Feel sick with debt but determined

milobrulee

Hello everyone,

I have created a new account here. I am currently dealing with what I feel is a spending addiction. I spend every day, mainly on hobby related items. I have previously been a member here and my debt has gone up and up despite trying to keep it at bay. It has been getting worse and worse after 2016, but I have managed to curb the spending since the summer and I'm determined now to pay down the mammoth amount.

I often find myself sick with worry, panic attacks and the like. Moments of stark realisation at what I've done. I'm 25 years old, I have a good job, I am just about doing OK with a good enough salary that I can pay things off plus interest, but anymore increases and I would be well underwater.

I have a 2nd job which I'm using to try and pay off debt, I'm pleased to report the salary has recently gone up £2k a year so I can put more into debt repayment.

I think my current debt is around £18k, my salary is about £58,000.

I have just yesterday received a payment for some extra work I did and have put 95% of it into paying off my Very.co.uk account and have requested the account be closed. :T

I am due to receive another £900 in a short while and I'm trying to decide where to put it. I know about snowballing and picking the worst interest, but I feel I need an emotional win more. Ideally, I need something I can entirely close off once it's paid so it is no longer accessible. I definitely want to use £95 of it to pay off my La Redoute account (that would mean ALL my catalogue accounts are closed!) but not sure whether to put the rest of it to closing down a credit card I never use (cut up) where the interest isn't terrible, or use it to make a good dent in a Natwest overdraft which has been haunting me for years (£1800).

I guess I'm just hear for some chatting and support. I find myself getting "obsessed" with things like house renovating, clothes shopping, hobbies so I'm hoping I can get "obsessed" with debt repayment.

MrsTinks

Start will an SOA That will tell us where you're best to start your efforts - £58k income at 25 is pretty impressive so you should be able to fix this

Work out WHY you're obsessed with these things - is it boredom? If so find some cheaper/free things to join in with Plenty of charities out there needing a hand!

Whilst not addicted I now try to look at anything I buy after a massive declutter as "ok if I buy this I have to get rid of something... so what will I sell/tip/give away?" it stops me hoarding :rotfl: and it means I have to stop and think about what I REALLY want.

The renovating... pick a project you REALLY want to do and work out the cost. If it's "cheap" (£500 or less) then tell yourself that when you have cleared off £5000 from the debt the next £500 will be saved for this project. That way you can plan it and save for it and look forward to it

milobrulee

Debts as they stand:

La Redoute £95
Creation £785 (cut up)
MBNA £9604 (suspended but balance remains)
Barclaycard £4545 (need to cut up)
Aqua £1578.24
Natwest £1840
First Direct £1400
Halifax £1430

milobrulee

Thanks for your words. I will start an SOA when I have access to all my bill amounts, but I know it's roughly £1495 a month. This includes commute costs and rent, which are quite a lot, plus all things like phone and leccy. Car I share with my partner

I know that I need to cut down on food purchasing. I've been trying to get into the habit of eating soup for lunch, especially now it's getting colder (and I can make it myself, but it only costs £1.50 on sale for two portions so sometimes I'm just buying from Tesco!) - other than that I've recently reduced my haircut/beauty spends to a local hairdresser who comes to my house, for £16. I've cancelled all subscriptions I had to magazines (only subscription that remains is YNAB!) and I'm trying my hardest to keep my hobby spending down.

My issue with hobby spending is I get so excited about a new project that I just go off buying things needed. Truth is I have enough stuff to keep me entertained for years. I'm really trying to focus on that. I'm using up what I have as much as possible.

milobrulee

Attempted an SOA but I couldn't get it to allow me to copy and paste it. Not sure why.

Anyway, I need to look through statements properly to work out exactly what I spend.

But the vitals I do have:

Monthly income after tax: £3,098
Monthly bills inc rent: £1,502
Surplus (to spend on both general living and debt repayment) £1,595

So, of course, as I already know I can easily live off £1,595 and pay a huge amount of debt a month, I'm just bad at it.

Cutting up all credit cards tonight. That's it. They can all go in the bin.

Looking forward to the £900 I'm due soon. Just need to decide where to put it.

Determined!

Katzen

Hi milobrulee, how do you even have time for hobbies with two jobs? My suggestions are two-fold.
1. Deal with your spending. It seems like you are an impulsive shopper who just has to have whatever you've currently got in your head. Try some mindfulness and look into minimalism. The idea of both being to get you to enjoy what you have and to really appreciate it, as you must have plenty if that's what's caused that debt. Then avoid magazines, shops, YouTube and Pinterest etc so you don't get tempted.
2. Figure out your interest for each debt then decide what's more important to you, clearing that couple of smaller debts or saving the interest by paying the next stack of cash on your most expensive debt. Although one way is more logical you can do the other if it makes you feel better.

I totally sympathise with your hobby spending. I love knitting and paper craft. Both are hobbies that the shops are designed to take advantage of. I know I have enough wool to keep me busy for ages and no time to paper craft so I avoid the shops as much as I can. My mum on the other hand has literally thousands of pounds of stuff in her craft room, that she can barely use because she can't manage so much stuff, it actually spoils the experience for her now. I'm determined not to get like that
Best of luck

MrsTinks

I couldn't possibly comment on unnecessary craft items *ahem*

I have a large double bedroom that is MY craft room... where I have a PLETHORA of stuff. That meme that says: "Why buy it for £10 when I can make it myself with craft supplies for only £95!" was probably written with me in mind... Ooooops!

I still buy the occasional item but I'm so much harsher now!

Best advice? Delete any mention of Pinterest from your life :rotfl:

On the special occasions board there is a thread for stash busting - you might find that helpful?

EssexHebridean

On the SOA, did you use the "format for MSE" link once you'd done it? That usually works for people.

On the CC question, You're right in what you say, just cut them up. You don't need the physical card to make payments, so no reason not to cut them up now and reduce the temptation. Then as things are paid off, you can close the actual accounts, too.

The food side of things is a good way to start on cutting back outgoings. Never mind £1.50 for 2 portions, a tin of Tesco own brand soup is 45p. (I'm a wee bit addicted to their lentil & bacon!) There's a saving for you right there! You can also buy 5 tins on a weekend to take into work with you to see you right through the week - that reduces the temptation to go out and spend more at lunchtime, too.

I agree with Katzen about prioritising the highest interest rates. Take a good look at that overdraft though - because you often don't see a rate as such they can be misleading, but often they're on fees on a daily basis, dependant on how much over you are.

milobrulee

Katzen wrote: »

Hi milobrulee, how do you even have time for hobbies with two jobs? My suggestions are two-fold.
1. Deal with your spending. It seems like you are an impulsive shopper who just has to have whatever you've currently got in your head. Try some mindfulness and look into minimalism. The idea of both being to get you to enjoy what you have and to really appreciate it, as you must have plenty if that's what's caused that debt. Then avoid magazines, shops, YouTube and Pinterest etc so you don't get tempted.
2. Figure out your interest for each debt then decide what's more important to you, clearing that couple of smaller debts or saving the interest by paying the next stack of cash on your most expensive debt. Although one way is more logical you can do the other if it makes you feel better.

I totally sympathise with your hobby spending. I love knitting and paper craft. Both are hobbies that the shops are designed to take advantage of. I know I have enough wool to keep me busy for ages and no time to paper craft so I avoid the shops as much as I can. My mum on the other hand has literally thousands of pounds of stuff in her craft room, that she can barely use because she can't manage so much stuff, it actually spoils the experience for her now. I'm determined not to get like that
Best of luck

I definitely feel I would like to reduce the number of credit cards I have, even if it costs me more interest in the long run. The feeling I had when I paid off that full Very balance and asked them to close was one of relief. Like a small weight coming off my shoulders. I feel at the moment that is more worth it to me than the interest saved. I know that's not sensible, but it feel right.

I think I am going to use the cash to pay off La Redoute and Creation credit card. Just having two debts gone and closed is going to make me feel amazing. And best of all, it should arrive before payday so I can still afford to pay off some more debt at the end of this month (though I think with my minimums in play, I won't be able to clear a whole debt).

Honestly the reason I manage hobbies plus two jobs is because one of the jobs is hobby related! I write regularly about my hobby, as an expert for a magazine. It makes it so tough to disconnect!

I forgot I also have a third job, ha! Sort of. A freelance job doing my day job but on the side. I have a couple of clients "open" at the moment that should net me a further £1050 though not until the new year. I must put all this to debt, though.

MrsTinks

milobrulee wrote: »

Honestly the reason I manage hobbies plus two jobs is because one of the jobs is hobby related! I write regularly about my hobby, as an expert for a magazine. It makes it so tough to disconnect!

Soooo... could you do articles about projects that specifically stash bust? Sounds like an awesome gig though! lol

milobrulee

MrsTinks wrote: »

Soooo... could you do articles about projects that specifically stash bust? Sounds like an awesome gig though! lol

They give me specific stuff to write with, but I do try and burn through the stash...

Even so, the stash is for my personal use and I really am trying to get through it, though I don't need to at any speed. I just need to stop getting new ideas and stop spending on it.