And I'm back

Fizz2015

And I'm back again, all be it under a different user name as need a fresh start. Really annoyed and disappointed with myself as 6 years ago was in debt and cleared it all and even had savings. Then life happened and few events along the way I ended up moving into my own flat (rented) and it is manageable but few things have cropped up and I am in debt again at £4,667.78. (2,439 is interest free). I applied for a loan this evening to consolidate everything, yes stupid I know but got rejected and then it dawned on me I was in financial mess. I have spent the last hour in tears having a pity party for one and need now to take action and turn this around.

I have signed up for the free 30 day credit check on experian and is good, everything paid on time, no late payments or defaults.

Now time to work out a realistic budget and figure out how to clear the debts, onwards and upwards.

Fizz2015

I have included a basic statement of affairs as a starting point on where I can cut back or rejig things.

Household Information[/b]
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1288
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1288

Monthly Expense Details
Secured/HP loan repayments.............. 20
Rent.................................... 560
Council tax............................. 66.87
Electricity............................. 50
Gas..................................... 0 (Heating is Electric)
Water rates............................. 25.5 (On a meter)
Telephone (land line)................... 0 (have but don't use)
Mobile phone............................ 20
TV Licence.............................. 12.12 (already paid for first year)
Internet Services....................... 2.5 (line rental paid yearly upfront)
Groceries etc. ......................... 100
Clothing................................ 0 don't need any though where my money goes.
Petrol/diesel........................... 100
Road tax................................ 0 pay every 6 months
Car Insurance........................... 0 (paid in full on cc)
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Medical (prescriptions, dentist etc).... 0 Get free presciptions in Wales.
Contents insurance...................... 0 - need to sort out.
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0 - long hair only cut when can afford it.
Entertainment........................... 25.5
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 982.49

Assets[/b]
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................ 0
Total Assets............................ 1000

Secured & HP Debts[/b]
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 275......(20).......0
Total secured & HP debts...... 275.......-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
CC1............................2164.22...25........0
CC2............................2439.22...40........18.9
Total unsecured debts..........4603.44...65........-

Monthly Budget Summary[/b]
Total monthly income.................... 1,288
Expenses (including HP & secured debts). 982.49
Available for debt repayments........... 305.51
Monthly UNsecured debt repayments....... 65
Amount left after debt repayments....... 240.51

Personal Balance Sheet Summary
Total assets (things you own)........... 1,000
Total HP & Secured debt................. -275
Total Unsecured debt.................... -4,603.44
Net Assets.............................. -3,878.44

Thanks for reading.

enjoyyourshoes

Suggest you identify the problem first, the spending, debt and inability to live within your means are the symptoms.


Have a cold hard look at what the problem really is and then work out a strategy to resolve this. The debt will then have to be resolved as a secondary issue.


Thirdly look at 'planning' you finances, saving for annual 1/2 yearly bills; reconciling you main account every day and including all CC costs against this reconciliation when you spend them.

Fizz2015

Thanks enjoyyour shoes, your words ring true and close to home with me.

Last year I had a bit of a breakdown, off work with stress for and got bad anxiety as a result (none of this excuses my spending behaviour) just explaining a bit. I am a worrier and always feel I must have something straight away because I need or want it when in reality I don't need anything. I am in a much better place than a year ago but need to address the spendaholic in me and find other things to provide fulfillment and satisfaction in my life rather then the shops!

I know exactly how much day to day and monthly spends are but it is accounting for the bigger and unexpected bills that I do not factor in and these end up on the credit card!

rockabillygirl

Just wanted to say hi and wish you the best of luck with your financial journey. I identify with what you said around anxiety. I have found mindfulness very helpful....but I know everyone is different.
I have subscribed to your diary to follow and cheer you on.