Sort of debt-free but hope to be a super-scrimper in 2019

[Deleted User]

Seasidegal58 wrote: »

Re your economies - you mentioned in an earlier post that your debt was incurred in ordering things and then not using them and hoarding. Could you perhaps sell some of these on eBay to generate some cash and clear some space?

I've been selling things for years on eBay and at car boots. I love car boots, that's why I chose my username. I still do both but anything of value has long gone.


When I was overwhelmed by my debts I was living on credit even for basic groceries and genuinely not knowing how I would get through the weekend with food being needed and only coppers in my purse because my cards were maxed out. I sold off everything of real value at that time, a lot of which I really regret now. They were often things of sentimental value not always bought by me that I should have hung on to. If I'd admitted to myself that the only way things could improve was if I sought help I'd have been debt free a lot sooner. I sold items just to pay the minimums on credit cards but it made no dents in the balance as soon as interest was added again. It was a nightmare, even more so because I was keeping it secret from everyone in RL who might have been able to help.


I've often done a car boot sale on a weekend morning knowing that I had to make enough to call at the supermarket on the way home to buy enough food for our dinner that night or food for the cat. If I had a really bad morning and the weather was bad or there were few sellers I experienced real feelings of panic.



Not a situation I ever want to experience again and I hope when I'm totally free of debts this time it will be the last time I ever owe anything to anyone.

HairyHandofDartmoor

After being is such desperate straits because of your debts I think it's unlikely that you'll get into debt again. Your current situation must be all the sweeter, in contrast to your earlier struggles and your strength of mind in achieving your current debt neutral status :T.

[Deleted User]

HairyHandofDartmoor wrote: »

After being is such desperate straits because of your debts I think it's unlikely that you'll get into debt again. Your current situation must be all the sweeter, in contrast to your earlier struggles and your strength of mind in achieving your current debt neutral status :T.

Thank you:T

I hope I will manage to stay out of debt but I've cleared debt before only to lapse:o. This latest time before I had to start a DMP in desperation was the worst though. I've never owed that much before and whilst I was in debt but earning a good salary there was always hope that I could get out of the mess that I'd caused myself. By this latest time I was already retired and although my pensions are reasonable by many people's standards it still meant a massive drop in income compared to when I was working.

Seasidegal58

I'm sorry to read that you had to sell much loved belongings - that's very sad. It's worse too when you keep the debt hidden from everyone. I did this too with my debt - only telling DD when I was near to the end of clearing it. I couldn't tell her before because she would have worried and have wanted to pay it off for me. I was so ashamed that I got myself in such a hole when I had a good job, moderate outgoings and only me to worry about.

But you have done amazingly well and are near end of the road. My diary was such a help with all the support from the other posters and I think yours will be too.

GlendaSugarbean

You have done so well, and all on your own too. You should be very proud of yourself.

Moneywhizz

It is so sad when we get ourselves into debt and cause ourselves so much anxiety. Still you have been so disciplined in getting your debt cleared and seem to have really changed your mindset regarding the future. I can't imagine that you will find yourself in debt again. Best thing to do is not to consider debt of any kind then you can't slip back into letting it build up again. If you are able to save the money you were paying to your debt you will soon have a healthy sum behind you. Just be careful that you are not too strict with yourself and make it too much of a struggle to stick to it. Could you not have a little allowance each week, month just to spend on yourself?

doingitanyway

Thank you for your honesty Carboot.
I have followed your posts on HH's diary and will follow you here if you don't mind.
Wishing you a good day.

[Deleted User]

Moneywhizz wrote: »

It is so sad when we get ourselves into debt and cause ourselves so much anxiety. Still you have been so disciplined in getting your debt cleared and seem to have really changed your mindset regarding the future. I can't imagine that you will find yourself in debt again. Best thing to do is not to consider debt of any kind then you can't slip back into letting it build up again. If you are able to save the money you were paying to your debt you will soon have a healthy sum behind you. Just be careful that you are not too strict with yourself and make it too much of a struggle to stick to it. Could you not have a little allowance each week, month just to spend on yourself?

:hello: Moneywhizz. Thank you very much for your reassuring words and excellent advice:T

I have to admit that I have taken out a credit card since being on a DMP! It may seem really stupid but I check Noddle all the time for changes in my credit situation. It used to give me such a boost to see the debt decreasing:j. They frequently recommend people take out a credit card designed for people with a poor credit history in order to rebuild their credit worthiness by making sure they repay the balance in full every month. There's no danger of a credit check resulting in a refusal to get one of these cards so I decided, with trepidation, to go for one. I never regretted it. I proved to myself that I could deal with it responsibly which both delighted and amazed me:eek:


Firstly, the credit limit was only £500 and should I have gone back to my bad old ways and used it to the max it wouldn't have been the end of the world financially. Bad yes but not desperate in the general scheme of things. Also, with all my other credit accounts defaulted since 2013 they'll all disappear from my credit history during this year. the first one will be next month and I'm ridiculously excited at the prospect:rotfl:. This includes all the history of ones I've already settled, plus the 2 that I'm wanting F&Fs on. I'll still owe money on those last 2 but no one checking my file will know about it. This can be considered to be a bad thing apparently as no credit history at all especially for a mature person can appear very strange in these days to financial institutions who you might want to have dealings with.


I definitely won't be taking out more credit again, heaven forbid, I've been well and truly burned on that score:eek:. What I do want though is a 'proper' bank account and banks always credit-check applicants:(. When starting a DMP it's recommended that people open a new, clean bank account with a bank where they don't owe any money. I opened one at Nationwide who have been brilliant and I'd definitely like to stay with them forever. People in difficulties can usually only get a Basic account and that's what I have. I don't think they credit check, everyone is entitled to a Basic account. No overdraft with it though(not that I want one:eek:), chequebook and other things it would be nice to have in the future. They also have some good savings accounts with decent interest which are only available to people who hold one of their 'proper' current accounts. That's what I want now I plan to be a saver instead of a spender. When I get to applying, when debt free, I'd like to look like a person who's reliable with money, which I hope I will be by then.


I've tried really hard with the credit card that I took out. The interest rate is eye-wateringly expensive but since been given the card 2 years ago I've never paid a penny interest so the rate is immaterial to me:j. I use the card just for things I have to pay for anyway, such as petrol, and would normally use my debit card for. I have a DD set up to pay the balance in full each month and as it isn't much it's not been a problem. The DD prevents me going mad and buying other things with the card too;)


It started off with a credit limit of £500 which they increase to £1000 after a year of usage as I'd been a good girl. I had a letter last week to say they will now increase it to £1500 if I want to accept it. My balance has never gone above £80 in any month for 2 years so you can see I'm not exactly falling back into the debt-trap:rotfl:. The upshot is that when my credit file is clear of all traces of debts and money-mismanagement on my part (all by Autumn this year:j) there'll still be evidence of careful and reliable management of credit should any banks want to check when I try to open an account with them.


As to your excellent advice:T about strictness over savings and an allowance for spending on myself I'll write more in a future post. Thanks again for taking the trouble to post.

[Deleted User]

doingitanyway wrote: »

Thank you for your honesty Carboot.
I have followed your posts on HH's diary and will follow you here if you don't mind.
Wishing you a good day.

Thank you so much for your kind words:T. I certainly don't mind your following me, doingitanyway:rotfl:. The reason I took so long to start my own diary was that I thought no one would ever be interested enough to contribute to it and I'd be here all alone talking to myself:eek:. I've been amazed and very touched by the lovely, supportive response I've had. I'll look forward to seeing you again soon:)

Karmacat

CBC, I'm so glad you started this diary - it's been really valuable to know the struggles that you faced, and how hard you've worked to get yourself to where you are now, I'd no idea.

A new credit card paid off in full every month by arrangement is a great idea! And so is a treats budget once you're debt free - once the **need** to pay off is gone, I've seen over the years that people have a huge amount of difficulty learning how much is appropriate to spend.

You're doing great