A new debt free journey

lcc86

I've already achieved one of my February targets and downgraded my bank account to a completely standard one with no fees. I purchased breakdown cover and single trip travel insurance at £40 total so I've saved over £100 a year! :T I looked into phone insurance but most policies state your phone must be less than 6 months old, which mine isn't. Taking into account excess fees and the value of my phone I decided not to take out further insurance until my contract ends in December and I get a new phone. I just can't justify the cost when my phone is worth so little.

On the NSD front I've done well. I've had a few so far this week. When I've spent it's only been on food or petrol, with the exception of some beers I bought as a treat and some fairy lights (£10 total). I have very few purchases left to make this month so all being well I'm on track.

I have two job interviews coming up. Really keeping my fingers crossed as either would cut the cost and time of my commute dramatically and make a difference not only to my finances but also my quality of life.

I also decided to take up some volunteering in an area which interests me. It may also end up benefitting me professionally further down the line. All in all I think it's been a really positive week and hopefully next week will bring more of the same. Now that I'm making small targets and hitting them I really feel inspired. Long may it continue!

lcc86

I woke up at 4am this morning and couldn't switch my brain off. I feel a little out of control financially and can't see a way out today. Potentially catastrophizing in my mind but I suddenly feel so low about it all.

I used to work 2 jobs before landing my current job, one with adults and one with teenagers (which is ultimately where I want to head). I had 2k of debt to pay before landing this job, being scared by the cost of the commute and buying a new car. I realised this morning I'd be debt free now if I had stayed working two jobs. What's even worse is that the supposed dream job of working with teenagers more has turned out to be far from it. My debt has spiralled right back up there and I'm worse off than ever before despite earning more money. Even worse than that, the job isn't what it was sold to me as, and I've learned nothing new so I feel I'm in no better position careers-wise than I would've been without this job.

This is a real eye opener and I'm now torn. I don't know what is most important to me right now -my finances or my career. I'm so unhappy with being in debt and don't feel I've made any headway in terms of my career, and just don't know what to do to improve either. I had to give up my second job because the commute for my main job was too long and caused too many problems, so I don't even think I could top up my income with additional work any more.

I feel trapped in a web of my own making, thinking I'd made the right decisions and now realising I've done the opposite.

SouthernGuy

Hi,

I just thought I'd drop in to read your diary. I realise you are feeling down at the moment but you do need to try and focus on the end result of being debt free

I too absolutely hate my job at the moment and due to various changes over the next year or so possibly may be facing redundancy or changes that I don't like. I am keeping an eye out for other opportunities but in the meantime it pays the bills so I need to keep going. I do find though that the job is a big factor and has a massive influence on how I feel about my debt.

I have subscribed and will look forward to reading your debt free post

Also, regarding the decisions I feel you may be needing/wanting to make in the future, I heard a quote that I currently keep thinking about whilst I think about my future and that is:

"Build your own dreams, or someone else will hire you to build theirs." By Farrah Gray (some American business man) Sorry if it's cheesy but it helps me stay focussed.

Hang in there

lcc86

Thanks SouthernGuy, sometimes a reply can make a lot of difference! I currently have a few things which I need to see how they pan out in regards to work, and a few options to try. In my mind I want this sorted by April. I've been in a similar position before with a different job and worked my !!!!! off to get out so hopefully I can do the same again. Here's to being debt free and work-happy one day!

lcc86

I'm supposed to be studying right now for the final part of my postgraduate course, but I can't focus.

I've been offered a job interview for a part time role which is 8 miles away from home (instead of 30) and I really don't know now whether to go or not due to the potential income tax situation with 2 jobs. Obviously the petrol costs would go down hugely, but I'm not sure if paying additional tax on a second income will negate that saving? I've tried using the income tax calculator but am unsure if it's correct and am hoping someone can give me some advice?

Job wise this particular role is similar to what I do now so not much change there, I know it wouldn't be a forever role. However it could be a good way in to this company, which pays much more for the role I want to do long-term. This job pays £24000 pro rata (£12000 for the hours on offer) and my current job pays £23000. Can anyone offer any advice??? Do I go to the interview and see what happens or just not waste time if it's not financially viable?

(This is all assuming my employer would even allow me to half my hours if I got this job, and I have no idea if that's actually possible yet).

lcc86

I've decided to go for this interview and hope for the best if I get the job. I feel absolutely miserable today at work and just want things resolved. I desperately want a decent career but also a decent income. I've tried so hard over the last few years to try and do the right thing to make that happen and it just doesn't seem to be working out.

I worked out I've only managed to make a £3.63 overpayment to my debt this month, such a pitiful amount it doesn't even matter. Next month I hope to pay a little more but things really need to change if I'm to make inroads into it.

lcc86

So I sat and calculated what my total debt was and it's £500 higher than I had anticipated - £9,140. Signature updated :mad:

To make matters worse, my freezer has now followed the route my fridge took and broke, so the door is wedged shut with a piece of wood. I'm determined to make it last until I can afford to buy one outright but have to play it by ear.

I'm going to have to try and tighten my belt even further. I think reluctantly, this means having to cancel my 2 charity donations (£15 a month). It was something I'd avoided until now as I'd always told myself I would just waste that money. I'm debating even cancelling my contents insurance (£11 a month). Here's my current budget:

Income £1447

Mortgage 265
Electricity 54 (the cheapest deal for me at present)
Service charge/water rates 95 (goes into my savings)
Internet 23
Council tax 107
Phone 45 (extortionate but locked in until December)
Unison 12
Food 100
Pets 60
Petrol 150
Pet care plan 6
Charity donations 15
Contents insurance 11
Loan 144
Parking 30
Family debt 50
Savings 25
Fridge 43 (for the next 2 months)
Credit card 40

Total £1275
Total left £172

On the face of it this seems sufficient but the first six months of the year are difficult for me due to many family birthdays and car service due So in reality after all of this is accounted for I have about £50 left for the month to do with what I want. My parents also live 150 miles away and it costs £50 ish to visit them every other month, which is a cost I could do without but I'm not going to compromise on seeing my family. On top of that I have 3 months to save about £300 for a trip to Germany which was booked ages ago... :eek:

If I cancel my charity donations and contents insurance I would have an additional £25 free each month. My family debt will be cleared in 6 months and the credit card should be cleared in 2 months. My loan has 59 months left. I want to try and become debt free in 3 years rather than 5, but I'm not sure how realistic that is. I'm struggling to improve my income and had to give up a second job recently due to commuting issues. I am also studying and found 2 jobs a real struggle. I finish studying in June so perhaps this is something I can work on. There is no overtime at work (local authority) so I may have to return to working 2 jobs...

A long post... Now off to sleep, have a rotten cold and the realisation of what still needs paying is depressing. I have so much studying to do this weekend so need to get money worries out of my head so that I can focus, trouble is that's so much easier said than done!!

SouthernGuy

Hey,

Sorry to hear the debt is higher than you thought, you will get it down though so try to keep positive.

Regarding the freezer, is there nothing available on freecycle or the like? Even if it it only works for 6 months or so it will buy you some time to save for it. Often people can deliver items for a nominal fee also.

I would really really advise against cancelling the contents insurance! If anything happened you would then have to spend a lot more money than it's costing to replace everything. I agree with cancelling the charity donations for now, you can always start them up again once things are straight.

I hope things improve for you soon and that you have a good weekend

SouthernGuy

Just a quick question, what pets do you have? I have a dog and find it cheaper to buy his bits from online pet stores

lcc86

Hi Southernguy,

I've had a look on Freecycle, nothing at present near me but I keep an eye out until such time as I can buy one. Fingers crossed the current one lasts!

I cancelled my charity donations last night, felt guilty but I'm determined to reinstate once I'm back in a good position! This past year is the first time I've had contents insurance, I always did without before, perhaps that explains my 'casual' attitude to it? But common sense does say keep it!

Up until December I had 4 pets (couldn't say no to a rescue in need!), now I just have a rabbit and a guinea pig, so that £60 is an overestimate in light of recent changes as I've only used £20 this month. I may leave it at that and put any spare away for unexpected bills - I know I won't miss that money as it's something I've always accounted for in the past. Living in a flat means I can't buy things like hay in bulk, but I shop around and use Wilkins0ns for a lot of stuff as it's within walking distance and cheaper than pretty much all pet stores near me. I actually use a wholesaler where my parents live for the food as it is 25% of the cost of the shops near me! So I just stock up on each visit to them lol.