Starting Again

dimsumdimple

I’ve been a lurker of these forums for a couple of years, but I’ve finally decided to tackle my debt issues head on and hold myself responsible for the mess I’ve managed to get myself in.

As a bit of background, I’m a married mother of three (8, 5 and 5 months) and back in November 2018 I owed upwards of £16,000 across store and credit cards. The vast majority of this was the result of wedding costs on 0% cards. I got married 3 years ago, and the 0% aprs are long gone. Since then I’ve managed to max everything out to the point where I have nothing at all at the end of the month. What an idiot. :mad:

But things have started to change - mainly my mentality towards debt. I got rid of my car in June, and even more drastic, we sold our house in December and moved into my mothers house to, essentially, start again.

I have £13,000 saved towards a deposit on a new house ready for when I clear this debt, and I’ve already started to make headway into the cards. Yes, they’re all on rubbish aprs (averaging about 23% :eek:) but I don’t want to be shuffling the debt around. I want it gone.

I’m about to start 3 months of SMP, and I have an emergency fund of £1000. I’m planning to do some KIT days to support the SMP money and I’ve done a personal SOA. I can do this, and I’m hoping that this diary will keep me focused.

Debts
Nxt - £2821.16/ now £2688.49
Hfax- £6450/ now £6068.35
Sant- £1900 /now £1782.86
MnS - £2000 /now £1945.06
Gold - £2800 /now £2738

I’m currently concentrating on reducing the Nxt account because the apr is the highest, and honestly it’s felt like a chain around my neck for the last 7 years. I dread to think how much money I’ve given them over the years in interest.

I’m currently gutting my ‘stuff’ and reselling, as well as doing some surveys. 2019 is an expensive year, with weddings and big birthdays so I’m determined to not get sidetracked from the debtbusting. I CAN DO THIS.

dimsumdimple

Typical Monday morning, kids fighting on the way to school, no-one knows where their shoes are etc. etc. But the baby slept well for the first time in a while and her cough is receding so I’m feeling ok today.

Today won’t be an NSD as I need to go to the post office to send off some eBay things and I need baby milk. Somehow the DH managed to pick up the wrong tin (6 months + one) without anyone noticing until we were half way through it :eek:

I have £55 sat in my ‘spends’ account so after postage fees and baby milk I’ll divide the remainder between the Nxt account and my saving account for a hen party I’m saving for later in the year. I’ve planned that if I save £50 each month from sidehustles I should have more than enough to cover expenses for this. So far it’s sat at £25, but with today’s extra money this should take me to £45.

I’ve actually feeling quite proud for managing to achieve this, and I’ve been noticeably less stressed about money when I can plan well in advance for it. It’s a nice feeling.

ohdearhowdidthathappen

Good luck with your mission...
Have you considered paying the debt off with your savings, you could virtually clear them all, saving hundreds in interest. Then you could save at a higher amount per month and replenish your deposit account ready to buy a home debt free :-)

natsplatnat

ohshithowdidthathappen wrote: »

Good luck with your mission...
Have you considered paying the debt off with your savings, you could virtually clear them all, saving hundreds in interest. Then you could save at a higher amount per month and replenish your deposit account ready to buy a home debt free :-)

Even if you paid of the N3xt Acc with your savings, you could snowball forward whatever you were paying them onto your next highest interest earning Account bringing your DFD forward.


Once DF you can top your savings back up by the £2688.49 you used and I reckon this would only take a few months.


Good luck with you debt-busting!

dimsumdimple

Thanks for the reply Nat! I had though about using those savings, but they’re jointly mine and my husband’s and kept in a seperate savings account. When I’m back at work in April my pay will increase to £2000 a month, so I’m hoping to throw everything at the debts then, and then add to the savings.

It might not be strictly the MSE way, but it’s teaching me a lesson in never getting credit again by seeing that interest. Also, the savings are current sat in a savings account I cannot access because the temptation was too much and, honestly, at the time I didn’t trust myself.

beanielou

Happy shiny new diary

dimsumdimple

NSD today. Yey. I’m tracking this via an app called HabitShare, and it’s really good if you’re quite a visual person to keep track of things. I have one for NSDs, one for takeaways and one for coffees (my two big downfalls moneywise). I do think it’s helping as I’ve paid for one coffee this month (included in budget) and I use to get one nearly everyday. So wasteful!

Hen do savings are up to £50, so I’ve made this months target. But £100 needs to go out for this next month, which is rubbish. I hate feeling like I’m begrudgingly paying this out when it could be going on my debts, and then I feel really guilty about feeling like that.

Rounded down by ‘bills’ account and paid some off the Nxt account as I’m only waiting on two bills to come out for the rest of the month now. The PAD aspect has also really kept me motivated, I love seeing those numbers go down. More eBay sales yesterday and today has also brought my ‘spend’ account back up to £25, which after postage costs will go towards the hen do fund. Again.

I got an email from Iceland with a free pizza and dessert offer so I’m going into town tomorrow to get that, but other than postage fees I’m hoping for another NSD tomorrow. It’s my birthday this week so the frugality isn’t too bad right now!

dimsumdimple

Woke up this morning to snow outside :eek: I’m not a fan. It’s cold and wet. Yuck.

Anyway, yesterday I walked to town and managed to spend £3.05 on a loaf of bread, some biscuits, pizza and a dessert from Iceland. Pizza was free, but I’m annoyed the dessert wasn’t. Also missed one of my eBay parcels, so I’ll have to send that today. Annoying. :mad:

Payments have started to slow down towards the debts this month now as I wait for payday. I got paid early in December (although didn’t touch it until 31st) so it feels like a very, very long month. Hen do savings up to £60. Still have £1000 in EF and waiting on two DDs to come out of biils account. I can relax a bit after the 21st as everything will have been paid.

Plans for today are 2 house viewings and post office (again).

dimsumdimple

Still here, still debt busting!

I’ve been plodding along, patiently waiting for payday (this month has gone on forever) and paying little extras off to the store card along the way. eBaying has been quite good this month, think I’ve earned about £200 all together. And the surveys are starting to pay off too - I’ve just cashed out £5 on vypr, £5 on Enlightly and I’ve sent some stuff to Ziffit too for £13. It all adds up!

It was my birthday last week, so my husband and I went to Nando’s while the kids were at school as a treat. This might seem mean, but they don’t like the food there, it was cheaper without them and because of my Nando’s card and NHS discount it came to under £20 for two mains and two drinks :money: all budgeted for too.

The kids didn’t miss out though, as my mum treated us all to a takeaway a couple of days later

One week till payday and I can see these debts start to really go down. It’s my first wage with partial SMP so I’m not 100% how much I’ll get, but I know I have enough to pay all the bills so I’m not too stressed about it.

Jox

I know you've said you won't do this but you owe approx £15,222 and have £13,000 in savings, you can pay the debts and still owe £2,222, cut up the credit cards and pay off the remaining debt and start saving from there.

When it comes to the time you need to get a mortgage the debts will count against you anyway so best to get rid of them!

dimsumdimple

Thanks for your comment Jox. I don’t have access to those savings - they’re held ‘in trust’ as it were for a house deposit so I can’t use them to pay off my debt. I don’t have many ‘outgoings’ so now that I’ve got an EF everything is going to these debts instead of savings. I’m not in any immediate rush to apply for a mortgage until the debts are paid and I’m back at work following maternity.