Some people would advise you to save, but personally I don't think it's the best idea until your debts are gone, or at least very manageable.

The trick is to BUDGET. It's as simple as that. It's hard to begin, I know, but once you crack it - you'll wonder why on earth you never managed it before (I certainly did).

I use YNAB (You Need a Budget - you can download a free trial, google it), but you can do the same kind of budgeting with nothing more than paper and pen if needs be. The idea is to know exactly how much money you have available, and give every penny a job.

So earmark the money you need for bills, for groceries, for card repayments, etc. But also put money aside for the less regular things you know you are going to need, like car services. If you know you have a service in 6 months that's going to cost you £120, then save £20 a month so it's ready for you when the bills comes.

You just have to take control and limit what you have to spend freely.

Honestly, YNAB has worked miracles for me. Before I started using it, it was frequently getting 2 weeks before payday and I'd already be short, and needing to dip into the credit card just to buy food to see me through. Now, payday comes round and I've still got money leftover AND managed to make 2x the payments to my debts that I managed before.

I know it's hard, but it just takes a bit of will power and determination. If you have that, it'll become so easy.

Good luck xx

National_Debtline

Some people would advise you to save, but personally I don't think it's the best idea until your debts are gone, or at least very manageable.

Hello there,

I think this is good advice.

If the interest rates on the debts are higher than the return you are seeing on the ISA, it would make sense to consider clearing as much of the debt as you can.

You creditors may even consider allowing you a discount via something known as a 'full and final settlement'. More info on those via our fact sheet:

https://www.nationaldebtline.org/EW/factsheets/Pages/24%20EW%20Full%20and%20final%20settlement%20offers/Default.aspx

Best wishes,

David @ NDL.

asparagus1968

FireWyrm wrote: »

Have a read of this : http://forums.moneysavingexpert.com/showpost.php?p=65079353&postcount=50

Then download this : https://www.dropbox.com/sh/58m07i0jklqny0e/n3c1E0QUVw

Get one of these : http://www.amazon.co.uk/Mini-Spiral-Bound-Jotter-Notepad/dp/B00BJMKOJ0/ref=sr_1_13?ie=UTF8&qid=1395933524&sr=8-13&keywords=small+spiral+bound+notebook

Rule some lines in it and fill it in religiously.

what about that fab post you did, when you explained "red card" for this, "blue card" for that ."purple card" for the other about your different bank accounts? I loved that post, where is it??

sistafromanothermista

asparagus1968 wrote: »

what about that fab post you did, when you explained "red card" for this, "blue card" for that ."purple card" for the other about your different bank accounts? I loved that post, where is it??

Ooooh what's this??

asparagus1968

sistafromanothermista wrote: »

Ooooh what's this??

I'm hunting now!

wiggly

That YNAB looks great but so sad it doesn't run on other devices than a PC (or mac but I don't have one of those). If it was phone based I would never be without it!

wiggly

God I'm more tired than I thought, I can use it onmy phone. Ignore the above!

wiggly

YNAB installed and set up - it was payday yesterday so the start of my month and I've entered everything in. Thanks! This was just what I was looking for. I've got it on my phone too so no excuse of not being near the notepad/spreadsheet

x

FinanciallyUnsavvy

Very glad to hear it Wiggly. I really do hope you can stick with it and it does help. I honestly don't know how I ever managed to survive without it! x