Journey to debt freedom

in Debt Free Diaries
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  • helejenkins1helejenkins1 Forumite
    227 Posts
    I forgot to add. I’ve been getting this really annoying notification on my phone telling me my savings are are due to mature. I kept ignoring it as I don’t have any savings but logged onto my internet bank yesterday to find £34.66 in my savings account. Not a lot but not to be snuffed at.
    Make £10 a day in May- £90/£150
  • redofromstartredofromstart Forumite
    3K Posts
    1,000 Posts Fourth Anniversary Photogenic Name Dropper
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    Wow I realise I’ve rambled one here.

    No you haven't - you have kept yourself motivated and achieved loads. Its your diary, use it however it works best for you.

    Happy new diary, and good luck with your journey.
  • helejenkins1helejenkins1 Forumite
    227 Posts
    So today’s gone good. Didn’t manage to to the bank switch as I couldn’t do a joint switch in line. Need to do it on the phone and DH wasn’t around. That’ll have to wait till Tuesday now.

    What I have done is dig out my nectar card that I haven’t used for years and found it had £4.93 on it. I saw the offer for 10x nectar points this weekend. I had an empty tank in my car so filled it up and earned 371 points. Little things !!!129315;!!!129315;

    I meal planned yesterday so needed to hit the supermarket just to get all the ingredients. I choose Aldi. I have never shopped there in my life and was really surprised. I did what I would class as a weekly shop for £32.28. Need to pop to Asda tomorrow for a couple of bits but no more than £10 worth.

    If I can carry on like this then £40 a week will bring me £40 under my £200 grocery bill I have budgeted for.
    Make £10 a day in May- £90/£150
  • helejenkins1helejenkins1 Forumite
    227 Posts
    I!!!8217;m setting myself 10 small things to do that may only save pennies but will hopefully add up in the long run. This weeks challenges are

    Have 4 NSP
    No more than 1 trip to the supermarket
    List 10 things on eBay
    Switch bank account
    Sort clothes for recycling and take to cash for clothes
    Sign up for more survey sites
    Do not use the tumble dryer
    Meal plan for the following week
    6 alcohol free days
    Start to search for car insurance renewal
    Make £10 a day in May- £90/£150
  • helejenkins1helejenkins1 Forumite
    227 Posts
    Today hasn!!!8217;t been the most productive in terms of saving money. Although I!!!8217;ve had a near NSD. had to ask the DH to call for some butter on his way home from work or they!!!8217;ll be no cawliflower cheese for dinner. So £1 spent today.

    I have listed a few items for sale in gumtree and Facebook so hopefully I!!!8217;ll have some luck with them.
    Was going to switch one of my accounts to M&S but have read a few forum posts from people not getting the gift vouchers so may look into this a little more yet.

    I have cleaned the house from top to bottom. I!!!8217;ve never seen it looking so sparkly. Just dinner to do and see if I can find some surveys tonight .
    Make £10 a day in May- £90/£150
  • pidge04pidge04 Forumite
    779 Posts
    500 Posts Third Anniversary
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    Oh, I like your 10 small things to do! I think that would help to spur me on during the days when I feel I am not doing anything proactive to reduce my debt and then I get down. I'm going to take that on! Thank you! It is the small things which really add up and create the positive changes.
    I wish you well! You can definitely do this! You are being very proactive!
    I find seeing my debt go down each month is quite addictive.
    All the best.
    CC £4,012 left to pay (was £5400).
  • helejenkins1helejenkins1 Forumite
    227 Posts
    pidge04 wrote: »
    Oh, I like your 10 small things to do! I think that would help to spur me on during the days when I feel I am not doing anything proactive to reduce my debt and then I get down. I'm going to take that on! Thank you! It is the small things which really add up and create the positive changes.
    I wish you well! You can definitely do this! You are being very proactive!
    I find seeing my debt go down each month is quite addictive.
    All the best.

    Thanks for your support. I read something that made me think. We do loads in the first couple of months to reduce our outgoings and spending but inevitably that will slow down as we run out of things to sell or our direct debits are at their lowest. But it’s the small things we do to change our habits that will have the biggest effect.

    I am staying motivated but I have a lot of time on my hands at the moment as I’m signed off work till Monday. Luckily I have full sick pay. I’ve raided the house for everything I can sell and have a few lisringsa ending on eBay today and tomorrow. Most of them have bids so I’ll have that to add in. Unfortunately these won’t be going towards the debt as we are having our pup spayed next week so thought it was better to pay that straight off rather than add to the credit card.

    Will update later with other bits and pieces I have done
    Make £10 a day in May- £90/£150
  • enthusiasticsaverenthusiasticsaver Forumite, Board Guide
    12.9K Posts
    Eighth Anniversary 10,000 Posts Name Dropper I've been Money Tipped!
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    Total monthly income.................... 3200[/b]

    Monthly Expense Details

    Mortgage................................ 589
    Secured/HP loan repayments.............. 856
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 200
    Electricity............................. 45
    Gas..................................... 49
    Oil..................................... 0
    Water rates............................. 31
    Telephone (land line)................... 29.75
    Mobile phone............................ 96.38
    TV Licence.............................. 12.37
    Satellite/Cable TV...................... 51.75
    Internet Services....................... 0
    Groceries etc. ......................... 200
    Clothing................................ 10
    Petrol/diesel........................... 260
    Road tax................................ 2
    Car Insurance........................... 73.04
    Car maintenance (including MOT)......... 10
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 30
    Pet insurance/vet bills................. 17.27
    Buildings insurance..................... 18.65
    Contents insurance...................... 0
    Life assurance ......................... 43.77
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 10
    Haircuts................................ 10
    Entertainment........................... 0
    Holiday................................. 0
    Emergency fund.......................... 0
    Total monthly expenses.................. 2644.98



    Assets

    Cash.................................... 0
    House value (Gross)..................... 225000
    Shares and bonds........................ 0
    Car(s).................................. 20000
    Other assets............................ 0
    Total Assets............................ 245000

    Secured & HP Debts
    Description....................Debt......Monthly...APR
    Mortgage...................... 161572...(589)......1.44
    Secured Debt.................. 44454....(422)......0
    Hire Purchase (HP) debt ...... 6402.....(194)......0<
    Hire Purchase..................11280....(240)......0
    Total secured & HP debts...... 223708....-.........-


    Unsecured Debts
    Description....................Debt......Monthly...APR
    Mbna...........................1065......75........0
    Barclaycard....................1061......30........0
    Total unsecured debts..........2126......105.......-



    Monthly Budget Summary

    Total monthly income.................... 3,200
    Expenses (including HP & secured debts). 2,644.98
    Available for debt repayments........... 555.02
    Monthly UNsecured debt repayments....... 105
    Amount left after debt repayments....... 450.02

    Just quickly skimmed through your diary and yes it is good you are addressing this. Was the £44k secured loan the consolidation loan?

    I think you can definitely save on the mobile phones once contracts expire. Go sim only.

    Groceries are ok I think for 2 people but I suspect you have been overspending on this. Same goes for entertainment and holidays especially as you obviously take this and probably what a lot of the debt has gone on. You should put the interest rates on there so you know which debts to target first. Presumably one of the debts was for car(s)? Is that £10 maintenance realistic?

    Finally you need an emergency fund. From that £450 I would start to save a proportion towards that so you are not tempted to turn to the cards when things happen.

    As Cumbria Lass says consolidation never works in repaying debt because it does not address the overspending which got you into debt in the first place and tricks you into thinking you are debt free because it is on a loan and not a credit card. Turn this around now while you still can as you are approaching spending 50% of your income on debt repayments now.

    Once you have your debt under control there is nothing to say you cannot do holidays but the secret is that you save for them and do them within budget and not on debt. Otherwise the holiday costs you far more than the price once you add on interest paid over the years and you are still paying for holidays years later meaning no money spare to do them now.

    Good luck and hopefully the diary will keep you focused.
    Early retired in December 2017. Debt counsellor for a High Street bank in a previous life.

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to [email protected]

    Save £12k in 2022 challenge #36 0/£12,000
  • helejenkins1helejenkins1 Forumite
    227 Posts
    Just quickly skimmed through your diary and yes it is good you are addressing this. Was the £44k secured loan the consolidation loan?

    I think you can definitely save on the mobile phones once contracts expire. Go sim only.

    Groceries are ok I think for 2 people but I suspect you have been overspending on this. Same goes for entertainment and holidays especially as you obviously take this and probably what a lot of the debt has gone on. You should put the interest rates on there so you know which debts to target first. Presumably one of the debts was for car(s)? Is that £10 maintenance realistic?

    Finally you need an emergency fund. From that £450 I would start to save a proportion towards that so you are not tempted to turn to the cards when things happen.

    As Cumbria Lass says consolidation never works in repaying debt because it does not address the overspending which got you into debt in the first place and tricks you into thinking you are debt free because it is on a loan and not a credit card. Turn this around now while you still can as you are approaching spending 50% of your income on debt repayments now.

    Once you have your debt under control there is nothing to say you cannot do holidays but the secret is that you save for them and do them within budget and not on debt. Otherwise the holiday costs you far more than the price once you add on interest paid over the years and you are still paying for holidays years later meaning no money spare to do them now.

    Good luck and hopefully the diary will keep you focused.


    Thank you. I have 100% been overspending in the grocery shopping so starting next payday I am going to take the cash out so we can see it running down as the month goes on. I’m not really sure I’ve worked anything out correctly as we both get paid on a 4 weekly basis rather than monthly so had to take a stab in the dark with our incomes when doing the SOA

    £10 is probably a bit low but we both have new cars that don’t need MOTs and have a full 3 years service and warranty cover. So budgeting mainly for tires.

    The one loan we have from nationwide was for £10,000. That was for debt consolidation. We are 2 months into 4 years of repayment. The rest of the debt is an interest free loan we had from my parents as a deposit for our new house. We pay £200 a month back and they don’t want anymore than that back.

    I should probably budget something for entertainment as we don’t want to commit to doing absolutely nothing for the next for the next couple of years. As for holidays I’m not putting a budget in as we are not going to have one till we pay this debt off.
    Make £10 a day in May- £90/£150
  • supersaver1000supersaver1000 Forumite
    2.5K Posts
    Part of the Furniture 1,000 Posts Name Dropper Debt-free and Proud!
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    Welcome and good luck on your journey.

    We also spent lots on numerous holidays - I think the last big one we took was around £8k. We used the credit card for everything and every time we used it I had a sick feeling - it marred the holiday and I swore never to do that again.

    The last couple of holidays we've had, we booked in advance and found a lovely apartment on owners direct in europe. We put down a deposit and then bought sleezyjet flights for about £200 - paid by card but paid off almost immediately with cash earned. We paid the balance for the apartment about 8 weeks before (total was about £450 for the week). We also saved up our spending money before we went and used our normally weekly food budget over there as well - spending only cash and we cooked in loads but had the odd meal and a drink in the local harbour bars. It was such a good feeling to know we were enjoying a holiday that was all paid for and that we didn't have to go home to a huge credit card bill.

    I've vowed never to go on holiday unless we've paid for it in advance - you just don't enjoy it as much when you know you are going to have to face the credit card bills when you get home. I'm also really enjoying being at home more now that we are tackling the bills - I don't know if we took the fancy holidays to try and escape looking at the bills.

    I just wanted to say that you are definitely taking the right steps and that in time you might become more comfortable with not jet setting around, but that you can still have things to look forward to, just ones that you can afford maybe?

    Very very best of luck.
    OSWL (start 13st) by 30Jun20 6/10
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    Grocery Challenge Jun £742/£320 spent
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    Starter Emergency Fund £1000/£1000 saved
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