Debt and Budget (Reset) plan

GeorgianaCavendish

Hi Shell, I can only echo what others are saying about pots - getting them sorted was one of the biggest shifts in my ability to budget (before budgets were a bit theoretical to me!)
Don’t worry about getting them perfect to start off, if it seems like there is money “left over” at the start of the month then stick it in a pot called something like “Unbudgeted” - then you can transfer money from that as other expenses crop up without feeling like you are undoing your hard work on paying down debts. 

To try to break the reliance on your overdraft and get a more realistic picture of what pots you will need, for one month you could push making payments on it to the end of your pay cycle (maybe day before payday) and instead concentrate on really nailing the pots and getting a realistic idea of how much is truly available for reducing the overdraft debt. It’s really tempting to make big debt payments as soon as you get paid and end up leaving yourself short for the rest of the month - speaking from painful personal experience here! 

EssexHebridean

Good to see that @shell16 is still active on here so hopefully she’s reading the great advice she’s getting here. 🙂

shell16

EssexHebridean said:

re-set your thinking, remind yourself that ultimately what you are writing is first and foremost for YOU, to keep yourself accountable

So im back, head held low, apologies for my outburst just been feeling really low, and felt a bit unsupported. 
Thankyou EssexHebridean, I understand what you are saying.  It is my diary and the thoughts and comments  I put on here are ultimately mine to benefit me.  If I get a comment then great.

Ive still been paying down debt since I last posted, so going in the right direction.  Im really aiming for CC2 to be paid off asap, 0% finishes in September 2022, my usual payment for this is due this week for £105, already paid off £90.50 this week extra to usual payment, and Im wanting to get this balance below £1K before next payment is due in December. Just had a quick look at CC2 balance statement for August when I had my LBM and it was £2146.94, Ive paid off £945 in 4 months!

Prolific surveys after a bit of a break are now ramping up again, already completed several today with just over £10 made, going to keep up with these so I can chip away at that CC2 balance. 

Put the Christmas tree up this weekend, I know its early, but just felt like it!  Plus it snowed on Saturday and Sunday so just felt right!

Ive opened up a starling account and set up all my saving pots so feeling a little more in control of things.  Still early days and a bit of toing and froing going on but, im happy I can now feel a bit more organised.  

One thing I do need to get a grip of is my spending diary.  Do really well at the start of my pay period, and then by week 3 it tails off, I need to kick myself and get a grip!  Its difficult to budget when Im not updating, so note to self......COMPLETE ALL SPENDING FOR THE MONTH!

Sunshine_girl2

Well done on your overpayments so far this month . I put my tree up at weekend as well ,mainly because it was snowing and something to do . I love my Starling bank pots , all in one place but easy to see where you are up to. 

enthusiasticsaver

You are doing brilliantly with bringing down the CC2 especially at this time of year when the inclination is to spend, spend and spend. £945 in 4 months is awesome so well done. 

As EH says the diary is primarily a tool for you but it obviously helps and encourages you to have feedback. Nothing wrong with that or venting on the diary.  It is yours to do as you wish.  Have subscribed now so will hopefully pick up your updates. My daughter uses Starling and loves having the separate pots.  It is a great budgeting tool. 

shell16

Sunshine_girl2 said:

Well done on your overpayments so far this month . I put my tree up at weekend as well ,mainly because it was snowing and something to do . I love my Starling bank pots , all in one place but easy to see where you are up to. 

I admit, putting the tree up did put a smile on my face, nothing like being cold and wintry outside and lovely and warm inside with the girls helping to decorate the tree! I love my pots in starling so much easier to organise! Thankyou Sunshine girl x

shell16

enthusiasticsaver said:

You are doing brilliantly with bringing down the CC2 especially at this time of year when the inclination is to spend, spend and spend. £945 in 4 months is awesome so well done. 

As EH says the diary is primarily a tool for you but it obviously helps and encourages you to have feedback. Nothing wrong with that or venting on the diary.  It is yours to do as you wish.  Have subscribed now so will hopefully pick up your updates. My daughter uses Starling and loves having the separate pots.  It is a great budgeting tool. 

Thankyou Enthusiasticsaver, Im pretty happy with that debt reduction, the credit limit is relatively low on CC2 in relation to my other cards so was impacting my credit score having a large balance, it definitely made a huge difference

shell16

Quick check in....

I've decided to treat myself to a lovely shiny new Budget & financial planner Book.  I know I can do this for free on excel etc, but I do prefer the old fashioned way of writing things down!  That way I can keep this with me at all times and check whenever I want without having to log on.  Its out of my own account, which I can spend on whatever I like.  Should be delivered tomorrow and I cant wait! LOL

I've just realised too that I need to have a zero balance, which I haven't been doing previously which is likely why I'm occasionally touching in on my overdraft...the penny has dropped.....finally .

Small steps still, I need to get my head round budgeting and think this is the way forward for me, fingers crossed.  I need to nail this.

CC2 & CC3 payments will be coming out this week, still trying to make little PAD payments each day too.

enthusiasticsaver

I love the sound of the Budget and financial planner.  I use an app to  moniter balances and spends and use online access to my account to double check the balance regularly but whatever works for you is fine. I agree that not relying on the overdraft is the way to go and moniter all spends.  Hopefully the starling pots are helping too. 

shell16

Thanks enthusiasticsaver, I have the Emma App and I just cant make a do with it, im not very good with technology if truth be known!  I found the App tagged payments into categories they werent meant to be in and I was constantly having to retag them.