Fresh start number two....my journey

NettyR

Back when I was 21 I got myself in to £14k of debt. I buried my head in the sand for a while, racked up a few defaults on my credit file and messed things up for a while. I kidded myself in to believing I was 'doing everything I could' paying things off, making minimum payments while spending £100 a month on guitar lessons (total waste of money btw, I still can't play!), going out drinking every weekend and generally living like somebody with only a few hundred pounds of debt. Then I turned a corner and started to take it seriously. It took me six long years but I eventually cleared it off.

What a truly wonderful feeling that was. Shame I didn't learn my lesson.

I turned 29 and decided to get a credit building credit card. It worked for quite a while - I managed my credit very well and, alongside the defaults dropping off, my credit rating started to improve. Then, at age 31, I started full time university to study nursing. I should have cancelled my credit cards. I should have known better. But I didn't. Now I find myself in debt.

£8026.83 to be exact.

I'm so embarrassed to have found myself back here. I have one year left at uni and I need to work out how I can start spending less, clearing off more debt and not find myself in a full meltdown when in the most stressful year of uni. I feel like I'm at breaking point, so I apologise for my ramblings on here.

Orange_Ena

Just popped in to wish you luck Netty. You've done it before, you can do it again. Don't be embarrassed about it, you're here now and that's what matters.

NettyR

Thank you. I'm determined to clear it and never see myself in this mess again

NettyR

So I have spent today putting as much stuff on ebay as possible. I doubt I'll make much but I have to make a start somewhere. I have also seen how ridiculous my credit card interest rates are.....31.94% on the biggest balance and 30.34% on the (slightly) smaller balance. What was I thinking when I took out these credit cards!?
I'm thinking of every little way I can save money.....when can I walk/cycle instead of driving, do I need this item or can I sell it online, do I work this extra shift or do I need to look after my health for a day and get some (much needed) rest. It's hard. It's really hard.
Today I have spent no money (well....except the £450 for my root canal treatment....but my wonderful OH has paid for that, what a gem), tomorrow I know that won't be the case. I just have to remind myself that each day I just have to do my best - spend as little as is possible that day. Be the best I can be and do the best that I can do. I can't ask more from myself than that.

Lemon_Tree

hi Netty, well done for getting debt free previously, you'll know what to do to get back there. I've been assured it's like riding a bike.
I got debt free back in 2012 and have tried to keep a good control on things, but am back because I need some way of making us stick to our monthly budget and this is the best place I know.

beanielou

Happy shiny new diary
You can do this.

NettyR

Just realised that really I have an exra £3200 of debt, owed to my parents who kindly leant me money for a car a few years ago. They have even more kindly put the repayments on hold while I'm at university (interest free, as bank of mum and dad usually are) but it is still a debt....so need to include it really.
I had a bit of a bad spending day today....£50 on the CC to see a singer/band play that I have been desperate to see for ages. Shouldn't be a priority, so I'm pretty annoyed with myself. I work as a healthcare assistant for an agency, that is an extra mid-week shift that I need to do.
Listed even more things on ebay today, still have even more to list though. OH is very supportive and also very good at emotionally detatching from items (something I need to work on) so he is helping me to decide what should/shouldn't be sold etc.
I need some kind of DFW mantra, something to say to myself every time I get the urge to spend, no matter how small the expense. Suggestions welcome

NettyR

Today is a rare day for me, not only did I have no work and no family/friend commitments to keep me busy but my OH also had the day off :beer: Spent the day putting things on ebay and putting together a box for Ziffit, before settling down to look through my finances in more detail.

I have always aimed to make more than the minimum payments. Sadly the 'over and above the minimum' amount has gradually been getting smaller and smaller. My OH is very good with money and I have been living within his means, so to speak, rather than my own so the credit cards have been sneaking up. Certainly not placing any blame there, I wasn't paying enough attention to realise how much I was relying on my CCs, I am responsible. Midway through coming up with a plan (was looking at debt-free in three years), postie arrives. My day took a turn for the worse at this point.

I received a letter from CC2 provider, stating that they were increasing my interest rate by 8.6%. EIGHT POINT SIX PERCENT!!. They went on to explain that this would result in an extra 50p per £100 of debt, which would equate to around £21 extra interest a month. Effectively this would mean I'm only clearing maybe an extra one or two pounds a month. I felt so beaten down at this point, it's the first time I have felt truly overwhelmed by my finances.

This is where I realised how very lucky I am and started to count my blessings for having such an amazing boyfriend. He is very good with money and it turns out he starting saving money ready for a mortgage when we finish university next year. When I spoke to him a few days ago about my finances he was surprised by supportive. Today he stepped up his supportive level to transferring me £3,000 (the amount of his savings he had instant access to) to pay off as much of my CC2 as possible :happyhear

I know it is still debt and I know that owing loved ones can be difficult but honestly, right now I'm just happy that I won't be paying nearly £130 interest a month. My OH doesn't want me to start paying back until I either clear both my credit cards or start earning a full time wage after university. I want to start paying him back as soon as possible. If anything, his action has motivated me even more.

db2016

maybe post up a full SOA, and im sure people on here can pick it apart (nicely) and offer suggestions for savings / debt repayment.