Confessions

in Debt Free Diaries
8 replies 1.1K views
Hi All,

First a little about me. I'm a woman in my mid 20's, on a less than desirable wage, spending money like it grows on trees.

I'm facing some hard facts, and sharing them with you is my first step in conquering some nasty habits of mine.

I first joined MSE around a year ago. I was amazing with money because I had such a demanding job that there was no time to spend. I thought handling money was easy (my first mistake).

In December 2013 I used my savings for a deposit on a home. This is where it all goes down hill. I had absolutely no idea how much living on my own cost. Council tax, Water, Maintenance.

Before this big purchase, if I wanted to splurge £100 or more, it didn't really affect my savings. These splurges were my way of dealing with stress. A middle finger, if you like. But that doesn't cut it when you have bills coming out of your ears. The stress of maintaining a home, getting a new job, my car dying on me, has resulted in many of these spending sprees. Amazon is my Achilles heel :cry:

My new job means I work from home, meaning procrastination leads to online shopping. "Oh my dog looks soooo bored. I feel soooo guilty keeping him cooped up while I work. Let me order him his favourite treat, an antler (£12)".

So in an overview, my debt is:
£500 Argos Card (0% till January '14).
£1,000 Sofa's (0% till June '17).
£1,500 CC (I'm in denial, I refuse to look at the interest rate).

Total debt: £3,000.

Now this may not seem like a lot, but every month I'm going into my OD by £400, while I wait for my work expenses to be paid in (petrol).

The most worrying part is my mortgage renewal. I had to fight tooth and nail to get my mortgage. This is because of my naivety in thinking I could battle with a phone company a couple of years ago. I had a few missed payments which damaged my Credit Score.

My renewal date is Dec 2015. My goal is to pay off my debts asap and start using a CC monthly, paying it off in full in order to help with my chances of getting a good mortgage deal.

Now I've been trying to do this for a few months, but this spending problem of mine is making it impossible. I've got no where. So this is why I want to start a diary, come clean, and use writing a post on here as a distraction when I want to buy something (Currently a blender £99 - But it looks so good! I can't live without it!:j). .

I'll update this with my first step in a mo.

SJ X
97 months until I qualify!:dance:

Replies

  • I was paid yesterday! :beer:

    My progress so far this month:
    1. Transferred CC balance to 0% CC, (pay back January 16 :j)
    2. Transferred £200 to online saver. (I'm putting off putting it into my Argos Card until all my bills have gone out. A safety net).
    3. Given myself £100 to spend this month (Pay yourself first idea, is this right?).

    Things to do:
    1. Find out why I'm being underpaid :eek:
    2. Start a spending/food diary.
    3. Try using all the food in the house before buying more.

    Hope you're all having a great morning!

    SJ X
    97 months until I qualify!:dance:
  • kindofagilrkindofagilr Forumite
    6.8K Posts
    Part of the Furniture 1,000 Posts
    ✭✭✭✭
    Good luck SJ :)

    I look forward to reading your diary

    We found ourselves in lots of debt when we bought our house as well, five years later after buying it and five years of robbing peter to pay Paul we have finally had our LBM and are facing the tackling of the debt now xx
    Debt £30,823.48/£44,856.56 ~ 06/02/21 - 31.28% Paid Off
    Mortgage (01/04/09 - 01/07/39)
    £79,515.99/£104,409.00 (as of 05/02/21) ~ 23.84% Paid Off

    Lloyds (M) - £1196.93/£1296.93 ~ Next - £2653.79/£2700.46 ~ Mobile - £296.70/£323.78
    HSBC (H) -£5079.08/£5281.12 ~ HSBC (M) - £4512.19/£4714.23
    Barclays (H) - £4427.32/£4629.36 ~ Barclays (M) - £4013.78/£4215.82
    Halifax (H) - £4930.04/£5132.12 ~ Halifax (M) - £3708.65/£3911.20

    Asda Savings - £0

    POAMAYC 2021 #87 £1290.07 ~ 2020/£3669.48 ~ 2019/£10,615.18 ~ 2018/£13,912.57 ~ 2017/£10,380.18 ~ 2016/£7454.80

    ~ Emergency Savings: £0

    My Debt Free Diary (Link)
  • jodles16jodles16 Forumite
    1.5K Posts
    Car Insurance Carver!
    ✭✭✭
    You have made the first big step and named the debt and why! Good luck on this journey, also I may steal your idea of posting and reading on here rather than spending...though maybe I do need a new oak coffee table?!?!

    Jodles :T
    MFW2020 #115 250/3000 J-250
    1% challenge- /1525
    Save 1k in 2020- /3000

    Joining in UberFrugalMonthChallenge set up by the Frugalwoods!
  • Good luck SJ :)

    I look forward to reading your diary

    We found ourselves in lots of debt when we bought our house as well, five years later after buying it and five years of robbing peter to pay Paul we have finally had our LBM and are facing the tackling of the debt now xx

    Hi kindofagilr :wave:

    Thank you for replying! Feel free to nose whenever. I'm glad I'm not the only one who struggles after buying a home :D

    I think my light bulb make be broken. It tends to flicker a lot :wall: This may be my 3rd or 4th LBM :rotfl:

    SJ X
    97 months until I qualify!:dance:
  • jodles16 wrote: »
    You have made the first big step and named the debt and why! Good luck on this journey, also I may steal your idea of posting and reading on here rather than spending...though maybe I do need a new oak coffee table?!?!

    Jodles :T

    Ahhh a fellow spender I see! :rotfl:You know, now you mention it my lounge looks a little bare, and an oak coffee table would really bring it together nicely....

    Heehee this is like spendaholic's anonymous! Thank you for the support:beer:

    SJ X
    97 months until I qualify!:dance:
  • Hey guys,

    I'm working in my old job (overtime) this weekend to get a little extra cash. Determined to pay off this Argos Card by the end of August! Work's a little boring. Repetitive mainly. It makes me miss working from home :( I hate living out of a suitcase!

    I have a count down timer on my phone until I leave and go back to normality. 4 days, 2 hours and 37 minutes. Time goes soooooo slow!

    Anyway, this is my SOA (Minus my spending sprees):

    Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 1
    Number of children in household.........
    Number of cars owned.................... 1

    Monthly Income Details

    Monthly income after tax................ 1198
    Partners monthly income after tax....... 0
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 1198


    Monthly Expense Details

    Mortgage................................ 270.7
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 66
    Electricity............................. 50
    Gas..................................... 50
    Oil..................................... 0
    Water rates............................. 50
    Telephone (land line)................... 0
    Mobile phone............................ 12
    TV Licence.............................. 12.12
    Satellite/Cable TV...................... 0
    Internet Services....................... 3.5
    Groceries etc. ......................... 100
    Clothing................................ 0
    Petrol/diesel........................... 50
    Road tax................................ 25
    Car Insurance........................... 50
    Car maintenance (including MOT)......... 25
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 15
    Buildings insurance..................... 0
    Contents insurance...................... 0
    Life assurance ......................... 20
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 25
    Haircuts................................ 15
    Entertainment........................... 25
    Holiday................................. 0
    Emergency fund.......................... 25
    Total monthly expenses.................. 889.32



    Assets

    Cash.................................... 0
    House value (Gross)..................... 64000
    Shares and bonds........................ 0
    Car(s).................................. 1500
    Other assets............................ 0
    Total Assets............................ 65500



    Secured & HP Debts

    Description....................Debt......Monthly...APR
    Mortgage...................... 53688....(270.7)....3.69
    Total secured & HP debts...... 53688.....-.........-


    Unsecured Debts
    Description....................Debt......Monthly...APR
    Argos Card.....................500.......0.........0
    Sofas..........................1000......0.........0
    Credit Card....................1500......0.........0
    Total unsecured debts..........3000......0.........-



    Monthly Budget Summary

    Total monthly income.................... 1,198
    Expenses (including HP & secured debts). 889.32
    Available for debt repayments........... 308.68
    Monthly UNsecured debt repayments....... 0
    Amount left after debt repayments....... 308.68


    Personal Balance Sheet Summary
    Total assets (things you own)........... 65,500
    Total HP & Secured debt................. -53,688
    Total Unsecured debt.................... -3,000
    Net Assets.............................. 8,812


    Created using the SOA calculator at https://www.stoozing.com.
    Reproduced on Moneysavingexpert with permission, using Firefox browser.
    97 months until I qualify!:dance:
  • mary_hingemary_hinge Forumite
    1.6K Posts
    Ninth Anniversary Combo Breaker PPI Party Pooper
    ✭✭✭
    Hey guys,

    I'm working in my old job (overtime) this weekend to get a little extra cash. Determined to pay off this Argos Card by the end of August! Work's a little boring. Repetitive mainly. It makes me miss working from home :( I hate living out of a suitcase!

    I have a count down timer on my phone until I leave and go back to normality. 4 days, 2 hours and 37 minutes. Time goes soooooo slow!

    Anyway, this is my SOA (Minus my spending sprees):

    Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 1
    Number of children in household.........
    Number of cars owned.................... 1

    Monthly Income Details

    Monthly income after tax................ 1198
    Partners monthly income after tax....... 0
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 1198


    Monthly Expense Details

    Mortgage................................ 270.7
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 66 does this include 25% single occupancy discount?
    Electricity............................. 50 seems high for just you i pay the same and we have 5 people and a 3/4bed semi!
    Gas..................................... 50 as above
    Oil..................................... 0
    Water rates............................. 50 is this metered? living alone with more bedrooms then people is usually much cheaper to pay by meter
    Telephone (land line)................... 0
    Mobile phone............................ 12
    TV Licence.............................. 12.12
    Satellite/Cable TV...................... 0
    Internet Services....................... 3.5
    Groceries etc. ......................... 100 do you stick to this?
    Clothing................................ 0 never?
    Petrol/diesel........................... 50
    Road tax................................ 25
    Car Insurance........................... 50
    Car maintenance (including MOT)......... 25
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 0 never? no dentist? prescriptions? eye tests?
    Pet insurance/vet bills................. 15
    Buildings insurance..................... 0is this included with your mortgage? if not it's needed
    Contents insurance...................... 0 as above
    Life assurance ......................... 20
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 25
    Haircuts................................ 15
    Entertainment........................... 25 this is about £6 a week no wonder your spending out of boredom!
    Holiday................................. 0
    Emergency fund.......................... 25
    Total monthly expenses.................. 889.32



    Assets

    Cash.................................... 0
    House value (Gross)..................... 64000
    Shares and bonds........................ 0
    Car(s).................................. 1500
    Other assets............................ 0
    Total Assets............................ 65500



    Secured & HP Debts

    Description....................Debt......Monthly...APR
    Mortgage...................... 53688....(270.7)....3.69
    Total secured & HP debts...... 53688.....-.........-


    Unsecured Debts
    Description....................Debt......Monthly...APR
    Argos Card.....................500.......0.........0
    Sofas..........................1000......0.........0
    Credit Card....................1500......0.........0
    Total unsecured debts..........3000......0.........-



    Monthly Budget Summary

    Total monthly income.................... 1,198
    Expenses (including HP & secured debts). 889.32
    Available for debt repayments........... 308.68
    Monthly UNsecured debt repayments....... 0
    Amount left after debt repayments....... 308.68


    Personal Balance Sheet Summary
    Total assets (things you own)........... 65,500
    Total HP & Secured debt................. -53,688
    Total Unsecured debt.................... -3,000
    Net Assets.............................. 8,812


    Created using the SOA calculator at www.stoozing.com.
    Reproduced on Moneysavingexpert with permission, using Firefox browser.


    Just popping in to return the favour :rotfl:

    I've added a few bits in red.

    Mrs H x
    Living in a superhero induced haze :A:A
    "You did good Kidda!" :D
  • Hi Mrs. H :D

    Thank you for stopping by! And thank you for helping and advice :beer:

    I think this is where I go wrong. My answers are in green.
    Council tax............................. 66 does this include 25% single occupancy discount? Yes, this includes the discount.
    Electricity............................. 50 seems high for just you i pay the same and we have 5 people and a 3/4bed semi!I'm saving £50pm for gas, electric and water to give myself some breathing room in case of emergency (possible emergency fund?). I've just had a water meter installed and I've yet to have my first electric bill (I was on a meter before). So I have no idea how much they will actually cost. I haven't managed to save £50 each every month yet. This month (or next) will be the first. I also want a new boiler as mine is ancient. It's slightly serving as savings for that too... I don't know, it's not really sound sensible now I write it down...
    Gas..................................... 50 as above See above.
    Oil..................................... 0
    Water rates............................. 50 is this metered? living alone with more bedrooms then people is usually much cheaper to pay by meter See above.
    Telephone (land line)................... 0
    Mobile phone............................ 12
    TV Licence.............................. 12.12
    Satellite/Cable TV...................... 0
    Internet Services....................... 3.5
    Groceries etc. ......................... 100 do you stick to this? I can stick to this if I don't have a splurge in adsa (junk food etc). I'm pretty food savvy.
    Clothing................................ 0 never? You know what, I haven't bought any new clothes since May. (On a roll ;) although I never have anything to wear!!!) I splurged a lot during my uni days, so wardrobe isn't an issue at the moment. But I guess I should budget for it in future? Ugh.
    Petrol/diesel........................... 50
    Road tax................................ 25
    Car Insurance........................... 50
    Car maintenance (including MOT)......... 25
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 0 never? no dentist? prescriptions? eye tests? This is where I'm bad. I'll buy an overpriced blender, but when it comes to things like dentist etc, I'll say I can't afford it and that I'll book it in a couple of months (woops. I never do).:o
    Pet insurance/vet bills................. 15
    Buildings insurance..................... 0is this included with your mortgage? if not it's needed I paid upfront last December. I'm hoping to pay monthly after this December.
    Contents insurance...................... 0 as above See above.
    Life assurance ......................... 20
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 25
    Haircuts................................ 15
    Entertainment........................... 25 this is about £6 a week no wonder your spending out of boredom!You know what, that makes sense! I have a pooch which I love, and end up working till 7ish, after taking him for an hour long walk, then making dinner, I settle in for the night. Which means I only go out on weekends, and then it's only to a friends house etc so no money spent. I usually go out for a few drinks or a meal once a month with the girls. That's what I spend £25 on. Although I rarely stick to this, sometimes I spend about £40.

    SJ X
    97 months until I qualify!:dance:
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