Chasing Freedom!!

chasingfreedom

Hi everyone,


Well, until recently I thought I already had my light bulb moment a few months back. Then the light bulb actually came on properly about a week ago, instead of just flickering on and off and I realise I was wrong!!


We are a mid thirties couple with 1 child who lives with us and I also have 2 step children (from hubby's first marriage) who stay with us a few days a week. So life is pretty expensive. We both work full time (very bloody hard too) but unfortunately due to past stupidity and living beyond our means aswell as supporting 3 kids and having a nice quality of life we are in debt to the tune of about 39k at the moment!! I knew we had high outgoings but it was highlighted even more recently for us when hubby lost his well paid job and we are going to lose about 500 quid a month income. He wanted to look for another job but because his current company pay so well basically he is stuck there because we cannot take any further pay cuts. We are beholden to a pile of bills and it's all our own doing. How bloody stupid!!


So, I am taking control!! I will be dealing with all the finances from now on. Currently we both have different bills ourselves plus we split the household bills. I pay utilities, school bills, food shopping etc and he pays the rent, council tax and his own loans/credit cards. Its quite an even split and we both earn a good wage but we just never have anything left!! I will now be paying everything and giving him an allowance (in a new basic account) which is his for diesel, the odd beer whatever) and I will take anything extra we have and try and decrease the debt as best I can.


It feels good to be proactively doing something and I'm frustrated we can't pay off even more and get rid of it quicker. (I have spreadsheets and everything, ha!!) I did a snowball calculator which said we could be debt free in 48 months (based on how much we are paying now) but I want to do it quicker. I'm aiming for between 2-3 ideally, I really want to challenge myself and set us free.


Anyway, sorry for rambling on my first post. I just want to be able to keep writing down what I'm doing and tracking our progress. I'm so enthusiastic its hard for me to not write my whole life story in here, lol.


Anyway, thanks for listening/reading


CF

MuffinTops

Welcome CF. I know how frustrating it is to realise how much debt you have, but doesn't it feel good to put yourself in control.

I assume you mean you'd like to clear the debt in 2-3 years? You'll feel so good when you see the numbers getting smaller.

Looking forward to the updates.

enjoyyourshoes

Hi


review finances together monthly so he can see what is happening and joint agreements on important decisions


Ensure you reconcile you bank account every day including all costs charged (CC, saving for annual and 1/2 & 1/4ly bills, debit transactions all internet transactions (easily get missed as no paper trail) and live within these parameters


Avoid paying for insurances eyc monthly as they charge you credit charges when pay monthly


Shop smart, list in kitchen, only what's on list get purchased, cook for scratch and freeze for the week, avoid brands, don't get suckered by offers always check the price per ''(Kg, volume , sheet etc)''


Get the best deal you can on CC including 0% transfer costs, 0% periods etc (but ensure you set up DD for the calculated cost per month to eradicate debt by end of 0% period) & stick to it also don't use these cards as they often charge high %age rate and this can not be eradicated until you have paid off the whole balance (including any transferred balance)


Good luck and always check back to your joint objective of reducing debt.


Most debt is a result of £1 here £1 there, those irrelevances that can not be easily identified (Fags, beer, coffee, snacks, extras at fuel stops, magazines etc etc) so have a joint agreement/discussion on what you are gong to remove from your lives and stick to it .


Its hard and relentless but seeing the progress a bit at a time can give you motivation to continue.

PinkPoppies

We were stood as you are with a similar amount of debt last August.

You know what though.... time will fly by and you'll be amazed at what you can achieve.

Very best of luck! Will subscribe and cheer you on!

mumstheword***

I'm in a similar situation! Will be reading with interest - good luck x

chasingfreedom

Wow, people read it


Thanks everyone for your support and subscriptions. I'll try not to bore you all too much. Yes, it feels great to be taking control finally and I did mean 2-3 years sorry. I'm not a very patient person by nature, (I suppose that explains some of my debt as I never want to wait for anything!!) and its frustrating for me not to be able to do this quicker but it built up over years and I guess will reduce over years too. It's great to see so many people on here who were in my situation and are now in a better place or debt free all together.


Had another great chat with hubby last night about our situation, I am bordering on obsessive about it all now I think. One extreme to another.


He's committed to doing as much overtime as possible over at least the next six months so we can try and dig ourselves out of the hole a little bit quicker. Unfortunately I don't get paid for overtime so I can't do anything. Anybody got any earning extra money online tips? Other than ebaying etc.


My next goal is going to be tackling the food shop. I am quite good at budget shopping I think but easily end up chucking extra bits in because they are cheap or they look good. I'm going to make lists and stick to them and become the queen of bargain shopping!!!

chasingfreedom

Ooohh and I forgot to say, we have an annual pay review in April every year. I was very hopeful for a reasonable increase due to an excellent appraisal and quite frankly I've been working my nuts off (or would have been if I had any!!) and I got a disappointing 1.75%, wow!!! This isn't really anything to do with me there is a company 'freeze' on at the moment which is annoying. Anyway, my boss said they were instead going to review my salary in general because of my hard work and I've been told I should have a decision by the end of the month. I know I shouldn't get my hopes up but I am hoping for a few thousand increase which would be amazing!! Fingers crossed

chasingfreedom

Not doing too well today on the debt busting front, totally late and disorganised this morning and had to buy lunch!! It is lovely though so that makes me feel a little better



Checked some of my online accounts today to monitor the balances and update my spreadsheet, lovely to see some decrease after my monthly payments are processed but frustrating seeing others go up after interest is added!!


Can't wait till the end of the month for the next payday so I can reduce the numbers again, feels like it'll never arrive. I feel so enthusiastic to pay more stuff just have nothing left in the pot.


I'm hoping we get below 38k after this month's billed at the end of this month/start of next.

mumstheword***

The wait is soooo frustrating!!! I almost knocked a grand off our total last month - am hoping to do the same again this month! I love checking on the credit card balance and see it gradually declining even if its payment here and there of £5 a day - it felt really good getting it under the £1k amount - it just looks so much smaller in 3 figures as opposed to 4!!!

chasingfreedom

mumstheword*** wrote: »

The wait is soooo frustrating!!! I almost knocked a grand off our total last month - am hoping to do the same again this month! I love checking on the credit card balance and see it gradually declining even if its payment here and there of £5 a day - it felt really good getting it under the £1k amount - it just looks so much smaller in 3 figures as opposed to 4!!!

Yes I've become a little obsessed with checking all of our online accounts lately, everyday I have a little look. I don't know what I'm hoping to see when I know I haven't paid anymore since the last time, lol. It's funny isn't it the little things that keep us motivated. You are so right about 3 digits seeming so much less!! How long have you been debt busting??

chasingfreedom

And by the way, our MINIMUM payments for our debt (excluding any household bills) is £1450 so we are pretty much guaranteed to reduce by a grand a month, which is crap and good at the same time, lol