Debt and Budget (Reset) plan

shell16

Morning

So following on from my last post I ended up going away with the girls in our motorhome to the seaside!  DH drove it for me and then went back home as working 

We had a fab few days away, got the girls out in the fresh air, plenty of walking we were really blessed with some early Autumn sunshine and blue skies and it didnt cost a fortune either as Id put away some cash into my holidays Fund.  

Some good news im now into my next thousand bracket and making good inroads to paying off some debt each day with PAD.  The amount paid is above my normal payments which is why Im not wanting to include those.  I want to see how much I can raise above these standard minimum payments. Im not far off the equivalent of making 2 regular payments to CC2 with my PAD so this is making me feel really happy!

Im starting to worry about Christmas too I will have £300 put away by next payday (around 18th) and I also have £200 in my cupboard too, so £500 isnt going to go very far.  I appreciate this sounds really off to some, and I know £500 is alot of money but I have quite a large family (immediate) including my DH children and grandchildren. Im really going to have to get creative to make that money go as far as possible!  Anyone with ideas?

Surveys have started to come back on again which is good but they are slow, currently have around £10 which I have made since beginning of week, which will be heading to pay off CC2.

Thats about all for now
Shellx

shell16

Afternoon

So its been a NSD for me which is rare!  Made my PAD's too and cashed in surveys of around £13.  PAD's made to date are purely over and above usual payments I make every month.  I like to see a visual of what Im managing to pay above and beyond the usual payments and this is a motivation.

I noticed im paying around £250 a month to CC2 and my set payment is £105 (I am overpaying this at the moment - minimum payment is £25).  Ive worked out that I could possibly pay this CC off within the next 5 to 6 months if I continue BUT i do have Christmas to get out of the way!

My 0% on CC2 runs out in September 2022, could I ask what others would do about this?  Would you just continue to pay £105 to CC2 as still overpaying minimum by £80 a month and then the remainder I usually use to overpay around £145 put towards Christmas as I will only have around £500 saved up, see my post from yesterday?  I would really welcome your comments and thoughts?

I have realised Ive not really set up a 'pot' as such for birthdays, I have my DH sons birthday this weekend and its a milestone one!  I need to arrange for a new savings account for birthdays and tot up the yearly amount I usually spend and average over 12 months so I have a monthly amount to put away.

Thats about all for now.
Shell

shell16

So I have decided to set up a Starling account so I can manage my 'pots' efficiently.  My current bank is difficult to do this as I have to open up several savings accounts.

Im waiting on CC3 statement to update my signature as this has interest.  Majority of this is at 3.9% and new spending is at 25.5%!  I had to put my dentist bill on this    Put a claim in for my dentistry work so Im hoping that will come in soon.

Im still torn about what to do with my overpaying of CC2, its £25 minimum payment and I already pay £105 as a 'normal' payment, but I tend to pay around £250 in total every month.I do want rid of the CC2 as soon as possible so I can start on my CC3 which does have interest so I will carry on overpaying.  Christmas....well I will have to do my best.

She'll x

blue_eyed_girl123

If I were you, I would work out the amount that would clear CC2 within the interest free period and pay that per month, if you're able. Then concentrate on overpaying CC3 as you're incurring interest on that one.

With Christmas, how many people are you buying for? If you have £500 (plus that bit of extra money, if you can afford it), decide how much your budget allows per child/grandchild and then that's your budget per person. Could you do gift boxes, depending on what they like - beer and cheese / pamper set - bubble bath and face masks etc? A gift box and some shredded tissue paper can often make things look much more expensive, also you've catered the gift specifically to them. 

Hope this helps 😊

shell16

blue_eyed_girl123 said:

If I were you, I would work out the amount that would clear CC2 within the interest free period and pay that per month, if you're able. Then concentrate on overpaying CC3 as you're incurring interest on that one.

With Christmas, how many people are you buying for? If you have £500 (plus that bit of extra money, if you can afford it), decide how much your budget allows per child/grandchild and then that's your budget per person. Could you do gift boxes, depending on what they like - beer and cheese / pamper set - bubble bath and face masks etc? A gift box and some shredded tissue paper can often make things look much more expensive, also you've catered the gift specifically to them. 

Hope this helps 😊

Thanks for commenting you dont even know how great that feels, Im just feeling off it today, its hard and lonely.

When I started this diary I had read lots of inspiring diaries and the help and support posters received was fantastic.  BUT Ive had no response on any posts ive done for over a month.  I sometimes feel that my posts are maybe too boring with no real drama, but sometimes you just want someone to be tagging along with you on your journey, checking in every now and again and asking how everything is, how you are feeling today.  

So I think I need to take myself off here for now, pick myself up and start a new plan of action and maybe come back in future

Sunshine_girl2

She'll it would be a shame to leave your diary , I have read it from the start today and you are doing really well. 

There are some very popular diaries on here that have been longstanding for years . I don't think yours is boring it's about your journey . 

I will bookmark you and take a read when you post . 

Sunshine_girl2

I have a Starling account as well with pots in, it's much easier to keep track off than several different savings accounts . 

EssexHebridean

It's the way it goes on diaries - re-set your thinking, remind yourself that ultimately what you are writing is first and foremost for YOU, to keep yourself accountable, and then any comments you DO get become a bonus. Validation from others is great, but the ONLY way out of debt is to be accountable to yourself, and keep plodding away. 

One thing I will say - you're doing great work on paying down the debts, but as a result are leaving yourself short, hence the overdraft. This month, make your planned payments to the card, then let the other stuff sit where it is for now - overdrafts are truly horrible debts as they can - unlike just about any other form of credit - be called in with no notice at all. while that's unlikely when it's not a persistent OD, but just one that kicks in at the end of the month, you do need to re-jig your budget and card payments to make sure you're not "borrowing" from the OD to pay off other debts! 

joedenise

Absolutely agree with @EssexHebridean.  No point in overpaying the cards at the beginning of the month and then having to use the overdraft at the end.   Overdrafts are usually a very high interest way of borrowing!  Definitely best to try and avoid using it.

warby68

I agree with focussing hard on getting rid of the overdraft usage.

You do seem to have a few areas you can tighten up on still - vaping, eating out, your Play habit, work coffees and lunches. Hopefully that will help you stop relying on the overdraft at the end of the month.

You're right about having a good 'pots' system. You need a budget for everything including fun money and need to work it out over a whole year. It takes time to get it right and you've been working on lots of bits of it but probably haven't done the whole year thing yet. 

As a gut feeling, you probably do spend a little too much on leisure/luxury type stuff relative to your income and debt commitments at the moment but its probably because you aren't regularly deducting enough for all the one-offs, gifts, medical etc which appear erratically through the year but are nonetheless non-negotiable. As a result you feel you have more spare money than you really do. Getting your pots going will help.