Drowning in £16k of poor decisions

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  • Squirrelz92
    Squirrelz92 Posts: 712 Forumite
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    LOVE frontloading! Much rather my current account have all bill money removed completely so I know what I have to play with for 28 days before the next payday. Since discovering Monzo and Starling I doubt I will ever go back to a standard current account. Don't think I could cope with my wage staying there not knowing what part is exactly for bills etc. 
    Debt Free Date: 24th October 2023! £7402.10 Paid Off In 6 Months!
    3 Month Emergency Fund: £3500 / £3500
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  • Brie
    Brie Posts: 10,386 Forumite
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    Hey - well done for starting to get your finances sorted - that's always hardest step I think to accept that something needs to be done!

    A couple of quick comments.& ignore me if I'm stating the blinking obvious.....

    are the CCs just yours?  Or are you paying for stuff the ex should be paying.  e.g. cards where he's the main account holder are completely his monkey even if it's you that used them.  

    why do you need a tv package?  Freesat has a mass of variety and doesn't cost as long as you have broadband.  possibly things are bundled as I know that makes it cheaper to get more sometimes.....

    Oldest DS - is he of an age to get some work?  paper routes used to be the norm yonks ago but I suspect are no longer an option.  But it's summer time and people may welcome someone who will cut the grass for a fiver or wash their car.  Money earned could go towards his activities, clothes etc.  It might be a good thing for him to see what life is like and get that positive buzz for helping you and siblings by being responsible for himself.

    Emergency funds....I don't get this for people who are in debt.  You already have the emergency so I'd be using that money to make things easier.  Obviously if your CCs are completely maxed and no further spending is allowed that is difficult but if you whack a chunk on the card with the highest interest rate it will save you ££ in the long run.  And if spending is still allowed you could, if there was a serious emergency, use the card if you absolutely had to.  That's my logic at least - I know it's the opposite of what a lot of people recommend.

    Good luck with your journey!


    "Never retract, never explain, never apologise; get things done and let them howl.”
  • Throughmyfingers
    Throughmyfingers Posts: 45 Forumite
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    edited 2 June 2022 at 9:33PM
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    Brie said:
    Hey - well done for starting to get your finances sorted - that's always hardest step I think to accept that something needs to be done!

    A couple of quick comments.& ignore me if I'm stating the blinking obvious.....

    are the CCs just yours?  Or are you paying for stuff the ex should be paying.  e.g. cards where he's the main account holder are completely his monkey even if it's you that used them.  

    why do you need a tv package?  Freesat has a mass of variety and doesn't cost as long as you have broadband.  possibly things are bundled as I know that makes it cheaper to get more sometimes.....

    Oldest DS - is he of an age to get some work?  paper routes used to be the norm yonks ago but I suspect are no longer an option.  But it's summer time and people may welcome someone who will cut the grass for a fiver or wash their car.  Money earned could go towards his activities, clothes etc.  It might be a good thing for him to see what life is like and get that positive buzz for helping you and siblings by being responsible for himself.

    Emergency funds....I don't get this for people who are in debt.  You already have the emergency so I'd be using that money to make things easier.  Obviously if your CCs are completely maxed and no further spending is allowed that is difficult but if you whack a chunk on the card with the highest interest rate it will save you ££ in the long run.  And if spending is still allowed you could, if there was a serious emergency, use the card if you absolutely had to.  That's my logic at least - I know it's the opposite of what a lot of people recommend.

    Good luck with your journey!


    Thanks for all your comments Brie! 😬The debts are mine, they have been run up in part by my ex eg Holidays etc but I will be tackling them on my own.

    I have removed the TV package and have broadband only now with a landline (which I need to have) at £14 plus netflix £8.  

    My eldest has just turned 11 so dont think I can send him to the world of work; I am going to try him with some chores now its the three of us and he can “earn” some treats.

    EF I understand your comments but for me I think its a complete mindset change I need. Cards are pretty maxed and I want to stop using them completley as I have been close to paying down before and rebuilt the debt again. I have never hd savings so think an EF would be for emergencies, cards could creep back up. To add, its currently empty 😂

    X
  • LittleMissDetermined
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    I have an emergency fund and still have a fair bit of debt. To be honest, that's the advice you get from all the Guru's... Have an EF so you can stop relying on the credit card.  Each to their own though, no judgement here :)

    There's something satisfying about finally paying with your own money rather than with credit. 
    LMD x
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  • Squirrelz92
    Squirrelz92 Posts: 712 Forumite
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    I can completely understand both sides of the emergency fund. @Brie makes a great point about saving ££ of interest in the long run by using that EF to pay off debt. I am currently still debating doing this for my CC. But then this would also leave me to panic come July when my MOT and full service is due as I know its going to fail and need spare cash to repair it. If i used the EF to pay my CC then I would end up using it again to pay for the car. Its difficult to decide what is best :( Suppose it just teaches us a lesson that all the hard work we are putting in now to become debt free will be so worth it and will make life much less complicated and worrying. You do what works for you! So great to read lots of opinions on what works for others! Makes a brilliant read and definitely food for thought :)
    Debt Free Date: 24th October 2023! £7402.10 Paid Off In 6 Months!
    3 Month Emergency Fund: £3500 / £3500
    #60 2024 Mortgage-Free Wannabes: £200/£2500
  • Desperadoo
    Desperadoo Posts: 98 Forumite
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    edited 3 June 2022 at 8:22AM
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    Morning 

    I have this debate about Emergency Fund with hubby all the time.

    My reason for it is as money tight if something happened and needed to claim on insurance we need to pay access ...this happened a few years ago when we had a car accident ans had to pay £350 , if a household appliance was to break down and we needed to replace/ repair...or emergency with our dog.. a few years ago she needed an emergency operation and it cost £290. We have no insurance for dog.

    When this money has to be used  I top up again as quickly as possible ,  we also have another saving account that I put spare money into end of each week and it's for days out clothes etc  and also hoping to build up money to make a F&F on some debts 
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  • WinterWarrior
    WinterWarrior Posts: 5,730 Forumite
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    I agree that all the guru’s advise you to have a small emergency fund. It does stop you relying on credit while you are paying it off. It’s also a good lesson as savings are harder to fritter away than credit, I find I guard my savings like a dragon sitting on a pile of gold 😬 Something I would have shoved on a card with little thought would not be worthy of using my savings for, 9 times out of 10. The thought of paying back the EF when you’ve needed to use some, therefore slowing down your debt repayments, is another pain point that really makes you think about what constitutes an emergency. It’s hard to save it up to start with though, I really do get that. 
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  • Throughmyfingers
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    Morning 

    I have this debate about Emergency Fund with hubby all the time.

    My reason for it is as money tight if something happened and needed to claim on insurance we need to pay access ...this happened a few years ago when we had a car accident ans had to pay £350 , if a household appliance was to break down and we needed to replace/ repair...or emergency with our dog.. a few years ago she needed an emergency operation and it cost £290. We have no insurance for dog.

    When this money has to be used  I top up again as quickly as possible ,  we also have another saving account that I put spare money into end of each week and it's for days out clothes etc  and also hoping to build up money to make a F&F on some debts 
    I was caught with a £1200 vet bill too and it went straight to the CC. At the time I was glad I had the option however ill be paying the interest for that a long time. If i had EF if would have wiped but that would of been it time to start again.

    I love reading peoples thoughts on it and how they approach it and I know that EFs when you have debt arent the most financial option but like I said I think its a full reset thats needed for me x 
  • Throughmyfingers
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    I can completely understand both sides of the emergency fund. @Brie makes a great point about saving ££ of interest in the long run by using that EF to pay off debt. I am currently still debating doing this for my CC. But then this would also leave me to panic come July when my MOT and full service is due as I know its going to fail and need spare cash to repair it. If i used the EF to pay my CC then I would end up using it again to pay for the car. Its difficult to decide what is best :( Suppose it just teaches us a lesson that all the hard work we are putting in now to become debt free will be so worth it and will make life much less complicated and worrying. You do what works for you! So great to read lots of opinions on what works for others! Makes a brilliant read and definitely food for thought :)
    Its difficult isnt it, I plan to build to £500 whilst paying things down, when I am in the position to get past that ideally closer to £1k I think ill then pay a chunk off and rebuild again as I will still have a good buffer x 
  • Throughmyfingers
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    Morning!
    v1nted item posted yesterday £8.50 should be hitting the account shortly, I listed two more items but am aiming for 5 a day over this weekend.

    Yesterday was a spendy day, £240 to after school club for may 😳 (budgeted)…I also paid DS2s dinners and DS1 school trip, I had £50 budgeted and it was £46 so the rest went into overpay too!  I now have £3.83 sitting pretty in there so far 😂😂 I think im hooked on the pots already, its nice to go to the place the money sits and pay from rather than worrying if I have enough to cover…I spent £16 on cleaning bits after the round up so have £24 left for the rest of this week which should be ample as my fuel and food are in there pots already.

    I have been asked to work at a friends pub on sat evening (CIH) so that should work out at around £60 hopefully.  I had a nosey on marketp!ace last night and found someone locally selling an offcut of a brand new grey carpet (looks an exact match to my hall). It should be big enough for my bedroom so I am going to pick it up Saturday and have a go at some DIY.  Its £25 so the money from working will more than pay for it.

    x


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