Getting back on my feet!

Hayley33

I posted about struggling with my overdraft and I'm still in it and in a mess but I got some good advice here. From next month I'm going to start getting OUT of it. I would say that I used to be pretty good with money I was out of my overdraft for years, I also always look for deals on everything I have to buy, sales etc reduced price clothes for us etc,I save up for Christmas so that is always sorted, take my own food to work etc and I don't feel that I WASTE as such.
But I must of been somewhere to get into the overdraft mess - I was going to apply for a money transfer credit card and pay it back over 3 years but then I thought it's just going down the old route of credit cards again etc, does anyone think they're a good idea? What I'm going to do instead is write down everything I spend from next month, each day, and see where I can really cut back to pay my overdraft off myself. I want to join slimming world tomorrow and while this could be seen as a waste of money, I desperately need to lose the weight & I also pay £20 per month for unlimited swimming whenever I want which I think is good, I have thought about cutting them out but then I don't really want to not have anything?

Any tips on what you cut back on to pay back debt? I will do a strict spending diary.

Pixie5740

If you can get a super balance transfer credit card with a lower rate than you are currently paying on your overdraft then it would make sense to get the card as long as you repay the balance before the promotional rate ends.

What used to trip me up was not having an accurate budget that didn't include non-monthly expenses and no emergency fund.

I think the swimming pass can be a good things if you use it enough so that it works out cheaper than paying for each individual swimming session.

I definitely think a spending diary is a great idea. Good luck!

rockm87

Hi
I agree you need a realistic budget, not just a strict one.

Using the statement of affairs: http://www.stoozing.com/calculator/soa.php

It helps you think about all the things you need to budget for. You could even post it here and others could give advice.

The only way i got out of my overdraft was to open an account without an overdraft, have my wages paid into that one, and then make monthly contributions to pay off the overdraft. I got rid of it that way.

andyfromotley

Dont just mark time with a spending diary next month. Set yourself a budget that accounts for every single pound that you will earn next month. Give every one a job. Dont worry, you wont get it right, in some areas you will overspend and in others you will underspend, but at least you will be in control of your spending. You could be amazed at how much you can save using this budget.

You could try YNAB a budgeting program free for 1 month or there are any number of budget programmes out there many of which are free. You can also use excel, or just a good old pencil and paper.

In regard to your spending, did you post an SOA on your other thread? If not do that and we can advise rearding cutbacks.

0% CC are a brilliant way of reducing the cost of your debt but only if you DO NOT add any other debt onto them. And of course they still need to be paid off. Many of us just left the debt sitting there making minimum payments instead of actually tackling it! (it takes around 8-9 years to pay of a debt on a 0% card if you only male the minimum payents. (depending on the card).

Good luck.

narabanekeater

as for the slimming world do it! not only will you loose weight while still eating normal foods so no expensive items, you'll make new friends i'm sure. There's a £5 to join offer in one of the ladies mags this week I think its reveal. Its £5 a week that in my opinion is well worth it.

AspiringButAnxious

Completing an SOA will be useful, as will tracking your spending — you can use an app or pen and paper, whatever works best for you. This will help you see exactly what you spend money on, how much and how often. Many purchases tend to slip through the cracks, but a few pounds here and there add up.

Obviously, what you cut back on will depend on your circumstances, but here are examples of what I have cut back:
• Spending on junk food and cola. I've switched to Tesco Value cola, which doesn't taste as good as Pepsi or Diet Coke but is much better value. I've gone from spending £5 a week on cans to under £1, which is a huge difference considering my main source of income is £102 a week ESA.
• I recently switched my mobile from a £8.30 per month sim only deal on O2 to £5 per month on Virgin — plus I get more data and minutes! Some people cut out their phone completely or use PAYG, but unlimited texts are important to me because they are the main way I keep in touch with my friends, who all live too far away for me to see them very often.
• When I do see my friends, we socialise at each other's homes, so we only spend money on travel and a minimal amount on food and drink. Occasionally we go to Wetherspoons and I try to stick to diet coke and if we eat, a bowl of chips.
• I have switched to crystal deodorant, which is cheaper in the long term. I already used a mooncup for environmental reasons. I've also been using all the toiletries I've received as gifts and samples I have lying around, instead of buying more — asked my mum for lots of shower gel for Xmas to minimise next year's spending too!
• I get my dad to cut my hair at home, instead of going to a salon. It works for me because I have a simple haircut and my dad can cut straight. I shape the front myself, since my dad isn't very good at that. Depending on where you live, there might be a college which offers cut price (or even free) haircuts from trainees, who are well-supervised.
• I'm not spending on clothes unless absolutely becessary. So far this year, I have bought a pair of sweatpants and a couple of t-shirts. If I lose some more weight, I have several more garments I will be able to fit into, some of which have never been worn...
• I've sold stuff I don't want or need. I'm not as good at this as a lot of the people on these forums, but I've got £40 from a ring and a guitar I never played. I plan to do a car boot sale next spring, to try to recoup some of what I have spent on the dozens of books for which I no longer have room!
• I gave up my car last year. I hate driving my mum's car, but I simply couldn't afford to keep mine on the road. I got a little money to put towards my debts (it was part exchanged for my mum's car) and split the running costs with my mum, which are much lower than they were on my car anyway.
• I'm aiming to buy all Xmas presents with vouchers earnt from doing surveys. I will also try to keep the prices of individual presents low — in the past, I have tended to spend more than I could afford just so that I could buy a particular gift. No more!

I have sacrificed a lot, but there are a couple of things I insist on keeping, despite it not making financial sense: I sponsor a little girl in Senegal for £18 a month and I own a dog. However, the benefits to my mental health make both of these things excellent value for money. You have to decide which of your costs offer good value and prioritise them.

Sometimes you will be able to ringfence the most important expenses; sometimes you won't. Some people post on this forum asking for advice and then argue against every piece of advice they are given, but the bottom line is that you have to decide what is right for you. Nobody is going to wave a magic wand and make your debt disappear — but you can do a lot to pay back your debt sooner than you might think you can. Often, it's a case of asking yourself whether being debt-free is more important than the things you buy — in my case, it's more important than everything except my dog and my sponsor child, so I try to cut back as much as possible on everything else.

Dobbibill

Hi Hayley,

I agree with all the PP's and also have another option if you are unable to get a money transfer card.
Separate your bills and spending. Treat your OD as a bill. Eg - Pay x amount for the fees/charges, x amount to pay down the OD, once it's paid forget about it, keep your day to day money in a spending account so you don't get tempted to use the OD any more, otherwise this will undo all your hard work.

This will take self discipline at first but once you've done it for a few months, it will become the norm.

We can all provide you with ideas but which one you decide has to be your choice. Some things that work for me, may not for you etc.

All the best

DB