Debt free at 40! 3 years to go.

katniseverdeen

I have posted on here before a few years ago but things have really got worse over the last few years. Debt, bills, more debt etc. I now work more hours and earn more than before but have less. About 6 months ago my OH and I decided to go for it and get rid by our 40th birthdays (only a week apart). This challenge really hit home when in January we applied for another loan to accumulate credit cards and was refused.

Our current outstanding debt is £33.807.05.

I can't believe its amounted to this much and how out of hand it has become.

My OH wages pay for our bills for our home and all payments for debt. (employed on salary) My wages pay for everything else except I pay for my own mobile bill. (self employed.. always different amounts every week).

We are determined to get rid of this debt as we are good earners and it would be nice to have a normal life.

Our process at the moment is to snowball. We have just finished a payment for a TV and finished a mobile contract. By the end of July we will have 2 more loans paid of. This is the point where life can be easier or we can hit this 3 year target.

I have to say I feel like I carry this debt around with me on my shoulders every day. I lie awake at night and feel it sat on me as I toss and turn unable to sleep. I hate it! I have never told anyone about our debt, friends, family no one! So therefore we are constantly told about the great life they all live, holidays, cars etc... and expect us to keep up. I feel ashamed that I have this problem as I only have myself to blame.

I will add more detailed information soon.

Dobbibill

Welcome to the forum and good luck on your journey :wave:


You've taken the first step by acknowledging the debt and posting on here so well done, even in the steps you've taken since your LBM and today the figures speak volumes.


Snowballing is definitely the way to go, I'll be subscribing to follow your success.


Keep up the good work that you've started.


DB

katniseverdeen

Thanks Dobbibill. My OH must have set up the signature and I didn't realise how much we had paid off since November. Its great reading about other people's achievements and I will be visiting this site regularly.

Seanymph

Thank you for posting.

I'm afraid I'm a lurker really - although I keep thinking about posting....

So I gain from everyone sharing their stories.

shinner

You have done amazing since November well done keep it up. Try and find someone to confide in I slept better once I spoke to others you will be surprised how many people are on debt. I learnt a lot when I first confided in a friend.

Dobbibill

katniseverdeen wrote: »

Thanks Dobbibill. My OH must have set up the signature and I didn't realise how much we had paid off since November. Its great reading about other people's achievements and I will be visiting this site regularly.

I find a signature really keeps things focused along with reading other peoples success stories :money: well done to OH with the signature too




keep posting and keep up the good work, you are doing fantastic :T

katniseverdeen

Pay day was Friday (20th). I am employed but I only get paid for hours worked. Due to all the bank holidays during May this meant it wasn't the best pay. But.. I MUST manage this money for the month. I also get paid via invoices and cash from private work but again this is a very uncertain amount so I can't rely on weekly amounts of money. We are going camping next weekend and never been before so I am hoping our friends can educate us with a more cheaper way of recreation.


My parents and in laws have become suspicious that we have no money and they are becoming very generous. My mum nearly emptied her food and freezer into bags for me. With a bit of prompting from my OH, My inlaws have turned up with clothes for our kids (2 next outfits!)


I wonder if we perhaps are being too aggressive with paying off debt and it provides no room for movement. I would hate to imagine if the car broke or we had a big problem to pay for.


Our current goals are looking at our TV subscription in September when our contract expires. We went from SKY a few years ago to VIRGIN mostly because it was cheaper and we wanted faster broadband. We are paying about £70+ a month for everything. We are now thinking we might stop virgin TV and Phone and keep the broadband. Lots of people we talk to have NOW TV.


I notice lots of people spend very little on food. I have tried a few shops with Lidl and Aldi, some things we liked some we hated! I don't have a lot of time to spend shopping so this can be difficult and I always have shopping delivered between school runs and work.


If anyone is wondering I am a fitness trainer. So my hours can be 1 or 2 together but lots of driving (FUEL!!!!) and energy (FOOD!) is required. The industry changes a lot and I can spend a fortune on training for new things. (you've heard of them all... Zumba, metafit, etc..). This year I wanted a higher qualification to do personal training but need to find the £1,200 to qualify. I teach for various gyms and I also teach my own classes. As people have less money, so do I. My own business has suffered due to an change in location and I lost lots of loyal customers I had built up over about 3 years.


Thanks for your comments and I will try to keep updating the diary! Not sure who I con confide in. Feel like I will be judged as we did have a flashly lifestyle.

katniseverdeen

AND! made £43.13 on ebay of kids clothes.

Dobbibill

katniseverdeen wrote: »

My parents and in laws have become suspicious that we have no money and they are becoming very generous. My mum nearly emptied her food and freezer into bags for me. With a bit of prompting from my OH, My inlaws have turned up with clothes for our kids (2 next outfits!)




I wonder if we perhaps are being too aggressive with paying off debt and it provides no room for movement. I would hate to imagine if the car broke or we had a big problem to pay for.


Our current goals are looking at our TV subscription in September when our contract expires. We went from SKY a few years ago to VIRGIN mostly because it was cheaper and we wanted faster broadband. We are paying about £70+ a month for everything. We are now thinking we might stop virgin TV and Phone and keep the broadband. Lots of people we talk to have NOW TV.



I notice lots of people spend very little on food. I have tried a few shops with Lidl and Aldi, some things we liked some we hated! I don't have a lot of time to spend shopping so this can be difficult and I always have shopping delivered between school runs and work.



Thanks for your comments and I will try to keep updating the diary! Not sure who I con confide in. Feel like I will be judged as we did have a flashly lifestyle.

Just going to address each paragraph:




Don't look a gift horse in the mouth, this is what family is for, they would be so proud of you if they knew the mountain you are climbing:money:


Make sure you get a healthy balance, an emergency fund/pot is always a good idea for little hurdles such as car/boiler etc. If you take smaller steps it doesn't cut your journey short, you will still get to the destination, you just may need to take a slightly more scenic route along the way:A


Again, little steps which are timely and effective. Diarise this for September





My OH is not a fan of some of the food at our local Lldl so I totally get what you're saying here so I shop online for delivery (this stops unwanted/unnecessary purchases), I always opt for an obscure time delivery so it is really cheap but watching the subtotal tally before ordering helps me keep focus and within my set budget. Shaving off a little from the bill each time is better than wasting food you do not like/eat




No-one on here will judge you. We have all made mistakes along the way. It's all about how we deal with things post LBM. You are doing fantastically, be proud of yourself and what you've achieved so far. :T


DB

katniseverdeen

Thank you Dobbibill for all you comments. All positive!


So far we have just made the last payment of a 5 year loan which was originally £19,000 so that's finished and ended!


We have also been away this weekend camping with our friends. Our very wealthy friends who have introduced us to the more cheap way of holiday's. (Wealthy and very sensible friends who we have learnt from already).


We are now considering booking a holiday in August but will need it to be very cheap. I love the idea of camping but we would need to invest money in a tent etc. Perhaps a caravan holiday would be better until we can buy the equipment for camping.


I am looking at posting video's on youtube so I can maybe make money from this. Its a brave step at the moment as I will need the confidence to post.


I have also had an offer of more work so another regular class has been added to my schedule.


My husband is employed on a salary so any extra work he does or trips away abroad which is regular at the moment is not paid as overtime, just necessary work. His salary is modest. But, he covered 2 weekends of call outs due to staff holidays and sickness and he was called out for a few hours on both weekends. After speaking to his boss he will be paid for this as extra! This extra money is either going to be used for an outstanding NEXT bill or for our holiday.


Lifestyle habits are changing rapidly. We last went to starbucks in May so now over a month (this is amazing for me!). I have only bought 1 magazine (because I was away camping and it was £1) in the last 2 months. I am changing the various brands I use for skincare, makeup etc to cheaper brands as they soon run out and I can longer justify the costs. I also cut my sons hair which I said I would never do! Its ok!!! My OH wasn't so pleased. Gives me a few weeks before I need to pay a hairdresser.


Still very positive about our situation. When I am with friends who work hard and have good jobs but are sensible and financially secure, I realise we need to grow up and take account of our actions.

katniseverdeen

Today I went to the shops. It was because I had to run an errand for a family member and I took my daughter to a large shopping centre. Not a good place for me to be. It brings back many memories of spending time with my beloved Barclaycard. But, I went and spent time with my daughter.


It went well. I took along a costa coffee card that had a free coffee on it. Costa wouldn't accept it. I went to starbucks. I had a treat and my daughter enjoyed a kids hot chocolate. It was the only thing I bought that was a treat and unnecessary.


My daughter bought something from build a bear and I explained she had some money to spend but that was it. We also popped into Claire's and she saw loom bands. £5 a packet!! I said no and we then went to a toy shop and they were £1!


I also popped into bodycare for the first time. I needed shampoo, shaving foam and some facial scrub. I got all items so cheap, I spent £4 altogether.


Its not easy and I really struggle. I looked at clothes, makeup and useless things that before I would have bought because I deserved them for working so hard. Now I am working so hard to pay for them. When I said no in my mind to one thing, it became easier. I must admit I am a snob and I frown on certain shops but now I am actually going to have a look. I found a great shoe shop (can't remember the name but its a high street shop) and my daughter bought some sandles for £1.99. They had school shoes for both children for only £14.99. I took some pictures to show my OH. I have always bought Clarkes shoes and I might regret buying cheaper shoes but having a spare £80 around isn't likely at the moment. I avoided Karen Millen. I left my NEXT card at home, even though I checked my purse 3 times whilst I was shopping incase it might have landed back in it?! That saved me money straight away.


I am looking forward to the months ahead and calculating what I will have as an income and what I will need to buy... school shoes, school uniforms etc. and budgeting for them. As long as my family have a home and food I will get through and be happy. I am desperate for a haircut though!


We have also booked a holiday! Yes I can't believe it. We may have to borrow the money from family until husband gets paid. We have found a caravan for £250 for a week. I have Tesco clubcard vouchers that can pay for trips and maybe a meal out whilst we are there. We have also been GIVEN a tent and equipment. So I am looking forward to great weekends away much more cheaply.


I had to give up some work this week which would be ending anyway but it was making very unhappy. I started my new work also this week which went well. I have 3 extra classes to cover which will be paid to me in August so it will help with buying kids uniforms.


I am going to log back onto groupon/living social to see if I can get some trips and days out for our holiday.


Getting there and learning along the way.


Starbucks was amazing!