This really is the end

Determined14

Hi all

I've been a chronic lurker on the DFD for years now and have been beavering away trying to get rid of my pile of debt but I don't seem to be able to make it over the final hurdle.

It all started a few years ago when I had my first LBM and realised I had about £7k CC debt alongside a £3k family loan. I worked really hard and managed to halve it. Then we moved house and the debt piled on again, managed to pay it down once more to about £4k for both debt. Then we had a baby and maternity leave caused me to double it. Then we bought a second hand car which needed a few bits doing on it and now I'm up to about £11k (exact figure to come).

I feel like it's an endless loop of getting so close and then letting things slip. I budget every month but then still spend regardless. I think my 2 areas that cause real damage (well maybe 3), are 1) Food shopping - I meal plan, and bulk cook but then slip into little top up shops so I overspend 2) overambitious debt repayments which then mean I don't have enough to last the month 3) doing the bulk of "family" spending i.e. christmas presents etc

I'm always inspired by the DFD board so I'm hoping that having my own diary will help me beat it once and for all!

My aim is to be DF by Sept 2016, I've said it now so it's got to be done. It's really ambitious and does also depend on if another baby pops into the equation but I feel I need to be ambitious as I'm fed up of living under a cloud of debt and every time we want to do something saying "can we afford that?" "where's the money coming from?"

So my mid May resolution is to tackle the debt for the last time.

Determined14

Debt Figures as of 14/5/15

CC1 (17.4%): £3207.41
CC2 (0%): £3600
CC3 (0%): £4438.50
Total: £11,245.91 (before CC3)

sofiar

good luck and let us know how you get on ;-)

chasingfreedom

Welcome to your new diary


You sound positive and inspired, look forward to hearing how well you do x

enjoyyourshoes

Bit of a theme:-


I budget then spend regardless
I meal plan then top up
overambitious debt repayment
Aim to be DF by Sept 2016 - debt now £10K exact figure to come


Poor planning?


Its all boring:- financial planning, daily reconciliations, meal planning shopping lists and buying only what's on the list, keeping daily track of all charges against your bank account including internet, CC, SO,DD etc) let alone working out you annual 1/2ly & 1/4ly bills (don't forget the Xmas & birthdays savings) then saving a monthly amount that covers all of these (cash flow analysis etc)


Unfortunately with attention to detail , consistent analysis and recording of costs, self restraint and commitment to your GOAL (whatever you Goal is?) then the cycle will prevail.


Probably ought to rationalise why your spending more than you bring in?

Determined14

enjoyyourshoes wrote: »

Bit of a theme:-


I budget then spend regardless
I meal plan then top up
overambitious debt repayment
Aim to be DF by Sept 2016 - debt now £10K exact figure to come


Poor planning?


Its all boring:- financial planning, daily reconciliations, meal planning shopping lists and buying only what's on the list, keeping daily track of all charges against your bank account including internet, CC, SO,DD etc) let alone working out you annual 1/2ly & 1/4ly bills (don't forget the Xmas & birthdays savings) then saving a monthly amount that covers all of these (cash flow analysis etc)


Unfortunately with attention to detail , consistent analysis and recording of costs, self restraint and commitment to your GOAL (whatever you Goal is?) then the cycle will prevail.


Probably ought to rationalise why your spending more than you bring in?

I totally agree. I think my big disadvantage is that my DH isn't onboard with my plans so I get fed up of being the bad guy of the relationship by always saying no. In terms of the annual planning that's the only area where I'm actually on top of things and that's not an issue, plus I've finally convinced DH round to my way of thinking. I have a detailled spreadsheet that lists all of our annual expenses, and now includes a slush fund for Christmas so it can come out of that rather than my account and we have split it equally so I think this is a step in the right direction.

S/O / DD wise I also know exactly what comes out of my account and when (again another spreadsheet), I think it's just the daily spending which can get out of control sometimes. When I was at my most frugal I checked my bank balance daily and would make a PAD and this really helps. On maternity I quite often went a week or so without checking my balance and this month I've been awful. I think the key to my success (can you tell how much I've been analysing / thinking about this?) is understanding where my money actually goes on a daily basis. So I think a spending diary is the first step to this alongside delinking my cards to all online shopping sites (Amazon - one click ordering is evil!) but any other tips would be hugely appreciated!

Determined14

So after looking at all of my CC balances just now I've found that I can do a balance transfer onto CC3 at 0% (with 3% fee) for 24 months so my DF action today is request a balance transfer for all of CC1 (bar £207.41) onto CC3 with a £90 fee which is 2 months interest. So all of my debt (bar £200) is now at 0%. I will focus on clearing that £200 and then close that credit card. I know it's not much but at least it's a step in the right direction and that £45 a month interest for CC1 can start to pay off debt. So my debt now stands at:

CC1 (17.4%): £207.41
CC2 (0%): £3600
CC3 (0%): £7528.50

Same total as before but now all interest free

enjoyyourshoes

Determined14


I know your concerns re DH not being on board.


Could try :-


1. Discussing LIFE objectives and then ascertaining how these can be achieved within financial envelope


2. If agreement (!) on objectives write it down as SMART (specific, measurable, achievable, realistic and timebound)
(you did part of that with debt free by Sept 2016) (my concerns would be is that achievable (Viz a Vie DH, previous yoyo etc) and is it realistic (£11,329.91 in 16 months that's £708 pm debt repayment withot factoring in interest charges on debt and also state of overdraft and any unaccounted costs which have yet to hit the £11.3 K)


3. Do monthly summaries and sit DH down to review progress (against Obj and are they still right or do we need to change thes for any reason etc)


4. Discuss reluctance DH to buy into process (could be that DH is not crystal clear on Life Obj and what finances need to support this ) may take a number discussions !!


5. Keep persevering with the numbers and DH, set short term targets and celebrate achievements etc to maintain motivation, as its really hard/tedious/painful/easily knocked off course


Just be careful that merely checking daily bank balance may not give you the true picture. Do daily reconciliations including ALL charges (internet easily get missed as no paper rail, CC (easily missed as one psychologically wants to miss the)


If you find what works with H please let me know !

Calling14

Good luck will pop see how you get along. Taken me ages to finally see that my budgeting was awful and now reluctant to spend on anything. How this board changes you is amazing.

I have been doing save a 365.00 for xmas challenge, it all helps I just pop a pound in bottle now and again.

All the best see you debt free 2016, hopefully I will be about the same time.

Determined14

Thanks for all the support. I know I've got a long way to go and lots of behaviour to change. My DH is slowly getting there, I just don't think he's had his LBM yet.

Does anyone have any tips for keeping a spending diary? How is best to do it? Does anyone know any good apps?

Determined14

Bit of success already tonight, I've reimbursed myself £200 from the joint account and reminded DH about £150 he owes me so that's CC1 cleared and a bit extra to go off the others this month, on top of the £400 regular payment! Though I won't update totals until it's all gone through.

Paying for everything and then not chasing up money with DH is definitely a contributing factor to my current situation, well not anymore!