Must start to reach the FINISH

Thinkandgrowrich

I am writing this diary purely to keep me sane as I feel like I am going crazy right now.

I was in debt about 10 years ago and cleared this 8 years ago this was approx £9000. I thought wow that is me done and was so proud off myself until now that is.

Fast forward 8 years I have a house,husband, three children and the magic for me number (so it seems) approx £9000 debt. It's eating me up to the point where I am dwelling on this debt all day and its dragging me down I am losing motivation for life.

I feel like I don't want to leave the house as I don't want to pay for anything, but obviously that would be impossible.

I have cut my general living expenses to bare minimum and currently have £250 for debt repayments a month which equates to just over 3 years to clear what I owe dependant of interest. However right now it feels like I am going to be in the situation forever.

So my debts are as follows:

Very £38
Next £82
Tesco £850 (0%)
Marks and Sparks £900 - must check (16.9%)
Nationwide £1700 (0%)
Halifax - £2504 (19.9?)
Natwest £3164 (8.9% life of balance)

Grand Total £9238

Also have benefit overpayment I am paying back at £40 a month so that will be cleared in June next year.

I am owed roughly £500 from my sister too but she is struggling too so she is unable to pay me back - this will come off my cards once it is recieved.

Currently in my overdraft but will have this cleared by Friday.

Can't believe it has taken me so long to start a diary I know I haven't written much but it is a start isn't it.

I've actually started I hope this will help with my mental health and I can deal with this and still live happy although frugally on my journey.

Start......Bit more....Bit more....Bit More....Bit More....almost there....don't give up....FINISH!!!Please let me make it.

twiggy86

Didn't want to read and run.

Well done in starting a diary! I find mine as a great place to vent and also track my progress (both financially and mentally).

Don't lose the motivation for life - why don't you use your diary to list 3 good things each day no matter how small as I've seen some people do eg that their house is warm or when it's raining that they have a car so don't have to walk. I'm sure there is great things all around you that on a normal day you overlook and take for granted. Ok so I'm starting to sound like some kind of bad motivational speaker!

Good luck!

Thinkandgrowrich

Twiggy Thanks for your reply I do very much appreciate it I feel like I have been struggling with depression for a while and am thinking of getting some counselling.

Your signature looks very encouraging and you should be proud of yourself I hope I can follow in your footsteps.

I feel motivated to clear the debt but at the same time it feels like a massive dark cloud following me and is never far from my mind.

I have made some payments since my last post and will try and find the commitment to keep this diary updated.

The thought of money makes me feel physically sick and I am doing my best to focus on other things but it is so hard, does anyone have any tips?

Currently I am at:

Very £32
Next £72
Tesco £825
Marks and Sparks £1096 - underestimated this didn't it..well it stops going up now.
Nationwide £1700
Halifax - £2479
Natwest £3101

Total 9305

From now I just want this figure moving down. I've spoken to my sister and she says she will do her best to get the money she owes me by April at the lastest ( she needs to catch up from xmas)

So that will be £500 off and I spoke to the tax office as my tax code was wrong and they are sending me a form to claim back £370.

At least I have something coming my way to make a start. That will leave me approx £8500 with guessing interest. I have another £400 due in April from some work I done before xmas so that will help.

So with payments and money owed I am hoping to get the amount down to £7000 by June.

I am aiming for £5500 by the end of this year, this to me will be a lot less worrying and in more of a fighting chance of actually seeing the end to this debt.

Hopefully having a target will help keep me focussed, now I REALLY need to find a coping strategy to try and put money away into a mental box now and again and give myself a break.

Right now I feel very emotional after writing all this out so maybe some tension will begin to go.

helpme_115

Great to read your diary, will subscribe and see how you are getting on.

Have you completed a SOA to see where else you can squeeze the pennies out? I didnt think I could but after posting mine others soon motivated to cut down further ( http://www.stoozing.com/calculator/soa.php )

Personally I would pay off Next & Very, not the most efficient but gets them out the way and gives you 2 less cards hanging over you to pay off. Mentally this may help you alot (having 5 debts is better than 7 right?)

Thinkandgrowrich

Oh thank you for taking the time to reply, so many nice people around and it feels good to know I am not the only one, motivates me.

I have pages of budgeting in my little budget book and also used budgetbrain too. Maybe SOA will help too as like you I feel like I am living on bare minimum. I would love to start saving just a little as it's birthdays and xmas that always add to debt, I need to start looking at how I can cut back even more to save and cover these.

I was planning on doing exactly what you just said, thanks for seconding that for me! When I get my tax refund I will clear very and next and put the remaining £266 onto marks and sparks.

Then once I have the money owed to me this will clear the marks and sparks.

In June when my overpayment from benefits is cleared that will free up another £40 a month.

As you say mentally it is a lot easier to deal with and that will make a huge difference to me.

Then I will aim to pay off Halifax ( I missed a payment and they uppped my interest amount) and the nationwide is on 0% and the natwest is on life of balance.

I must say now I have read what i've written a few times i'm thinking by June I will be better off and then by Jan 2016 I can be in an even more positive place.:)

Wow amazing the difference a diary can make. I'm impressed:T

monz

Keep up the good work L:) x

helpme_115

I started a diary as I was after some support/motivation, unfortunately no one has come forward yet to join me, it might be because I talk a load of rubbish in my diary, im not sure lol

If you want to have a read you are welcome to:
https://forums.moneysavingexpert.com/discussion/5143379

Thinkandgrowrich

Morning HelpMe,

I think most people browse in this forum as I did before taking the plunge to post.

It seems our debt amount is very similar so we can keep eachother company while we go through the journey to financial freedom....can't come soon enough.

I am going to do a SOA at some point this week of my current situation and also a SOA of my ideal so I have something to measure and can see where I am getting to in black and white, I think this will help my motivation.

Least we have both made a start and thats the most important thing we can only go forward now.

Thinkandgrowrich

Statement of Affairs & Personal Balance Sheet

Summary

Monthly Budget Summary Amount(£)

Total monthly income 1,474
Monthly expenses (incl. HP & secured loans) 1,230.88
Available for debt repayments 243.12
UNsecured debt repayments 245
Amount short for making debt repayments -1.88

Personal Balance Sheet Summary Amount(£)
Total Assets (things you own) 0
Total Secured & HP Debt -0
Total Unsecured Debt -9,584.74
Net Assets -9,584.74

Household Information

Number of adults in household 2
Number of children in household 3
Number of cars owned 1

Income, Expense, Debt & Asset Details

Income Amount(£)
Monthly income after tax 680
Partners monthly income 0
Benefits 794
Other income 0
Total monthly income 1474

Expenses
Amount(£)
Mortgage 0
Secured/HP loan payments 0
Rent 469.88
Management charge (leasehold property) 0
Council tax 133
Electricity 60
Gas 60
Oil 0
Water Rates 0
Telephone (land line) 0
Mobile phone 16
TV Licence 13
Satellite/Cable TV 35 (includes landline,tv and internet)
Internet services 0
Groceries etc. 340
Clothing 0
Petrol/diesel 0
Road tax 18
Car Insurance 0
Car maintenance (including MOT) 0
Car Parking 0
Other travel 0
Childcare/nursery 0
Other child related expenses 20
Medical (prescriptions, dentists, opticians etc.) 0
Pet Insurance/Vet bills 0
Buildings Insurance 0
Contents Insurance 6
Life Assurance 0
Other Insurance 0
Presents (birthday, christmas etc.) 20
Haircuts 0
Entertainment 40
Holiday 0
Emergency Fund 0
Total monthly expenses 1230.88

Secured & HP Debt Description Debt(£) Monthly(£) APR(%)

Mortgage 0 (0) 0
Secured & HP Debt totals
0 - -
Unsecured Debt Description Debt(£) Monthly(£) APR(%)

Tesco 862 25 0
Natwest 3101 75 8.9
Halifax 2464 40 19.9
Overpayment 251.74 40 0
Next 72 10 0
Very 32 5 0
Nationwide 1706 25 7.9
m & s 1096 25 16.9

Unsecured Debt totals 9584.74 245 -

Asset Description Value (£)
Cash 0
House Value (Gross) 0
Shares and bonds 0
Car(s) 0
Other assets (e.g. endowments, jewellery etc) 0
Total Assets 0


Current SOA completed so I can see where we stand. The income seems low as money is split between me and my OH for reasons I do not wish to share so I have done this based on how I am living.

I plan to do another one to show where I want to be in 6 months and then 12 months so I can have something to measure my progress with.

After using snowball it states I will be at the rates I am paying debt free in April 2019. I'm going to fight this debt and give my self a target to beat this and aim for JAN 2018!

I need something visible so will do a monthly countdown in my signature.

helpme_115

Couple of things that poped out for me,

Gas/Electric - Is that £60 each (£120 a month) or £60 total? Seems rather expensive if its £120 (mine is £43 a month), if it is £120 think you need to either switch or look at where you are using all that power.

Groceries, again £340 seems a lot, might be worth aiming lower and see how you get on, we have 2 adults and 2 young kids and aim for £200. If it includes takeaways then try and cut these out. Found out i spent over £1,000 on takeaways last year alone, couldnt beleive it, if you use just-eat take a look at My Account then 2014 overview, copy n paste instead a spreadsheet and sum it)

helpme_115

How u getting on?