Small steps to deft freedom

GotToStopSpending

Hello,

Bit of background, we are in the horrible situation of being £52k in debt.  I am going to self manage a DMP and am currently waiting for my accounts to default.  Just had a look on my credit file and found that 3 out of 12 creditors have defaulted.  I really want to pay everything back so am going to go down the DMP route, find lots of ways to raise extra pennies to get things paid off quicker and even if it takes me a million years, we will get there!

Debt is in both my and my OHs name but I am the one who holds the purse strings and completely let go .  

I am going to contact the 3 defaulted accounts and offer token payments until all accounts have defaulted, which I think is the right way to go.  Onwards and upwards as to be honest can't go further downwards.

I have been saving the missed payments (what I can afford) over the past few months and have £1k in an emergency fund.  That still doesn't feel like enough so just going to keep saving until I can get this DMP started.

Writing a diary to keep myself on track and stop spending money.  My biggest issue is supermarkets, I will get a weekly shop and then pop in at least 3 more times a week and buy food we don't need and spend at least £30 each time.  

Jobs for today -
1.  write to Argos, Tesco and Vanquis and offer token payments.
2.  let OH take DS to football training so I don't pop into A$da.  
3.  Go for a run instead

GTSS x

bekah89

Good luck on your journey! Well done on getting £1k in your emergency fund that’s a really good amount! Think that’s what most people aim for, atleast you won’t need to put anymore spending on the cards. There’s lots of boards on here with ideas of money making; surveys, receipt scanning, selling things. I’ve been trying to cut down on supermarket shopping too but still managed to hit my normal budget last month! 

GotToStopSpending

Thanks Bekah89, I will have a look at the money making ideas and well doen on hitting your supermarket budget last month.  I need to work on this!

Well, only on day two and only achieved 1 out of three yesterday .  OH is poorly so I had to take DS to football and needed petrol and DD1 has tonsillitis so got vitamin C, fruit, lollies etc.  £29.70 later......  And I didn't go for a run as I went to A$da!!

Not going to let it get me down though.  Today I had to pop home with anti-biotics for DD1 and was very tempted to stop at the shop and pick up a pasty but instead had a root through the freezer at home and found a spag bol.  No money spent

I think I will have to take DD2 to footie tonight but will not go shopping and will go for a run.

I think I will set up a savings account for all pennies to go to and round up my bank account each day.  It will feel like I am doing something each day and I won't notice it.

Jobs for today:
1.  make lunch for tomorrow from leftovers tonight
2.  Go for a run
3.  Create a tracker spreadsheet for the DMP
4.  Set up a savings pot

Have a lovely day
GTSS x

Sarahwithlove

Could you move to cash only for food shopping? Might stop the quick pop to shops for unnecessary purchases. 

GotToStopSpending

Cash only sounds like a good plan, thank you.

In my usual 2am wide awake thoughts about money, I started to question whether I am doing the right thing just offering token £1 payments to my defaulted credit cards.  My plan was to do this until all the cards had defaulted and then send letters out with my DMP repayment plans.  Is this correct?  Or should I start on the repayments now with the ones who have defaulted?

GTSS x

GotToStopSpending

Morning, I have been squirreling away trying to get everything in order.  I have 4 defaulted accounts out of 12 and have written to them with £1 token payment offer.  1 has accepted and will start on 01.04.23.  I have to now complete an income/expenditure form. 
 
It feels as if I am starting to get somewhere.  It is hard waiting and not responding to the endless emails and phone calls but at least it is starting to pay off.

This month has been hard money wise.  My car went in for its MOT and cost £1100 which was horrendous.  Luckily my parents lent me the money to pay it off and will pay them back when I can.  I think I have exhausted the bank of mum and dad now and need to stand on my own two feet.  It isn't fair and I am old enough to deal with my own problems.

We have stopped spending so freely and are accounting for every penny but it is so hard with the cost of food and energy.  I am coping, just but hate to think how other people are managing.

Good news work wise, I have got a promotion.  Not much of an increase per month but I go to the bottom of the next grading level so will get more each year.  Bad news is that OH is leaving his work due to mental health.  He will do some supply until we work out what to do but it is going to get harder in the next few months.

Okay, that is enough of me.  I aim to add this diary at least twice a week to keep myself accountable.  

Jobs for last week:
1.  make lunch for tomorrow from leftovers tonight - COMPLETE
2.  Go for a run - NO
3.  Create a tracker spreadsheet for the DMP - COMPLETE
4.  Set up a savings pot - COMPLETE

Jobs for today:
1.  Send token email to 2 x creditors
2.  Do not get McDs on way home from DS1 training.  Make quick, cheap tea when home.
3.  Download Feb spending and compare to make sure nothing missed.
4.  Update ReFrame app for no drinking and saving pennies.

Have a good day, GTSS xxxx

GotToStopSpending

Just a quick update to keep myself accountable.  This week hasn't been a good week spend-wise as it has been DD3s birthday.  Must stop spending!  It is good though as before I wouldn't worry too much and just put the end of the month on the credit card.  I don't/can't do that now so have to manage my finances much more carefully.

Jobs completed:
1.  Send token email to 2 x creditors - done
2.  Do not get McDs on way home from DS1 training.  Make quick, cheap tea when home. - done (very pleased with this)
3.  Download Feb spending and compare to make sure nothing missed. - still to do
4.  Update ReFrame app for no drinking and saving pennies. - Done and finding it really interesting.  Have only drank 2 glasses of wine since last Saturday.

Jobs to do:
1.  Try not to use tumble drier this weekend.
2.  Download Feb spending
3.  Continue with reFrame app.
4.  Meal plan and try to spend less in Ald! 
5.  make coffees to take to football matches.

Onwards and upwards
GTSS xx

shell16

Have you tried cash budgeting for certain categories?  I used to spend too much on my grocery and moved to cash rather than using debit card.  It did work for me, but I reset weekly, send anything left to whatever you want (Debt, savings, EF) and then top back up for the next week?  Have a quick read of my old diary (link below) and it is explained what I do on there, or my new one (link below). I have just reset my budget including the cash envelopes and had cash left over.

Shell x

GotToStopSpending

Thanks Shell, that is exactly what I am doing today.  Off to Aldi with no card and just cash.  Quite scared but liberated at the same time!

Things are starting to progress.  I now have 4 defaults and one has agreed to £1 payment, just got to send SOA with breakdown.  DD1 has started selling with v!nted.  Might give it a go as seems very straightforward.  Also found a bargain seed site so might buy some seed for the summer, especially salad leaves as we go through loads and they are so expensive but easy to grow.

Having wine tonight but first night in the week and can't drink tomorrow so hopefully will start to see those pennies soon.

Have a lovely weekend, I will be standing on various football sidelines!!

GTSS xxx


Jobs completed?
1.  Try not to use tumble drier this weekend - done but have a mountain of washing still to do
2.  Download Feb spending - still to do
3.  Continue with reFrame app - done, drinking is definitely going down.
4.  Meal plan and try to spend less in Ald! - got halfway through the week before ran out of food!
5.  make coffees to take to football matches. - Done

Jobs to do:
1.  Minimise tumble drier usage as clothes need to be clean and this rain aint helping!
2.  Download Feb spending
3.  Send SOA to Wescot.
4.  Spend less than £100 on food for whole week
5.  Make coffee for footie matches ALL weekend.

enthusiasticsaver

Why are you offering token payments?  If you are being charged interest you really want that to be frozen and defaults to happen rather than AP markers.  I am not sure if tokens mean they are marking the accounts as arrangement to pay rather than defaulting them. 

Can you just visit the supermarkets once weekly with one top up for basics so you are not tempted into spending more? 

Are you saving in pots for things like birthdays or Christmas so you are not having your budget thrown out on certain months? 

GotToStopSpending

Thanks enthusiasticsaver.  I am making token payments to the accounts that have defaulted only so I can set up a payment plan once everyone has defaulted.  I really hope that is the right thing to do.  I am ignoring all creditors until I am marked as defaulted on my credit file and then making contact and offering token payments.  

I have opened a savings account for birthdays and Christmas  and have reigned in the spending there too.  

Pay day is Friday and we have no money until then.  Before I would have just spent on the credit card to get us through but this time I have made everyone in the family aware we have no money and that we have to make do until Friday.  Luckily there is enough petrol in the car and enough food in the cupboard/freezer to make some interesting teas!

GTSS x