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New Year's resolutions that hit your wallet hard

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New Year's resolutions that hit your wallet hard

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Former_MSE_JoanneFormer_MSE_Joanne MSE Staff
113 posts
We want to tap MoneySavers' collective knowledge on the most financially disastrous New Year's resolutions you've ever made. Have you entered a previous year with a gung-ho dedication to something that had a negative impact on your finances?

If you haven’t already, join the forum to reply!

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  • edited 2 January 2015 at 7:36AM
    gloriouslyhappygloriouslyhappy Forumite
    486 posts
    Ninth Anniversary 100 Posts
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    edited 2 January 2015 at 7:36AM
    My most financially disastrous New Year's resolutions I've ever made was a determination to restore my credit after a split from my !!!!less first husband by getting on the property ladder with a mortgage. As I lived in the States, frequently visited family over here, and couldn't afford to buy a home, I decided to buy a share in a holiday apartment. Yes, the dreaded time share! This was in the very early days of time shares, early 80's.

    I didn't appreciate how much the annual charges would be. On the face of it, pre-paying accommodation near my family with the option to switch my two weeks to other locations while building up equity and most importantly, establishing a new clean credit record in my own name with a mini-mortgage and removing myself from my ex-husband's crippling debts he just kept on running up (but I can't be skint, there are still cheques in the cheque-book mentality!) seemed like a good idea.

    But after a few years of increasingly exorbitant maintenance and annual fees, plus a booking fee whenever I wanted to use my time, I realised what a mistake it was and started looking to get out. Initially I tried to sell my time, but eventually, I cut my losses by turning it over to the company in exchange for no further bills, in other words, just gave it back, and this of course went against the credit record I'd worked so hard to establish, leaving a big black mark. In the States, you can hardly do anything without a clean, established credit rating with a checkable record.

    However, I made a clean break of it by leaving the US and returning to live in the UK at the same time so the US credit record no longer mattered. I reckon all in all, I paid about four and a half times what just renting a self-catering flat over here when I needed it would have cost me!

    Groan, BUT, lesson learned, and I've not made a bad financial decision since then and am debt-free since then (I use my credit card like cash, only using it when I can pay it off in full when the bill comes) and very happily money-savvy with the help of this excellent site.
  • jenniewbjenniewb Forumite
    12.8K posts
    Part of the Furniture 10,000 Posts Combo Breaker I've been Money Tipped!
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    MSE_Joanne wrote: »
    We want to tap MoneySavers' collective knowledge on the most financially disastrous New Year's resolutions you've ever made. Have you entered a previous year with a gung-ho dedication to something that had a negative impact on your finances?

    If you haven’t already, join the forum to reply!

    [threadbanner]box[/threadbanner]


    Only one plan this year, am hoping to stick to it:
    Only take out the money I have to spend that day in cash. No credit, no borrowing, only what is left in my account.


    I'd been doing that Monday to Friday for about 9 months so far, not at all easy and relied on bulk buying as much as I could at the weekend and only needed the odd thing week days. What was hard was getting used to the passing shops and suddenly seeing an amazing deal on reduced food, an off-season sale, a damaged item I knew I could replace or something I'd forgotten to pick up at the weekend. But you know what? Despite missing out on all of those deals, I'm still standing!


    I am still not managing my money well enough at all (at the end of the month I worry because most of my bills come out on the 1st of the month and it's been a hairline away from not having enough money in my account) so this year I will also be taking out the money for the weekend in cash as well as the week.


    Hope I manage to do this, it wont be easy because already when overspending I find it difficult! Just found out my utility bills have gone up massively yet my income has not so have even less than before.


    This will not be easy!
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