Lemma's attempts at getting debt free diary

lemma1968

My OH has been looking after the baby - trying not to feel too much resentment but it has crept in a bit. I'm in the legal profession and we tend to through periods of time when its feast or famine. It's not its cracked up to be though. Childcare will creep into the equation in September so I'm a bit worried about that but will see what the rellies can do.

Sold our house a couple of years ago and paid off about £30K in debt so we feel as if we are going the right way, but having to rent now is a bind. We were in way over our heads. I look back and cannot imagine how we ever managed month to month.

Yep, the food bill is steep. I must control my cravings for M&S allsorts. I love all their food. I just love food actually. Need to lose a bit of weight too.

skysky69

I think that it is all about trying to find a happy medium and even if the shoe was on the other foot with your little one you would probably still feel resentment. I work in law also (probably not quite at your level) and found it really difficult when I broke up from work. It is quite tedious actually being at home and mentally I find I get bored so easily. I quite resent my OH for him going out to work and having a great job. I am sure if I worked, I probably would wish I was at home with my DD so it is a no win situation. I am trying to get my !!!! into gear actually thinking now should I be utilising my time at home to perhaps do my ILEX or something that will at least benefit me when I do go back to work.

I like seeing people's faces in the pub when they actually find out that there is actually more to my brain than pouring them a pint - I think they seem to think that it is my ambition in life to serve them drinks:rotfl:- erm no - just a means to an end

woohoo_postingid

Do you need a 4 bedroom house when (from what I can gather) there is just 3 of you?

It might be difficult to adjust at first but why spend out for a 4 bedroomed house when 2 rooms will suffice?
This would also allow you to look at a different energy supplier (why won't the landlord let you? It shouldn't affect him) and should even reduce your council tax.

lemma1968

woohoo_postingid wrote: »

Do you need a 4 bedroom house when (from what I can gather) there is just 3 of you?

It might be difficult to adjust at first but why spend out for a 4 bedroomed house when 2 rooms will suffice?
This would also allow you to look at a different energy supplier (why won't the landlord let you? It shouldn't affect him) and should even reduce your council tax.

There is 4 of us - i have 2 wonderful kiddlings one of school age the other...not. We have another 6 months left on the lease cos we agreed a 12 month one to stop the rent going up and also cos I was pregnant and could not face moving when baby was a few weeks old. This place is by no means a palace, and a heck of lot cheaper than a mortgage in this area. No way Jose can we afford to buy in this area but its where we have family.

I kn ow I need to watch the spending of the little bits, a coffee here, lunch there, bunch of flowers etc It is amazing how the incidentals REALLY add up.

How are people dealing with that? Would a spending diary force me to keep an eye? Or would it be like my food diary? only accurate if one is honest about what goes into it?:o

I think I need to know what to do....but i gotta get my a**se in gear and be far more proactive.

slowlyfading

Just wanted to say hello :hello:
A spending diary is very beneficial, it was for me anyway. Most people dont realise what they actually spend on small things, everyday, but they add up over the weeks and months. So I suggest you do get one!
Another one, do you know what your debt is actually from? I mean, do you have a lot of things you've bought but never use? Its useful to figure out just where all the money has gone, so in the future you can avoid getting into the same situation.
Have you got anything you can sell on Ebay/Amazon? Have a good search around and getting selling things you dont need - this could give a boost in your income and help pay off some things.
Keep your chin up, you're in the right place.
sf x

lemma1968

One thing I did not say was that things were really bad just a few weeks ago - we had some big bills come in when I was on maternity leave and a summons for the council tax.

That has now been sorted by paying them out and then going on budget plans with each company to prevent big bills in the future when we can least afford it/deal with them cos of cash flow. I did also go a bit nuts on new baby stuff and "must spoil my bigger girl cos I don't want her to feel left out" kinda stuff.:rolleyes:

lemma1968

Advice on how to trade would be useful cos I will not use ebay and paypal for a variety of reasons. I was conned once.

mrs_deadline

Hi Lemma, don't let one scammer put you off ebaying, it could be worth doing, especially if you have lots of 'stuff' lying around waiting to be turned into cash and OH with time on his hands to help... You can get lots of pointers over on the Ebay board.

The thing that jumps out at me from your SOA is the scary-unpredictable cash flow and huge tax bill. Are you or have you ever been in the habit of putting aside your income tax money as you go along? Despite the advice not to save when you have debts, I think the self-employed absolutely have to make an exception for the income tax money. If you're not already, try and get into the mindset that you need to manage on your net earnings - what's left after putting aside the tax man's 25% - and actually stash it away in a high interest account so it's there when needed.

Imagine if you applied the -25% discipline to all your earnings from here on in, the tax wouldn't be a problem next Jan (especially as you've been off work for part of the year). So as soon as the 12k is clear you'll have 1500 a month more to put towards the other debts. There is definitely light at the end of the tunnel, and with your earning potential it needn't be a very long tunnel either. But are you ready to rein in all the unnecessary spending?

lemma1968

I'm actually really quite tight. I am in a profession whereby all my colleagues tend to live off HUGE overdraftfs and loans etc. I got fed up with that amnd realised one day that I was servicing loans rather than ensuring my tax was paid off. January and July would come round and I would have one heck of a freak out.

I've had CCJ's from the IR (3 in total in 2000-2001'ish), and although I was meeting my other commitments it was hard due to pregnancy, illness, my OH's redundancy (well more then one actually). It suddenly dawned on me that with one income we could not live like some of my colleagues.

It was that lightbulb moment after I had a letter from a DCA for my OH's loan.

I am determined to get things paid off, there's no holidays, no eating out, no magazines.

I received my credit crad bill - I was sure my last payment would put me under the ~£10k mark - the statement said £10,001.:mad: It did not and I was soooooo upset I just paid some money over tonight to do that - I needed to for the motivation.

I am so motivated now. My tax is the next big thing and you are absolutely right that I must be more organised. With time off this year for maternity leave my January tax bill should not be too bad so I need to get a grip and stop waffling on. There really is no excuse. I know that, I just need to get my proverbial in gear.

Thanks for your help though.;)

lemma1968

Been out to do "the shop" today.

I was very good. Wrote a shopping list before I went out, set my budget and when in Sainsbury's bought many of their Basic range such as tinned tomatoes to go into the chilli etc...just 15p a can as compared to 3 times that branded items!!!!!!!!!!!

my OH is making a chilli over the weekend and we are going to have 1/3rd one night and portion out the rest to freeze.

Realised that, with more than one trip a week to the supermarkets, we were probably spending more like £150 plus baby stuff. Even with my baby's food and nappies, baby wipes etc we spent no more than £90 this week. Having to build up the store cupboard has added a bit this week, but the ready meals will be gone and i cannot believe how easy it was really. Although my credit card debt is high, that is a historical debt and I only pay for things using my debit card now.

Today i took out the cash, and left the debit card at home. This ensured that I could not overspend!!!:p

I have been looking into Cash ISA's to put my tax money in each month, and realised that we have still not invested baby's vouchers as yet. Very lax really.

Put another £1.11 in the change jar and feeling positive.....:j :j

I hope I can keep this up.

Oh Oh - and I got a Nectar card. Did not have one before. I know, i Know - i need to get a life!!!:p