Just turned 30 and decided I need to sort my life out

Mr87

Don't worry about your credit 'score', it's just a number and lenders don't pay it any attention. Careful use and management of your credit card is all you need. So spending and paying off in full each month will do all you need to do. 

Vikkivik77

Hello,
Well done for starting  on the debt free wanna be journey. I did this a few years ago, clearing 21k of debt while on a DMP at that point I had three defaults. Move on a good few years and lots of life changes and  I have just purchased a shared ownership place myself. I said 14 years ago I would never buy another shared ownership place yet here I am again but it means I get to stay in the area I need to be and I have slashed my housing costs by £900 a month ( without bills). 

Having a reason to go debt free will be your guiding light and give you the motivation you need. But money saving is like dieting, if you try to make too big a change too quickly you will fall of the wagon. So don’t be too super strict on yourself, factor in little treats and things to look forward too. Reward yourself for getting to certain milestones. ( sorry if everybody is thinking I’m mad but it worked for me). 

Best of luck with your journey. 

monetxchange

Huge congrats on facing up to it all and starting to take those steps towards being sorted! I too was the same - "if I stick it on a credit card, it's not really spending" etc! So much was wasted without me even noticing.

The money you get from selling I'd just chuck at the debt or put it into an emergency or house buying fund. It's likely to be very many months if not longer that there'll be scope for big nights out, well after lockdown is loosened!

Drawingaline

Well done on facing up to the debt. And being brave enough to go through bank statements! First steps are always the hardest, good luck on your journey. 

FootyFanDan

Good on you for wanting to fix things, the first steps are always the hardest part as you go through statements and realise the extent of the money leaking out. But you have got this, good luck on your journey

clairebeth

How satisfying for you to be paying off some of those debts! Don't further to close the accounts also.

I would really recommend a Monzo bank account, you can separate all your funds into pots and name them 'Social' 'Dog expenses' 'groceries', whatever you like!

katsu

Wannabehousebuyer said:

My budget as follows ( all figures rounded for ease)
Income                                   1645
Rent                                        617
Contents Ins                           7
Water                                     15
Gas and Electric                    24
Service charge                       4
Gardening                              5
Cleaning Products                15 - I would look at buying these in cheap shops or making changes to what you use as £15 a month still seems quite a bit.
Wifi                                         10
Tv Licence                             5
Phone                                    75
Dog Insurance                      15
Food Shop Inc Dog Food     140
Social Budget                       100  - think carefully about how you plan to spend this. 
Petrol                                     20
Debt repayments                  50
Beauty                                  50 - look at beauty journalists like Sali Hughes for recommendations.  I think you can cut this back.  
Hair                                       20
Clothes                                 40 - can you shop from your wardrobe for a while as you reduce your debts? 
Xmas                                    10
Holiday                                  20
Birthdays                              20

TOTAL                                  1262
                                             (338)
DEBTS 

Admiral         £148        - made a £111 payment yesterday to settle!!         PAID
Studio           £103         - PAID YESTERDAY 
Aqua             £290        - Made a payment yesterday                   £128 outstanding 
Barclaycard £380
Santander   £496
Very             £1733


My plan - 
End of April Pay day-         338 for debt repayments  (+ 30 Top cash back due) = 368
Pay aqua - 128        (240)
Clear Barclaycard    £380   (-140) but put my food shop back on it - and change my direct debit to pay in full every month and i do my online food shop on it - going forward - .help to increase my credit rating.- or so I have read???? 
Also we are still - maybe going to be in lockdown - so I am hoping to make as many cutbacks as possible - ie I dont think I will need a £100 social budget - maybe a 1/2 takeaways with a zoom quiz? but anything left over at end of may - i will be chucking at my debt. I have a pouch of 200 cigarettes sitting here - waiting to be sold for £50 - which will be my post lockdown night out funds - so it isnt coming out of my budget! LOL

I am aware that xmas and birthdays are looking very light however-i have never saved for them before I want to prioritise me first (MY DEBT) before. 

Any comments are welcome and i would love and advice- it really does help! 

Thank you all so much for coming on this lockdown debt journey with me!

Good luck in your decisions.  I would suggest you take some time to think about maybe making some money towards your expenses from survey sites and how you can switch to saving up for things. I hope my few comments are helpful.  Keep posting and let us know how your new budget works out!

Wannabehousebuyer

Mr87 said:

Don't worry about your credit 'score', it's just a number and lenders don't pay it any attention. Careful use and management of your credit card is all you need. So spending and paying off in full each month will do all you need to do. 

Interesting- i am going to be doing some research on this over the next few days. I have cut the aqua up, (keep open and accept increase in credit limits - advice i have seen on the boards..)   and i am just going to use the barclaycard - changed the DD  to pay off in full. Thank you for your help

Wannabehousebuyer

Vikkivik77 said:

Hello,
Well done for starting  on the debt free wanna be journey. I did this a few years ago, clearing 21k of debt while on a DMP at that point I had three defaults. Move on a good few years and lots of life changes and  I have just purchased a shared ownership place myself. I said 14 years ago I would never buy another shared ownership place yet here I am again but it means I get to stay in the area I need to be and I have slashed my housing costs by £900 a month ( without bills). 

Having a reason to go debt free will be your guiding light and give you the motivation you need. But money saving is like dieting, if you try to make too big a change too quickly you will fall of the wagon. So don’t be too super strict on yourself, factor in little treats and things to look forward too. Reward yourself for getting to certain milestones. ( sorry if everybody is thinking I’m mad but it worked for me). 

Best of luck with your journey. 

Hi, yes of course shared ownership wouldn't be my first choice however being on my own, mortgages just arent created for the single buyer and what you can afford... (I am two towns outside of london boroughs) I have my eye on a few 'treats' so they certainly will come in handy. 

Wannabehousebuyer

clairebeth said:

How satisfying for you to be paying off some of those debts! Don't further to close the accounts also.

I would really recommend a Monzo bank account, you can separate all your funds into pots and name them 'Social' 'Dog expenses' 'groceries', whatever you like!

Yes i have a monzo and i am loving it- although previously i always never stuck to it and just trsfered back out! 

Just opened a LISA so i have said that from payday in a week and a bit - no more -when its in the pot thats it- ( LISA has charges to take out) so i am adopting that with my pots too! 

Can i just double check what you mean - dont further to close accounts?  forget to close them? Do i have to close the accounts?