Newby debt:Realisation dawned! Help..

Sanctioned_Parts_List

Ch1979 wrote: »

Hello! Yes I think you get what I mean, it's the pure thoughtfulness behind my spending which is the issue. Without my system I have lost the joy of buying and making things.
For example I don't have a purse and need one. I could buy it, but I have made a wallet out of a handbag which I was going to recycle. So now I have a lovely purse with sections...I enjoyed it and saved money!

What a brilliant idea! Sounds like you'd enjoy the Old Style Moneysaving board on these forums.

Ch1979 wrote: »

Boiler cover- it cost me £460 to repair my boiler 3 weeks ago (most parts are expensive on this one). I took it out 2 weeks ago and had a service included. The 460 quid was the cherry on my debt cake :-(. The gas engineer who works at our company advised me that for the parts alone it is worth having this cover but he may be wrong.

Ouch, yes, I realised after I posted that I've been kinda lucky with boiler breakdowns - even the very unreliable "Ideal" combi boiler in my old house could be fixed mostly with 3rd party pattern parts rather than originals. How long had it been working without issue before then? Break-even point for insurance vs. savings would be 4 years 8 months, ignoring interest, for this particular bill.

The main point, though, is not to over-insure. If the cost outweighs the risk, or the risk is something you (or family/friends/colleagues) have the skill to fix, or the risk is already covered by one of your existing policies (check your home insurance for boiler breakdown, for example) then it's something that can be easily cut.

Bobarella

Hello
Just wanted to say I think you sound very sensible and that you can easily clear the amount of debt you have with some work. It is a good idea to go into your new situation of living with your OH debt free on both sides as there is less pressure. I'd recommend joining in with some of the fantastic challenges on the debt free challenges board for company and motivation.

All the best

Bob

Ch1979

Fab suggestions above and gave me alot to think about:thanks!
So....
1 Emergency cover possibly not required- operatives at work could make safe and do simple repairs next working day
2 Reread contents insurance info to see if any policies or bank account are already covered
3 See if I can get my ten year old cat insured for less (with good cash back rate)
4 I wonder if a cash back card is worth it for my spending (400-440 per month) as I expect to buy in bulk for some items. Does anyone have any experience with these? I don't know if I would qualify.
5 Subscribe to certain boards on this forum for suggestions and support
6 Monitor spending and reconcile balance every day: software or written
7 Think of anything which isn't a necessity as a treat.
8 Treats are a reward at the end of the week and should be decided the week before. Compare prices and if possible, make it. Finalise the treats at the end of the week before buying.
9 Devise a weekly food shopping list full of variety, buy only what I will use. Commit it to memory and shop around for best value. Downgrade brands. Use vouchers.
10 If new clothing is required buy cheap and tailor it myself. Retain old clothes for projects
11 Psychologically think of this as learning to get more joy from my money. The things I have wasted money on have not made me happy. Enjoy shopping as much as saving.
12 Consider any money outside of my spending budget as not belonging to me
13 Tell my friends and colleagues about my situation. Barter things with them and ask for help.

Baby_Angel

Bank package fees: If by any chance you bank with Barclays, have you signed up for their blue rewards. You pay additional £3 but get £7 back. So your packaged fees will be around £12 effectively.

greensalad

utroi85 wrote: »

Council tax 71 - per month ? Where do you live, a palace ? - have you got your 25% discount off them ?

Not OP but is that considered a lot? Ours is £130 a month spread across 12 months (instead of normal 10).

Sanctioned_Parts_List

Ch1979 wrote: »

4 I wonder if a cash back card is worth it for my spending (400-440 per month) as I expect to buy in bulk for some items. Does anyone have any experience with these? I don't know if I would qualify.

It does you no harm to stick your details into this boards eligibility checker to see what options are open to you. Personally, I wouldn't do this just yet. I'd clear out all existing credit cards, build up a £1k emergency buffer, then start experimenting with rewards cards (paid off in full by DD). But you know your situation and level of discipline better than me.

Ch1979 wrote: »

13 Tell my friends and colleagues about my situation. Barter things with them and ask for help.

YES! I wish more people would do this! You'll probably find a few of them are in the same position and still in denial or too {scared|embarrassed} to admit to it. So you might find you have DFW companions close to home...

Ch1979

Sorry I have no idea how to quote replies on this phone..
Baby angel: no its natwest and I'm very happy with them but it's 16 soon to go up to 17 I believe
Green salad: my sister lives down the road in a 2 bed and hers is about the same. We are semi rural so I wonder if that affects the division of the councils budget?
Sanctioned parts: you've been a great help, and I agree that the cash back card should be in the future not now
I'm lucky that I know a lot of my friends have or used to have money issues hence the kitty (or money pool) we do when we go out. At work they are quite open with stuff like this in my immediate team and will be supportive. Perhaps that's the key to debt free success?

enthusiasticsaver

Sounds like you have some good ideas already to get rid of some of your spending. I am also not a fan of insurance and would certainly not pay bank fees either. If you really do need insurance for your phone (not sure why as I have had a phone for donkey's years and never lost or broken one yet - touch wood!!) then look into standalone insurance or add to your contents insurance as an extra. Until you are out of debt I would not go on holiday so travel insurance irrelevant and I paid £25 for an annual RAC breakdown cover policy this year. We also got rid of boiler cover and we pay a plumber to come in each year to service it which is much cheaper. Build up an emergency fund for all these sorts of things. Also income protection?? Is this something you really need? I don't know your work situation but insurance is something which is risk related. If you are in a company where your job is reasonably secure and you get sick pay if you are off work for a certain length of time weigh up whether it is worth paying out for this. Many times if you are on fixed term contracts they will not pay out anyway.


I would not be tempted to go for a cashback card if I were you until you are out of debt as the temptation is there psychologically to spend with the misguided notion that the cashback (which is rarely more than 0.5 or 1%) is enough to counter the spend. It never is. Spend within a budget and good financial discipline is the only way forward.


Oh and cut out the smoking altogether for the benefit of your health and your finances. I think there is a lot of help available for this on the NHS now. I am lucky though in that I have never smoked so I appreciate this may not be easy but if you visualise setting fire to £10 notes is that not enough to make you want to quit?


Final suggestion is about groceries and household spends. We spend £200 on all supermarket shopping per month for 2 of us and that is not cutting down too much. I use Lidls three times a month and Waitrose once for the odd luxury item and gluten free snacks for my son in law when he visits and B and M for household items and drinks (4 bottles of wine per month and 12 beers ) which is really cheap. I could get it down even less so I think you could get yours lower by doing meal planning, down branding and cutting out all waste if it is just you and occasionally your BF.


Good luck and I hope you get on top of your debt soon.

enthusiasticsaver

Just read the income protection is life insurance. You do not need that if you have no dependants. If anything happens to you your next of kin can sell your flat to pay off the mortgage.

utroi85

Not OP but is that considered a lot? Ours is £130 a month spread across 12 months (instead of normal 10).

I guess I'm quite lucky then. Mine is £39 per month in a flat on the Zone 1/2 borders.