Reducing Debt, Saving for that Rainy Day

SarahSaves

outoftheviciouscircle said:

Do you qualify for any balance transfers as that is a lot of interest?

Good luck as well. Becoming debt free really does become addictive.

I've just tried to apply for a Tesco balance transfer for my Barclaycard balance and they've declined it.  I don't ever miss any payments so it must be the volume of outstanding debt that I have... I'll see where I am in a couple of months and try again because I don't think it would do me any favours to keep applying for balance transfers.  It's not upset me that it was declined I just feel a little stressed by it because I always considered myself to be quite liquid.  I earn well, and seem to have a surplus each month but in reality its because I just kept bl00dy spending on the credit cards and saving my cash to also spend...  

I've been really stupid with this tbh.  I was thinking about what I had brought and its just all junk... overspending at christmas, I did put some exam fees on my cards but never repaid them, meals, clothes (I have loads and loads of clothes) nothing of any substance really or any importance.  

SarahSaves

I've requested to WFH today I don't feel very good, but I am well enough to work.  I had prepped my lunch and breakfast ready for the office, and now i'm at home there is zero chance of spending any money as I have no intention of leaving the house!  I have some revision to do and already have food in for tonight's tea.  We have an expensive weekend next weekend so trying to not spend knowing that is coming up also.  It will be spends from our joint account but I need to control this spending also.

My husband has the joint account debit card but I have access online to the account, the bank is useless, they won't give me a card and they won't give him access!  Madness.  We only use the account to pay the house bills incl groceries, anything to do with the kids such as pocket money, driving lessons etc, and for joint social spending.  I don't go out with him that much at the moment with studying so these have been fairly low but we have a weekend away next weekend and another weekend out in a couple of weeks so I need to make sure we stay in the black and out the savings.

enthusiasticsaver

I have never heard of a bank where you don't each get a debit card if it is a joint account and you don't both get online access?  That is madness.  

I am glad you have checked the interest rate because as you say the rates are high.  I think going cold turkey on the credit cards is the first step and maybe use some of your £840 savings to reduce the Sainsburys one which is most expensive. Have you done an soa? 

Hope you feel better soon. 

enthusiasticsaver

Does your husband know about the debt?  I know you say it is personal and not household debt but honestly borrowing for gifts for them to compensate for not spending time with time and trying to find excuses not to go on days out or meals out must be stressful.  Can you be honest with him/friends/relatives etc and just say you cannot afford it and can you do something cheaper?  You probably won't be the only one. The COL crisis at the moment has affected most people.  As you have no mortgage you are less affected than most though but a high interest rate will also feed through to unsecured debt rates and lenders willingness to lend so 0% deals may not be as easy to come by.  Assuming your children are older talking about budgeting, borrowing on credit etc will help them in the future too. 

SarahSaves

He doesn't really know much about the extend of the debt, he knows I'm paying off a loan (which was a consolidation of previous credit cards...) and he knows that I have a balance on my credit card I'm trying to reduce as I mentioned above some house hold stuff had ended up on there which is why the joint account reimbursed me this month and I sent that to the credit card.  Actually he knows I have the MBNA and Barclays credit cards because he used to hold onto the MBNA one for me, as it has a £10k limit and I didn't trust myself with it but he doesn't have a credit card so we just wanted one in case we booked anything (which we did with the flights we booked, but paid off straight away) just for the extra security.

He's definitely happy to curb the spending, he has build up some independent savings and does make comments about my wastefulness and spending and lack of savings because I do actually earn more... I just feel really embarrassed to tell him to be honest.  with minimum payments I spend around £600 repaying debt each month.  I also have my car on finance which is another £235 I didn't include that in my debts above, I probably should've... it does finish soon.   

I know we should share everything but right now I feel like this is my mess and I don't want him to be disappointed with me, I'm already disappointed enough with myself.  

Yes the children are teenagers now. I didn't have much growing up (not that this excuses any of my debt) but I can see how it has built up really, wanting to give them as much as I could.  I was more flexible with spending when my husband changed jobs and started earning more as there was less pressure on me financially... and it's just spiralled. 

We have always been a really social couple and both have a big circle of friends and I just seem to get wrapped up in this whole fear of missing out, and trying to keep up.    

I have gone into my Amazon account and removed the credit cards from my payment wallets, I think this will help ALOT

SarahSaves

Feeling positive today!  The sun is shining, I'm working from the office and brought in porridge in a flask, and a curry out of my freezer for my lunch... there's only a couple of us in today so shouldn't be any complaints.  I can't spend any money today even if I wanted to, my purse was on my home desk and I moved it this morning but have no idea to where so I'm without any cards or cash.  

As well as removing the credit cards from Amazon, I have cancelled the save and subscribe orders I have as well.  I get my shampoo & conditioner from Amazon and to be quite honest with mostly working from home I don't wash my hair half as much as I used to hahaha so I'll just buy this as and when I need it.

I have an exam next week so I'm just completely consumed with that, but I do feel like I'm making small progress in terms of my mindset.  I decided I will speak to my husband about my debt.  Not before my exam, but afterwards.  I 100% know he will support me, I just need to make it clear that I'm looking for support not a bail out.  My loan was originally consolidated credit cards, my virgin 0% is a balance transfer credit card.  I need to have this repayment journey to avoid future wasteful borrowing.  To make compromises and think about things before I buy them, to actually save up for something rather than be impulsive and buy now.  He will help support me, I know this.  

Oh!  I was planning on joining an outdoor bootcamp (I still intend to) because I am training for a 10k and as part of my debt busting I've also cancelled my personal trainer.  I hadn't got round to signing up as I haven't been feeling well plus revision well now they're doing a free week so I've managed to redistribute the £38 I was planning to spend this month (and wouldn't have gone) and will add that to my accumulating surpluses to throw at debt on top of repayments - currently at £90.

It doesn't look like Barclaycard are going to take their direct debit because I made a manual payment on my card this month so I will send that to it also.  

SarahSaves

Do you think I should be saving alongside repaying my debt?  Or save to a certain point and then put everything else on the debt?

I had planned to save alongside but with the high interest rates, which will undoubtedly increase now, I think it makes more sense to throw as much as I can at the credit cards?
My loan is fixed.

I felt bad but sensible yesterday.  My daughter (17) is a nightmare, I don't know if its kids these days or just her but when I was a kid I just got on with it, got myself from a to b and that was that.  I was working in the office, and my husband was also.  I share custody of the children with my ex and everyone in their household was also out.  So she's pestering me to order her an uber, I'm trying to work and rightly or wrongly I just did it.

BUT I then insisted she repay me for it.  Where she was going was a 5min car journey and I have no idea why but the uber was £12!  Normally i'd just not bother and write it off to just being a parent but I thought no hang on a minute, I've got debts to clear, money to save, and lessons to teach her.  If she continues to wear the cost of the ubers I'm pretty sure she will soon start walking, or catching the bus.  Seriously though, I never even ordered a taxi for myself until I was in my 20s.

Another no spend day today.  Working from home, had the food shopping delivered this morning.  No plans for this evening besides some revision, a nice bath and a cheesy film!  

Looking forward to my direct debits going out so I can see where I am, then i'll post my income and expenditure, and update loan balances.  I don't even know if anyone is reading this diary but it definitely helps me feel in control and accountable.

Spinayarn

I’m reading it! I know what you mean about Ubers - my 18yr old is the same but I make her pay for them herself.

Regarding saving and paying off debt, yes. Yes you should try to save alongside paying off your debt, otherwise the temptation is always going to be to use your credit card for emergencies. I’m currently trying to save up an emergency pot of £1000. I’m doing surveys, overtime a side hustle, selling stuff, anything I can to throw money in there. It’s currently only at £130 but I know I’ve got money coming from all of these sources over the next few weeks which should really help build it up.

I don’t know if you’ve heard of Dave Ramsey at all - he talks about baby steps and baby step 1 is building an emergency fund, and baby step 2 is paying off your debts using the snowball method. He’s worth googling and looking at his methods. Also, I’m using the Debtpayoff planner app and it is brilliant for helping you plan the best way to pay off your debt. There are a few videos on YouTube to show you how to use the app.

good luck and keep posting on here. It’s really helpful and a good way to keep yourself accountable.

WinterWarrior

I’m another Dave Ramsey fan. Not all of it (I don’t think completely joint finances are right all of the time and having at least a ‘me’ fund is safe and sensible), but his steps are excellent. Once you have the emergency fund in place then you have no need for the cards and can cut them up/hide them until they are cleared and can be closed. 

SarahSaves

Ohhh Dave Ramsey sounds interesting thank you  - I will google him! 

I've done really well this weekend, from my own finances I only spent £2 all weekend!  - from joint finances we spent £30 on a top up shop and then gave my son and his friend £10 each because we were at an event for them to get themselves some dinner and snacks.  My son had a football tournament the weekend also and I made sure that I made a pack up from  home for them (I was revising)

This morning my DDs have gone out, waiting for the minimum to go to the Virgin (0%) credit card still but that's the final repayment.  My MBNA DD still went out with having made a lump sum payment to that card this month but the Barclaycard didn't so I sent £235 to that this morning and my debt currently stands below

Loan	9125.89
MBNA	1252.98
Barclaycard	3501.35
Virgin Credit Card 0%	5470.06
Closing Balance	19350.28
Total Repaid	7%

So some things I really want to focus on are our joint finances also because this does seem like a free for all and there are probably alot of savings to be had within them.  

My income and monthly expenditure is below

Income	3577.49
Expenditure
House Bills - incl all bills, food shop, sociaising, joint savings, kids activities etc	1500
Loan repayment	300
Repay qualification loan to work	250
Credit cards - virgin, MBNA, Barclaycard	325
Car HP	235
Petrol	50
Car insurance	35
Life insurance	21.69
Car tax	15
Contact lenses	30
Hair	22.5
Gym	25.99
Spending £10 per day	310
Independent savings	250
Holiday accomodation	100
	3470.18
Surplus for debt	107.31

My qualification repayment to work finishes Dec, its deducted from my net pay and was provided to assist with cashflow as my tuition provider wanted repayments over 6months so would've been double per month.  This is 0%.  
The credit cards are based on minimum repayments so I need to bring this figure up.
Car HP finishes June 2024.  Petrol is low because I work hybridly around 30% onsite.  My hair is £45 every 8wks, I would deduct this and the gym from my spending allowance which would give an additional £50 for debt repayments.  The holiday accommodation is because my husband paid for our flights, this totals £900 I'm building this up for February.

Income
Me	1500
Husband	1500
	3000
Expenditure
Savings	1000
Food	300
Dog walking	100
Social	400
Lottery syndicate	16
Window cleaner	15
Gas & Electric	200
Virgin TV	93
Water	66
TV Licence	14
Cleaning	78
Netflix	18
Council tax	143
Contents/House Insurance	24
Kids Pocket Money	100
Kids Activities	185
Kids Savings	200
Kids Lunches	70
	3022
Surplus	-22

We don't have any joint debt.  We usually claw the savings back because we overspend ALOT mostly on meals out and takeaways.  The dog walking my friend started a business in covid and as we both work hybridly we don't have set office days.  When we first had the dog my husband worked 100% at home, but that changed during covid and so we have continued supporting her with her business and kept her walking our dog.  She charges us £5 a day.
The social budget is to include any meals out or things we do as a family, or when me and my husband go out with friends.
The kids both have brought lunches.  The cleaner is once a fortnight and that's really just until I finish my exams and then they will go, its for time more than anything.  Kids activities include driving lessons which is why they're quite high.  
On paper i'm happy with our joint finances, it is just the fact we overspend on social and when we run out of time we turn to meals out or takeaways...  My husband is completely on board for reigning this spending in so that we can build up our joint savings.  We currently only have £500 in our savings account!!