2020 time to change

Hi there,

I’ve been lurking for a while and have decided to overcome my online shyness and start a diary with the hope it will keep me on the straight and narrow.

I had my LBM about 2 months ago and have read a number of diaries which I have found inspiring. I’m amazed that I let myself borrow this much money without any worry about paying it back. Fortunately I’ve come to realise this is not how I want to live my life and I am going to turn this around in 2020.

My debt currently stands at;

Tesco loan,
Balance £14,396
Rate 12.99%
Remaining term 46 months
Pay £407 per month
Although my statement says £18,713 as they add the interest to the original balance up front.

Monzo loan
Balance £15,000
Remaining term 48 months
Pay £353 per month
Rate 6.6%
Remaining term 48 months

MBNA credit card
Balance £4,022.68
0% expires Feb 20

Virgin credit card
Balance £4,397
0% expires May 2021

Total interest bearing debt 29,396
Total interest free debt £8,420

Total £37,816


I have over the last two months cleared my overdraft and have some money in savings which I will use to clear part of my MBNA card when it becomes interest bearing. I hope to save the rest of the balance before the end of February.

I will then prioritise the Tesco loan as this has the highest interest.

Any tips/suggestions very welcome. I think that’s enough to start with.
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Comments

  • Jox
    Jox Posts: 1,651
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    Good luck on your debt busting journey, I'll be following, keep us updated :)
  • EchoB
    EchoB Posts: 124
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    Thanks Jox, I am trying to think of some small goals to set between now and the end of Feb when I can hopefully clear the MBNA balance.
    I have a few items I can sell on FB and eBay and I need to be strict with packed lunches to keep within budget.
    :-)
  • mark55man
    mark55man Posts: 7,844
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    Hi there - welcome to the club. You've done the hardest bit by starting, now you just need to remember to keep going

    Plenty of people will be along with good hints and tips. Most will want to see a SOA (Statement of affairs) and they can really help you with cutting your spending.

    Use this link to get an idea - https://www.stoozing.com/soa.php

    Even if you don't post a SOA you need to know what your numbers are

    Also google debt snowball that is motivational to some people, but you need to find your own way
    I think I saw you in an ice cream parlour
    Drinking milk shakes, cold and long
    Smiling and waving and looking so fine
  • EchoB
    EchoB Posts: 124
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    Thanks Mark88, I will aim to do my SOA this week. I have c£600 per month to throw at the debt but think I can definitely reduce my food/socialising expenditure, I don’t food plan and struggle to say no to social events so hope I can increase this number.
  • mark55man
    mark55man Posts: 7,844
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    I found that people aren't receptive to "no thanks - I'm paying off xmas" especially when you are in June, but saying no thanks as I'm saving for a house or a holiday are better, and it gets easier.

    the enemy is not the people asking you out its the bit inside you that wants to forget the debt and have some fun (you need fun otherwise you will fall off the wagon debt wise, just limit it). If you have a splurge it isn't the end of the world, you just need to get back on track.

    My experience is its the small things you do everyday like coffees or no packed lunches that can make the biggest difference, as although saving £200 on car insurance is a big deal its a one off. So work hard and early at trimming them out, then get used to that, then trim some more. Then look at improving your income.

    600 a month is £7k a year so you are looking at 5-6 years. But even a small amount extra per month can take months of your debt free day (DFD)
    I think I saw you in an ice cream parlour
    Drinking milk shakes, cold and long
    Smiling and waving and looking so fine
  • EchoB
    EchoB Posts: 124
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    thank you for your comments/tips. I absolutely agree about the small changes, I fritter money away on lots of non essentials like coffee/cakes at work and buying lunch everyday is a waste of money so I think I can make some small changes that will have a big impact over time.

    I will try to aim for NSDs and do a weekly shop. I have a freezer full of meat so will work on using what I have and eating the contents of the kitchen to get there.

    I read somewhere on here about the teaspoon/lake analogy and that is what I need to keep in mind.
  • EchoB
    EchoB Posts: 124
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    Happy New Year!

    I’m not usually a new year’s resolution girl, but I think it’s essential I make some plans/goals to ensure I stay on track.

    My main focus is clearing MBNA, I am £2k short so my focus over the next two months is to save as much of this as possible.

    Once this is clear I will then build up a small EF then start making over payments against my TB Loan.

    I’m going to try for 3 NSDs Mon-Fri and 1 weekend NSD.

    When I’m not away for work I will take packed lunches and transfer my “lunch money” into my “debt payment” pot.

    I have started using pots in Monzo so hopefully that will keep me on track!

    Today won’t be an NSD as in true “old me” style I haven’t done a weekly food shop.

    Hope everyone has a good bank holiday.
  • mark55man
    mark55man Posts: 7,844
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    good luck with your challenges and don't be a stranger - the power of accountability and community are the key lessons from this diary board. Plus tolerance of mistakes and self forgiveness when you screw up - as you will, as do we all
    I think I saw you in an ice cream parlour
    Drinking milk shakes, cold and long
    Smiling and waving and looking so fine
  • EchoB
    EchoB Posts: 124
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    Thanks Mark, I definitely will need the support as I have quite a challenge ahead!

    Having a bit of a tidy up and have realised I have a lot of mini toiletries-my mother buys me an advent calendar each year that is full of mini shower gel/moisturiser/hand cream etc... I’ve realised most of last year’s ones are also in the bathroom cabinet so I am going to make sure I use them all up before I buy any more. I also have lots of shower gels and shampoos where I buy it because it’s on offer, I think I have several months worth which will help me kick start bringing down my supermarket spends.

    I buy most of the food in the household but couldn’t tell you how much I normally spend so I am going to keep tabs this month and try to get this under control.
  • EchoB
    EchoB Posts: 124
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    Spent £22.78 in my local convenience shop. Had OH with me and ended up getting more than intended by buying enough lunches for the rest of the week, and some fruit and veg. I need to get a red cabbage and some potatoes.
    I was naughty and bought some ice cream and chocolate. I need to work on discipline and having a list, also leaving OH at home might also help!
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