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  • ryanm8655
    ryanm8655 Posts: 1,152 Forumite
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    This is a new situation, previously I was renting. Have moved back home to save more.

    The debt accruing is a long story. A couple of messy break ups. Money lost on furniture etc. From the first one, which is put on 0% cards. General overspending. Buying myself out of my big 4 training contract. I’ve been in debt since finishing uni in 2012, the first lot being an £8k interest free loan I got when starting my training contract. When I left after a year I had to pay that back plus course fees etc. (They were paying for ACA). I didn’t have that as cash and the debt has built up since.

    August 2019: £28.8k

    November 2020: £0 (0% interest)

    My debt free diary: https://forums.moneysavingexpert.com/discussion/comment/77330320#Comment_77330320


  • Smellyonion
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    ryanm8655 wrote: »
    This is a new situation, previously I was renting. Have moved back home to save more.

    The debt accruing is a long story. A couple of messy break ups. Money lost on furniture etc. From the first one, which is put on 0% cards. General overspending. Buying myself out of my big 4 training contract. I’ve been in debt since finishing uni in 2012, the first lot being an £8k interest free loan I got when starting my training contract. When I left after a year I had to pay that back plus course fees etc. (They were paying for ACA). I didn’t have that as cash and the debt has built up since.


    I am sorry to hear that. Good news is that you could clear these debts in 1.5 to 2 years. Based on what you have posted, you could quite easily repay 1.5k a month. If you cant do this then your SOA is inaccurate. EG- the rugby expense.
  • ryanm8655
    ryanm8655 Posts: 1,152 Forumite
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    edited 9 October 2019 at 8:28AM
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    Yeah, I need to get more of a grip on the random expenses. When I do go out I go a bit mad with the drinking but on the plus side there are far fewer opportunities to do that outside of London. I’ve now figured out why but I need to figure out an alternative remedy so am going to join the gym today. Then when things are tough at home I have a different outlet.

    On the plus side I have managed to wing working from home for all but one day this week and have only made one car trip (to take a relative for radiotherapy). So I’ve saved about £100 on travel costs. I’ve also shifted another £100 into my emergency fund.

    Have arranged to switch one of my bank accounts which’ll bring in another £100.

    Feeling a lot better about things and hitting things harder in the lead up to Christmas.

    Thanks,
    Ryan

    August 2019: £28.8k

    November 2020: £0 (0% interest)

    My debt free diary: https://forums.moneysavingexpert.com/discussion/comment/77330320#Comment_77330320


  • warby68
    warby68 Posts: 3,037 Forumite
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    So entertainment is currently your downfall.

    You've allowed £200 but sounds like your nights out are easily £100 so that's only 2 a month. It just might need to be more realistic to start with - what about say one a week ? Then its up to you to pick and choose and stick to your spending limit for that night. Once you're used to it, it'll get easier but if you're used to very free social spending, dropping almost everything in one go isn't likely to work and in fact is more likely to make you have blow outs. Little and often is usually more successful to avoid feelings of hardship and also for the stress relief aspect.

    Good luck :)
  • ryanm8655
    ryanm8655 Posts: 1,152 Forumite
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    Yeah, that’s pretty much it...

    Did have a birthday at the weekend, so that was drinks, plus a token gift and then out for lunch the next day. When I do go out I’ll tend to stay at a friends which then leads to breakfast/lunch the next day.

    £400/month is probably more realistic in the short term...I’ll see how it goes...planning on staying in this weekend and not sure I have anything else planned for the rest of the month. Pretty sure all birthdays are out the way and then it’s just the Christmas party season, which’ll be the next big hurdle.

    Haven’t yet started separating my money into pots and this is another issue. I’ll start putting £300/month into my Starling account and leave the current account card at home in future. That can then be my actual entertainment budget, including any food, coffees on train etc.

    Thanks,
    Ryan

    August 2019: £28.8k

    November 2020: £0 (0% interest)

    My debt free diary: https://forums.moneysavingexpert.com/discussion/comment/77330320#Comment_77330320


  • ryanm8655
    ryanm8655 Posts: 1,152 Forumite
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    Have signed up to the gym for £65 until the end of the year (they had an offer on).

    They said there will likely be another offer in January so should be a bit cheaper than the £34 I thought.

    Will take this from my entertainment budget.

    Considering giving up booze until the end of the month, will start with this weekend and take it a week at a time. It’ll be good financially but also kickstart the weight loss rather than the gym just offsetting booze on weekends...

    Thanks,
    Ryan

    August 2019: £28.8k

    November 2020: £0 (0% interest)

    My debt free diary: https://forums.moneysavingexpert.com/discussion/comment/77330320#Comment_77330320


  • EssexHebridean
    EssexHebridean Posts: 21,482 Forumite
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    Sounds like good planning all round. Have a look at Hussle for deals on the gym as well - if it's on there it may well be they offer a cheaper way to do it than going direct. (Example - the one I use offers a £35 "locals" monthly price, but you have to sign up for that and set a DD which is taken monthly - via Hussle even at their full price it's only £33 - and then for about the last 4 months I've had either 10% or 20% off that I think, plus I can just pause my membership at the end of its month and then restart again when I'm next ready to go - so this saves me a few days each time round before renewing.)
    🎉 MORTGAGE FREE (First time!) 30/09/2016 🎉 And now we go again…New mortgage taken 01/09/23 🏡
    Balance as at 01/09/23 = £115,000.00
    Balance as at 31/12/23 = £112,000.00
    SOA CALCULATOR (for DFW newbies): SOA Calculator
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  • ryanm8655
    ryanm8655 Posts: 1,152 Forumite
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    Thanks for the heads up, checked out Hussle but no good deals in my area, will have a look again at the end of the year.

    Some good news! Been given another 0% deal from NatWest, which I can shift £4224 of interest bearing credit onto...wonder if this means my credit rating has improved again? Is it worth trying some others?

    August 2019: £28.8k

    November 2020: £0 (0% interest)

    My debt free diary: https://forums.moneysavingexpert.com/discussion/comment/77330320#Comment_77330320


  • monetxchange
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    It doesn't sound very MSE, but I'd consider doubling the money you have budgeted for going out/petrol money. You can still more than afford it according to your SOA.

    I think in the long run, beating yourself up constantly because you've gone over a small budget will drag you down. I've been there. You think: oh, I've screwed it up, I'll just go mad until next month. Of course, the next month never comes. You're doing so well and you have to give yourself some credit and a good deal of latitude.

    You've had a massive lifestyle change moving home, and I know how hard that can be. You do need to get out and to see friends to feel your independence. If, in reality, you're taking a trip to see friends once a week that costs around £100 all in with drinks and travel, then budget for it. £400 a month is a lot to most, but you don't really have any other outgoings. It'll slow down the debt clearing a little, but will keep you sane.

    What I would suggest is moving this money into a separate account for spending purposes, and once it's gone, it's gone. No transferring more in or spending on credit cards. And have a think about your nights out before you go out - can you do a bit of research on cheaper bars in the area? Could you save a few quid by drinking pints instead of spirits etc? Could you have a dry evening one week, using the excuse of driving? Or do a night where you buy tinnies and pizza and go round to a mate's? Avoid that London hipster cafe scene the morning after - it's invariably disappointing, overpriced and let's be honest, when you're all hungover, a greasy spoon or Wetherspoons brekkie is as good as any! You're still getting the social interaction with your friends, whatever the price of the venue.

    Good luck! :)
    Debt Free: 06/03/2020 Highest Debt: £37,514
  • ryanm8655
    ryanm8655 Posts: 1,152 Forumite
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    That’s a very sensible point. The risk is if I go too mad back home I’ll head back to London. Though my determination to clear my debts is overriding that.

    Transferring to a separate account is a must, that’s been the issue so far. I haven’t quite got a handle on my money as far as I’m reluctant to overpay credit cards (beyond what I do already) at the beginning of the month just in case but then when a night out happens I’m less careful with money as I have the money available. A separate pot should stop this and make the budget easier to visualise.

    I haven’t tended to have blowout months where I’ve gone f it, which I used to do all the time in London. I do now check my bank after a night out, which I avoided doing when my spending was at its worst. So there has been some solid psychological progress.

    In debt news, I’ve shifted £414.xx of MBNA to the latest 0% offer from barclaycard (0% until October next year) - this seems to be the difference between the £500 I pay and interest each month. I’ve also got a £4500 limit from NatWest which is 0% for 23 months, which I can shift £4224 of the MBNA on to. Then I think I’ll clear the remaining interest bearing balance (around £200ish). I’ve then busted the highest interest card and that gives some short-term motivation for keeping my entertainment spend low this month too.

    Thanks,
    Ryan

    August 2019: £28.8k

    November 2020: £0 (0% interest)

    My debt free diary: https://forums.moneysavingexpert.com/discussion/comment/77330320#Comment_77330320


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