£16,000 debt, turning regret into positive action.

LadyP01

Hey everyone

God I needed to come and chat here a lot earlier than today. I'm about to sit down and do my finances but wanted to post first.

Lots of money needed to be spent this month already and were only at the beginning. Two work trips that need paying back so I'll get the money for those put through ASAP.

The weather has simply been delightful sonsome cheap days out have been had. Petrol to the beach and parking is a cheap day of absolute bliss especially when we don't have a holiday this year.

Also had to buy some camping equipment for the oh birthday weekend. We're planning on using it a lot this summer and maybe next so I'm happy with the coatings as we have got some bargains so cheap. £40 for the tent £7.50 for the bed. Not to bad.
Diving into the world of cheaper holidays in the uk and swapping my usual hotel room for a cheaper camp site. Maybe now I can get myself down to Devon cheaply.

Last but no least my car.

It is all over

My plan of paying off debt and then saving for a new car had been whipped away but I'm ok with it I have settled with the fact that it's happened and he car made it up to he last bit of the debt repayments so I can't complain really just wish it had a few more months in it yet.

That debt freedom is looking a little way off now

LadyP01

Quick finances look!

First note- I need to go back to getting cash out at the beginning of the month. It's the only way for me.

To do today! Send expenses off! ASAP and get my money back.

My rent had increased by £20 a month which is ok and easy to deal with.

At the moment I have £649.40 left for the month.

3 weeks till pay day.

I will also have my expenses due back to me aswell on top of that.

My debt to pay off is around £1100

Not going to make it this month but we can be chipping away at it to make next months easier.

I'm going to sort out what I'm owed and organise birthday presents and money for our weekend camping trip and see what I have left and distribute accordingly.

I need to get back to posting everyday and being on my game. This sunshine distracts me.

Cherryfudge

Sorry about the car. Expensive creatures; have you replaced it?

Getting cash out for spending helps me too: when you can see what you have left it help you focus. I'm also getting good at using up ingredients.

Lots of people (including me) find it helps to post everyday - I'll keep a look out for you! And the sunshine is a distraction, yes, but it's also like a free (cheap) holiday. Well done on the bargain camping gear by the way - that should add up to lots of low-cost relaxation.

LadyP01

Posting everyday helps remind me I'm on this journey.

We've replaced the car and Iv actually sold my car for over twice it's actual value in a good deal and it's a joint venture so that eases the costs. I'm really happy with car and I spent a lot of time looking at my options and I think Iv made a good choice.

This sun really is like being on holiday. I intend on taking that tent and booking some weekend breaks with some cheap pitch fees and relaxing. If we have got it might aswell use it.

Didn't get time to do my expenses yesterday but I'm going to try and go in today and get it done just so I know what I'm expecting and when.

Also need to move all my money around from all my accounts into my main one so I know what I have.

Cherryfudge

It sounds as though you've done really well regarding the car!

There's no hurry to get out in the sun - it looks as though we'll have it for a while yet. Still, it doesn't hurt to practice unwinding and destressing, does it?

LadyP01

It doesn't hurt no Its so nice at the moment it really does feel like your on holiday.

I love my new car it's so refreshing. The petrol is a little bit more for a full tank but I get a lot more miles with it. Let's see how my finances have to be adjusted.

Expenses done so waiting for them to be paid.

Camping is also done I believe. I hope we have everything we need. It's only a long weekend but I'm hoping to book a week in August and use it all then.

I tidied up some of my finances the other day. I'm just waiting for the expenses to come in so I can pay off some of the debt I have left.

enthusiasticsaver

Just caught up on your diary. I know you have changed the car so presumably your DFD date is a bit further away but at least you don't have a car loan and £16k of debt as you had when you started this diary.

A couple of things really stood out reading your diary in that in the past people have told you it is normal to have debt and therefore it is ok. As most DFWs know there is such a thing as good debt. Well managed debt for an asset or investment in skills. Mortgages, student loans and yes car loans could fall into this category. Did you finance yours on a loan or a pcp deal? As to other debt, credit cards, personal loans etc etc It is subjective as to what is acceptable and it differs for everyone. Some people think so long as they can manage the repayments or no interest is paid then that is fine. My DH and I always had certain rules we would follow re debt. A low rate personal loan for a car was ok until we could afford to pay outright in cash. No more than 3 years. Interest free credit for furniture also we would do. Outstanding balances on credit cards rarely and then only at 0% repayable within one year and for large items like a long haul holiday or expensive home improvement project. Agreeing with your OH what debt you will take out going forward is a good move. Definitely getting into a savings habit is even better.

LadyP01

Hey enthusiaticsaver thanks for that I agree, when the car was dead I looked into every option, cheap run around, scrapage on finance, loan for second hand etc and as much as I was looking forward to being debt free I realised that a car is an investment for me I keep cars for years and years as I'm attached to my investment and this was a joint investment together for something we could share for our future. I got a great deal. 3% with my bank rather than 19% and 9.9% that some car dealerships were offering before even checking my finances!!!!!!! RIP off! I did have a 0% offer on a card but the term time for it was low and we have some big changes coming so a fixed loan was the agreeable and we used the money we already had for the car to cover the interest payment if you like. Either way it's in a good place and we are both happy and it suits are future and like you have said some debt is good debt and it was nice to agree on spending money together for a change instead of me saying no all the time

Realistically I will have to take on more debt but I hope to save up enough that I won't have to. A mortgage will be debt and who knows what our future will hold but we need to have a conversation together now that you have said that and set some terms that we agree are reasonable around debt. Especially as you will know he isn't that great with debt himself.

I'm back from a speedy weekend away. Even when your on the cheap things add up but overall we all did really well and it gave me some headspace for myself to think about things.

I have tomorrow morning free to do a financial overview before pay day this month and work out where I am and what I am doing.

Hopefully I'll pay a very small chunk of my debt off tomorrow... possibly the smallest payment so far coming up.

I'll keep you posted

LadyP01

Updated l my finances for the month today.

First issues

£177.58 on food! No budget set before pay day... big mistake.

Petrol £147.83 compared to a budget of £80. A car change and a driving holiday contribute to that and all the extra driving whilst searching for a car are all factors.

Wins

Social was only £58.85 but with a holiday being accounted for seperatly as that was for two people spending I would expect it to be lower.

Some of the extra food I might add is from the camping but it's still far to high.

Two lots of tax this month on two cars. Just waiting for one card refund to come back.

Expenses.

Iv sent off for around £100 of expenses to be paid. Once that's in my account I can transfer that directly to debt.

Iv spent a lot of the car account money I had saved up that I planned to transfer over to debt. Unfortunately that was unable to happen but we shall get there.

Now for a debt update!!!!!!!!!

:j :j :j :j

Another £315.64 paid off to debt! That is a lot more than I expected to be able to do this month but still one of the smaller amounts since my journey began I'm sure.

My debt now sits at £809.

With the £100 I'm expecting to come in that will come down to £700 nicely and be much more achievable.

Next month will be tight. Extremely tight to see what more I can hack away at it all.

I thought I would be there by now and I'm a little disappointed as I had so many plans but to be £809 away from that 0 I was striving for feels good aswell.
It's been tough and it's harder as that debt was amounted from poor habits. I need to remember my drea to reverse it all and reverse my habits.

Need to get back into control.

LadyP01

Spent £5 today on some food shopping.

£13 left in the bank and £15 left in cash... two days to pay day.

Found a good function on my car. Mpg tracker so I can see how I'm consuming my fuel. Been really fun working on getting a good score per trip. I think I could see a saving with it to bring my petrol down as I now have a bigger car