Time to get serious about sorting my debt

Hayles70

Hi,

I've been lurking about on here for years and have been spiralling deeper into debt all this time. I'm now sick of being in debt and not being able to afford nice things with real money. I've not defaulted on any payments but I'm making the minimum payments only so not getting anywhere. I've not had the best year so far but I'm keeping positive and am determined to sort myself out.

So here goes....

My current unsecured debt is:

Barclaycard: £11,060
Tesco CC: £6,388
NatWest CC: £7,331
Next: £382
Overdraft: £1000

Total debt: £26,161 (wow, that is a scary figure!)

I live with my husband and 1 year old daughter in a rented house, but I also own a house that I bought when I was 21 before I met my husband. I rented it out for around 6 years and have been trying to sell it for the last two with no luck. This has added a significant amount to my debt as I have been paying the mortgage and council tax for two years. I also reduced to part time hours at work after I returned from maternity leave.
I am now renting it out again, the tenant moved in on Tuesday. The rent will cover all costs.

Just to add to all this, I had spinal surgery on Monday so am now in a 4-6week recovery period. I am also being made redundant (currently in the consultation period) so I'm looking for a new job. I'm really trying to keep positive, I'm looking for full time work even though I'm gutted about leaving my little girl, I know it's the best thing for her future.

Im not going to post an SOA until I find a new job but needed to start and think about things I can do whilst I'm laid up recovering for the next few weeks. I've already reduced my gas and electric bill by changing supplier and have reduced our virgin package. I should save at least £100 in petrol as I can't drive for 4 weeks.

Thanks for reading.

jvr

Hi Hayles70


Big thing is writing it down and facing it sounds like you have a lot up in the air at the moment which is hardest part


Good luck

Hayles70

Ok, so it's Monday and the start of a new week. My operation was a week ago and my husband had last week off work to look after me and our daughter. Today, Hubby is back at work and my daughter has gone to her grandparents for the day. I'm feeling well but I know I have a long few weeks of recovery ahead.

I've already completed some surveys this morning.

Today's tasks

-job search
-Amend my CV to apply for a job I found last week.
-find a recipe for butternut squash soup
-find a new, cheaper mobile phone contract

Confession

I'm going to have to increase my debt to buy a new mattress
I've been thinking/worrying about this all weekend because obviously I don't want anymore debt but we desperately need a new mattress for the sake of my back. I'm so uncomfortable and struggling to sleep, which is no good for my recovery. We don't have any savings or emergency funds for it so I'm going to buy it on my Next account.

I honestly can't wait to get a new job and get some extra money coming in. Just want to crack on with my debt free journey now but I must be patient.
I will get a little bit of redundancy pay, nothing significant, but I will be able to clear my Next account including the mattress!

I'm going to keep track of our grocery spend for this month to see how much we actually spend. We are really good at planning our weekly meals and make nearly every meal from scratch. Our 'big' shop is good value for money and we have a very good balanced diet but we slip up when we go to buy milk and bread and spend £30! It doesn't help that I love supermarket shopping, it's like a hobby! Thank goodness, I can't drive for four weeks, I might actually save some money!

Over and out..:)

EssexHebridean

when you pay off the Next account - make sure once you have confirmation that it's clear you close it completely to cut the temptation to use it again - and get an emergency fund together as a priority after that - there are FAR cheaper places you could have bought a decent mattress from I'm sure had you had the funds there to do it!

Hayles70

Morning!

Some good news, my mum offered to buy our new mattress (apparently she told me she wanted to buy us one when I was in hospital, I don't recall this, I'm blaming the morphine!).
Yesterday we went on my first little outing since the op, to a local department store that is closing down and ordered a great mattress, should have been £900 reduced to less than half price. It will also be delivered by the end of the week (Next was going to take 3weeks!).

So I've now decided to save my redundancy money for an emergency fund, then I can just start the debt free journey on a positive. I've also decided to start my food shop spending diary on the 23rd of this month as it is pay day for both me and hubby and I will be driving again so it will be more of a true reflection.

Yesterday, I spent £6 on a necklace and a bundle of tea towels because obviously I really needed them! :cool:

Today I'm going to complete some job applications and set up YNAB on my very sssllllllooooowwwww laptop.

Laters...x

EssexHebridean

Hayles70 wrote: »

Morning!

Some good news, my mum offered to buy our new mattress (apparently she told me she wanted to buy us one when I was in hospital, I don't recall this, I'm blaming the morphine!).
Yesterday we went on my first little outing since the op, to a local department store that is closing down and ordered a great mattress, should have been £900 reduced to less than half price. It will also be delivered by the end of the week (Next was going to take 3weeks!).

So I've now decided to save my redundancy money for an emergency fund, then I can just start the debt free journey on a positive. I've also decided to start my food shop spending diary on the 23rd of this month as it is pay day for both me and hubby and I will be driving again so it will be more of a true reflection.

Yesterday, I spent £6 on a necklace and a bundle of tea towels because I needed them obviously!:cool:

Today I'm going to complete some job applications and set up YNAB on my very sssllllllooooowwwww laptop.

Laters...x

Maybe start a more general spending diary...and maybe start it right now?

Actually, I'd start the food one now as well - you can always view the next couple of weeks as "practise" but really, there's no benefit in putting it off. Go on - do it, I dare you!

Hayles70

Evening,

So annoyed, I spent all day on a job application and then my bloody laptop died on me and didn't save what I'd done. Grrrr! Luckily I've found an app so that I can complete it on my IPad instead. Thankfully the closing date isn't until Monday.

I looked at YNAB earlier but didn't realise that you have to pay a monthly subscription so I've decided against it for now. I think I can manage without it.

On a positive note, I haven't spent any money today and I think I might be due about £90 back from my electric bill as I've just changed suppliers and my account was in credit.
Also, the in-laws looked after my dd for the day and bought us an M&S meal deal. Yum!

We really are so lucky to have such supportive parents. It just makes me even more angry at myself for getting in debt, we have nothing to show for it and we just don't save for things, until now......I will do this! #determined

Hayles70

EssexHebridean wrote: »

Maybe start a more general spending diary...and maybe start it right now?

Actually, I'd start the food one now as well - you can always view the next couple of weeks as "practise" but really, there's no benefit in putting it off. Go on - do it, I dare you!

Oooo a challenge! Silly question but what is the best form for a spending diary? As in, is there a good app or is it best to use good old fashioned pen and paper? Thanks in advance.:)

GeorgianaCavendish

Hi Hayles, welcome to the forums and well done on starting your Debt Free Diary

I'm really glad that you got the mattress sorted without needing to use your Next account, I was going to suggest that you check out outlet stores for chains like Dreams if you needed something now and at a decent price but you've already got it sorted

If you're just starting to track your spending have you considered using OnTrees? I love it! Its a website/app that connects all your bank accounts, credit cards etc, and gives you a breakdown of everything you've spent in the past 12 weeks. It automatically categorises them but you can edit and add categories that are more suitable to you. It was such an eye opener the first time I did it!
I think its better than pen and paper or manual tracking via an app because there is always the temptation to cheat a little bit, or to maybe modify behaviour slightly because you know you are recording spending. I just wish there was a diet version of OnTrees that would tell me everything I've eaten over the past 12 weeks without me needing to track

Hayles70

Hi GeorgianaCavendish,

Thanks for your post. I've never heard of OnTrees but I will look into it now.
Its amazing how much more positive I feel, just from starting my diary. I find my debt really embarrassing so I don't talk about it with friends. I guess this is the therapy I've needed all along!:beer:

Thanks again.

Hayles70

Evening,

I have had a look at OnTrees and although I like the idea, I'm not comfortable with the disclaimer that your bank may not pay out for any fraudulent activity because you have this app, so it's a no from me.

I've received my 1st rent payment from my house. It's not the full amount, as the letting agent's initial fees have been deducted but it's better than nothing.

x