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Lightbulb moment today
Jules2000_2
Posts: 21 Forumite
I had my light bulb moment today ! I’m a bit of an ostrich to say the least, I’ve always been a buy now, pay later girl and have had no problems with it so far. I’m married with a young daughter and turned 40 last year. We’ve had some lovely holidays, have got a nice house, etc but I have little spare these days. If I spend on credit I realise it has to be paid back and have always managed, but stupidly whenever a credit limit has been raised I’ve always used it eventually and tbh have little to show for it.
It’s very difficult to put down how embarrassing it is, my wonderful husband pays our mortgage, my car payments, my phone, utility bills etc and I pay what’s detailed in my SOA further down.
A month or so ago, I thought about sorting myself out as I’d been turned down for a credit card – I wanted to transfer one of my balances to it for 0%, I got credit reports from the main 3 as I’ve never missed a payment and try to pay more than the minimum whenever I can and naively wondered what the problem was (doh!). Anyway I didn’t do anything with it (slack aren’t I? I told you! ) but this week I watched Martin Lewis’ program on Channel 5 and was inspired again to do something about it. I trawled through his website and came across the personal loans section and followed the recommendation for mypersonalloan.com. I applied for £24,000, to cover my credit cards, over 5 years at £471.74 per month and waited. Needless to say this morning I got a phone call from a lady at Freedom Finance who said I’d been turned down by mypersonalloan.com but they were their ‘recommended brokers’ and she could help me. They have over 200 companies who would be willing to lend me money. She started asking about my husband’s details and I was uncomfortable giving them as I’d not asked his permission and I got the impression that all was not quite right somehow. Anyway to cut a long and boring story short I told her not to bother yet (she is going to ring me tomorrow though!). I could just see this spiralling out of control and really if I got one of their consolidated loans at an exorbitant rate it would take forever to pay back. I may very well pay less per month, but until I can learn to curb my spending I’d just bloody well spend the difference. No, I had to face up to the situation.
Lightbulb moment - I immediately got myself back on this website and followed a link for a snowball calculator. It was very enlightening. I put all my credit cards and loan into it and if I can pay off £1,000 per month instead of the £856.20 I’m currently paying they will be clear in 48 months; if I can manage an extra £100 it whittles off a further 7 months ! I feel so much better as I thought it was going to take at least 10 years to pay off all my debts. I forgot to put my overdraft into the snowball but I will go back and edit that.
One good thing came from doing the following SOA. I had to ring all my credit card companies to find out the apr, credit limits etc (never bothered with these before I’m ashamed to admit). I approached Sainsbury’s first and was shocked at the apr, I’m sure it was nowhere near that when I first took it out. Anyway I rang Halifax next and was told that there were 3 apr’s applied to my account 3.9% life balance for £3699.35 (Sainsbury’s credit card balance I moved last year), 29.99% for £223.40 cash and 23.53% for £7.806.44 purchases. No wonder I can’t get out of debt, I’m paying so much interest – I feel like such a fool at the minute. The lady I was speaking to was very understanding when I expressed my concern at the level of the interest rates. She put me through to another department, Customer Loyalty I think she said. I spoke to a very nice lady who cut my purchase apr to 19.9% and told me to call back in a few month’s time to see if there was any more room for movement (or something like that). I realise 19.9% is still quite high but it’s a damn sight better than 23.53%. She even explained to me about the lowest rate being paid off first and that the more expensive purchases are paid last and that this is always a problem for people with multiple rates on cards. She was extremely helpful, I now wish I’d bitten the bullet and rung sooner. Anyway tried it with Marbles when I rang them but was quite rudely told by their member of staff that ‘they don’t cut rates’. No matter what I said, she wouldn’t budge. I tried !
Hope you’re not asleep yet!
Anyway, here’s my SOA. I totted up my o/s credit cards, loan etc and they come to a staggering £36,413.74 :eek: . I really could cry, I had no idea how much I really owed, I just made the monthly payments and never bothered. I feel really depressed about it yet strangely liberated at the same time as at least I’m now facing up to the problem and I am going to tackle it.
SOA
Income
Monthly salary £1861.79
Child benefit £72.40
Total income £1,934.19
Outgoings
TV Licence £11.71
Council Tax £134.00
House Insurance £27.42
Car Insurance £38.76
Diesel £250.00
Food £250.00
School dinners £35.00
£746.89
Credit Card payments*
Last month’s total £522.00
Loan £334.20
£856.20
Total Outgoings £1,603.09
In theory I should have approx £300 spare but that goes on misc items like clothing, shoes, dentist, opticians, dog hair cut, lunches etc
*Details of credit cards, loan and overdraft:
Overdraft £2,406.11 Overdraft available of £3,000
Sainsburys visa £1,676.71 apr 24.93 % limit £9,000
Halifax mastercard £11,729.19 apr 19.9 % limit £13,800
Egg card £1,718.91 apr 17.9% limit £2,000
Marbles visa £8,968.33 apr 23.9% limit £9,500
Egg loan £9,914.49 apr 7.66% ends 4/11/2010
I pay £334.20 monthly for the loan
Anyway, that’s me for today (thank God I hear you cry! Lol).
Night, night
J
It’s very difficult to put down how embarrassing it is, my wonderful husband pays our mortgage, my car payments, my phone, utility bills etc and I pay what’s detailed in my SOA further down.
A month or so ago, I thought about sorting myself out as I’d been turned down for a credit card – I wanted to transfer one of my balances to it for 0%, I got credit reports from the main 3 as I’ve never missed a payment and try to pay more than the minimum whenever I can and naively wondered what the problem was (doh!). Anyway I didn’t do anything with it (slack aren’t I? I told you! ) but this week I watched Martin Lewis’ program on Channel 5 and was inspired again to do something about it. I trawled through his website and came across the personal loans section and followed the recommendation for mypersonalloan.com. I applied for £24,000, to cover my credit cards, over 5 years at £471.74 per month and waited. Needless to say this morning I got a phone call from a lady at Freedom Finance who said I’d been turned down by mypersonalloan.com but they were their ‘recommended brokers’ and she could help me. They have over 200 companies who would be willing to lend me money. She started asking about my husband’s details and I was uncomfortable giving them as I’d not asked his permission and I got the impression that all was not quite right somehow. Anyway to cut a long and boring story short I told her not to bother yet (she is going to ring me tomorrow though!). I could just see this spiralling out of control and really if I got one of their consolidated loans at an exorbitant rate it would take forever to pay back. I may very well pay less per month, but until I can learn to curb my spending I’d just bloody well spend the difference. No, I had to face up to the situation.
Lightbulb moment - I immediately got myself back on this website and followed a link for a snowball calculator. It was very enlightening. I put all my credit cards and loan into it and if I can pay off £1,000 per month instead of the £856.20 I’m currently paying they will be clear in 48 months; if I can manage an extra £100 it whittles off a further 7 months ! I feel so much better as I thought it was going to take at least 10 years to pay off all my debts. I forgot to put my overdraft into the snowball but I will go back and edit that.
One good thing came from doing the following SOA. I had to ring all my credit card companies to find out the apr, credit limits etc (never bothered with these before I’m ashamed to admit). I approached Sainsbury’s first and was shocked at the apr, I’m sure it was nowhere near that when I first took it out. Anyway I rang Halifax next and was told that there were 3 apr’s applied to my account 3.9% life balance for £3699.35 (Sainsbury’s credit card balance I moved last year), 29.99% for £223.40 cash and 23.53% for £7.806.44 purchases. No wonder I can’t get out of debt, I’m paying so much interest – I feel like such a fool at the minute. The lady I was speaking to was very understanding when I expressed my concern at the level of the interest rates. She put me through to another department, Customer Loyalty I think she said. I spoke to a very nice lady who cut my purchase apr to 19.9% and told me to call back in a few month’s time to see if there was any more room for movement (or something like that). I realise 19.9% is still quite high but it’s a damn sight better than 23.53%. She even explained to me about the lowest rate being paid off first and that the more expensive purchases are paid last and that this is always a problem for people with multiple rates on cards. She was extremely helpful, I now wish I’d bitten the bullet and rung sooner. Anyway tried it with Marbles when I rang them but was quite rudely told by their member of staff that ‘they don’t cut rates’. No matter what I said, she wouldn’t budge. I tried !
Hope you’re not asleep yet!
Anyway, here’s my SOA. I totted up my o/s credit cards, loan etc and they come to a staggering £36,413.74 :eek: . I really could cry, I had no idea how much I really owed, I just made the monthly payments and never bothered. I feel really depressed about it yet strangely liberated at the same time as at least I’m now facing up to the problem and I am going to tackle it.
SOA
Income
Monthly salary £1861.79
Child benefit £72.40
Total income £1,934.19
Outgoings
TV Licence £11.71
Council Tax £134.00
House Insurance £27.42
Car Insurance £38.76
Diesel £250.00
Food £250.00
School dinners £35.00
£746.89
Credit Card payments*
Last month’s total £522.00
Loan £334.20
£856.20
Total Outgoings £1,603.09
In theory I should have approx £300 spare but that goes on misc items like clothing, shoes, dentist, opticians, dog hair cut, lunches etc
*Details of credit cards, loan and overdraft:
Overdraft £2,406.11 Overdraft available of £3,000
Sainsburys visa £1,676.71 apr 24.93 % limit £9,000
Halifax mastercard £11,729.19 apr 19.9 % limit £13,800
Egg card £1,718.91 apr 17.9% limit £2,000
Marbles visa £8,968.33 apr 23.9% limit £9,500
Egg loan £9,914.49 apr 7.66% ends 4/11/2010
I pay £334.20 monthly for the loan
Anyway, that’s me for today (thank God I hear you cry! Lol).
Night, night
J
Debt Feb 2008 £36,413.74 - Estimated DFD July 2011:dance:
woohoo
_party_ £10 per day Feb challenge - £312.50/£210 
0
Comments
-
Hi Jules,
Welcome aboard and congratulations on taking the first steps to financial freedom. The one thing that sticks out for me is your food bill. If you pop over to the Old Style Board you'll pick up some fabulous ideas on eating cheaply. I've always spend £100 per week on shopping for me, DS whose 14 and DD whose 10. Have cut my shopping bill down to a lot less by meal planning and only buying what I need instead of what I fancy.
I'm sure some of the others will be along soon and offer some more practical advice to you0 -
Ive put down a few ideas but im not the best on card tarting!! The snowball calculator is a good idea but i also suggest you start a spending diary to see where you fritter away all your money. Im sure someone will be along soon with some great advice for you.
Anyway, here’s my SOA. I totted up my o/s credit cards, loan etc and they come to a staggering £36,413.74 :eek: . I really could cry, I had no idea how much I really owed, I just made the monthly payments and never bothered. I feel really depressed about it yet strangely liberated at the same time as at least I’m now facing up to the problem and I am going to tackle it.
SOA
Income
Monthly salary £1861.79
Child benefit £72.40
Total income £1,934.19
Outgoings
TV Licence £11.71
Council Tax £134.00 - ask to pay over 12 months instead of 10
House Insurance £27.42 - search for cheaper and use Quidco
Car Insurance £38.76 - as above
Diesel £250.00 - thats a lot!! Could you reduce this anyway?
Food £250.00 - pop over to the os board for advice on how to cut more off this. Im doing the grocery challenge and feeding 2 adults and 3 children inc. packed lunches for £200 a month
School dinners £35.00 - packed lunch?
£746.89
Credit Card payments*
Last month’s total £522.00
Loan £334.20
£856.20
Total Outgoings £1,603.09
In theory I should have approx £300 spare but that goes on misc items like clothing, shoes, dentist, opticians, dog hair cut, lunches etc
*Details of credit cards, loan and overdraft:
Overdraft £2,406.11 Overdraft available of £3,000
Sainsburys visa £1,676.71 apr 24.93 % limit £9,000
Halifax mastercard £11,729.19 apr 19.9 % limit £13,800
Egg card £1,718.91 apr 17.9% limit £2,000
Marbles visa £8,968.33 apr 23.9% limit £9,500
Egg loan £9,914.49 apr 7.66% ends 4/11/2010
I pay £334.20 monthly for the loan
Anyway, that’s me for today (thank God I hear you cry! Lol).
Night, night
J"With no money you start to discover your own inner resource" GK Chesterton2 adults, 3 children0 -
Hi Jules - and congratulations on the amount of progress you've already made on this:beer:
As you said, one of the problems is that there should be some slack in this but it is obviously being eaten up somehow. If you can get a good idea where exactly this is going, you'll be able to start making some real savings and get that 48 months down even further.
Start keeping a spending diary. Record every penny you spend, keep doing it for the next month, and suddenly things will start leaping out of the page at you. Then you can look at cheaper ways of doing those things and start having money left over to put towards the debts each month.
Regarding the Halifax card, are you sure that they reduced the interest rate for your existing balances, or just for new purchases? I suspect it might be the latter. In which case, you will carry on being charged 23.53%. Please don't spend any more on this card. Ever.
There's a very useful article about moving the balances around on your cards to make the most of cheap balance transfer rates. Have a read of that, and see if you can work out how best to move the money around to reduce your interest as far as possible.0 -
Hi Jules2000
Below is a link to the spending diary site, try ro keep a detailed diary of what you spend, it can be frightening, when you realise the cr*p you spend money on without knowing
http://www.spendingdiary.com/main.phplinkSparky0107 - Sealed pot challenge member #002. Total for SPC3 £1,030.57 Total For SPC 4 £2247.00 Total for SPC 5 £2574.62 :T Total for SPC 6 £4552.91:T
:rotfl:LC2 & Jakes-Mum are off their heads :rotfl
:j DEBT FREE AS OF 20/01/2012 :j0 -
hello
well done on posting. ur post so reminded me of me at my lightbulb moment-jan 30th last year !! similar level of debt n similar innocent ignorant oblivion (none-intended!!) where if you could buy it and pay it why worry??? i have a gr8 job that i love and have so much responsibility to the point of talking at national conferences but when i got my head out the sand realised id paid £9.99 a month insurance on a phone my son got rid of 4 YEARS EARLIER!! numpty !!! since then i am meticulous with my money-have rung and negoitiated down/cancelled everything possible.
feel empowered. but scared. dreading slipping.
good luck-guess trying for 0% would help, sadly no expert. pay the highest first-chuck it all at em then work ur way down. the most powerful thing i have seen and i repeat it often when in situations-its someones signature so THANKS U X XX " if u keep doing what you've always done you'll get what you've always got'" so its about doing it differrenty
be happy and healthy-they really are the 2 things that matter x all else is smoke and mirrors xeven god cant change the past-no matter how many times i cryfor levi, leo, smudge and arfa:A my angels0 -
What a very excellent first post - you're obviously determined rather than just wanting someone to come along with a magic wand.
I'm no expert by any means - but currently the best thing helping me to save money is the daily spend threads on this forum. Whenever I think of buying something it pops into my head that I'll have to confess when I get home to all the lovely Money Savers and it puts me right off. Some of the challenges can be very inspiring too if you're into that sort of thing.
Most importantly - good luck, and well done on not consolidating!
x0 -
Thanks everyone for your advice. I'll certainly try the spending diary. I can't think that anything can be as frightening as writing my SOA earlier - it was a real 'down to earth with a bump' moment.
Thanks for the suggestions about my SOA. I'll get in touch with the Council for next year as I'm just about to pay my 10th payment (I think). I didn't know you could spread the payments over 12 as they never mentioned it when I rang. With regards to my diesel costs, I work about 25 miles away from where I live and there are no direct public transport links (well, I could get a bus, then catch a train and then another bus but my 40 minute car journey would be quite a bit longer so I don't think I can do much about it. I'm certainly going to try to cut food costs - I'm totally ashamed to say that I am a bit of a food snob and I know how pathetic and wasteful it is. I always tend to buy the nicer packaged biscuits and the Tesco Finest things when I know it's all marketing - things are about to change! I also waste so much food - I have loads of fridge furniture that gets bought one week then chucked out the next (lettuce, tomatoes, cucumber, you know what I mean
) although I have tried to be better at that since New Year (one of my resolutions). I'm also trying to work my way through our chest freezer - obsessed with keeping it full, special bargains etc - I think this obsession stems back from my childhood when we were quite poor, I remember my mum going without food so that me and my sister were fed properly and saying that she was on a diet when it was obvious she didn't need to lose weight - we were just skint!
Tiglet - thanks for your advice about my Halifax card, I'm going to ring them in the morning to check. Should have known it was too easy!
Anyway I'm away to bed now. I hope I can sleep, I have so many things churning around in my head right now.
Thanks again everyone.
Best wishes
JDebt Feb 2008 £36,413.74 - Estimated DFD July 2011:dance:woohoo_party_ £10 per day Feb challenge - £312.50/£210
0 -
Hi Jules,
Good luck with your mission....it's not impossible!
With regards to food wastage, take a look at this site for some motivation:
http://www.lovefoodhatewaste.com/[interpreneur]0 -
MY DH is a bit of a snob when it comes to shopping - he doesnt like smartprice stuff or shops own brand - he reckons he can tell the difference. I reckon he can tell the difference only when he sees the pack cos hes been eating Asdas own cereal for ages and not known and he hasnt complained about SP biscuits when i put his custard creams in the tin and so on and so on;) . :rotfl:
Try the drop a brand challenge - somethings are vile so you go back to your usual one and some are fine so you stick with them. If you can pop into your supermarket later on bread is usually whoopsed and so is meat etc which can all be frozen.
After going on the OS board i have dusted off my slow cooker and im seriously considering buying a breadmaker as my family can demolish a loaf in next to no time. Shame you cant buy a milkmaker!! Hop over to thye OS board and join us in the grocery challenge - they are a friendly bunch and everyone always has some great food ideas to try out."With no money you start to discover your own inner resource" GK Chesterton2 adults, 3 children0 -
I'd love to pop over to the OS board but I can't find it ! Can someone point me in the right direction please :rotfl:
JulesDebt Feb 2008 £36,413.74 - Estimated DFD July 2011:dance:woohoo_party_ £10 per day Feb challenge - £312.50/£210
0
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