Shrinking The Debt.....

TheRoders

So I've been compelled to start a diary for a while. Today is pay day so what better time than now to start one.

I have been playing with my debts for a little while now. Don't get me wrong, I have paid a few off but in the process have also added to them so not actually reducing the total balance at all. Infact, it has been increasing!!

I am the spreadsheet queen!! I have been keeping an accurate budget for many years. Infact I would say 10 years + so I know exactly what my debts are and where my money goes. What I don't keep track of is my day to day spending and it is this that has got me into trouble.

I allow various amounts of "disposable" income every month ranging from the lowest at £250 a month to the highest at £500 a month but I can be guaranteed that come towards the end of the month I am having to dip into savings to cover the shortfall until the next payday.

I have spent the last few weeks figuring out where that money goes and I'm shocked!! £200 a month on takeaways and eating out!!!!! WHAT???? That MUST stop...... So here I am, with a new budget and a new approach to talking my debt.

I am going to try the snowballing method. I have spent AGES juggling my budget to make sure we can achieve it and we've sat down and spoken about the fact that the eating out and takeaways MUST stop!!

I am going to have on average £1400 a month to plough into the debts. The debts total £764 a month at the moment so the remainder will be used to pay off larger chunks off the priority debts first.

Today is day ONE. Pay Day. £4500 into the account (between me and hubby) and I'm now left with £500 for our disposable income for the month (this month it's higher as we are away in the caravan for a week this month).

Our first debt to tackle - £650 overdraft. I have paid this off this morning in full and it feels amazing!!

Here's to the month ONE of clearing down this £53K debt!!!

[Deleted User]

Happy New Diary :wave:

beanielou

Happy shiny new diary
Maybe a good idea to close down the OD?

TheRoders

Morning

What a miserable day it is here in South Wales.....

I felt ontop of the world all day yesterday after paying off the overdraft. I will indeed close it down once I've removed all the DD's from that account. I think I will close the account completely as it's no longer in use!

My next debt to tackle is Trotec. Unfortunately, this one was landed on me unexpectedly!! It was for my laser cutter when I had the business. I used to pay on a "pay as you go" scheme as the machine was over £10,000. Everytime I used the machine I would use credits and then I would buy more credits (usually averaging around £500 a month) to pay off the cutter. The company then unlocked the machine once I had paid for the cutter in full. Unfortunately, they miscalculated my payments and it wasn't until 2 years later that they told me!! It's now at £1642.00 which I have been paying off at £100 a month this year.

From September pay I am going to be throwing £600 a month at it until it's paid off. Should be done by November....

To cut back on some of our shopping bills, I've bought a huge bulk box of meat which should last well over a month and save a lot of money in the process to.

I did try Lidl on Friday to see if I could save money by switching shops but unfortunately the shop near me is just too small so it's not going to work for me. Never mind, I have switched to some home branded items in my usual shop though which has significantly reduced my bill.... Every little helps.

Today is hopefully a NSD. I am trying some homemade pot noodle recipes for work to save the £4 a day in buying lunch....

I'm really hoping this diary will keep me focused as I do have a tendency to lose focus now and again.

TheRoders

Whoooo Hoooooo a NSD for me yesterday and another one planned for today. This is certainly a record for me!

Nothing much to say today. It's a quiet one.

I've done another food shop ready for Friday and that has come in under budget so I'm really pleased with that...

I'm hoping for another NS day so Here goes another day.....

TheRoders

Morning....... My last day in work today until next Wednesday so happy days. I work from home on a Friday and then I have Monday and Tuesday off.

Another NS day for me today hopefully making it 3 days in a row

My final food bill for the week was £58 which is under the £75 budget so really happy with that.

The weekends are always a hard time budget wise. We always end up spending!! I will try and keep it to a minimum but would like to do a few things with my son while I'm off.

The interest has been taken out of my overdraft now so I shall close that overdraft down today.

Not much more to report really today.

Pismo

HI,

Welcome to the board and congratulations on having your LBM.

Will keep popping back to see how you're getting on. There are some very wise debt free wannabes hanging around to help if you ever need it. Have you completed a SOA?

X

TheRoders

Not a great day for me today!!! So cross!! I feel no matter how hard I try, something is waiting for me around the corner to kick me in the teeth!!

I received my meat order from my online shop yesterday. £60 to last a month of meals. All split out and popped into the freezer along with all the meals I have made for hubby to take with him to work next week. GREAT!!!

Picked up my Asda shop this morning and had to put something in the freezer so lifted the lid and what did I see?? Everything defrosted!! Must have switched off overnight and I have lost atleast hubby's meals for next week!!! I'm hoping that the meat had frozen so I can refreeze it but I've lost the rest! I've worked so hard this week meal planning and making sure I have left overs for hubby for his dinner and now it's gone!

Will have to go out now and get ready meals for him to take with him which is money I wasn't expecting to spend!! Grrrrrrrrrr

I'm ready to cry!! Someone must really hate me!

To end on a positive, I had another NS day yesterday so that's 3 in a row!

wishingthemortgaheaway

Morning, I've just found your diary.

Check your home insurance policy, you may have 'lost freezer food' cover.
If it only went off overnight I wouldn't have expected everything to have defrosted so quickly, which means the meat probably didn't freeze, so will be fine.

I hope you get it sorted. It does seem most people have a few little hiccups at the start of their debt free journey, I think it's to make sure they really mean it.

Also.... you said earlier the laser cutter was 'from when you had the business' do you not have the business anymore? Do you still have the cutter? Could you sell the cutter if you don't need it anymore?


I'll be cheering you on. Good luck and Chin up.

Wish.

TheRoders

I'm REALLY hoping the meat is ok. It didn't look as if it had frozen when it went off so I have refreezed it. The meals are gone though! They have fully defrosted!

I have no idea if I can resell the cutter. I have no idea how much it would be worth.

I suppose I am keeping hold of it as my life line. I can always start the business back up if anything happens in work. If I sell it then there is no going back!!

I have started thinking about selling my horse which breaks my heart to even think about it. He's been on loan for a number of years now to a lovely lady who loves him dearly so I think it's time to cut full ties with him and let him go. I can't afford to ever have him back and he's getting an old boy now. He's settled where he is. I think it's the best thing for everyone.

I have a full bathroom suite in the attic that I could sell. It was left here by the previous owners of the house but I won't ever use it. I need to get it photographed really to sell but I can't get into the attic to do it! Cabinets and sink. Italian so should be worth a bit..... I need to look into it.

TheRoders

Hey all....

I haven't had a bad weekend at all which is a relief!! Had to spend £6.00 on Hubby's meals for next week seeing as we lost the meals I had prepared for him. The meat survived though thank goodness... I've done another meat shop for next month.

I did have to spend £10 on Saturday on some batteries (Grrrrr) plus the £6 on hubby's meals and we did go to Greggs for lunch today which wasn't planned which is a little frustrating. I plan my meals in detail, but weekend lunches I always forget about. Lesson learnt. MUST plan for these in future!!

Been out for a bike ride today. Fun and free with my 9 year old. I have 2 days off work now so need to find some more activities to do that don't cost the earth!!

I've been speaking to the lady who has my horse. I'm hoping we can agree on something soon. I have also looked into selling my laser cutter and extractor which will all add to the pot.

So all in all, a good weekend.