I am declaring myself in a state of money emergency!

ezmo

Hi all,

I've just sat and worked out how much in debt I am and I've scared myself to death! Over 11K on credit cards and 69K on my mortgage.

So, I am going to try to run this thread for a year (if you'll let me!) and see where I am then by using all the advice I can find on this site. Hopefully by doing this I can give myself the kick up the bum I need!

My ultimate goal is to get rid of the credit cards and have a more manageable mortgage so I can quite simply get rid of all this money stress.

I know people don't class a mortgage as a debt, but I do. This is simply because I've borrowed on my house in the past and I hate myself for doing it and if I had my time again I would never do it.
So, my mortage begins today at £69,208.45.

I've already done a few balance transfers on my credit cards to get 0% on them. Again, if I had my time again I'd never have a credit card!
So, credit cards stand today at £11,614.97 - £9561.60 of which is at 0% til next year.

So then, what's my plan now my head is out of the sand?

1. First and foremost, I refuse to be stressed out anymore. I know I can get this debt down to a more manageable amount.
2. I have two more paypackets left - August and September. (see below!)
3. I have a few carboots to do this month to get rid of all the junk I've collected over the years.
4. Some things I will sell on ebay, like old mobiles and certain games that I know I will get decent money for.
5. My website is currently under constuction for me to sell artwork and crafts on.
6. My sister and I are going to start doing a market stall for our new business.
7. Use the cashback sites and pay per click sites for a little bit extra - it all adds up!
8. Reclaim all my bank charges (4 different lots) - got the first letter yesterday offering £240.

The twist in my tale is... in a month I won't have a job!
I handed my notice in a few months ago. I hated it. It was making me ill. It was a fairly well paid job but my health is worth more to me than money and I've always wanted to work for myself.
Maybe I'm totally bonkers but this year things have changed for me, my perspectives have changed and I have things in the pipeline to make money, so fingers crossed and bear with me!

So, brave or stupid to quit my job with the debts I have - you'll have to decide. But let's see what the next year brings!

Anyway, I'll stop there and I'll write again next week after my first carboot. xxx

Welshlassie

Ezmo - good luck and well done for starting down this route. have you done a SOA, they are great for identifying areas where you can cut back on things and find extra money to throw at your debts. See SS sticky post for First timers.

jo1972

Hi Ezmo and welcome :wave:

Good luck on your debt free challenge, it sounds as though you've got the right attitude. I hope your new career venture works out.

I too am battling between being stuck in a job that I don't want to be in and just handing my notice in and saying stick it, I wanna be a stay at home mum!! Gotta secure a couple of feasible money making schemes first though so I can keep my car and pay a couple of debts I've still got.

Just wanted to say good luck, I shall read your diary with interest!

Jo.

twinklie

Oooh good luck! I only did my first thread myself this morning my debt inc. mortgage is just shy of £50K or £70K if you add on my student loans.

Already I've been really encouraged by people and am feeling like I'm up to the challenge. My prob is that both my partner and I are going back to uni in September for 12 months - he's finishing his degree and I'm going a PGCE. Also, we are getting married in december which is where all my money is being diverted - when it's not spent on the house.

Good luck and keep us posted!

Karmacat

Hi Ezmo
Good luck with all of this. As a long term self employed person, I'd say, get stuck in to those things in the pipeline that can make you money, rather than things like clicks - the lead-in time for chunks of work is nearly always longer than you think it is, you *have* to get that going first. It might mean working much longer hours than you're used to in the crossover time - thats par for the course, I'm afraid. But, you've gone for it, so, go for it some more!!! Good luck!

ezmo

Cheers guys!

Welshlassie... I'll have a look at the SOA thing you're talking about when I get back in this afternoon and see where I can save more!

jo1972... I know how you feel! My sister wants to quit and be a stay at home mum too, so hopefully this little business venture can help her do it.

twinklie... I was actually thinking of going back to uni too this year but having already done 3 years previously I'm not sure if I can get anymore help moneywise. I'm awaiting a phonecall when clearing starts so I'll see what happens then. I just thought it would be good to do as I can then do the website in my spare time and do the market stall at weekends, but I'll see!
Good luck with the wedding!

Thanks again :-)

ezmo

Hi Karmacat,
I'm beginning to realise there's a LOT of work involved in being self employed!
But, I'd rather be putting in silly hours doing something I love than stuck working for idiots in big companies, so hopefully it'll be worth it!

thewayitis_2

11k in CC debt and you quit a well paid job to starting an arts and crafts business? Well thats certainly one way of doing it!

Really though - all the best with the new venture. Make sure you keep your credit record clean as you will need access to more loans if the business starts to take off.

Also - sickening as the thought may be right now - try to keep a good relationship with your old employer so that if things go t1ts up, you can get your job back.

painted_lady

Good luck to you, you have taken a positive step in identifying that you werent happy in your job and have taken a step forward in changing this to make you happier. This alone will help you pay off debts, the fact that your motivated and happier.
Post your SOA, we will see what advice we can offer. Good luck with your car boot.

ezmo

I know, I'm not right in the head but I'm determined to do it one way or another!
I won't be going back to my job though as relationships broke down some time ago due to various factors. But if it all goes belly up I can get another job and get a lodger in to pay the mortgage. Eeek!

ezmo

I'll post my SOA this evening and see where I'm at! x