Getting out of this debt sharknado

EmmaMicawber

I have only spent £15 on food this week so the amount 'saved' is going towards my Christmas food.
I'm also doing some serious menu planning for Christmas - we usually have so much stuff left over and I spend a fortune on cheese, fruit, cold meats etc which end up being thrown away.

DH is working like a Trojan to hit his target at work by the end of the year- it would mean a decent bonus to go towards the cards- fingers crossed. Still no job for me as yet but Ive been doing a short course to get up to date on my skills which hopefully will help.

EmmaMicawber

Great news today!!! The total for our credit cards is now in the 50's!! It stands at £59,964- yay! Down from £73,500 at the start of this year.

I've been going through everything methodically (a la MSE moneysaving) and we have now received the tax refund from OH's completely wrong tax code which is a massive help and means that I have been able to completely pay off the first credit card of our clutch of 9. I didn't post about it sooner as I didn't want to jinx it- I think it's the first time we've actually had money back from the taxman.

OH changed jobs a couple of years ago and apparently hadn't been on the right tax code since so we got an unexpected windfall- every single £ has gone to debt- until recently we would have used it as an excuse to treat ourselves. I also made £80 on ebay in the last week- it is crazy what people will buy- my old broken junk from the attic!

I do feel a bit guilty though as in the past I would just given everything to the charity shop (or taken it to the tip). Once we're out of debt I'll start regular giving again.

I'm running out of things to go through, but think the next might be PPI- we haven't tried to look into this yet. OH definitely had PPI on his credit cards when I first met him (20 years ago!) but the trouble is that he can't even remember which credit cards he had back then and we've changed address a few times so I need to look into how to go about this.

Happy Tuesday everyone

motivated

Hi Emma
It’s great to see the progress you’ve made. One CC down too :T

Don’t feel guilty about the charity business, like you said once you are on top of it all you can pick up where you left off.

Well done and Keep going you sound so positive I’m hoping some of it rubs off on me.
M

EmmaMicawber

Sending positive vibes your way Motivated
I know you and me have got similar amounts to tackle- it's hard to see the light at the end of the tunnel sometimes but we'll get there. I just think back to last Christmas and the horrible feeling I had in the pit of my stomach- it all seems so much calmer now, but it does get tedious chipping away every month. I've never had much patience!

Have you tried PPI, tax code checking, council tax checking, matched betting (I've still not been brave enough for that one) etc.?

enthusiasticsaver

EmmaMicawber wrote: »

Things have been going well - I've been having a clear out and have managed to sell £120 worth of old bits and bobs on ebay. It has gone straight off the MBNA card.

I'm debating how much to spend on Christmas. We have literally never had a budget and then stuck to it!
I would guess that we usually spend around £1500-2000 : £250-300 per child, £200 for each other, £60 per parent ×4, £30-40 per sibling and sibling-in-law and then ? £400-500 on food and drink (we usually have extended family staying so it gets expensive). So actually nearer £2000 .

I don't want to look mean and don't want people to know the financial mess we're in so it will take some planning to reduce this. I think I will budget £1000 maximum and OH and I have already said we will buy each other something to unwrap in front of everyone but keep the labels and receipts take them back so that is £400 less than last year. We both want the same thing- freedom from debt

I'd be interested to know what everyone else is planning on spending.

You have done so well I could not let this pass without saying something. Going into debt for Christmas is crazy so if you have saved £1000 for this then that is your choice but that is still a lot of money for someone who has still got heavy debts and committments (kids at Uni) and lots of credit card with deals expiring all with high balances.

Does it matter if people know you are trying to economise? Who are you trying to impress and how do you know the people around you aren't also in high debt.

DH and I do not have debt but do not spend £200 on each other. It is usually a token present - no more than £50. We do give our adult children money as they need that more than anything as on tight budgets (high mortgages, childcare etc etc) and a token gift(s) to unwrap so that is usually £50 for each of our DDs and SIL and £200 each to both DDs but if we were in debt we would give less than that unless saved. We usually spend a bit more on our granddaughter. We have stopped buying for most of extended family but still do small gifts for my mum, stepdad and brother as he is single. Nothing for other siblings, grown up nieces or nephews and we agreed with friends a few years ago just to go out for a nice meal together.

I reckon this year we will spend less than £800 as I retire next month so our income drops. In years when money was tighter I have spent less than £200 or £300. We buy a nice bottle of wine and maybe a sparkling wine but don't go overboard on food and drink as it always just seems to be still sat there in January. I have stopped buying pricey crackers and all the other bits and pieces some people seem to be sucked into at Christmas.

motivated

EmmaMicawber wrote: »

I just think back to last Christmas and the horrible feeling I had in the pit of my stomach

Can definitely relate to this one but this year I will not be putting anything whatsoever to do with Christmas on a CC :T If we cant afford it we cant have it. That way I know that the new year will be a lot less stressful than the last

EmmaMicawber

You're both completely right of course and I'm not going to put anything on a credit card, but was planning to use what is left of the emergency fund together with the £400 I have already put aside for Christmas.
But I'm going to see if I can reduce it down more as even £1000 is ridiculous in our position, I can see that. I might suggest no pressies for siblings though it might be a bit late if other people have already bought stuff.
I'm honestly not trying to impress anyone, we just used to enjoy spending money (we didn't have, admittedly) on the kids and entertaining at Christmas.
I just don't want anyone knowing how stupid we've been so am sensitive about people guessing if we drastically change things. Mind you, I have said we're economising and used the excuse of DD1 starting at uni and DD2 probably following her in a couple of years so far.

Enthusiastic congratulations on your imminent early retirement - debt free and mortgage- free - what an achievement!

pelirocco

EmmaMicawber wrote: »

Things have been going well - I've been having a clear out and have managed to sell £120 worth of old bits and bobs on ebay. It has gone straight off the MBNA card.

I'm debating how much to spend on Christmas. We have literally never had a budget and then stuck to it!
I would guess that we usually spend around £1500-2000 : £250-300 per child, £200 for each other, £60 per parent ×4, £30-40 per sibling and sibling-in-law and then ? £400-500 on food and drink (we usually have extended family staying so it gets expensive). So actually nearer £2000 .

I don't want to look mean and don't want people to know the financial mess we're in so it will take some planning to reduce this. I think I will budget £1000 maximum and OH and I have already said we will buy each other something to unwrap in front of everyone but keep the labels and receipts take them back so that is £400 less than last year. We both want the same thing- freedom from debt

I'd be interested to know what everyone else is planning on spending.

Its very unfair on the shop you buy your 'gifts' from to take them back , every business is struggling these days and this imapcts on their workforce , so think twice before you pay this silly game , What does it matter who knows you are strggling , and it will be a very good lesson to teach your kids now , before they think its ok to willfully spend money . Im not sure you truely have had your lightbulb moment

EmmaMicawber

If it was a small local business we were planning to return any gifts to, I would completely agree with you Pelirocco and would not dream of doing that.
But as far as the massive department stores ie John Lewis, Debenhams, M&S etc.go, to be honest I am so sick of having consumerism forced upon us with constant adverts, glitzy shop windows and non-stop "buy, buy, buy" messages from early November I really feel no guilt at all.
I have succumbed far too often in the past and it is about time that I use big business rather than it using me for a change! I think they will cope with me returning two gifts

HairyHandofDartmoor

Don't take any notice of that last post Emma.

You are adapting to your new situation and change does take time. You need encouragement not criticism and that is what you will get from most people here .