Hello - New DFW Here

Sammy_Girl

Hello all,

A frind recently directed me to MSE and I'm so glad she did. I have now come across these forums and have little idea of where to start. I have been reading lots of other DFW's posts and find them very interesting and motivating.

I'm hoping someone could help me through the abbreviations and wording used please! I have worked out DFW, MSE and LBM (Light Bulb Moment??) but that it about it! Also how do you guys add your running total to the end of your messages.

I guess I should give you my history. I bought my first house with my OH last year, and my LBM came when we realised that we were having trouble securing a mortgage because of my poor credit history. I always knew it was there but never really did anything serious about it. I was making some ad hoc payments but then some of my debts got referred to Debt Collection Agencies. Fortunately my OH has a squeaky clean credit history (he is far better with money than I am ) so we were able to secure a mortgage albeit at a slightly higher interest rate (although not as bad as today's offerings). The LBM came about as we entered into a 2 year fixed rate deal, and I did not want to have the same debts looming over me in 2 years time when we look to change our mortgage deal. I want to be able to get a better rate because ideally I won't have any other debt. My current debts as of today are as follows:

Loan and Credit Card - transferred to Cap Quest - £1438.88
Loan - transferred to First Revenue - £5942.06
Student Loan - £5742.68
Credit Card - £1896.27. Goodness knows whats the APR is.

Since May 2007 I have been paying monthly payments and have not missed a single one. Since November 2007 I have been cutting down my excessive spending and have used all of my excess income to make over payments. I know that the one that I should pay off first is the current credit card because of the interest rate but every time I pay some money off I just end up spending more on it! The Cap Quest will be paid off in the next 2 months, then that will free up more money to pay of the £5942.06 which will be paid off by December if I do not splurge on unnecessary items. I can then concentrate paying off the credit card by March which will then be in time for my next mortgage application. I appreciate that the defaults will still be on my credit file but at least I can say that I have paid them off. The only one that will still be outstanding is my student loan but apparently this does not show on the credit file, so I can take my time with that .

I am so angry with myself for letting this debt just drag on for 7 years now. I am finally on a decent wage and having all of my excess money go to paying off debts does bring me down. But I just have to keep positive and hope that my will power stays and I can have the majority paid off by this time next year.

I am sorry for writing such along post, but I have found it very therapeutic. None of my friends or family know the extent of my debt as I am so ashamed. The only person who knows the full story is my OH who is very supportive. I contribute £450 a month towards mortgage and household bills and he pays all the rest, plus any luxuries. I am very lucky to have him :A . Thank you for taking the time to read this. I know that you are all a very supportive bunch.

pippo

Hi Sammy, and welcome - you've done the best thing coming on here for advice. The experts will be along soon!

You're right about the credit card.. pay the highest interst off first - try the snowball calculator.

You perhaps need to cut up that card, or at least put it in a bag of water then freeze it - then you can't just buy on impulse. By the time it thaws you will really have decided if you just want or really need whatever it is.

Good luck,
You are on the right track
Pip

Cleosmum

Cut up that bloomin card!!!

Sammy_Girl

Thanks Pippo and Cleosmum. Common sense tells me to cut it up, but I can't bring myself to do it!! I keep thinking that I may need it for an emergency. For example, what if my bolier breaks down and I need to pay to get it fixed and I don't have any spare cash in the bank as it's all tied up in Direct Debits that pays off my debts the first week of every month!! I'm a bit of a worrier me. I feel nervous if I don't have the back up of a bit of cash. I'm awful I know :eek:

Little_Miss_Winner

Hiya.

Welcome to mse... You need to do a soa (statement of affairs) or incomings v outgoings.

I know you said you pay £450 to Oh each month and he deals with bills.. But what else do you spend your wages on?

Include your incomings, and then every outgoing.... nites out, makeup, toiletries, haircuts, dining out? beer? cigs? car? mobiles? fuel etc...etc...

I am sure we will be able to help you find loads more money to throw at your debts each month.

Good Luck!!

Sammy_Girl

Hi pot'o'gold,

Since Jan this year my outgoings have been strictly debts. My breakdown is as follows:

Monthly Salary - £1850
Contribution to mortage and utilities - £450
Student Loan - £134
Loan - £719
Loan - £203
Current Credit Card - £250
Payment to parents for loan - £75
Mobile broadband for laptop (but claimed back from work) - £15

My bank statement is now very short these days. Can't remember the last time I used my debit card!! My OH pays for all food, clothes, luxuries etc. I feel awful that I have to rely on my OH to pay for everything else. I am determined to use all my own money to pay off my debts as they are my debts and not his, but equally I don't like having to ask him for money to go for a drink with friends. I just need to be strong

Thanks for the help

**Amy**

Hi and Welcome.

Congrats on your LBM!! :j

Deffo need to do a SOA (statement of affairs), there is a sticky thread at the top of this forum for you to look at.

That way the fab guys on here can suggest where you can (if possible) cut down on spending.

You deffo need to get rid of that credit card. My excuse with mine was, what if something goes wrong/happens and i need it. So i didnt cut it up, i froze it as suggested on here! It means that if i do need something in an emergency all it will take is a couple of hours to defrost.

As for the running totals in our signature, you go to User CP at the top and then Edit Signature. It can only be 5 lines long though.

xxx

Cleosmum

Sammy_Girl wrote: »

Thanks Pippo and Cleosmum. Common sense tells me to cut it up, but I can't bring myself to do it!! I keep thinking that I may need it for an emergency. For example, what if my bolier breaks down and I need to pay to get it fixed and I don't have any spare cash in the bank as it's all tied up in Direct Debits that pays off my debts the first week of every month!! I'm a bit of a worrier me. I feel nervous if I don't have the back up of a bit of cash. I'm awful I know :eek:

Would the boiler be covered under buildings or contents insurance? Would OH not have enough of a cushion to cope with emergencies?

I know about worrying, I do it for britain, and when I came here I was undecided about cutting up my storecard. I had this mad idea that I could use it to pay for the groceries each week and clear it all each month. But I know me, and it wouldnt have happened, so I have cut it up and paid lots off it, when its clear I will close it. What you need to remember is that you dont have the back up of cash, not really, so clear it asap and start saving for emergencies then.

oopalah

Hi Sammy_Girl, Welcome to MSE. You'll find loads of support on here.
If you're having trouble controlling your spending on the CCs, why don't you keep a spending diary. It hits home when you see in black and white how much you're spending each day, week or month on really unnecessary things.
It worked for me and I no longer spend on my credit cards. If I haven't got the cash I don't buy it. Of course, I've still got my cards (some of them) but just for real emergencies.
Anyway, good luck!

Sammy_Girl

Hi Oopalah,

The spending diary sounds like a great idea. Lunchtimes at work always used to be my downfall as I would always go to the High Street and buy something from M&S or New Look etc just to cheer me up. That would always be £20 or so frittered away. Because all of my income goes on my debt, I don't take my debit card out with me because I know all of the funds are taken by direct Debits and I don't want to get into my overdraft. My OH gives me £10 a day to buy my lunch and pay my £5 a day for parking. Now I go straight to the sandwich shop and straight back to work so that I am not tempted with my credit card! I like the idea of freezing the credit card in a bowl of water in the freezer so that if I need it in an emergency I can thaw it out!!

I've been reading other DFW posts and feel guilty as my situation is not half as bad as what they are going through. The reason I have cc and loan debt is through my own stupidity.

Thank you for your encouragement

TurnaroundSue

Hi Sammy and welcome to the boards!:hello:

Could I suggest that instead of freezing your card you give to to your OH! That way you could only use it in an emergency and if it really wasn't an emergency you either a) wouldn't want to ask him for it or b) he would talk you into not using it. I feel that if it is frozen and you really are having a bad day, then it can still be defrosted quickly and nobody would be any the wiser (except you of course!!)

Also could you take your lunch to work instead of just buying it from the shop. £5 per day is quite a lot to spend on lunch and you could either save it and then treat yourself to something you really want, or use this to pay towards your debts which would help your DFD (sorry, that means debt free date).

Is there anywhere you could park which isn't so expensive. Maybe it might mean a little bit of a walk, but if it would save you money and that would help and you would get some exercise which would be a bonus. :T Just working it out roughly - the £10 per day your OH gives to you over a year (taking into account 4 weeks holiday and assuming you work 5 days per week), equates to £2400 per year :eek: .

This could easily reduce your debt dramatically or you could have a lovely holiday for that!!

Good luck on your debt free journey:D