Help with debt please

craftyali

Just read through this thread and so happy that you had the courage to post on here.  The advice is fantastic and I bet you are feeling relieved with a clear plan of action.  I sorted out my spending/finances last year and now have 9-10 months to go before my Debt Free Day.

021286

I feel so much better, like my head is clear for the first time in ages! The debt is still there but even just being aware of it and seeing the steps I can take and understanding that there will be a day when I'm debt free... it's helped loads already.

I managed a totally spend free day on Friday, then Saturday rather than going out I stayed in with some pals and we split a couple of bottles of wine and some oven pizzas. Today I've spent a fiver on ingredients for lunches that will last me the week, I have dug out an old iPhone that I am going to sell, and I've just spoken to 123-reg about refunding a domain name for a website I used to have that auto renewed yesterday without me realising (to the tune of £60!) and they are processing that for me now. That last one doesn't seem like much but old me was so afraid of her finances that she'd have just let that go- feels good to take some responsibility and get control of things, as I realised now that £60 isn't nothing!

Thanks again to everyone who has replied so far, I am so grateful.

Lummoxley

One observation I'd make is that the thrill of buying that new coat or gadget, or laying that bet, is temporary, the thrill of seeing your bank account and credit card balances looking rosy is the gift that keeps on giving.  

Matt8888

I think you'll do this easily, and actually quite enjoy the process, because it need not be too painful. Your relatively decent income and low housing costs are a bonus. Hang in there until the end of March and use your bonus to pay off Dot Dot, Likely and Vanquis in full. (Vanquis is not the highest interest of the remainder, but it will feel good to pay off another card entirely). This frees up nearly £200 per month in payments. Cut back on your spending by £200 per month (probably from the entertainment) and by May you have £400 per month to pile into debts. (You could be more draconian but I don't think you need to be unless you want to. You can still have some fun). Bamboo can be gone in three payments, and now you have £500 per month for repayments. The most logical advice is to hit the next highest interest rate card, but sometimes it feels good to pay off whole cards sooner (e.g. Monzo one month and Metro the next). Do whatever works best for your psychology, because the sums left are not vast and it will soon all be gone, however you choose to do it. Now for the key part... When they are all paid off, use the monthly repayment amounts you have been piling in to your debts wisely. Increase entertainment again, start/continue a holiday saving pot and an emergency savings pot. There are many permutations and it's up to you, but that's basically how I would do it. Your situation is really not bad at all, so don't worry and sleep well!

021286

That is a great way of looking at it, thank you- I think I am going to do something similar to that, certainly pay off Dot Dot with my bonus plus Likely and whatever else I can, then use the extra to chip away at the rest (prioritising the high interest ones). Thanks all.

021286

Hello, so today I managed to change the direct debit amounts on all of my credit cards so I will be paying more than the minimum.
My mind is now turning to savings- I want to try and put at least something into an emergency fund as I'm aware I have nothing at the moment, so even if it's just a few pounds each month I'd like to make a start on this. I use Monzo for all of my banking, and I find the pots useful for rounding up money in different places (for example when my salary goes in I have it set up so that what my direct debits amounts to goes into a seperate pot, and then payments come out of there)- however I'm concerned that old habits might die hard if I just have a lump sum put somewhere that I can access on my phone whenever I like. You can lock pots which is good, but they have now made it so its very easy to just unlock them again which isn't much help.
I suppose what I'm basically asking is what savings account or method is there for someone with very little willpower, who is trying to be better but still wants to safeguard her money? Are there any savings accounts that I won't be able to take the money out of again (say if it's Friday night and I'm in the pub...)? I don't think I am actually at risk of this as I'm keen to get out of my bad habits, but I would like to safe guard myself given the option.

leninspot

Hi there - good luck with all your plans. Sounds as though you are determined/getting things in hand. Having been in a similar situation (worse actually) but now stable I've learned a lot. Much of what I've learned is simple stuff really. One thing I did & in fact still do is cut down on my food bill & household cleaning products etc. It's amazing how much you can save (keep 'savings' out of your SOA & save it in your emergency fund.) Cut up old towels for dishcloths - no 'J cloths' or similar. Buy cheap bleach it's as good as more expensive stuff & don't use as much of it. If you buy things like 'Flash' water it down & put it in spray bottles. Use your imagination you'll be surprised. Make food whenever you use your oven in bigger batches & freeze it/use oven sparingly. If you see bread on sale near its sell by date get it & put that in the freezer. Buy fresh veg in bigger quantities & blanche & freeze it in batches. Much cheaper than buying frozen stuff & at the end of the month if things are getting tight you'll have food in the freezer. Turn the central heating down a couple of degrees & wear thicker sweaters. Don't spend too much time in the shower/take showers rather than filling a bath with hot (expensive) water. Look at every area of your home & think carefully about where/how you might make savings. Get a cat for your SOA?>:)
I've saved a lot of money over the last 6/7 years this way & have never felt deprived. Try it - it works.
Very good luck to you.:)

db2016

you could use an app that rounds up purchases, that way its not as noticed? or hard work.
eg spent £9.45 on something, and it will take a tenner off, the few pence going into a savings pot.

astrocytic_kitten

021286 said:

Hello, so today I managed to change the direct debit amounts on all of my credit cards so I will be paying more than the minimum.
My mind is now turning to savings- I want to try and put at least something into an emergency fund as I'm aware I have nothing at the moment, so even if it's just a few pounds each month I'd like to make a start on this. I use Monzo for all of my banking, and I find the pots useful for rounding up money in different places (for example when my salary goes in I have it set up so that what my direct debits amounts to goes into a seperate pot, and then payments come out of there)- however I'm concerned that old habits might die hard if I just have a lump sum put somewhere that I can access on my phone whenever I like. You can lock pots which is good, but they have now made it so its very easy to just unlock them again which isn't much help.
I suppose what I'm basically asking is what savings account or method is there for someone with very little willpower, who is trying to be better but still wants to safeguard her money? Are there any savings accounts that I won't be able to take the money out of again (say if it's Friday night and I'm in the pub...)? I don't think I am actually at risk of this as I'm keen to get out of my bad habits, but I would like to safe guard myself given the option.

You’re doing so well, I’m cheering you on! 

What worked for me with savings when I didn’t trust myself was to set up a totally separate savings account from any of my other accounts, and also make sure it didn’t have an app so I had to actually log into a website to see the balance and transfer money. I used my local credit union, saving £15 per month which was their minimum, and it was the only thing that allowed me to build up a small amount of savings when I was still pretty chaotic.

If I were you I’d still focus on getting the horrific interest rates cleared ASAP, but the above worked for me for savings.

monetxchange

If you stick it in a Monzo easy access saver, it takes 24 hours to withdraw into your main account. Hopefully that will give you pause for thought and stop impulse purchases yet still be there in an emergency! You will have to be strong and resist the spending urges though, wherever you save money. It’ll become more like second nature as you go on, I’m sure. Just always hard at the start.