Third time's a charm!

twiggy86

I'm back with my tail between my legs... I'll go into more detail at a later date but need to take the plunge and start a new diary! I have been lurking for a few days, too ashamed to come on and admit the truth! 

The Good

• I'm back! I have read through my old diary (which apparently got abandoned early in the pandemic) and am starting to put back in place all the things I used to do - spreadsheet, take lunch to work etc 
• I have cancelled my TV package this week (which I had said I must do in my last diary!!!) and re-arranged just broadband instead - saving £67 per month once that is all finalised 
• I have done a money re-jig to get some debt onto zero/ lower interest - have also ordered a card I need to be able to take advantage of another balance transfer offer

The Bad

• Debt figure as at the date my lightbulb flickered into action earlier this month (i.e. when I created a spreadsheet) was £17,447.59!!!!  
• My debt is about £7k higher than it was pre-pandemic when I was debt-busting. Yes we (me and my OH) have been affected by the pandemic - does this justify the additional £7k? Not a chance! 
• Having read my old diary, time and time again I have come a cropper by OH's self-employed status when we've had periods of only my income - does that mean I've learnt my lesson and have savings in place to cover this?! Of course not! And guess what - OH said yesterday that he may not have work for 3-4 weeks!  
• As you may be able to guess by the re-jigging above, my MSE mindset has been so absent that interest free periods have been allowed to expire with no action by me 

Will I stick to it and clear all of the debt this time? Is third time the charm?!

twiggy86

Back after a lovely weekend and spend the grand total of £0! (Well on Saturday and Sunday - Friday involved a food shop to ensure we avoided the takeaway!) I spent the day with my friend yesterday and she bought me a roast for lunch! Which also meant I didn't cook dinner - which is even better! 

I am not being too hard on myself for the past year - I have really struggled mentally with the pandemic and I guess I didn't have the mental capacity to be financially savvy. Was just trying to get by! I was fortunate enough to work throughout (albeit mostly from home which doesn't suit me at all) but there were a few extended periods when OH wasn't able to work. I'm not sure this justifies the additional £7k added to the debt - but it is what it is! I will go through my statement at some point and see where that £7k went, as honestly I don't know! I know a small amount went towards doing work in the garden and some on flights when my OH managed to get himself stranded in another country!! (Long story but the short version is... he's an idiot!) Maybe once I've gone through that process it will shed some light on where I've frittered! 

However, time to draw a line in the sand and get debt-busting again! 

This morning I have completed the last of the money re-jigging which is available to me at the moment. It does leave some debt incurring interest, although the majority of that it at a low percentage. I will diarise to check if any more interest free transfers are available to me in a few months. Once those are completed (and I know what the fee comes to which is yet to be added) I will post the current "starting" figures on here. 

Despite the scary debt figure, it does feel good to feel like I'm taking back control again! I'm still working on my plan - but I have lists galore again to help plan, save the pennies and generally get more organised! 

shell16

Well done on restarting your diary, it certainly helps to keep yourself accountable.

I would certainly be checking through those statements and be aware of what your triggers are so you can avoid those situations.  If you havent already, build up an emergency fund.  Even £500 is a good starting point.  Whilst doing that pay minimums on your Credit cards to start with.  Once EF built up try using snowball and avalanche methods, Im a huge fan, although im using a hybrid focus on mine where i swap and change (I focussed heavily on my Virgin CC until I reached the point where my usual payment would clear in the 0% period).  Then I have moved onto my Lloyds CC.

Are you doing anything to generate extra income, for example selling things you no longer want, surveys?

You definitely need a budget, I would personally only use the income which is guaranteed if your OH's pay is not.  Anything your OH then gets paid will be a bonus.  Give every penny a job to do in the month.   

Good luck in your 'New' journey, I have flagged your diary and will be following.

twiggy86

Thanks @shell16 - everything you have said is 100% correct!

Savings are a thing which have come to light how important they are - as it would alleviate the stress when income suddenly stops! Since the beginning of December we've had isolation, then Christmas and now no work for a few weeks - i.e. very little coming in from OH! We are very fortunate that we can get by on my wage alone - but having a "OH not working fund" would be extremely beneficial!!! 

I've started having a clear out and gathering bits to sell over time - may have a look at Vinted to see if that is any good, before doing a car boot when the weather warms up! I also need to put more effort into my Etsy shop - always reluctant as if I don't try very hard to advertise/ generate sales, then I can't be insulted when nothing sells! Silly I know, but it's definitely a confidence issue which I need to overcome. I have today asked a couple of previous buyers to leave feedback (one did immediately) which will help slightly for encouraging future sales! 

twiggy86

I listed two things on Etsy yesterday and put a post on my insta. However, I'm now torn between saving money by making all the little ones (i.e. nephews, friend's little ones etc) homemade gifts for their birthdays or put the time into making more items for my shop! I think given the low number of sales I've made so far it makes sense to prioritise making presents and then if I make anything additional I'll add it to the shop. Especially at the moment as the birthdays are coming thick and fast!!

Were meant to have a plumber coming round yesterday to look at the kitchen tap (which doesn't currently provide hot water - meaning boiling the kettle do to washing up!) - however frustratingly he cancelled at 6:30pm!!! So money is still sat aside for that but I'm not entirely sure how much it will cost - also haven't paid him for fitting a new shower yet. Hoping I have enough put aside but it would be very nice to know!!! 

Not sure I have anything else to update at the moment - still waiting for the balance transfer fees to be added before I post figures on here. 

bigbeff

Hi! Welcome, I'll be watching your diary - I hope you manage to get sorted. I'm working through £15k debt.... started at the beginning of the year, slow progress but sold a few bits on facebook. I've never used vinted, is it worth it?

twiggy86

Thanks for comment @bigbeff - I haven't given vinted a try yet. Will try and research if it's any good before I use it - so I may report back! 

twiggy86

The figures

So all balance transfers have now gone through and fees added so it's time to post my starting figures and my re-shuffled figures...

Pre LBM:
Halifax CC - £4,156.74 (4.79%)
Barclays CC - £3,170.89 (17.87%)
MBNA CC - £5,111.44 (majority on 0% but ending in March and some was at 18% ish!)
M&S CC - £2,033.06 (0%)
Next - £163.45 (24% ish)
TV - £1,662 (0% until Sept - then it goes onto a plan)
Parents - £1,500 (0%)
TOTAL - £17,797.58

Post shuffle and payments
Halifax CC - £4,113.48 (4.79%)
Barclays CC - £0! 
MBNA CC - £1,531.44 (split between £1,000 on 3.9% for 36 months, rest is 0% but ends in March)
M&S CC - £3,521.56 (0%)
Virgin CC - £5,175 (0%)
Next - £178.48 (24% ish)
TV - £1,662 (0%
Parents - £1,400 (0%)
TOTAL - £17,581.93 

So the overall figure hasn't changed much but the interest moving forward has. Lower interest means more of my payments going off the balance! Of course, there has been a few balance transfer fees added this month. I was happy to have cleared the Barclays as despite adding in a Virgin card I haven't added to the total number of cards - does that make sense to anyone?! 

twiggy86

The goals

I have a goal to have the total debt figure under £10k by the end of the year.

However to keep me motivated I want to set myself some goals to achieve by the end of March. 

• Clear Barclays CC - obviously the above post says that it's already at zero, but there will be interest added on my next statement which I will need to pay off to truly clear this card
• Pay off Next (currently £178.82)
• Pay £531.44 off MBNA - this is the amount which is currently on 0% but will end in March and revert to 18% ish. Whilst I have other debt incurring interest currently, I'm not sure if I will have any balance transfers available to me at that stage, so I would rather try and clear it now
• Save £400 towards the TV - I have 8 paydays to save £1,662 so I need to put aside £200 each month to avoid having to find a big payment in September

The obstacles
I am unsure whether or not those goals are achievable as I have a few expenses coming up - and obviously haven't saved for even though I knew about them waaaayyyy in advance! 

• I am going to Butlins with friends at the beginning of Feb - paid for but will need spending money
• I need to paid approx £300 in May for a friends hen do - I say approx as the final cost is not entirely clear. I need to save some for the next couple of months to ensure I have the £300 in May (rather than try and find £300 in May!)
• The actual hen do is then in June so will need spending money - again want to factor in starting to save this in advance 

And obviously there is a spell at the moment of OH not having work lined up for a couple of weeks so nothing can happen towards the goals until payday! And then I will have to be cautious of over-payments until OH has money coming in again. 

[Deleted User]

Hi, popping on to say hi and good luck with all your goals. 

I've just came back after quite a long absence and decided to start again. 

New diary always helps!

twiggy86

Not sure I have much to say but need to get back into the habit of posting regularly! I have had a few things to buy and although they were planned/ necessary, spending has made me feel out of control?! I think it is because I know that I may have to do some "creative shuffling" to get to the end of the month without resorting to the CC. It isn't a big deal but I haven't had to do this in a very long time - I was going to say "because we've always got by", but clearly the correct answer is I've put things on my CC without thinking! I really must print out the statements to see where the spending crept in!!! 

I can't remember if I mentioned, but my word of the year is "Positivity" so let's look for some from this week...

• I haven't spent any money on food/ pop this week whilst at work! (Big area of frittering)
• We haven't had any takeaways since... maybe the 6 Jan? Wow - that really is impressive for us if that's correct! 
• I'm excited to be making presents for the little ones in my life - current list of things to make are a hedgehog, flamingo, pterofactyl and an elephant all using materials I have (save some safety eyes which I have ordered today) and the patterns were free