Dan's desperate dash towards solvency

[Deleted User]

worriedDan wrote: »

Last night I felt in top of the world but tonight I feel sort of ... flat. Think the enormity of what i need to do is hitting home

Seriously, I empathise - however much you worry won't help though. I suggest you take a break and distract your mind even if only for a few hours - the issues will still be there tomorrow.

Drawingaline

I understand the flat feeling. I have hit a bit of a wall after five months going at the debt full pelt.

worriedDan

So we are now 5 days in to our new life. Lots of positive steps have been taken so far -

1.Cancelled some unnecessary direct debits. I also ( with a heavy heart) cancelled my charity contributions... BUT... I will be reinstating these as soon as I am debt free and will give larger amounts.

2. Used a snowball calculator to allocate my credit card payments. I will be credit card free in 28 months and will pay £1600 interest. I think this is ok, although I will obviously look to move any interest accruing balances to 0% offers.

3. I haven't made any unnecessary purchases whatsoever!. I have actually had 4 NSD's!!

4. Car passed the MOT! We are now saving £30 per month ( part of our new budget) to cover car related expenses.

5. Started a 'jam jar' budget to cover all household expenses - food etc. It makes a difference handling cash.

6. Cut up credit cards with the exception of one. I guess that there a times when you have to use a credit card for the protection benefits etc.

7. worked out a projection of where will be in 12 & 24 months... Current debt is 57k (45k if 12k savings is factored in).... Debt in April 2018 will be 33k. Savings will have increased from 12K to 16k so a net figure of 17K debt.


April 2019 - Debt will stand at around 7.5K - Saving of at least 16k will more than cover, so in theory we will be debt free ( if savings are factored in) within 2 years.

These are crazy figures BUT we have been through our numbers with a fine tooth comb and we can do this.

angelpye

Sounds organised and in control. Well done

Drawingaline

Sounds like a fantastic start Dan.:money:

worriedDan

Thanks. I am certainly in a much better place than I was a few days ago. I am actually at the stage where I am not thinking about debt 24/7. My aim for the next 6 months is to stick to the budget and payment plan,but to almost 'forget' the bottom line for now. That will take care of itself as time moves on. Main thing is that this debt is going to be gone in 2 and a bit years.

motivated

Hi Dan

just found your diary and will be joining you on your journey. Your wife sounds like an amazing woman and you are lucky that she jumped straight on board with you. It took me a long time to get my DH on board but since we have accepted our mess was made together so will be cleared up together we have been getting on great.

your plans sound awesome. Keep trucking towards the finish line. I will be cheering you along :T
M

worriedDan

So I know that we are only 1 week into our new life, however we actually feel better off!! It might seem strange considering that we are throwing loads of money at our debts, but we can actually see that we will have money left by payday. It's now one week since payday. Looking back at my statements I would normally have wasted a load of money by now, usually in the following way -

Pay day - pop in Sainsburys on way home and pick up some nice food and perhaps a bottle of wine plus other bits and pieces that caught my eye - £40

days 1-4 after payday - Pop in shops before/after work to pick up 'bits and pieces' usually spending £6 or £7 per visit

Wife follows a similar pattern spending £30

Weekend after payday - Friday night meal out with wife - £30. Pop to shops Saturday morning - £30 on unplanned items. Coffee and sandwich/cake for 3 of us - £12, pick up something nice for tea plus other bits of food - £40. Sunday morning - Pop to Morrissons for 'work stuff' - spend £30


An awful grand total of at least £200 of mostly unplanned and unnecessary spending. £800 per month!!!!!

There would usually also be some 'big' thing to pay such as a weekend away etc for another £200-£300

Factor in a 2-3 takeaways per month at around £15 a go, and there is another £45 gone.

Bank charges for exceeding our overdraft would often come to ( I am so ashamed) £120 per month.

A couple of nights out each with friends probably accounts for £200


So there is £1500 n. Money spent with no thought involved.

This is for a normal month when we are work. We both get the 13 school holiday weeks at home so you can imagine how much we were spending then! I reckon that we spent £4000 last summer on everything, including holiday etc. December wasn't far behind.

This is reason that we are in debt, however this knowledge is also the route out of debt.

motivated

The popping in shops and buying unecessary items is us all over. DH will come back with X Y and Z and say look it's on special. I too would buy things without a second thought. Just shows how it all adds up.
M

worriedDan

We have spent just £90 this week and that includes a weekly shop, fuel for both cars, money for child care and a couple of other little essentials that we needed. It has been absolutely fine!