Step by step

Notepad

Brand new MSE member here with a shiny new diary which I'm hoping will keep us on the debt busting road ahead without too many stumbles or steps back.

I've been reading so many diaries on here from which I've found inspiration, ideas for money saving and finding a way out of the debt path of doom.

A brief introduction:
I'm Mrs N(otepad), I live with Mr N(otepad), Miss N(otepad) and our miniature schnauzer canine companion.

Poor money management for too many years. Light bulb moment in October following realisation that the impact of my redundancy earlier this year, along with long-term health conditions hindering my attempts to find suitable employment, has lead us to a financial brick wall.

StepChange recommended DMP over 2yrs 8mths. But, for now, we're trying to self-manage our debts. We've not missed any payments to date but we are at the stage where we simply don't have enough funds to cover all outgoings, plus food and living costs.

We'll review things in March and may well revisit the StepChange DMP path again.

Opened new, basic bank account which this month's salary has been paid into. Now trying to balance the books to try to budget successfully, with Christmas as an added expense. Fortunately, we only have Miss N to buy for, along with two grandfathers and great-grandmother.

So, a brief summary of finances as of today:
£4,906.75 - Barclaycard (0% - May 2015)
£1,454.45 - Barclays overdraft (charging us £1.50 per day interest)
£1,427.41 - Barclays overdraft (charging us £1.50 per day interest)
£778.04 - First Direct overdraft (interest charges being confirmed)
£9,690 - First Direct credit card (0% - June 2016)
£3,934 - Sainsbury's Bank loan (ends October 2015)

Total debt: £22,190

Will post SOA asap.

Hubby doing overtime where possible and I'm scouring employment websites every day, as well undertaking surveys and selling anything we don't need.

I'm writing to both banks to explain change in financial circumstances and to request accounts be closed, with interest charges frozen.

Like many people in debt, we have nothing to show for our expenditure. We've simply spent more than we could afford for the last 15 years and it's finally caught up with us.

Notepad

Wow, apologies for the huge opening post *note to self, don't waffle*

Notepad

So, today I've been updating our outgoings spreadsheet and spending diary. I'm using my spending diary as a true reflection of our bank balance and have written up a forecast of our expenditure between now and pay day.

I've made three £30 token payments to the two Barclays overdrafts and First Direct. First Direct have charged us £75 for going over our overdraft limit in October and Barclays have charged £48 with their £1.50 per day overdraft fee charge. I'm writing to them today and will see how that goes.

In need of further inspiration, so I'm going to head over to the diaries to see how others are doing.

Happymac

Lots of luck! I think you should post a SOA - it is amazing the advice people offer on here. Lots of great ways to save. Are you on social media? I follow a group on FB 'Feed your family for £20 a week'. I have adopted many of their ideas. The frugal living boards on here are a revelation.

Notepad

Hi Happymac

I did do our SOA a few weeks ago, but I'm doing it again today with the revised figures that the StepChange review produced so it's a more accurate reflection.

I'll post it as soon as I've finished it.

I am on Facebook so I'll look out for that group, thank you!

joedenise

There is a thread on the Old Style board also entitled "Feeding a family of Four for £20 a week". There are quite a few recipes on there but you need to read through the thread to find them.

There are also several pages of recipes at the start of each of the monthly Grocery Challenge threads. Well worth a look for some great frugal recipe ideas.

In fact it is well worth visiting the Old Style board as there are loads of threads about living frugally.

Posting your SOA on here will give people a chance to see if they can help you cut back and save some money on what you are currently spending.

Good luck.

Denise

Notepad

Hello Denise,

Thanks for those suggestions, I'll head over there now for some inspiration.

Have applied for two jobs this morning. Closing dates of today and tomorrow, so keeping fingers tightly crossed.

ruby_eskimo

Just coming by to wish you luck on your journey to being debt free.

Notepad

Thank you Ruby

Steerpike88

Subscribed.

Food is definitely the best area to cut back on. I used a lot of http://agirlcalledjack.com/ recipes. Although the search on the blog is a bit funny now, search budget and you get lots of her delicious cheap ideas, like Bean Goulash, Chilli, and Kidney Bean Burgers.

The really big trick I found was the spending diary, I don't have one on here, but I have one on an excel spreadsheet. Its not excel actually, it's Libre Office which is almost the exact same thing but for free.

I sit down every couple of nights and write all my spends on a spreadsheet, it discourages me from shopping too much not only do I have to write it down and justify it but it takes me ages to write down a spendy day.

Notepad

Thanks Steerpike, I've been doing a lot of reading tonight and it seems food budgets and spending diaries are the way to go!

I can't believe I actually forget I spend money, but I'm now finding receipts ready to go into the payment book for spends I've forgotten about...

Have given up on the SOA for tonight. Will finish off tomorrow.

Listed a Next corner TV unit for sale on Gumtree earlier and have had one enquiry. Keeping fingers crossed!