Debt Free by 40 - let the countdown begin!!!!

seahorsey

Hello MSE :wave:

So after the realisation I feel like a passenger in my own life, I've decided it's time to get a grip and start putting plans in place and into action. I've got a big birthday coming up in just over 2.5 years so thought it'd be the perfect time frame to work within.

So why am I here? Since my uni days (nearly 20 years ago :eek:) I've been in and out of my overdraft. This over the last 5-6 years has also been joined by the dreaded credit cards and catalogue / store card accounts. We had a series of unexpected spends (£4K plus in vets bills that insurance wouldn't cover, £2.5k car bills and then subsequent purchase of new car and plugging the maternity pay shortfall). I've been going round the merry go round of trying to pay them off for the last 6 years but never getting anyway. Any progress gets wiped out by the next emergency. Time for a change in tactics I think. Upto now it's been a case of chuck every penny at it and hope for the best. We've never had savings and I now believe this is the root cause of our problems.

So initial plan of action.......
1. £1k in savings by year end, whilst making at least minimum payments towards the debts...

A side from the finances, I will use this diary as a bit of a life journal. I'm also wanting to lose weight (approx 2 stone), improve my fitness and mental well being, so will document the steps I'm taking towards this along the way.

Here's to the next 32 months

seahorsey

Quick summary of what I'm dealing with from the financial point of view.....
Credit card 1 = £6429.96
Credit card 2 = £921.60
OD =£600
Next = £22.92
Very = £499.95
Family = £100

Total = £8574.43 :eek:

Savings = £0

UncannyScot

Hello and welcome

You have had what we call your LBM (Light Bulb Moment) and came to the realisation that you are caught up in the debt cycle and need to break free of it.

First off, you CAN do this. Complete a Statement of Affairs (SOA), there is a template on the main MSE site. Be totally honest with yourself on all your incomes and outgoings when completing the SOA. You do not have to post it up on the forum but it does help us to advise on possible changes and savings that could be made.

Second, join in the community here, come and visit our diaries, add comments etc.

Third, if you need owt, shout out If you need any info or advice on anything just post up on your diary and one your nice neighbourhood DFW's will pop in to help out (We really are nice like that )

Good luck on your journey

Starmummy

Good luck Seahorsey. It's amazing what changes you can make when you really become aware of your finances instead of burying your head in the sand.

They are a lovely supportive bunch on here, with all sorts of experience.

You've got this

Take care
SM

seahorsey

Thank you both for your lovely supportive comments. Feel like a weights been lifted already by beginning to get a plan in place.

So, spent a lot of yesterday listing on eBay - it was quite therapeutic actually! Fingers crossed it starts bringing some money in!

Our utilities deal runs out at the end of July so have switched to a better deal saving approx £20 a month to what we're paying now. Doesn't sound a lot but it saves nearly £50 a month compared to the deal our existing company we're going to put us on.

The dogs insurance is due for renewal next month too. I'm seriously considering cancelling this. They're 12 now and the list of what not covered due to age probably outweighs what's actually covered. I've already cancelled the ponies insurance as got left with two huge bills they wouldn't cover and the £50 a month was better spent paying that off!

Anyway better got a move on and get ready for work. Have a good day x

beanielou

Happy shiny new diary

pidge04

You can do this! Wonderful to be debt free at 40.

seahorsey

Hi Pidge04 and beanielou - thanks for stopping by.

So the weekend once again has gone in the absolute blink of an eye. Not a hugely eventful one managed a couple of slow runs (this heat is killing me!), food shopping and a trip to the local car boot sale.

Also weighed in at slimming world and somehow had managed to lose 2lb - so happy with that.

Right so food shopping...... we're currently spending £70 on an average week, this is for the 3 of us. Both OH and myself are taking packed lunches daily. When you break it down, it's £10 a day for the 3 of us, so £3.33 per day per person - it doesn't sound too bad but I'm sure we could get it lower. I generally do an Aldi shop each month and then its weekly in Morrisons. Thinking maybe I need to switch the balance a bit and try and do more at Aldi.

It's OH payday a week today, which is the start of our financial month. Until then spare funds are pretty much zero. Fingers crossed for lots of ebay sales.

I've sat and made a list of all the upcoming expenses between now and the end of the year. I'm hoping to use eBay money to pay for these.

October - OH car MOT and service (budget £300)
October - DS birthday (budget £200 as unsure as yet if he'll be having a party - will be less if not ...)
October - sister birthday (budget £30)
November - my car MOT and service (budget £300)
December - pony jabs (£40 if the vets are still doing cheap visits otherwise £60)

So that's potentially £890 before year end without mentioning the 'C' word. Hopefully the figure will be a lot lower as I'm keeping everything crossed the cars will sale through - we'll see!

Right I best get on as I dare say the little one will be up and about soon. Happy Monday people!!!

Hopeless_Case

seahorsey wrote: »

Thank you both for your lovely supportive comments. Feel like a weights been lifted already by beginning to get a plan in place.

So, spent a lot of yesterday listing on eBay - it was quite therapeutic actually! Fingers crossed it starts bringing some money in!

Our utilities deal runs out at the end of July so have switched to a better deal saving approx £20 a month to what we're paying now. Doesn't sound a lot but it saves nearly £50 a month compared to the deal our existing company we're going to put us on.

The dogs insurance is due for renewal next month too. I'm seriously considering cancelling this. They're 12 now and the list of what not covered due to age probably outweighs what's actually covered. I've already cancelled the ponies insurance as got left with two huge bills they wouldn't cover and the £50 a month was better spent paying that off!

Anyway better got a move on and get ready for work. Have a good day x

Hi and welcome, I've subscribed to your diary

We did this once our old dog got to that age, he'd had a few things wrong and the premium was going to be £90 :eek:, and apart from the fact that we couldn't afford it, we decided it wasn't fair to put him through anything major anyway, so there was no point in the insurance. Sad but we had to be realistic

We've only got a cheap Animal Friends policy for our 2 dogs now costing about £7 a month each, so there is an element of Russian Roulette and what would if do if they needed a major op, but we'll cross that bridge when we come to it, in the meantime we need to focus on clearing a couple of credit cards and trying to pay our mortgage off before we retire!

seahorsey

Thanks hopeless case (feel kind of mean calling you that!). Think my minds made up regarding the dog insurance - touch wood both are in good health but you do question how much you'd put them through if anything were to happen.

seahorsey

Argh!!! Does anybody else feel they're not cut out for this adulthood lark!!! Being in my late 30s you'd think I'd have the hang of it by now - but no!!! My house is in constant chaos, finances aren't great, need to exercise but always feel too knackered. I tend to get home from work, pjs on within the hour and hibernation mode kicks in! I'm full of good intentions but struggle to put them into action. I came across an article of Facebook the other day about procrastination- it rang true on so many levels. The long and short of it was that procrastinators have this instant gratification chimp that leads them astray and makes them do stuff that makes them feel good at the time - for example reading random internet articles when they should be studying etc without seeing the knock on effect to the bigger picture.I could really relate to this in so many ways. My spending habits - I need it now!!! The dress / bag / mug / plant / whatever random thing I have my eye on will make my life better - the reality is it doesn't. I have the initial buzz but then the knock on effect is money runs out quicker, debts are paid off slower but hey it's ok cos I got the bag!!! Diet - I need chocolate and I need it now - eat chocolate, get the buzz for all of 5 minutes and the curse my lack of will power when I step on the scales and my weight starts heading in the wrong direction. Time / energy - too shattered to do anything in the evening so sit on my backside once little one is in bed - consequence house is still a tip, no exercise done and I've probably eyed my next purchase on the internet!!!! If I can train this damn chimp life would be good!!

Sorry bout the random slightly off topic ramblings, back to the finances......

A couple of decent eBay sales yesterday will help fund the next 6 days til payday. Need to get to the post office this morning and send them on their merry way.

Accidental no spend day yesterday as this daft moo forgot to take her purse with her. Every cloud has a silver lining though- no random spends on stuff that isn't necessary. Probably should have mentioned earlier that I started a spending diary at the beginning of this journey, so yesterday was my first official NSD !!!;

Time to walk the woofs - I'll be back x