Accountability, responsibility and debt free.....hopefully

messydebt

Thank you all for having me.

 

I am in the process of going through all my accounts to fully understand the debt, but I have a very good idea of how much it is. I haven’t been burying my head in the sand as such, each month I make a plan to make payments and most of the time I do but I seem to just then accrue more debt. I have been doing balance transfers but again, I always seem to manage to add to the debt. I had £12k of debt 3 years ago and I was told to bring the debt down and somehow (I know how, explained later) it has gone up to more like £30k!

Right, here are my debts:

CC1 £2568.56 (this will go up as my car needs to get fixed)

CC2 £9157.63 (£8k of this is 0% until July)

CC3 £234

CC4 £7782 (0% but not sure until when. There is at least a year at 0%)

Paypal £1500

Next £800 (this will go down as I have some stuff to take back)

Parents £4250

Loan £1470

Total £27527

 

The loan does have an interest rate but the only way to make an extra payment is to phone and it takes so long for them to answer so I have decided to keep paying the monthly amount of £147 on this. I know that wouldn’t work for everyone, but I find it so frustrating spending that much time on the phone.

I got into this mess through a mixture of gambling and spending too much. I have self-excluded myself from all of the online accounts and made it so my card can’t make gambling transactions, so this is a big step in the right direction. With regards to spending too much, I am hoping this diary will help. I need to be accountable for each penny and I can only do that if I spend mindfully and not needlessly.

So, my income each month is £2612. I don’t have rent or a mortgage. I have 2 dependants.

My outgoings look like this:

Energy	£152
Council Tax	£194
Water	£30
Internet	£22
AO care plan	£8
Prime	£17
Home insurance	£19
Netflix	£12
Vodafone	£110
Kids savings	£100
Petrol	£100
School lunches	£55
Food	£250

 

 

My expenditure is £1520 (rounding up). This leaves roughly £1.1k per month for debt repayments.

I wish I was a saver and not a spender. If anyone has any tips on how to make that change, I would really welcome it.

Now, the debt. How am I going to tackle that? How am I going to clear this mother?

I am going to pay CC3 next month and get rid of that.  I will also tackle the biggest CC first. Next month I can pay £600 towards it and the month after I can put the other £264 towards it. I also have minimum payments to make each month to the others. The reason I am doing it this way is because I don’t have access to either of those cards so payments made is actual payments towards the debt. The 0% on CC2 ends in July and I can have this cleared by August (considering c/tax not being due in Feb and March) so I will only incur as small interest charge. I will also have my parents paid by then and paypal too (assuming I don’t spend any more on that). I also get approx. £3k from help to save in August which will clear CC1 before the 0% ends. Although the debt on CC1 will increase as the car needs repairs next week.

This will (theoretically) clear a huge chunk of the debt. However, best laid plans and all that. I need to be prepared that life doesn’t sail that smoothly and there will be huge road blocks to overcome. If I’m honest, I think I am probably viewing this a little unrealistically and in a bit of a dream world but I am hoping that through keeping accountability, I can make as much progress as possible. One of the things I am not very good at is being adaptable. On the surface I am but while I look calm and collected my head can go into turmoil. I do wonder if I have some level of depression or anxiety. I am at my best mentally when I have control of finances and eating. When that slips so does my mental wellbeing and vice-versa. 

Thanks everyone.

messydebt

An update, DC is very sick so quick shop at Tesco to get him a magazine plus some anti-bacterial laundry detergent and other bits to help him (and us). That was £37.02. I am hoping that is the last of that kind of spending but the way he is getting through loo roll who knows. 

Evenstar20

You're in a very similar position to me. I created an excel spreadsheet that helps me see the full plan of payments for the next 2 years. Good luck with your journey.

messydebt

Righty ho, as expected, things already haven't gone to plan. DC is very poorly so planning meals etc went out the window. Hello pie and chips. Trying to focus on debt and not spending when little one is so ill is almost impossible. I'm finding it hard to concentrate on anything. I'm so tired. 
I get paid on Friday and I'm committed to clearing that £234 so that account is finished and making a large payment to the biggest CC. We also have a backdated tax credit claim coming our way so that can all go to the CC. That will take about £500 off which is amazing. 
I still haven't properly thought through my emergency fund. I really need time and space to focus but I don't have it at the moment.im sure most of us have been there but dang I'm tired. 
Just got DC off to sleep so I am going to do the same thing and hopefully be able to think a bit clearer tomorrow. 
Night all.