Time for a Fresh Start!

[Deleted User]

Great start - writing everything down and facing the facts is the biggest step in this journey.

There are quite a few things on your list that would be good to evaluate

- Phone Insurance - do you need this? Can it be cancelled or are you tied into a contract? you have an emergency fund (great start!) that could cover you should you need a new phone.

I actually don't think your grocery budget is too bad - if you make it stretch for the whole month, and cover meals that you currently have out (takeaways, lunches bought at work, takeaways), then it's not an unreasonable number for London. I would concentrate on cutting the eating out first, and then see where you are at with your groceries. Meal planning definitely helps - something I'm working on myself.

- Mobile phone - this is very high, presumably you have the latest phone - is your contract nearly up? You could save a lot with a SIM only contract instead. If you're still locked in, it's worth ringing your provider and asking if you can downgrade your plan a bit, for example by cutting a bit of data allowance - you might be surprised what you can achieve.

- Gym - do you really go? If yes, then keep it. If not - try jogging, cycling or doing YouTube workouts at home instead.

- Presents - that is a lot for a single person - you could try just downgrading each of the presents you tend to get by 30% which would be a great saving. Or you could come clean to your friends and say you won't be doing presents for a while as you're trying to bust debt. Honestly, get out of presents while you can before you have regular birthdays and Christmases with children to pay for!

- Equifax - definitely cancel this - you can join MSE credit club instead - you have access to your full Experian credit report on there for free, and it also has handy tools for finding balance transfer deals etc that show you your actual chances of getting these.

You pay quite a lot of interest each month on your cards - once you've done a few balance transfers, you'll be surprised by how much difference using that money towards actually paying down debts makes!

Good luck on your journey - I've subscribed and will be cheering you on.

[Deleted User]

I really recommend an article by Mr Money Mustache called Your Debt is an Emergency btw - was a real eye-opener for me and really spurred me on in the beginning!

Iwantanewlife

Happy New Diary!

Number one, try not to be too hard on yourself, most of us here are either in your situation or been in it. You have acknowledged the issue, and now set out a plan, all you need to do now is action it! Once i had started my diary on here, i suddenly started to feel a lot more in control. It gave me a real sense of security for the situation.

Good Luck, I will be lurking to see your progress x

twiggy86

Well done on starting a diary and posting an honest SOA. You've already identified areas you can cut with ease, so it's a brilliant start. Keeping a spending diary this month has made me really think about what I spend!

EmotionalSpender

Thank you to you all - my computer isn’t working this evening so a quick haphazard message from my phone. Your comments have all been really helpful, and so kind. I actually didn’t realise how much interest I’ve been paying; it’s mad, really, but when you keep plodding along I think maybe sometimes you become blind to the obvious. And it’s mad! I checked the Balance Transfer Eligibility Calculator and I’ve got a 90% chance of some six-month short-term cards, but that’s it right now. I am about half, or less than half, into most of my credit card limits, and Halifax has offered me some balance transfer offers (I guess I might not get accepted, but they’re there), so I’ll look at them all properly and also post up the full limits when my computer is working tomorrow.

It has been rubbish at work recently, but I think it’s opened my eyes up to how stuck I am, and how I really do need change. I’m afraid all the time - afraid of losing my job, of people at work - and if I didn’t have this debt, I wouldn’t need to be so afraid. So that’s something to take from it.

My phone contract ends in November, but I’ve been looking at sim-only contracts and am happily surprised about how cheap they are! I do use the gym - I go a few times a week - so I’ll keep that, but I’ve just cancelled my Equifax and Spotify.

I think the thing I will take on board the most is taking baby steps and small, active changes. I’ve tried to pay this off a few times by going in with full gusto and then fizzling out. I know this is a long-haul journey, and it’s time to take a new approach.

I’ve made breakfast, lunch and dinner for tomorrow

Payday tomorrow!

[Deleted User]

Ah yes, if you're going a few times a week then you're definitely getting your money's worth from the gym!

It's not long until November so that'll be a great saving when you can switch to SIM only!

Well done on cancelling a few things already. Saving £50 a month doesn't sound like an awful lot, but it's £600 a year - or £3000 over 5 years!

I've started to think of everything in 5/10 year terms. Switching something in my grocery shop for something else that's £1 cheaper a week, for example, doesn't sound worth the trouble, but when you think about it, it's over £500 saving over 10 years - on something as simple as detergent!

The cumulative effect of finding all these little things is staggering, that's been the biggest eye opener for me on this journey!

And I get what you mean with being blinkered about interest you pay - I was exactly the same when I started and had 5 credit cards.

You are right, it's a long haul journey and it's mostly about being consistent and slowly learning new habits.

It sounds like you've truly had your light bulb moment though, so I'm sure you'll succeed!

Toni'sfriend

Well done on cancelling a few things already. Saving £50 a month doesn't sound like an awful lot, but it's £600 a year - or £3000 over 5 years!

I've started to think of everything in 5/10 year terms. Switching something in my grocery shop for something else that's £1 cheaper a week, for example, doesn't sound worth the trouble, but when you think about it, it's over £500 saving over 10 years - on something as simple as detergent!

That is a really fantastic way of looking at how even the smallest saving can add up.

[Deleted User]

It has really helped change my mindset of "ah, it's only a fiver, it doesn't matter" - all those fivers add up to an awful lot over the years!

EmotionalSpender

Moguline, that's such a good way of putting things into perspective (and I also loved the article you suggested - thank you)! Every pound does add up!

So...payday! After all my bills, I've worked out that I have just over £170 a week - if I take £100 for savings (which I will), £145. I'm going to spend this month focusing on my spending, and take any leftover money to add to my debt. Usually when I've tried paying it off before, I'll throw larger portions of cash at it at the beginning of the month, run out quickly, and end up dipping back into it again.

I've had a look at my cards, and I do have some room for balance transfers (if they let me):

Halifax Credit Card............2553/5500 - I can transfer up to £2700 (need to check the exact APR)
MBNA...........................1600/3400 (0% for two years - balance transfer available if they'll let me - I can't transfer the other MBNA debt
MBNA 2.........................2850/4500 (24% interest)
Tesco..........................3706/7000 (need to check APR - scope for balance transfer)
Virgin.........................3400/4000 - 0% right now for about a year
Barclaycard....................2000/3500 - need to check APR - I am paying £100 a month as the account was in "persistent debt" so I had to stop paying the minimum, and whilst I can move down to payments of £70 and satisfy them, I don't want to. I got the MBNA 0% card offer after the email notification re: persistent debt, and my credit score didn't seem to change on Equifax.

I am thinking of moving £2000 of the MBNA to Halifax and then paying off the £850 as priority, and moving £1000 of the Barclaycard to the second MBNA. I will think about it properly once I have all the APR information. I will rifle through the paperwork this weekend.

Today I spent £8 outside of my bills. I went straight to the reduced section of the supermarket and picked up some nice burgers, so I've got leftovers for tomorrow as well, as well as some bread, mayo, hummus, cleaning stuff, crackers and salad. I usually get a takeaway on payday, but the burger was a nice treat.

I checked through my cupboards - I could do with a few more store cupboard basics (flour, stock cubes, etc), but otherwise not too bad. I will do a list and a proper shop this weekend. One of the problems with sharing a kitchen is lack of space, so it's difficult to bulk buy or bulk cook, but I do my best with the space I have.

One thing I don't need to spend on for a while is toiletries. I seem to have some mad stockpile in my room at the moment. I think I kept rebuying the same few things, forgetting I already had them, over and over again. My head has not been with it of late! I'll see how long they last.

I have a quiet weekend planned, which is rare, so I'll see how I get on with my spending. I technically don't need to spend anything at all this weekend, but I should really get my food shop out of the way!

Kantankrus_Mare

Ive subscribed and will be following you along your journey.

Well done for getting it all out into the open. Your target is attainable but only if you stick at it. I can understand how at times it will feel like a slog and you WILL have times when you think "Whats the point?"

Keep coming and posting here and telling us all of the negatives and the positives.

If I were in your position, my motivation would be the job that I hate.

Becoming debt free will give you options to change that. Go to work, do what you have to do but try to incorporate a happy life outside of work (but watch how much its costing you!) and it will take your mind off the crap job.

Good luck with sorting all your APRs on the debts......I think once you have them all on more manageable % your journey will be clearer.

Good Luck!!