2020 time to change

124 Posts

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.
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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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.
:-)
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
2022 Achievements: Mortgage Neutral, Net Debt Free, EF filled, Retirement Planned, More Unfit, Heavier
2023 Targets (as of 1/1/23): Steps-23K/2500K - Weight - 0lbs/24 - Savings-#57-MFW £400/£10800 - #17-365x1p 1p/£667.95
2023 Achievements (as of 1/1/23): 5km (treadmill)-51'39" - 2km C2 Erg -9'54 - R-Day 272 Days - PMA Save/Earn - £135
I'm a Forum Ambassador and I support the Forum Team on the Over 50s, DFW and Pensions 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 [email protected] All views are my own and not the official line of MoneySavingExpert.
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)
2022 Achievements: Mortgage Neutral, Net Debt Free, EF filled, Retirement Planned, More Unfit, Heavier
2023 Targets (as of 1/1/23): Steps-23K/2500K - Weight - 0lbs/24 - Savings-#57-MFW £400/£10800 - #17-365x1p 1p/£667.95
2023 Achievements (as of 1/1/23): 5km (treadmill)-51'39" - 2km C2 Erg -9'54 - R-Day 272 Days - PMA Save/Earn - £135
I'm a Forum Ambassador and I support the Forum Team on the Over 50s, DFW and Pensions 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 [email protected] All views are my own and not the official line of MoneySavingExpert.
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.
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.
2022 Achievements: Mortgage Neutral, Net Debt Free, EF filled, Retirement Planned, More Unfit, Heavier
2023 Targets (as of 1/1/23): Steps-23K/2500K - Weight - 0lbs/24 - Savings-#57-MFW £400/£10800 - #17-365x1p 1p/£667.95
2023 Achievements (as of 1/1/23): 5km (treadmill)-51'39" - 2km C2 Erg -9'54 - R-Day 272 Days - PMA Save/Earn - £135
I'm a Forum Ambassador and I support the Forum Team on the Over 50s, DFW and Pensions 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 [email protected] All views are my own and not the official line of MoneySavingExpert.
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.
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!