Teetering on the brink

Cherryfudge

Oh dear, how disheartening! Perhaps you could reframe that as 'Not in minus numbers, must be doing something right'? And you're doing lots of things right, it just takes time to turn it round.

Well done for the sales.

EatingBeans

Hi @Cherryfudge thanks for the moral support! I’ll be honest I don’t think minus numbers exist on that scale, I think 0 is quite literally the lowest it goes. That said, little wobble over, I have indeed decided to reframe it…

The number may indicate that it is literally as bad as it gets, BUT, I am still standing, and I am still determined to fight my way out of it, so what they are really saying is look how strong I am! 💪I WILL get back to being debt free! 

DrunklMunkee

Hey there @EatingBeans

Just wanted to say, do not despair over the affordability score. Cherryfudge is right. Putting a positive spin on it, and according to D:Ream... THINGS.....can only get better. (There's a nice new ear-worm for ya)

Let's look at it, you only had your LBM earlier this month, and you are already well on your way to changing the way you deal with the debt issues. You've cut right back on take-aways, you have got all the DoE equipment for DD2; you are now feeling well enough to at least get yourself out and about; you have sorted the interweb connectivity; you have set yourself a budget; you have had a few sales & banked a large chunk of the door stop.

All the while looking after the girls and making sure you are all getting value time too.

You are nearly over January - which everyone here will tell you - is the hardest month of all in the DFW calendar.

Let's look at February. 

Budgets are in place
MBNA shuffle to take place
Hopefully a First Direct overdraft to transfer TSB
only 28 days - more salary for your month
hopefully - no council tax or water rates
more sales to be made
more finance fine tuning to be done
and it can't get much colder than this month, can it??

THINGSSSSSS can only get better; they can only get, they can only get....

DrunklMunkee

Oh...

and thank you for the advice....

cheesecake cravings are now a dim & distant past

You asked earlier if I had a diary. I did try to start a couple; but they fell by the wayside for a number of reasons. But, as I am technically debt-free; I don't think it would be apropos to start one here now. 

I say, technically - because I do have a couple of credit card balances.

1. - this is a card that I repay in full every month, and one I use to get the credit card guarantee should anything go wrong - the section 75 guarantee. I only ever spend on this IF I have the money to buy the item in cash. so as soon as I make the purchase on the credit card, I transfer the cash into a savings account until the payment becomes due

2. - and this is the interesting one. I have completed a money transfer from the other credit card. I transferred £4k to my current account and then transferred it straight into a savings account. By my calculation - the interest I earn will more than off-set the charge I incurred. I should make about £50/60 over the debt free period. When the period is up, I will just repay the o/s balance and spend the 50/60 however I see fit. I think they call this "stoozing" on this forum. 

So - as the money is there to repay these balances tomorrow - I don't count it as debt. I am thinking of doing another "stooze" as I have seen a bank with a better savings rate, and the credit card still send me e-mails to say I have a money transfer option available (and at a better rate than the earlier one).

That's me, just chasing dopamine

DrunklMunkee

Hey there @EatingBeans

So - I have been up with the birds, updating my spreadsheet to work out my budget for pending supermarket visits when I got to thinking about the start of my DFW journey.

Back at the start, I remember that 'snowballing' was my very good friend. I realised that when everything was paid throughout the month - I could (only just) afford all my minimum payments. I also realised that if I could pay them one month (and NOT add any more debt), then those minimum payments should only come down each month. 

Let's say - they would be £500 this month - then they came down to £480 next month. My thought was - well if I could afford the £500 last month, then I can afford it next month, with the same level of budgeting and make a £20 overpayment.

But then I thought - Where is the fun in that?? - I am still scrimping & saving but feeling no reward, no dopamine.

So I decided to give myself little rewards - I would meet it halfway. I would pay back £490 (still overpaying) but increase my budget by an available £10. Now, an extra £10 doesn't seem like a whole lot in the scheme of things, but when you are dealing with the budgets we are doing/have been - then £10 makes a huge difference. An extra choccy bar here or Costa with mates there.

We are, after all, living our one & only life (apologies to all my buddhist friends )

Also doubling my dopamine hit - one from debt reduction and another for improving budgets & more life choices
 

missymoo81

Hi just thought I would jump in and show my support! I’ve just read your diary from start to finish! And wow what a change since your first post! It’s amazing how in control you are and all the things you’re doing to make ends meet! Well done! You’ve got this! 

EatingBeans

Thanks @missymoo81 ! It indeed has been a roller coaster of a few weeks.  My LBM was really before Christmas but I hadn't found MSE at that point. Now I am using the diary to ensure I stay focused and on track. Going on a spending spree really isn't an option at this point. If I don't get a handle on it fast I suspect I will be at the DMP stage by July whether I like it our not given all the 0% offers ending between now and then. Nothing like that realization to focus the mind! This diary will either become an example of how close I came and still avoiding a DMP or it will be like letting the world watch my car crash moment in slow motion!

@DrunklMunkee I am going to make a note and the point at which I am debt free and begin to take up stoozing as a hobby I will count myself as 'made it' in life!  You are right, I do think I have a lot to be proud of this month.  The turnaround so far is going well. I kind of use a snowballing method because I set all my credit card payments to set amounts rather the minimum payments. Having a fixed base amount going out is easier to budget for, anything else is an extra line on my budget going to the highest interest account. Every now and again I have been adjusting the fixed monthly payments although this might become a more regular thing if I want to focus more on paying down a particular balance each month. I will get there.

I have mulled over how to explain what I am tackling using my signature and have decided on something. Hopefully it makes sense but it has meant adjusting my budgeting spreadsheet to reconcile everything to the 1st of the month. A useful exercise but quite a lot of work so I will see in the next month or so if it still all adds up correctly! (Previously I had run each CC statement to their individual statement dates)

One big win today is that as I have been scratching my head over my spreadsheet for so long, dd2 has taken pity on me and offered to do all the washing up, cook the Sunday roast and bake some Blueberry muffins if I just go buy flour and Blueberries. Er, YES sweetie I will do that! I think she felt a little guilt for talking me out of the £6 and wanted to take stuff off my plate as a thank you. I am blessed to have such wonderful girls.

Current debt of focus this month (interest generating element of overdraft) £378.77 still to go...

Start of month	-£     859.10
Pots in	£     371.40
Pots out	-£     212.12
Payments	£     355.75
Interest	-£       34.70
Balance	-£     378.77

EatingBeans

Sitting in supermarket carpark realising that my dd2’s apology for convincing me to spend £6 of the door stop money has actually cost me an additional £2.70. 🤦‍♀️
Thankfully I still have that spare in my budget for food so it hasn’t put me over but still, it’s these little bits that add up over time. 

At least I get a lovely roast cooked for me though. And it even comes with a pudding! 😍

ManyWays

Lots of lovely support here but sometimes it helps to hear a different view.

You have a heavy load of expensive debt. And a set of expenses that is unsustainably light:

Groceries etc. ......................... 210

Clothing................................ 0

Car maintenance (including MOT)......... 0

Entertainment........................... 10.99

Holiday................................. 0

Emergency fund.......................... 0

You cannot carry on like this for years, this is not a sensible plan and it is a horrible, stressful way to live. 
You need to rethink a debt management plan and there is no reason to delay this, you are just helping the banks make profits while you bring up your family in poverty. 

Sorry. I get self pride and the desire to hold your head up and say I managed, I didn't need help.  But this isnt managing and you do need help. Those banks have lent you a lot more than was sensible. Do what is right for you and your family.

DrunklMunkee

Well, good evening @EatingBeans

I can't say I am not a tad jealous. Sunday Roast AND blueberry muffins...... is there an emoji for "drool"

I hope you are enjoying/enjoyed the family time/sunday lunching with the girls. Provides a perfect springboard for any challenges that may come your way over the coming week.

Now - I am not going to sit here and pass judgement on your debt management choices. I am here to simply cheer you on in the good times & offer virtual hugs in the less-good times. If, through my experiences, I can help you just a little bit - then I will pop in for a virtual biccy, and let you know how I did things that went well and those things that didn't. BUT - I know my experiences and my choices won't relate directly to your circumstances - they are maybe alternative views that may provide more options or alternative views that you know you can rule out because you know they won't work for you. If they help in any way - please feel free to use the methods I used or discard them

There are, indeed.. many ways.. to tackle debt; and I am old enough and ugly enough to realise that "Every penny don't fit the slot" {Paul Heaton/Beautiful South reference, for ya..... another ear-worm}. Besides - I have tried most of them and used & adapted the methods that work for me and discarded those that don't. There is not one plan that works for everyone out there in DiaryLand.

I will say, that I got through it. My debts were higher than yours. My salary was less than yours, My standard of living didn't drop to poverty levels, I have holidayed (if there were such a word) every year, Brought up 2 beautiful girls who have learnt immensely from my frugal ways {eldest - a homeowner @ 24-y-o, own car & marriage this year; youngest@19 - owns her own brand new car & just started an apprenticeship, because she is mature enough to make a choice about student debt}. In short - I have not compromised my standard of living in any way - just become more savvy with budgeting, money making ways & making every penny count for me & my family. Heck - I even found 5p roadkill today & I still felt that euphoria of being "5p better off" than I was 10 minutes previously.

For some people - a DMP can & will work. For others, self management can & will work.

What is important is that now you have had your LBM, and realised that things have to change - then you don't lose focus, and you get support whilst you do it.

I for one know you are gonna smash this outta the park & hope to piggy back off your dopamine rushes along the way. YAY BEANS