Small Steps Out Of Massive Debt!

redofromstart

I'm another one who advocates keeping an emergency fund, even if you still have debts. Can't assume that credit will be available sadly.

I'd be 80/20 splitting any spare into high APR debt/savings but I know others advocate paying the minimum on everything till you have some emergent savings.

GeorgianaCavendish

redofromstart wrote: »

I'm another one who advocates keeping an emergency fund, even if you still have debts. Can't assume that credit will be available sadly.

I'd be 80/20 splitting any spare into high APR debt/savings but I know others advocate paying the minimum on everything till you have some emergent savings.

I like the 80/20 split idea, that might help me with the panicky feeling I get when I'm focusing all 'spare' money into either the debt or emergency fund ... like financial FOMO

I've been reading the YNAB blogs & tips (I didn't really do this last time), there is so much interesting info that I overlooked before. Does anyone else use YNAB?

ChasingSunshine

I use YNAB, really like it. I had a free year last year as was a student and didn't think I would renew it. Then it came time to try without it and well let's just say I am better with it. So much easier to fritter money away without it so think it is worth the annual subscription esp as my income is very variable at the moment. Having said that I haven't looked at any of the tips since I first signed up.

wishingthemortgaheaway

I'm an avid ynab user too, I do trot this out every time I'm being evangelical about it, but due to Ynab I was able to give up my job at the end of my maternity leave and take a much lower paid role (due to massively reduced hours) and we still have the same quality of life as previously - in fact it's probably better due to my reduced working hours.
We are currently having to have some unexpected work done on the house, hubby was having a panicky sulk and not engaging with the process due to the financial outlay, where as I'm just taking it in my stride. The money is there, it's 'job' is currently different but I'm 'rolling with the punches and all is good' I was in a fortunate position that I had very little debt when I started though, but I'm sure it would still have benefitted me.

GeorgianaCavendish

ChasingSunshine wrote: »

I use YNAB, really like it. I had a free year last year as was a student and didn't think I would renew it. Then it came time to try without it and well let's just say I am better with it. So much easier to fritter money away without it so think it is worth the annual subscription esp as my income is very variable at the moment. Having said that I haven't looked at any of the tips since I first signed up.

That's so true, it is really easy to fritter money and have nothing positive to show for it. I had the student edition but didn't really get to grips with it, then I cancelled my subscription and restarted a few days ago so I'm in the 34 day free trial. I would like to renew but membership is just over £65 and not sure if we have the flex in the budget for it, I'll check my cashback and survey accounts to see if I can meet the cost from there.

wishingthemortgaheaway wrote: »

I'm an avid ynab user too, I do trot this out every time I'm being evangelical about it, but due to Ynab I was able to give up my job at the end of my maternity leave and take a much lower paid role (due to massively reduced hours) and we still have the same quality of life as previously - in fact it's probably better due to my reduced working hours.
We are currently having to have some unexpected work done on the house, hubby was having a panicky sulk and not engaging with the process due to the financial outlay, where as I'm just taking it in my stride. The money is there, it's 'job' is currently different but I'm 'rolling with the punches and all is good' I was in a fortunate position that I had very little debt when I started though, but I'm sure it would still have benefitted me.

Wow! That is brilliant, how amazing to be able to make that kind of improvement to your quality of life. I find that really motivating, more so than my spreadsheet and calculations

savesummore

Hi there,
Long time lurker here!
Glad to see you back on here and sorry that you have been having such a difficult time.
I'm another fan of Dave Ramsey, his way of doing things just makes sense to me, build up some savings (£500-£1000) then he says to pay off your smallest debt first whatever the interest rate as its good for your moral.
I also like him as you can down load his app and listen to his regular radio shows or find him on you tube it helps me to have a constant reminder.
I'm trying to pay off my debt and have been hit with £900 worth of car repair bills in the last 4 months! So frustrating but if we keep heading in the right direction hopefully we will all win in the end.

wishingthemortgaheaway

GeorgianaCavendish wrote: »

Wow! That is brilliant, how amazing to be able to make that kind of improvement to your quality of life. I find that really motivating, more so than my spreadsheet and calculations

Thank you, it really has been good and ynab itself is very motivating. I often see people on the fb group say that they have emailed the ynab customer services team and they have had their free trial extended to 3 months.

Seasidegal58

Also another who can't praise ynab enough. I wouldn't be without it. I have categories for everything and know exactly how much I have to spend at any time.

I love Dame Ramsey as well! He's not everyone's cup of tea but I'm a big fan of his no nonsense approach and tune in regularly to his radio shows.

EssexHebridean

Also a fan here of building up at least some sort of emergency fund before throwing everything spare at debt - if emergency hits things can escalate so fast, just even a small buffer - £500 if renting for example - can make a massive difference to a "well you get the new fridge sorted and we'll take it from your next rent payment" scenario for example.

Also loving the idea of "financial FOMO" though and absolutely get where you're coming from on this!

YNAB etc are great BUT you need to understand the practise and be able to do it all manually as well - because it's only that way you can pick up if something has gone wrong. Just letting an app "do it all for you" can be a highway to trouble for some folk.

kindofagilr

GeorgianaCavendish wrote: »

I've now filed all that information away with my debt spreadsheets for the time being, and for this week my focus is on restarting YNAB to get a handle on where we are and what we can throw at the debt. I need to stop obsessively focusing on the bonus allocation question at the expense of addressing the smaller MSE things we can do to tackle the debt. Using the teaspoon analogy (which I love!) the bonus might help get rid of a bucket-worth of debt, but we're still going to have to do most of the work with our teaspoon.

I've been a spreadsheeter for years, then decided to give YNAB a go (6th Jan I started it) and I am in love already I hope you fall in love too