Taking control after 4 years

staffiemummy

Hi all, first post here and just looking to keep a log of paying down my debt until I get to 0!

I'm 22, single, and got myself into about 5.5k worth of credit card and overdraft debt due to depression, furlough and bad money management. Until January this year I had no idea of my income vs outgoings which is absolutely crazy. I had my lightbulb moment a few months ago but due to mental health I just sat around and watched my life fall apart while doing nothing - and now I need to fix it! 

I started a budget spreadsheet this year and was shocked to find that in theory I should have a spare few hundred pounds knocking about at the end of the month - where on earth was this going? I had a look through my credit card statements and bank transfers and I still to this day couldn't tell you where it went. Not only that but up until November I was still putting most petrol and food on credit by the 4th week of the month - absolutely no idea why that happened! 

I now have a strict budget sheet, and I know my fixed outgoings including min credit card repayments are about 1.2-1.3k per month. I have taken advantage of 2 bank account transfer offers, and I am using that 'spare' account I kept for switching as an everyday spending account. My salary goes to bank 1, which is where my overdraft is and where all my monthly direct debits go out from. Every week I make a transfer of my allowance which includes petrol money, park and ride fare for work plus an extra £15 or so for misc. spending. Anything left in that goes back into bank account 1 to go towards my ovedraft. 

By the end of February I will have paid off £1561.59 - a whopping 29.88% of my total debt! I have decided to tackle my debts with interest first before anything as my overdraft and one credit card are over 30% interest - absolutely eyewatering! One credit card's 0% period is over soon as well so that's next on my list. The last credit card's interest free period doesn't end until next year so once I have got rid of my interest I will start an emergency fund. I know the advice here is have an EF no matter what however it's more important to me that I make large payments towards my credit card debts. 

I don't own my property and my car just had over 1k worth of repairs to get it through its last MOT, my dog is insured and on the correct medication as of November, so I'm confident that nothing is going to come up between now and my debt freedom day that will require more than a couple of hundred pounds to fix - and if need be, I would just pay less towards debt that month and keep the minimum payment. 

I have 2 jobs currently, one in an office and one doing data entry at home. I get paid once at the end of the month and once in the middle but it doesn't matter since every penny is allocated via spreadsheet before the income even hits my bank account. I have a standing order set up for my weekly allowance so I never need to look at my main account. 

As well, I have started to cook more using meal kit delivery. I use Greenchef at the moment for 4x2 meals (1 dinner plus leftovers, as I am single). This is expensive for sure, and not the most economical. If I did supermarket runs I would have less time, take more time to plan meals, and just have the same 3 things on rotation forever. Because of my depression I was eating garlic bread, pizza, ramen or pasta every single night and a meal deal every single day for lunch, so the box costs about the same as that in all honesty. It's getting me out of a rut, I now have a binder full of easy recipes I know I like, and I have made before so once my trial period is up I will be able to recreate them. I would love to be able to plan and shop for my own meals but it's just too much for me right now. 

Here were my figures in January 

Barclaycard	2531.91
Natwest OD	1187.51
Lloyds	834.24
Tesco	672.02
Total	5225.68

And here is what I think I will be on at the end of February - I shouldn't dip into my overdraft again until then but if I do, it won't be more than £30 or so. 

Barclaycard 2374.63 Lloyds 754.24 Tesco 621.21 Total 3750.08

I have made a mammoth dent in this already and I feel fantastic - I just want this feeling to continue. I am feeling so motivated and giddy at the prospect of not having this hanging over me. It's not as much debt as other people but it's a weight I have been carrying with me for years now, I'm just happy that I have seen the light and made positive steps towards fixing my mistakes. 

The motivation has spread to other areas of my life as well, and since I've shifted my financial mindset I have been happier, sleeping better, and more motivated to get my house decluttered and tidy! 

Hoping someone else reads this who feels a bit of a mess and sees that even if it's been years and years, you it's not too late to get started. 

jusferbrowsing

What a great first post.
You're making an amazing start on a future life time of being moneysaving savvy. A great start and a good plan where you're heading in the future.

I'll be subscribing to follow your journey

staffiemummy

jusferbrowsing said:

What a great first post.
You're making an amazing start on a future life time of being moneysaving savvy. A great start and a good plan where you're heading in the future.

I'll be subscribing to follow your journey

:bl:blush: Thank you so much for the kind words! I can't describe how on top of everything I feel, for the first time in my life. I have had a lot of instability, so this is what I needed. I'm so annoyed at myself that I didn't start this sooner - I've lurked here for a few months and it took a lot of courage to post, I did it for all the other lurkers I think! 

staffiemummy

Today I had a NSD 

Ate dinner lunch and dinner from stores
Paid £100 to the cc with interest 
Worked 10 hours at my 2nd job 
Cuddled the dog instead of putting my electric blanket on 
Checked my main bank balance to make sure I have enough in to cover the last few direct debits of the month 
Picked my Greenchef meals for the next week 
Looked at the Gousto introductory discount to figure out what my March budget will be 

littleelse

You are setting off on the right foot and doing really well! Let's take a look at your diet and shopping, I think proper meal planning and nutrition could be a great contribution to your depression and finances (I understand). You are young, many years ahead of you, let us help you to live, laugh, plan and prepare for a brilliant life x

gwynlas

How amazing to have your light bulb moment at so young an age and congratulations on what you have achieved so far. Food for one can be difficult as most supermarket packs of meat or fish cater for two or more so frozed food might be your friend going forward or planning meals so that you use the same proteiin a day or two apart. Eggs are of course individual and so versatilt for any meal. Planning can be as flexible or as rigid as you like but is easier if you have a good stock of basics and are happy to eat most things. Reading food reviews lately up market restaurants are servingtins of sardines etc

staffiemummy

I would absolutely love to be someone who is good at planning and shopping and cooking and freezing but it's not going to happen. I don't eat meat or eggs unfortunately so it's really hard to find food I can eat in smaller portions so it's just added stress - I'm hoping that I can get enough 'safe' easy meals in my rotation that I can be cooking by myself in the summer! 

staffiemummy

The closest shop to me is 25 mins away by car and the deliveries I have got from them were always missing so that definately adds to the pressure - I thought people probably wouldn't like that I'm paying for the boxes but it's all about steps in the right direction

enthusiasticsaver

I think you have made a great start.  If the food boxes work for you and your plan allows for the cost of them then I think you have to do what works for you.  I know for people who suffer with depression it is very easy for them to get overwhelmed so maybe sort the debt and finances out and then if you need to cut back further for whatever reason maybe then looking at cutting back on the Gusto meals. You have done all the right things so far. 

staffiemummy

I wish I was the kind of person who could make a pot of chilli and eat it for 4 days but it just won't work - it's not just depression, there's other things wrong with me that make it unachievable right now but I will get there this year! 

Anyway today I cooked all 4 meals for the week so I won't snack or buy oven food 
Booked my shifts for my 2nd job 
Cashed out £10.25 from Prolific to put towards someone's birthday drinks I'm going to on Saturday 
Bought my diesel for the rest of the month - treated myself to a car wash at the petrol station too as it was half off and I like the noise of the rollers 
Made up screenwash for the car from concentrate - much cheaper than buying the big bottles 
Started to set up YNAB to see if it's worth paying for once the free trial is over - if anyone uses this please let me know what you think! 

jayhall4837

Good luck on your journey am new to it too and will follow
your progress keep up the good work