Dreaming of being Debt Free

Debt_Smashing

Hi. Like many people, I've been lurking in and out of these rooms and the main website, dreaming of being debt free.
I've been living in debt since I went to uni. To put that into perspective, almost half my life. Ive tried many times, and come close, sometimes a run of bad lucks set me back, children being born, or general times when of I have some savings  could/should of been able to use that. But I've never been in a amount I couldn't afford.
It is a spiral, one I want to break free of now.
I have approximately £4500 on a 0% credit card, which I over pay. And £1000 overdraft from uni which is always maxed by end of the month, but never go over, interest approx £18 a month, which is a lot more since banks changed there rules.
Like I say this isn't a lot, and I can make payments, I still always wanted to get out of debt.
I guess the catalyst for making this leap and writing this down somewhere is the discovery of my partner's debts. I knew she had debt too, but never so much, she still hasn't shown me, think she is embarrassed maybe, doesn't like to talk about it, and will deflect the conversation else where. What I gather is its over £25000. Over a years wages on what we make individually.  And she pays approx £600 a month, not missed a payment which is a relief.
It feels like I'm close to drowning, in a rough sea, but getting just enough air to kicking hard enough just to stay afloat.
I was shocked to hear this amount to say the least. I have always payed all the bills, except for the council tax, and have a car I pay for, do the big shop at start of month. Whereas she has sorted things like birthdays, clothes, and the fun money. Everything else I guess is between us.
Now I guess the hard work will begin.
Hopefully she will open up about this and tackle it together, and if she can't yet, all I can do is sort my own finances out on the mean time.
I will get an accurate as possible SOA for myself. And in the sport of saving money I actually haggled my broadband down yesterday. I seen it on the website, but as an existing customers I couldn't get it. 48 minutes later, I've halfed the bill (over the months factoring in the £98 the put on my account) and doubled the speed, was 31.95, now £21(£15.50 with the free money if it was spread out) Pretty good I thought. Although it NEEDS to just be the start.

Anyway that's enough of an introduction.
I will get the SOA done first, and then look at a budget.

Skint_yet_Again

Great savings on the bb. Keep the dialogue open with your partner and discuss things you are doing to reduce your debt and it may be easier for her to open up and start to tackle her own debt once she sees you are not judging her. Post up your soa and I’m sure the lovely people here will have lots of advice. 

enthusiasticsaver

I would tackle that overdraft first. £18 a month doesn’t sound a lot but it is costing you over £200 a year and is probably equivalent to around 40% interest as that is what most overdrafts are these days. Well done on halving the BB. 

As you say your partners debts are the most worrying as she is most definitely over spending if you cover most of the bills and she is still building up debt. I would aim for supportive but don’t offer to help sort them out for her until she has shown a commitment to budget and sort her finances out. Are her debts on 0% deals? 

CL21

Welcome to the debt free diaries - it’s a great first step just to write down your worries and concerns. Everyone here is very supportive and there’s great advice. As above, I wouldn’t be overpaying your credit card and living in your overdraft as that fee is pretty hefty. If you could find a balance and start paying that overdraft back then as enthusiastic saver says, that’s over £200 saved a year. 

The fact that your partner has opened up about her debts is great, I’m sure it was a massive burden for her. Try and get to the bottom of why she’s in debt. It may be that she feels the need to go overboard on paying for socialising and gifts etc (which can be so expensive) if she’s not paying the bills?

Good luck with your debt free journey. Will be cheering you on 

Debt_Smashing

So it's been a long time since I posted.
Good news is, the level of debt has gone down. Bad news it hasn't gone down fast as I had wanted, and I've probably gone and done something stupid.
It's strange reading back what I first posted, I wouldn't consider myself articulate, yet reading it felt like I was crystal clear in my mind what had to be done, and I was going to win.
Guess it's turned into a marathon, rather than a winning parade.

So I took the advice at the time, and tried to get the overdraft down, I knew it myself, that it should be the first thing I tackle. But it is good to hear it from someone on the outside. I still have a £1000 overdraft, but I've managed to keep it no more that £500 into it. Which is the interest free amount.

Also I've credit card switched when the 0% amount ran out. Back onto another 0% card, but it only stands at £1690 now. So £2810 down. Nearly £3000 down. Which should feel like an achievement, and I know it is, but I don't think it really will untill that past payment is in and I can say goodbye to Brian (I named it as I've had it so long now).
And although I didn't take the advice of lowering the overpayment of £100 via DD, I think just knowing a nice round number, and above the minimum, had forced me to just pay it and find the savings else were. And throwing the odd extras onto it as so as I receive them, not having it there I've not missed it if that makes sense.
On a plus note. If I can keep this up, if I just pay an extra £90 as a one off, or a few smaller chunks, and keep up with the £100 monthly, it will align perfectly with the end of the 0% and I won't have to do a 0% CC shift again. And hopefully never again!

Also, i have been writing a SOA in a diary I bought, unfortunately my payslip nearly always come after I get payed, I will post it here at the end. Unfortunately it will only be my bills and account.

I wrote last time that it felt like I'm close to drowning, in a rough sea, but getting just enough air to kicking hard enough just to stay afloat. I should realise that that I have broad shoulders and have been able to carry this burden, and be proud of myself. But I don't feel that much better yet. Still drifting in the sea, but on a makeshift raft, and everytime I see land the current takes me away from it. But I'm not giving up! And won't let it break my spirit!

Debt_Smashing

Please excuse if this isn't set up properly.
And I'm rounding numbers, in my diary it's to the pence.

SOA

Income - approx 1850

I work hourly so month to month this fluctuates.

Outgoings

20 car tax
16 universal credit
55 car insurance
35 internet - this increased mid July when offer ended - in gonna switch or haggle.
16 union
100 CC
190 gas/electricity
60 water
240 loan - this is the stupid thing I did. But was left with little choice.
16 home insurance
21 mobile phone
450 rent
120 diesel

Plus these that are not essential 
7 PS online - for my son 
140 tobacco

I also put
200 emergency fund.
100 shopping on payday.

All together it is around 
£1800

I'm trying to give every penny I have a job to do. 
Never quiet works out tho.

Debt

500 overdraft (at 0% up to £500)
1690 Cc (at 0% till Feb 2025)
10600 loan ( at 2.7%) 

Savings

500 in emergency fund - end up dipping into this every month, but it's been a life saver at times.

Debt_Smashing

So I've got about £10 left for the next 11 days in the bank after the last few DD outgoings.
Diesel i got a quarter tank, so hopefully don't have to dip into emergency savings.
See how things go

[Deleted User]

I hope this isn’t intrusive but are you living as a single person again? 

You do realise you are spending £1680 a year on tobacco? As an incentive to cut down or stop think what debt busting you could do with that money!
Is the £7 a month for your son’s PlayStation your only expense for him?

Best wishes.

enthusiasticsaver

Can you look at giving up smoking? You are spending more on tobacco than food.  That would help your budget tremendously.

Giving every penny a job is a good strategy. 

Debt_Smashing

@[Deleted User] , no, not intrusive at all. I'm not living as a single person. I live with our kids mum and the 2 kids. As I said , this is just my personal soa and all bills and such that I sort. I'm still waiting for mum to actually accept that we need to look at hers. And yeah the ps is the only reoccurring direct debit I have for him. Mum pays for the club's he's in.
And at @enthusiasticsaver and yourself also, I 100% realise how much I basically burn for 0 return. It is an addiction, one I've beaten before, once for over a year, and other for 6 months. So I know its possible. But it's also easier said than done. It is also a slight over estimate but it's still a waste of money. The guilt of not quitting is a vicious circle too.
I knew that smoking would get pulled up almost immediately. But best to be honest with myself and not hid anything. Or things won't change will they?
And thank you both for your valuable input!

enthusiasticsaver

You are right in that you need to be honest and at almost 10% of your income going on tobacco it is to me an easy win but then I fully accept it is an addiction. Can you get support to stop or is vaping/roll ups cheaper? I have never smoked so fully accept it is easier said than done. What about nicotine patches or a programme from the GP. The money you spend on tobacco could pay off your overdraft in less than 4 months.