Frugality to pay of debts?

NelliePie

I've just read the start of your diary and just wanted to show my support. Like the others have said already there are so many other threads you can read to get inspiration for debt busting, frugal living, keeping grocery costs down and how to get inventive in the kitchen.

I know you've done your SOA just make sure it all matches up to what you see in your bank account -
for example if your SOA says you should have £100 left over, do you actually have it in your bank account left? I didn't and it took me a while to figure out where it was all going, dinner at work, bottle of pop when I filled up my car etc. it all adds up. So I found keeping a spending diary helped.

I'd say well done for already looking to freeze your interest, but if for some reason you can't I'd see if you can get any/max out any 0% interest deals. As has already been suggested focus on the highest interest payments first as they're costing you the most but I do think it's a good idea to clear that small loan first to give yourself a mental boost - its amazing how much the little things can have a big impact.

Good luck and keep going!

AIW

Just a bit more of an explanation, we have started on a dmp with no interest and minimum payments, the dmp say it will take 20 years to pay the £58,00 with what we can afford (£250) a month, which is ridiculous, we can't live with this hanging over us for 20 years.
What we want to do is tackle one debt at a time, starting with the smallest, we want to reduce everyday living costs by taking frugality to the extreme, anything saved will go into a pot until we can pay off the smallest debt, also we have to try and bring more money in, we can't do that through employment though as its not possible to get more hours. So don't know how we are going to do it but boy are we going to try.

AIW

What I have done to make a start today.

Sorting through books, dvd's and cd's to sell on the online sites.
Joined a few survey sites.
Bought 2kg of carrots should have been £1 cost 32p
Bought 2 packs of peaches shoud have been £1.38 cost 58p
Looked through the cupboards and freezers, should have enough for meals for around 3 weeks, so apart from fresh produce shouldn't need to buy much.
Got some coupons through the post and got 2 free packs of "Ladies" monthly thingies.
Got a coupon for a free milkshake, and they gave us 40p change as well so that 40 is in a pot.
Spent £1.50 on a little plastic wallet with sections in it so I can work on a cash system and leave bank card at home.
I shall update totals here at the end of every month.
So not a bad start on this long journey.

mark55man

great attitude. Try the up your income board. There were some thread a while ago about pople trying to live on non rent £4K a year - I haven't seen them recently - maybe others could help

AIW

HI Mark,
I know who you mean I think, they have a blog as well,but can't mention that here.

BettyBoof

I think one of the reasons your diary may not be getting as many comments as you hoped is that you said you don't want to go into what happened with the debt and you don't want to post a SOA. I am not suggesting you have to so please don't misunderstand me, it's just that the popular diaries on here are the ones where people really open up and share.Readers like to be able to make suggestions on how people can cut back etc. based on their numbers.You will still get responses though, people here are very helpful.

Have you heard of the Frugalwoods? They have a blog and are running an Uber Frugal Month challenge at the moment. If you sign up for it Liz, 'Mrs Frugalwoods' will send you an email every day about how to be super frugal etc. There are lots more ideas on the blog too. They are in the USA but so much of what she says resonates with me. Try and borrow a copy of her book f you can too.

Good luck with it all, it sounds like you are very determined to get on top of the debt.

AIW

Hi Betty as I say on am on the dmp now, I understand what you are saying, I just feel I don't need to go into to much as I have accepted we have made a mess of our lives and just trying to turn it around now, I don't want to concentrate on the mistakes, just look into making things change so we can pay off the debt quicker than the 20 years which the dmp suggests it will take, we just crave for a simple debt free life now. Thanks I will look at frugalwoods.

Kitten868

My best advice to you is read and read and read the diaries on here. There are so many people on here that have tackled similar levels of debt. So am I to understand right now you are on a DMP with step change? That's good in that you're on 0% interest and the payments are being made without you worrying. You could consider a self managed DMP at some point where you handle your creditors yourself and are in a position to make offers to settle the debts.
I think it would definitely help you to pay off and close some of your credit accounts so clear the £30 as long as it doesn't leave you short.

AIW

Yes that's right, we are looking for ways to make the extra £30 well £28 something actually, but that will be a start.

Kitten868

I recommend jwils diary - she's amazing at making money by decluttering and surveys - copy her and you'll have your £28 in no time.