2018 I WILL be debt free!

Debtnomoreplease

So far today-I've bought my nieces present-£7 spent. I will add to this later on in the month, as her birthday is at the end of the month. However, I've not used money in my account. I was naughtily so desperate for a delicious Costa Coffee, but the budget just didn't meet, so I'm now home with a coffee which is already paid for. I do hope my determination like yesterday and today keeps up, as normally I'd of just bought that coffe and not even thought about the waste of money. I'd of drawn a minimum of £10, spent £3-4 on a coffee and the rest of rubbish,nap today I feel great!
I'm currently trying to get through to EE to, as my contract runs out this month or next (can't remember exactly) and I will NOT be renewing it!! I've renewed it for the past 5years, as it's just been 'easier' but cost me more in the long run. This will save me £40-£45 a month (ridiculous, I know!) That money I will through towards my debt and when it's paid off-put into my emergency fund. I'm going to also have a major declutter and see what I can sell (if anything) as they say-decluttering home=decluttered mind. :-)

enthusiasticsaver

Debtnomoreplease wrote: »

Hi, thanks for your comment.
I can totally see where you're coming from and I have thought about this, but with that CC having been my hardest and biggest battle of all-I can see the light at the end of the tunnel and I'm the kind who like to rock things off, I just desperately want to see one gone. It will be gone by the end of Feb, then I can throw the rest at the overdraft. :-)

I can see that to you there is a psychological advantage to this but at £60 per month that overdraft will cost you almost £400 in fees over the next six or seven months unless you have a plan for clearing it very quickly over March, April and May. Overdrafts are usually one of the most expensive forms of debt and a lot of banks have upped their charges over the last few months.

Debtnomoreplease

Day 3-3/3/18. I have had a NSD-the weather is awful, and no desperate reason to leave the house. So NSD 2, so far this month. Still haven't touched my bank-now this is a first!! I've spent the day planning, reading other stories etc and I'm 100% ready to clear this mess up! Missions one CC with £900. I know some people think it's silly to pay that off first and not my OD, but I can see the finish line with it and it's been a VERY long time coming! So plan is Jan-£500 Feb-£400-clear and close-done and dusted. Whilst still trying to pick up some extra shifts and keeping as much in my bank as possible to keep the OD fee to a minimum. Once that card clear, smash my overdraft!! Having paid the CC 2 off, I will have an extra £500 a month. I'm currently £1,000 into my OD so hoping to keep it that way and have that paid by March/April-depends how many extra shifts I can get in inbetween. Keeping spending to an absolute minimum until all this mess is cleared up! My phone contract is up mid Feb, so two more bills for that and that will be an extra £40-£45 a month to stay in my bank (every penny helps)
I've also took time to look back through my bank statements today-wow, just wow-absolutely appalling!!! I'm one of the silly ones who decided a few years ago, it was a good idea to take out a pay day loan....well you know the rest! After years of constant pay day loan cycle (however, never ever missed a payment or got in a mess that way-not that it makes it much better) I can finally see the light at the end of the tunnel! I'm well aware it's still a lot of debt, but I'm in a MUCH better place than I have been for a long time.
I think back to the amount of sleep, stress, worry I causes myself-how silly of me! Although, I'm reminding myself past is past, but also remind myself so I NEVER get in that mess again-it's certainly not good for your mental health!!
Anyway, might not if done much today , but I've spent nothing and not got in anymore debt-bonus!!

Hoogle

Set a decreased limit on your overdraft in your head and get that cleared asap and your bank in account in credit before worrying about credit cards, Banks can recall that overdraft at any time last thing you want is for your wages to go in 1 day and next day your overdraft taken away. I know it is hard when your use to your actual account £0 being -£2500 but if you get paid say £1000 a month and your bank decides it wants to claim back your overdraft you could end up a whole month with nothing and same for following month.

Always make sure the account where your money goes into is well kept, if you want you can open up a new bank account to have your wages paid into and slowly pay down your overdraft as and when, or perhaps get a 0% balance transfer credit card to have your overdraft and other credit cards transferred onto it then pay that off at £500+ a month, as long as you are not going to be tempted to use the card for anything else.

Debtnomoreplease

Oh no, this had thrown me into huge panic now!! Didnt knwk they could do that! Now I feel sick, as if that did happen if be screwed!!! :-/

BinkadyBoo

Good luck with getting your debt paid off. I have a similar amount that I need to get paid off myself.

I think what some people have said about getting your Overdraft dealt with first might be a better idea, even though the physiological reward of seeing a CC paid off can be tempting. I think you need to be as cold nosed as you can with the numbers. Assuming your CC's are going to be 0% for the time being, I'd just lock them away and set up a direct debit for the minimum payment, and focus all your energies in getting out of overdraft. As someone has pointed out, it could save you hundreds over the course of the year; which would be enough to pay off one of those CC's you're so eager to see paid off, and will get your out of debt quicker.

Debtnomoreplease

Day 4-3/4/18. After the first awful sleep in a long time, feeling Abit down today. This whole OD has thrown me and need it paying off very quickly! But feel like pay day is a very long way to get another £500 thrown at it. It's hard when you feel you're getting somewhere and making great progress and then something flies up and hits you in the face. I wholeheartedly wish I'd never got the blooming thing or wish I'd paid it off sooner. Just didn't realise they could just take it off you, (yes, I should of read the small print) I'd be so screwed if they did this and be in a much bigger mess-fingers crossed they don't! I don't feel like doing much productive today, after such little sleep. Feel like I've taken 10 steps back, and I'm back to the days of owing money to pay day loans (I'm not-thankfully) hoping this down day doesn't last long, as it's not a nice place to be (head wise) stress and worry-I don't cope very well with. Well just need to try and get it to zero as soon as possible.

enthusiasticsaver

Overdrafts are repayable immediately (or within 2 months notice I think they need to give). They have done it but it does not happen very often. I still think you should give the overdraft priority in paying it off. The best thing to do is as I think Hoogle suggested reduce the limit as you go. If I were you I would be paying minimums on the credit card and everything else to the overdraft reducing the limit each month so you are not tempted to go up to £2500.

117pauline

This is the lack of sleep talking.

You are making progress however much you think you aren't. Just the fact you are now realising the consequences of your actions is showing a different mindset.

This is one of those times when you have to keep going and listen to the advice and encouragement you are being given.

You have been advised to get rid of the overdraft for a number of good reasons. Look back over the last three months and see what it has cost you. That's the reason for clearing it first.

Keep up with the spending diary and write it as soon as the money is spent and this includes your coffees however they are funded. You need to see the pattern of your spending.

Do a SOA which includes a treats element because otherwise you will splurge. Trust me, we have all been there. Each month, see how you have done and amend it, like when you reduce your phone contract.

Note what the overdraft cost you and aim to reduce it by 25% for the next month.

Small steps, regularly taken - that's the way to get through

Take care
Pauline

Debtnomoreplease

NSD 3-as I haven't left the house (again!) Probably due to the awful weather-again! But also felt down today (I know, all my
Own fault) I'm just frustrated with myself for letting my
Overdraft get so high, and for living in it for so long (more than double my wage!) I know I need to 100% focus my energy and money into paying it off first.

Thank you for your advice all of you, in regards to my OD or I'd of left that until last, and dread to think what mess I could potentially be in then. I know this is something I need to deal with first and will save me money monthly, as I won't get the daily charge fee etc. It's going to be a very tight few months, but it's the only way out of the mess I've created for myself!

I'm not sure if staying cooped up for the last few days is in my head as a punishment to myself for the mess I've got myself in, (although, I've read some fabulous daries on here in that time) and finally realising and coming to terms with stupid/ridiculous choices I made in my past, or just having a few down days. I'm always out and about (part of how I got myself into such a mess money wise) but I'm 100% serious about clearing this debt and need to make myself not spend and get it clears ASAP!

Hopefully an early night and a good sleep will help me feel brighter tomorrow-I don't cope well without my sleep!