Nervous - 2015 time for action

Mummymoorhead

Hi,

I have never posted on a blog before but its time I take action on my debt and this is the year to do it!

I have 3 credits card that cause my debt :

CC1 - 7,000
CC2 - 7,000
CC3 - 13,000

A lot of the debt occurred when I was made redundant while on maternity leave, and it took me a lot longer to find a job than I would have liked!
But this year I determined to reduce the amount instead of just managing it. I have a very well paid job in the government so time for no more silly spending and time for overpayments on my cards!

Wish me luck!

Sarah

LastFewSteps

Good Luck

enjoyyourshoes

Hi


to assist in reducing CC debts:-

1. Have a clear objective (specific, measurable, achievable, realistic & time-bound)

2.Understand your total annualised costs & savings (to meet your objectives) (i.e. do a budget or similar) & ensure this is LESS than incoming money. (if not do a review to allocate LESS than income)
(DONT forget to include Christmas, Holidays, Birthdays, Savings, clothes etc as well as the boring stuff)

3. Break budget into two part (part one: monthly costs) (part two: 1/4ly ; 1/2LY & annualised bills. This annualised £'s should be divided by 12 to produce a monthly cost to save for these bills. Can do a cash flow to ensure monthly savings pot has enough £ to pay allocated Bills on the estimated months they become due)

4.Do a daily reconciliation which has your income LESS all your costs (including the monthly savings described above), Cash withdrawals, monthly DD & SO, cheques cashed, credit card purchases & savings (linked to your objectives). Do this reconciliation daily and ensure you spend LESS than income.

5. If you dont deduct credit card payments off your monthly income then you will not have the £'s to repay and thus end up in DEBT.

5. Put your monthly savings into a high interest account and track allocated savings against costs. Also DONT PAY insurances by monthly credit agreement pay them annually.

6. Get online access for your current and other accounts so you can see your separate reconciliation is accurate and moving monies is less hassle on line

7. Produce Excel docs to assist


Good luck on journey

GaLa15

Good luck - you will be ok.

Mummymoorhead

Thanks for your advice enjoyyourshoes.

My house budget is all documented on spread sheets and tracked daily my husband is an accountant so he manages the household budget closely, including emergency funds! I contribute my 1/2 of the costs and the rest of the money is my own.

I then have a spread sheet that documents my personal incoming and outgoings, I just have to force myself to pay more off my cards and spend less, which already doing this for 2 months the effects is having is nice to see and will spur me forward!

Thanks

Sarah

snowscreamer

Hi,

Welcome and good luck on your journey.
Can I echo enjoyyourshoes's advice but point out that it is much easier and quicker to do using YNAB than Excel!! YNAB has instituted a total mindset change for me - now justifying every purchase and since I've been using it over the past 5 months have spent an average of £792.06/month *less* than my income. Other the previous months we were spending hundreds of pounds a month *more* than was coming in. We're not even making massive cutbacks or living austerely - just being more sensible with money.

Happy debtbusting

Harryspotter

I'm just starting out too - just wanted to wish you good luck x

Mummymoorhead

Good luck to you too Harryspotter!!