Time to put my big girl pants on!

dreambig19
dreambig19 Posts: 112 Forumite
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edited 4 October 2019 at 12:44PM in Debt free diaries
Ok... brand new here, please be gentle! I'm starting this DFW diary to hold myself accountable, and to keep a log of how I get on.

Brief intros and my reasons why!

Husband and I are both in our 30s and have basically been living and spending like irresponsible teenagers! We've no savings, we rent, and I have debts up to what feels like the BFG's ears. But I'm finally ready to grow up (better late than never!) Our first child is due to turn one soon, and we want to expand our family. We're renting and with my credit file the way it is, no mortgage lender will touch us with a bargepole (never mind that we don't have a deposit saved!).

I want to get my debts cleared down and our savings started properly so that we actually stand a chance of getting a mortgage. We both earn decent wages for the area, and on the face of it should have 1k+ a month left over after bills, but never do! My lightbulb moment: For the next few months my salary is the only income - so I'm taking this opportunity to basically be a tight scrooge with the money and get a budget in order! That way there'll be no excuse once the husband is earning again.

So in September I bought myself a nice little budget book (I work better seeing things physically written down in front of me) and wrote out a budget for everything based on my rough guesses of what we usually spend. I got a monzo account and set up pots for each expense. Once I was paid I divvied up the money into each pot - so that we don't end up spending the phone bill money on takeaways for example! I'm now this month in the process of writing down every single penny we spend. At the end of the month I can revise the budget, and pick an area to focus on reducing for November. For example if we spend £200 on groceries, next month I'll aim for £150, and the extra £50 can go towards a debt payment.

I've also set myself the challenge of earning an extra £10 a day for the month. This will be split between treats (currently no room in the budget for that on one wage) and paying debts with the other half.

I've contacted all of my creditors, apologised for the (very long) absence, and set up payment plans. I'm then going to use the 'snowball method' to make overpayments when I can to close each account down in turn.

I'll post again later with details of the amount of debt I have (circa £15K) and when I'd realistically like to clear this by, but for now, to recap:

1. Hi! :hello:
2. Lightbulb moment: Down to one salary for the next few months. Spending cannot continue as it was!
3. Goals: To clear debt and then begin saving for my family's future
4. How? - budgeting like a demon, aim to earn £10 extra a day, 'round ups' pot on monzo for extra £, snowball method to clear debts


~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Outstanding Debts at the time of my lightbulb moment (mid September 2019)

Vanquis £381.71
ACI £575
SLL £344.85
Lowell £326.13
Lending Stream £638.40
On Stride £1079
Cabot Financial £7439.78
Salary Finance £671.24

HMCS Fine £370
CCJ (water) £860
Council tax £334.11

Total # of outstanding debts: 11
Total amount of outstanding debts: £13,020.22


Thanks for reading
R
New Lightbulb moment: August 2023 (originally Sep 2019 but fell off the rails... more than once)Starting Debt: £??? | Current Debt: £??? | ???% paid :j
Debt-free Wannabe challenges:August 2023 £10 a day: £16.51/£310PAD: Additional payments made: £8.40 (start: 01/08/23)Tilly Tidy: £??? (start: 01/08/23)
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Comments

  • Happy New Diary and very best of luck to you on your debt busting journey!!
    Wobbling my way out of debt one month at a time

    Credit Card £0/£3,161 0% interest PAID IN FULL 29/01/2021
    Loan £0/£23,179 5.4% PAID IN FULL 31/08/2020
    Total £0/£26,340 100%
    DEBT FREE AS OF 29/01/2021

    wobbling-my-way-out-of-debt

  • dreambig19
    dreambig19 Posts: 112 Forumite
    First Anniversary First Post Name Dropper
    Thank you :)
    New Lightbulb moment: August 2023 (originally Sep 2019 but fell off the rails... more than once)Starting Debt: £??? | Current Debt: £??? | ???% paid :j
    Debt-free Wannabe challenges:August 2023 £10 a day: £16.51/£310PAD: Additional payments made: £8.40 (start: 01/08/23)Tilly Tidy: £??? (start: 01/08/23)
  • enthusiasticsaver
    enthusiasticsaver Posts: 15,594 Ambassador
    First Anniversary First Post Name Dropper I've been Money Tipped!
    A lot of people find Monzo useful in budgeting. Sounds like a good plan.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
  • I've sat down this morning and made a list of all my debts, as they stood back at the beginning of September when I had my lightbulb moment.

    I'll update my initial post now, but to summarise:
    Total # of outstanding debts: 11
    Total amount of outstanding debts: £13,020.22

    I'm trying to use a number of methods to get money put to one side to start making over payments on the debts. I think I might make weekly payments to them as if I keep the money lying around in my account for any longer than that I may be tempted to spend it!
    New Lightbulb moment: August 2023 (originally Sep 2019 but fell off the rails... more than once)Starting Debt: £??? | Current Debt: £??? | ???% paid :j
    Debt-free Wannabe challenges:August 2023 £10 a day: £16.51/£310PAD: Additional payments made: £8.40 (start: 01/08/23)Tilly Tidy: £??? (start: 01/08/23)
  • beanielou
    beanielou Posts: 90,223 Ambassador
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    Happy shiny new diary :)
    I am a Forum Ambassador and I support the Forum Team on Mortgage Free Wannabe & Local Money Saving Scotland & Disability Money Matters. If you need any help on those boards, do let me know.Please note that Ambassadors are not moderators. Any post you spot in breach of the Forum Rules should be reported via the report button , or by emailing forumteam@moneysavingexpert.com. All views are my own & not the official line of Money Saving Expert.

    Lou~ Debt free Wanabe No 55 DF 03/14.**Credit card debt free 30/06/10~** MFW. Finally mortgage free O2/ 2021****
    "A large income is the best recipe for happiness I ever heard of" Jane Austen in Mansfield Park.

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  • Morning everyone (anyone who reads this!) just checking in.

    Now that I have made a conscious decision to tackle my finances I'm like a dog with a bone. I'm so impatient, I want to sort it all now!! I'm back in work full time after maternity leave, so between that and the baby at home I'm pretty shattered in the evenings, but I'm still trying really hard to earn extra ££ on the side to throw at my debts and clear them more quickly. I've not done too badly, having made just under £100 in the first week of October, but I'm still so anxious! Does anyone else feel like this?

    I'm trying to figure out the best way to split the extra earnings I make. I'm going to leave it untouched until the end of the month (incase any of it is needed for grocery shopping etc) and then when I know what I'm playing with I can decide how to split it.

    As well as the extra earnings, I've set up a 'round ups' pot on my banking app and each week I'm using that to make extra payments towards my first debt that I'm attacking. I paid off £15 this morning which is about 5% of the balance on that one so I'm pretty happy with that!

    If anyone has any pearls of wisdom on how to make a bit of extra ££, or how to be less anxious about the debts and paying them off, then all help gratefully received!

    Here's to a good week.
    R
    New Lightbulb moment: August 2023 (originally Sep 2019 but fell off the rails... more than once)Starting Debt: £??? | Current Debt: £??? | ???% paid :j
    Debt-free Wannabe challenges:August 2023 £10 a day: £16.51/£310PAD: Additional payments made: £8.40 (start: 01/08/23)Tilly Tidy: £??? (start: 01/08/23)
  • cathybird
    cathybird Posts: 13,295 Forumite
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    hi dreambig19, best of luck with your debt-free journey - this was me back a few years ago and the fact that I managed to get out of debt is pretty much down to MSE. I hope you find all the resources on here a huge help, I did. I like your determination!! :) :T:T
    In April I am taking a break from buying: Books
  • dreambig19
    dreambig19 Posts: 112 Forumite
    First Anniversary First Post Name Dropper
    cathybird wrote: »
    hi dreambig19, best of luck with your debt-free journey - this was me back a few years ago and the fact that I managed to get out of debt is pretty much down to MSE. I hope you find all the resources on here a huge help, I did. I like your determination!! :) :T:T

    Thank you! I'm going at it full steam ahead, a bit worried that I'm trying to run before I can walk and trying to do too much at once, but I'm determined!
    New Lightbulb moment: August 2023 (originally Sep 2019 but fell off the rails... more than once)Starting Debt: £??? | Current Debt: £??? | ???% paid :j
    Debt-free Wannabe challenges:August 2023 £10 a day: £16.51/£310PAD: Additional payments made: £8.40 (start: 01/08/23)Tilly Tidy: £??? (start: 01/08/23)
  • Paton47
    Paton47 Posts: 26 Forumite
    First Post
    Well done on taking back control of your finances. That's a huge step in itself to take the bull by the horns and deal with it. It's normal to be impatient but remember getting debt free won't happen overnight it will take time and determination which you have in bucket loads. Plus you have brilliant incentives there planning for your family's future. Just take one day at a time as things will happen to hamper your plan but as long as you keep going you'll get there. Do you have anything you could sell on Ebay or other online selling sites, will allow you to de clutter and put the money aside to pay a debt. Or maybe try online surveys where you get paid my friend does this and makes ok money Qmee is one of these sites.

    Good luck with your determination you'll smash it.
  • Well done in taking the bull by the horns! You've come to the right place, we are all climbing our own mountains. Look forward to hearing how you get on and congratulations on bump!
    2024 financial goals & challenges

    1). Mortgage (started Jan 2024) £120,692.14 / £122400. Overpayment total: £110.68. 89% remaining.

    2). #7 Save 1p a day challenge 2024 £60/£780

    3). £1610/£3000 in Investment ISA (21/50 investments)

    4). Increase cash savings & saving pots

    5). Keep debt to a minimum.

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