New Life Pending.....

Moneywhizz

Just had a read of your diary and it sounds like you have made a great start to budgeting and getting yourself into a better position. You don't have a lot of debt but because of the ridiculous interest rates it is better for you to get rid of it as quickly at you can to save yourself money. I had a look at the Drafty website. Doing a quick calculation, if you could pay £270 a month it could be gone in 6 months. You are already paying £90, so if you added in your £180 surplus that would cover it. It would certainly leave you with a very tight budget, but for 6 months it would be worth it to get rid of that awful loan. It would mean you had paid them approx £270 in interest. The less you pay each month, obviously the more interest you are charged. It is a vicious circle with companies like these so biting the bullet and getting rid of it is the best thing you can do. Then you can use the spare money to pay down your other cards and you will be debt free in under a year. What a difference that would make to you.

Iwantanewlife

Kitten868- Thank you for being kind, but it’s my own stupid fault for putting myself in the position to need it in the first place! I’ve always earnt a reasonable wage, and I’ve chosen to not hold any value to it or to invest in making sure I’m financially safe. However, I agree that in lots of occasions these companies are able to fleece the vulnerable and it’s not ok.

Holiday is a proper ‘all inclusive’ drinks, ice creams , snack and all meals. Glad I chose this one now! The only think I would spend is a drink at the airport (favourite tradition lol) and maybe an ice cream at the beach for my son. So I think I’m pretty safe.

Iwantanewlife

MoneyWhizz- I actually think £270 Is doable. Thank you for putting it so plainly, it makes sense now lol! Debt free in under a year? Doesn’t that sound amazing!

I’m actually due a bonus of £5k in May next year. I really want to get as many of these debts gone before then, so the £5k can join my emergency fund, then I will be in a whole 360 different financial situation to what I am now.

Bingbunny

Good Morning Iwantanewlife

Been reading your diary over the last few days. You are doing great! I personally think as long as you are aware of the money issues and are doing things to sort them out (which you are) then don't worry too much if that takes you a few months longer than you have planned as your on the right track. We all need to live also. I actually really need to listen to my own advice!

Anyway I have subscribed and here to keep you motivated.

Iwantanewlife

Thanks Bingbunny, sometimes it’s easier to give someone else advice thank it is to give yourself!

You are right about living. However, I think that actually I’ve done quite enough of that, and that’s what led me here! 6 months out won’t kill me lol. I’m just looking through my wardrobes (yes plural) and I have dresses here with tags on it, shoes I’ve never worn still in their box’s. It’s ridiculous, and I can’t believe I’ve been so silly when I don’t even have any savings! :eek:

Moneywhizz

Glad to hear you think you can manage £270 towards the loan each month. Any extra money you make would also be most effectively used paying down the loan, although I can understand why you want to get your emergency fund built up too. Just wondering if you have factored in 5 week months to your budget for things like petrol and groceries. It can throw your budget off if you don't have these extra weeks accounted for. Also maybe you could use your petrol and grocery money as spending money for the week you are away on holiday? Have you tried any survey sites like Prolific Academic to earn a few extra pounds. They can be helpful if you have any spare time to spend on them, but obviously they don't bring in huge amounts of money. Although things will be super tight for the first six months, you will learn to monitor your money carefully and probably never return to your reckless spending ways after this debt is paid off. You are still young and have lots of time to turn your life around and become secure financially.

Iwantanewlife

Tbh I completely hadn’t factored in 5 week months, need to re work that ASAP!

I thought the same ref petrol and food budget to use for holiday money.

I have signed up to 20 cogs, earning £52 so far. I also have got £102 from TopCashback! I have realised I can slim down my food budget from £50 to £40 too.

I am going to wait until my pay day in a couple of weeks, then re do my SOA and detailed budget again, just to make sure it all works out how I’m thinking it should!

I’m 33 in December, my son is 6, and although I have life insurance etc so know he’s safe if something was to happen to me, it makes me sad that I have been silly enough not to have started a uni fund or deposit for a house etc.

enthusiasticsaver

Iwantanewlife wrote: »

Tbh I completely hadn’t factored in 5 week months, need to re work that ASAP!

I thought the same ref petrol and food budget to use for holiday money.

I have signed up to 20 cogs, earning £52 so far. I also have got £102 from TopCashback! I have realised I can slim down my food budget from £50 to £40 too.

I am going to wait until my pay day in a couple of weeks, then re do my SOA and detailed budget again, just to make sure it all works out how I’m thinking it should!

I’m 33 in December, my son is 6, and although I have life insurance etc so know he’s safe if something was to happen to me, it makes me sad that I have been silly enough not to have started a uni fund or deposit for a house etc.

You really do sound as if you have had your LBM in as far as the debt goes and are seriously going to sort it out. After that is gone you can focus on the future like savings for deposits, uni funds, pensions, nice holidays etc. Subscribed to follow your journey.

mark55man

As your child benefit is paid every 4 weeks one month a year will have 2 payments in. Work out when that is and as your budget is monthly based on £82 you could use the extra one for your drafty loan at 89% APR that would literally save you £7 in interest each month. maybe work out when that this by tracking the last payment and then working forwards

good luck and you got this under control, which is good, but you need to get ahead of the loan, and terminate it with extreme speed. so your ebay / car boot plan is a good deal. I found Ziffit quick to deal with although a bit soul destroying. There are a number of extra income boards on MSE - earning a little extra (survey's, maybe baby sitting for other mums you know - keeps you in!!)

one final thought - when you get in the debt busting zone you will be amazed at how much you can pay back, but the early months can be very slow, when you need action. would you consider calling all your cardprovider and asking if now have enough headroom to transfer some of the drafty balance onto the loan - or maybe use them for some spending (online if you have cut them up) and use the money saved from this month to attack the loan - obviously 89% - 39% is still not perfect but it is an improvement

girlatplay

Iwantanewlife wrote: »

...I’m 33 in December, my son is 6, and although I have life insurance etc so know he’s safe if something was to happen to me, it makes me sad that I have been silly enough not to have started a uni fund or deposit for a house etc.

The way I see it is, just jump in where you are. Forget what you have or haven't done previously as regret doesn't help anything. Now you are focussed and ready to tackle all things financial. In 10 years' time you will be in a completely different place financially, and now is as good a time as any to start working on that. I found this forum in early 2008 and 11 years later I am in a far better position than I was then (I lived in a council flat and had debt and very little money to pay it off with, rent arrears/council tax arrears/big personal loan/etc. Now I own my flat, earn a reasonable salary and have one debt (not including mortgage) through choice. I am almost 10 years older than you and did it as a lone parent too).

Your debt is not huge in the grand scheme of things and using the advice of other members here plus your own ideas and motivation, you will smash this. I'm excited to see your journey! :j