I can't stop spending - Updated with SOA

EmptyPurse

I'm not on a 0% deal but do have fixed interest rates for the transfers. If I put anything new on the card then it goes on at +18% and won't get paid off until I've paid the original balance off in full. That won't be for quite a long time, so I figured that it would be cheaper to put some modest savings aside rather than put stuff on the cards at 18% interest for the next year or two. Does that make sense or am I being illogical? (again!)

pollyanna24

Re the gym. Make up an excuse to get you out of it. I told my gym that I was moving 60 miles away and there was nothing I could do about it and I needed to cancel. Didn't give them an option. Just cancelled the dd and they didn't do anything about it.

If you are joined to a gym where there are loads of branches, tell them you are pregnant (obv only works if you are female) and you don't feel that you would be getting the full benefit of the gym. Or make up some other medical reason you can't use the gym and just cancel the dd.

EmptyPurse

albertross wrote: »

Where does the £75 come from to save, your overdraft? What is the OD rate/charges, and the rates on the cards?

Ummmmmm. I don't know This might explain why I'm in such a pickle in the first place. I don't actually know what rates I'm paying for the OD or the exact rates on my cards (have done a couple of transfers at different times for different rates and can never understand the statements).

Think I'd better have a look at my debts this evening and figure out what's going on. If I can't work it out from the statements, presumably the banks will be able to tell me if I ring up and request the information?

EmptyPurse

Well, first shock of the day. I've just looked at my online credit card and I'm paying £70 in interest alone per month on that card :eek: I thought I was on some kind of fixed rate but it seems not. Anyway, I couldn't figure out what the rate is so I've asked them to let me know. Will check my bank statements and other cards this evening. Is there any way that I can get the interest payments down a bit?

If I cut out my emergency savings (£50), reduce the grocery bill by £50, switch to a PAYG phone at £10 per month and cancel the art mag I'll save £129. That brings me back under my monthly income and would give me an extra £62 to chuck at the cards each month as well. I guess it's a start - but it's going to take an awfully long time to pay things off.

cat4772

EmptyPurse

Forgive me if I'm wrong, but it comes across as you see yourself as having a debt problem rather than a crisis. We can live with a debt problem (yes, your debt is getting worse each month, but you're surviving, making minimum payments, and you have savings so it can't all be bad can it? In acknowledging your debt to be a problem, yes you've made an attempt to fix it and get your finanes in order, but you don't see it as serious so you don't have to stick with it.

Debt crisis on the other hand is scary, knowing that you'll have difficulty making the minimum payments to things and being chased for payments you can't afford to make. But you're not in debt crisis so you can afford to be wishy washy and half-hearted about it.

Basically, you need to be committed to becoming debt free; it's hard work and unless you win the lottery or someone dies and leaves you the money you're the one who has to do it! Sadly there isn't fairy godmother to wave her magic wand and make the nasty debt go away. If there was, she'll have died of overwork a long time ago:p

Cat.x

EmptyPurse

cat4772 wrote: »

EmptyPurse

Forgive me if I'm wrong, but it comes across as you see yourself as having a debt problem rather than a crisis. We can live with a debt problem (yes, your debt is getting worse each month, but you're surviving, making minimum payments, and you have savings so it can't all be bad can it? In acknowledging your debt to be a problem, yes you've made an attempt to fix it and get your finanes in order, but you don't see it as serious so you don't have to stick with it.

Debt crisis on the other hand is scary, knowing that you'll have difficulty making the minimum payments to things and being chased for payments you can't afford to make. But you're not in debt crisis so you can afford to be wishy washy and half-hearted about it.

Basically, you need to be committed to becoming debt free; it's hard work and unless you win the lottery or someone dies and leaves you the money you're the one who has to do it! Sadly there isn't fairy godmother to wave her magic wand and make the nasty debt go away. If there was, she'll have died of overwork a long time ago:p

Cat.x

Wow. I think you've summed up the problem in a nutshell. I really, really don't want to get to the crisis point but because I'm not actually there yet I'm still really wishy washy and half-hearted about my efforts. I manage to keep things up for a month or two and then slip back into my old ways because I'm miserable and it would take a hell of a lot of hard work to really address the problem. Somehow I need to find the key to changing my mindset - I don't need a magic wand to make the debt go away, just a magic wand to make me get off my butt long term and start being sensible for a change

cat4772

Oh WOW did I come across as I bit bolsy there:o? If I did I really didn't mean to - my only excuse is I've got backache and I'm a little less than tactful at the moment!

I suppose it would really help if you knew a) how much you owed and b) what the APRs are. Then you could visit whatsthecost-dot-com and see what your debt free date would be. I'm sure there could be a big debate about this, but I have two snowball calculations - my original with the minimum repayments and original DFD and then I have my target snowball calculation that shows how overpaying here and there is reducing my debt faster and bringing forward my DFD.

This is the comittment bit - because I want my debt to be gone by December 2009, I do the challenges (weekly spends & monthly grocery etc to help keep our spending under control. It helps that I meal plan and after throwing some things out of my fridge, my next big challenge will be to ensure that I use everything I buy - otherwise I'm just throwing my money away).

There's a theory about moving towards something (a positive goal) it gets bigger and there's more to aim for versus moving away from something (debt) cos as it gets smaller it gets less scary and we dont have to be as vigilant.

So - how can we (by this I mean you) change your mindset?

I surmise from your SOA you like art (or art history - how about saving up for a trip to visit three big art galleries within 4 months of paying off your debts)?

Cat.x

tallyhoh

Your rent seems a bit stiff but I suppose it depends where you live? Any chance of a cheaper place or a lodger?:p

Deep_In_Debt

Re mobile phone. I bought a fairly cheap PAYG in Tesco's a couple of years ago. It's not top of the range but it does what I need it to do. I only use it for texting and emergencies so £10.00 lasts me about 3 months, sometimes longer. I actually saved up my Clubcard vouchers to buy it so it cost me nothing!

Daz1

BT line rental at £4 a month (£11-75 per quarter)? I pay 11-75 per month!!! Are you sure this is right cause if it is I want your package?