Small Steps Out Of Massive Debt!

GeorgianaCavendish

I'm in the final week of my pay cycle, pay day next week and I'm excited not because I'm itching to start buying things but because I want to update my debt spreadsheet. Who am I?!

My goal for February was NO ADDITIONAL DEBT and barring the Barclaycard/hotel setback I am on track to achieve this. (I've put in an expenses claim for the hotel, so should be getting this money back on next expenses run in March). I've got money in my bank account, money in my Paypal account and no pending transactions waiting to surprise me.
Quite possibly, I have never been in this situation before. The Week Before Payday has traditionally been the week that the credit cards come out for everyday things (like travel costs and lunch) and when I start hearing the siren call of Paypal Pay After Delivery. I've usually scrimped, not because I'm being sensible and weighing up if I really need another shower gel or take away coffee, but because I've had no money and no choice.

This month I've done a lot of tracking through my old credit card and bank statements. I've been able to identify the areas of massive, extravagant overspending (Christmas and birthdays, following traumatic and emotional incidents) and the areas of mindless, everyday spending (all those burnt coffees, overpriced wraps, aspirational salads and special offer deodorants ). I'm not going to lie, it feels quite hard to see money sitting in my account at this time of the month and not spend it. But I'm not going to get out of this situation by getting overexcited & spending money to "celebrate" every time I reach a new mini-milestone, so I'm going to try to forget about my positive balances for the time being.

My goal for March will be to BUDGET BUDGET BUDGET! This weekend, I will go through the previous month's transactions with a fine tooth comb and see where I have spent money, see if there are any immediately identifiable areas where I can make savings and then make the most of YNAB!

Naomim

Well done you. What a lovely positive post.:T:T

It's lovely to reach a goal. It's far better to set yourself something achievable and not completely out of reach. No more debt in Feb if fantastic. :money: I wish I could have said the same. Mine's certainly not as stable at the moment.

when you start looking at your debt, it is obsessive but I suppose it's like anything else; dieting, giving up an addiction. It's all encompassing. It's good you can look back and start to recognise where and when you binge spent and maybe some of the reasons why. I'm a people pleaser. Always looking for positive attention, so find it hard to say no, especially to MrM and the kids.

You really are getting on track :j

Naomi x

GeorgianaCavendish

Thanks Naomi!

I'm choosing to set targets that will address why I am in so much debt already and hopefully help with changing my spending habits. I am optimistic that I'll be able to make inroads into the credit card in the next few months (waiting for confirmation of my annual bonus which is paid at end of tax year) but I really need to address why I spend because otherwise I'll end up adding to the debt again.

I totally agree with this being like a diet, hopefully I can bring all my years of (unsuccessful) dieting experience to this challenge!

GeorgianaCavendish

All my balances have updated reflecting my February payments, so I can post my first update.

Total debt (excluding Student Loan) is £ 35,365.94

HSBC Personal Loan : £13,255.79
Interest rate 8.9%, 35 payments left

Credit Card Balances

HSBC £2382.48
Interest rate 21.9%

MBNA £7871.55
Breakdown as follows
£2038.21 @ 10.9% (rate ends October 2017)
£4081.53 @ 23.9%
£1751.81 @ 27.9%

Barclaycard £10,218.42
£859.46 @ 27.6%
£9,358.96 @ 18.6%

Catalog £748.70
Interest rate 17.9%

Furniture Finance £689
Interest rate 0%, 8 payments left

Holiday £200 left to pay
Interest rate 0%, must be paid by 25th April 2017

Naomim

GeorgianaCavendish wrote: »

All my balances have updated reflecting my February payments, so I can post my first update.

Total debt (excluding Student Loan) is £ 35,365.94

HSBC Personal Loan : £13,255.79
Interest rate 8.9%, 35 payments left

Credit Card Balances

HSBC £2382.48
Interest rate 21.9%

MBNA £7871.55
Breakdown as follows
£2038.21 @ 10.9% (rate ends October 2017)
£4081.53 @ 23.9%
£1751.81 @ 27.9%

Barclaycard £10,218.42
£859.46 @ 27.6%
£9,358.96 @ 18.6%

Catalog £748.70
Interest rate 17.9%

Furniture Finance £689
Interest rate 0%, 8 payments left

Holiday £200 left to pay
Interest rate 0%, must be paid by 25th April 2017

With regards to the Credit cards, do you know the credit limits or are you at limit with them all. Any wiggle room there?

Have you looked at snowballing the balances? Have a look here and have a play with your figures http://www.whatsthecost.com/snowball.aspx

Naomi x

enthusiasticsaver

Well done on getting to the end of your first debt busting month and it looks like you have reduced your debt by £558 unless of course you have an overdraft which has gone up?

I assume you are tackling the most expensive tranche of the mbna and Barclaycard first as they are charging the most interest?

armchairexpert

What a brilliant set of updates! I'm also looking forward to the end of the month so I can budget, what are we like?

You're doing great, and I'm super impressed that you're addressing it with the counsellor as well: spending is often so emotional, and digging out those root causes is hard, important work.

Bobarella

"aspirational salads" is such a great way to put it. We are all just buying a lifestyle not food anymore when we do buy those little expensive pots.

Treadingonplaymobil

Wow, looks like you are coming to the end of your first month totally in control of things, well done!

Looking forward to seeing how you address the budgeting aspect next month - I'll be watching for tips

GeorgianaCavendish

Naomim wrote: »

With regards to the Credit cards, do you know the credit limits or are you at limit with them all. Any wiggle room there?

Have you looked at snowballing the balances? Have a look here and have a play with your figures http://www.whatsthecost.com/snowball.aspx

Naomi x

I'm within £200-£300 of the credit limit on all the cards unfortunately so no space to transfer, but I am going to play with the Snowball calculator now - thank you for the link