About time I sorted myself out

poppytattoo

Hello everyone!

I have been lurking on the MSE forums for a few years now, knowing I should get stuck in but not ever getting round to doing it.

I've decided that 2018 is the year I get on top of my debts - which have been spiralling out of control for the past few years. I've always been terrible with money - I took out my first payday loan at the age of 17, dreadful I know - although managed to pay that all back.

A few years ago a health problem escalated and meant I needed to go part-time at work(I was studying at uni at the time) and a need to get out of a relationship where my money was being spent for me by a not very nice person. After a few months sofa-surfing, I got my first credit card to allow me to get a shared flat with some friends of friends and start again. I then got into the habit of using it, and slipping into my overdraft, which at the time was 0% interest.

I always knew I should sort it out and stop spending but firmly believed I was in control of it all, I took out consolidation loans to get back on track and then managed to get back into my old bad habits of spending on credit.

Now, I've finally PROPERLY taken stock of where I'm up to (prompted by a surprise proposal from my now-finance in November!) and realised I'm more in debt than ever (about £21K).

I've never missed a payment but am worried that if I don't drastically get my s*** together now, the interest will eat me up and I will go beyond treading water to actually drowning.

I'm currently in a full-time job. Me and my fianc! managed to scrape enough together to buy our little house a couple of years ago, on a fixed rate mortgage that is very cheap monthly (in comparison to what we were renting for!). He knew that I was in thousands of debt but not by how much, but I don't want to start married life with any secrets so we had a big heart to heart last night where I told him exactly how much I owe and what my plans are. It was such a relief and he was very supportive.

We have set a wedding date for just under two years away, and I may not be debt free by then but I certainly want to be almost there. My fella is incredibly good with his money and he's going to help me keep on track by helping me with budgeting etc.

Sorry for the incredibly long life story!

So far in January I have:
- Sold car (£210)
- Cancelled car insurance and got a rebate (£1,127)
- Started planning and budgeting our weekly meals at £20, which has worked so far
- begun ebaying/shpocking/Facebook selling books and clothes (about £26 earned so far)
- We also have a carboot booked for Sunday, which I'm looking forward to
- Cancelled a trip to Cologne for February (we had booked cheap flights but not yet sorted accommodation etc. We decided to take the hit on the flights rather than spend more)
- Cancelled a trip to Centre Parcs (took a hit on a small deposit, but worth it for the amount we will save)
- I've made a pact not to buy any unnecessary toiletries as inspired by the challenges on here, so far in Jan not bought any
- Also not buying any food, coffees, snacks etc which has drastically cut my weekly spend

-I've also just got myself a pre-payment cash card, meaning I can put a small amount on each week and live off that, to avoid being tempted to use the cards or overdraft.


I'm incredibly sorry for the long and rambling post, but I'm also very excited to keep on with this determination to sort myself out and get nearly debt free (whilst saving for our frugal wedding).

Thanks for the inspiration to everyone on these forums, and I hope I can share some good news soon!

laurag89

Good luck

Your in the right place for lots of advice and support!

Im getting married next year and im in a similar position where i want most of my debt gone, i also told my fiance the extent of my debt a few weeks ago.

Looking forward to seeing your progress!

poppytattoo

Thanks Laurag89!

Good luck with yours too, glad to hear I'm not the only one wanting to be less snowed under before tying the not!

laurag89

Im with you on that one, almost want to start married life with a clean sheet but - my debt is at £14,000 so that will not happen for me either.

But like you said even making a dent in it will help!

poppytattoo

Definitely, and I feel so much better for talking to my OH about the extent of debt I'd got myself into. He was very understanding - although a bit baffled as to how I'd managed it! - but I wanted him to know where I was coming from.

Hopefully one day soon we will clear our debts and end up with nice bits of money that we can save for adventures and rainy days!

System

Welcome and all the best. Looking forward to seeing you do well xx

enthusiasticsaver

Good luck. Starting married life with no debt is sensible. You are young and hopefully can deal with this before it gets worse. Having a supportive partner helps. Can you move any of the debt to 0% interest?

poppytattoo

Thanks everyone!

Enthusiasticsaver, I’ve swapped the card debt to 0% interest for now, but I have just over £4000 in an overdraft that I can’t reduce the interest in - I’ve looked at balance transfer cards but don’t think I’m eligible for any based on the checker on MSE. Would love to hear your ideas if there’s another way of doing that?

System

Is it worth posting the details of the debt and offers as well as repayments you have planned? or a full SOA in case there's any gems people can offer?


Just thinking you might be able to snowball your payments to the O/D and keep payments to min on CC to help minimise the interest paid?

xx

poppytattoo

ramblehan wrote: »

Is it worth posting the details of the debt and offers as well as repayments you have planned? or a full SOA in case there's any gems people can offer?


Just thinking you might be able to snowball your payments to the O/D and keep payments to min on CC to help minimise the interest paid?

xx

Good idea Ramblehan, I’ll have a look at doing a full Soa next week, it shouldn’t take too long as I did a full breakdown of everything in a notebook a few days ago... xx

poppytattoo

Feeling a bit sad this weekend as it!!!8217;s when we should have been in Cologne - but also feeling good that we!!!8217;ve done the right thing in cancelling rather than spending more money. We!!!8217;ve instead had a lovely weekend together just us at home and used the opportunity to have an afternoon tea (old birthday gift voucher we hadn!!!8217;t used yet)

I!!!8217;ve also paid off and cancelled one of my credit cards - it only had about £300 on it but I feel like I!!!8217;ve achieved something!

We!!!8217;ve been making a meal plan for every week in January and managed to do each weekly food shop for under £30 between us. I also went through all my toiletries and counted them and haven!!!8217;t bought ONE SINGLE TOILETRY this month which is so unlike me - I normally spend a few quid a week at least.

I!!!8217;m finding using the prepayment card instead of my current account very convenient - jut like a normal debit card except it forces me to hing about what I!!!8217;m spending and instantly tells me on the app where I!!!8217;m up to for the week.

I also found £20 in an old bag when clearing out for the carboot. Am taking it as good karma that I!!!8217;m finally getting my finances in check!

Still need to complete an SOA but haven!!!8217;t managed it yet. Been a crazy busy week at work back and forth to different cities, and I have been up for more than 24 hours with a nasty stomach bug but perhaps will do it tonight if I can bring myself to sit up!