Newbie saying hello...

Frugal_Fox

Its been over 12 months since I last updated and I really thought I ought to do it!!

We still make occassional errors - but I can not get over how far we have travelled in such a short time. I found MSE in May 2005 - when our debts were at their highest (£26,000). Through following Martins tips we managed to reduce this to £18,000. Then we hit rock bottom. We'd adopted two children and we'd anticipated that I would return to work - albeit part time after they had been with us a year. Financialy we could do this to. However the year passed and the children certainly were NOT ready for me to go back to work. Our savings for that year had run out. We were going to sell our house. Then with support from the wonderful people on here helped us see past where we were.

Since my last post in Feb 06 we have managed to clear a further £8,000 from our debt. £2,500 was from a reclaim in bank charges and the rest has come from frugal living! Finances still aren't great! However each month it moves in the right direction and we've now less than 2 years to go till we hit our Debt Free Day :j . When we first started our Debt Free Day was some time in 2011 !!!

I tried returning to work last October on a part time basis - doing 12 hours a week. The children did not cope with it very well - it made them nervous and insecure, so I stopped. Their security has to be paramount. I've advertised my services as an 'ironing lady' and already have one regular customer who generates £15/week - not masses, but its something. I've got a jar on my desk for all those bits of loose change that stuff my purse, and I've started the Pin Money Challenge from the OS board.

Unfortunately we hit a really bad time last August when DH was paid late, and we were stuffed by loads of failed DD's, cheques and SO. Yes - in hindsight I shouldn't have set these to come out the day after payday... did not give me enough time to cancel them when I realised there was a problem, however the bank wouldn't let us (Halifax - named & shamed!!!) extend the overdraft to prevent the bank charges, nor would they accept my proposal to spread the bank charges over 3 months, so that bad weekend cost us over £1200 in bank charges... Pity they did this, I've just filed a claim to claim them back now - plus the years previous, which shamefully adds up to £4300 . I guess that says how bad we let our finances get. All being well and this is returned to us, it'll bring our debt down massively. Anyway, the upshot of that bad weekend is that we then started a DMP in October with CCCS, we'd tried to cope, but failed. Things looked very bleak again.

The holiday in 2008 has been postponed till 2009 - nothing had been booked, so no money wasted there. Bit of a shame though as 2008 is our 10th wedding anniversary year, and it would have been great to have celebrated being debt free in Australia !

We are so much better off - not necessarily financially, but we know our means and we live within them... even managing a weekend at Alton Towers, including a stay overnight and yes, I'm sure the money would have been better spent on a debt, but... it wasn't paid for on CREDIT.... I'd saved and saved - which is a first!!! We're also going to Spain in July - how frivolous... except the flights have been paid for by my mum, and we are staying with family out there (well sisters boyfriends family!), and its taken the place of our weeks camping in the UK. Dog is being 'kennelled' by a lovely friend who isn't going to charge, and she's going to check in on our cats... of which there are now 3, having inherited one last year :rolleyes:

Thank you so much to all those who have helped me over the last 2 years. You're all fab!

Here's to the next update - whenever that may be!!! :beer:

lynzpower

keep on going frugal fox.

Im pleased you wrote this as I didnt know you were debt busting! I admittedly hadnt noticed your sig before :rolleyes:

Frugal_Fox

Thanks lynzpower....

Yes the debt does keep getting chipped away. I did have a longer sig, but got blasted about it on another board.... yes I know I should not have strayed away.... So I shortened it. I was debating whether to increase it tonight, to keep me more focused.... I think I will - but it'll have to be another day as I have a Quaker meeting tonight... Tried Mystery Shopping for an additional income - but there aren't many opportunities where I am, so I've visited the OS boards to try to reduce my expenditure so I can decrease the debt faster!!

Frugal_Fox

I can't believe it hasn't yet been a year since I last posted here, when I thought we were over 2 years away from our DFD. That day came early. Yesterday we paid off our final creditors and are now debt free!!!

We'd really wanted to achieve this for this year as we'll have been married for 10 years later this summer and we've managed to spend those years either in debt or drastically trying to get out of it! I'm so so so looking forward to our next 10 years together being more financially stable.

I received a small inheritance last year which I put against our debt to reduce it. Theres no point in me having the money and 'buying' things when we had creditors that were owed money. I'll put some savings by each month now and build that inheritance back and enjoy it!

We never managed to reclaim our bank charges from the Halifax - it all got held up in 'that' High Court action. Its not forgotton about though, and I'm watching to see what will happen. After all its about £4,000 that we paid. Yes, we really let our finances slip.

We've a number of things we've had our eye on - a holiday, a new bathroom etc, but we're really looking forward to saving for these first and then buying them. We looked at a set of drums for our son yesterday and were offered interest free credit which we turned down! Yes it was interest free - but I want to have the money BEFORE I get anything now. Our mindset has completely turned around. I'm confident that I can be Frugal when I need to be and that I won't ever return here (thats being in debt - not here on the boards!). Life feels very good for the first time in many years.

Its been a hard struggle, but so so worth it. Now I just need to start saving...

Thanks for all your help and support, and good luck to those on your own journeys. You will get there. Take it steady, set achievable goals. Be realistic in your budgeting and accept that this is for the long haul - but that a little cut back now brings financial freedom and a smile that is soooooo big!

setmefree2

Well done FF:T:T:T:T

hypno06

Fab news :T

elantan

well done ff will look forward to you joining in the mfw newbies in a couple of months

jessicad_2

Hi Frugal

I can't really any practical advice I'm afraid, but I wanted to add that it seems that you have spent a lot of time working through what options you have and what will work for you and it sounds as if you are thinking hard about the right course of action so just wanted to wish you luck really.


But also your post has led me to question - why are we so keen to hang onto the bricks and mortar that we own?? I appreciate that the property ladder could be more difficult to get back onto in the future, but you are basically doing what some people do between selling one home and buying another to get better deal - known as chain breakers I think? Am I right in thinking that you are moving into rented accommodation, to pay off debts but you will also have £23k equity which you will put into savings account and then add to it so by the time you come to buy again you will still have a deposit which should have grown, you will be debt free and by that point when things are more settled you could be in improved circumstances job wise and so able to get a better mortgage deal than you can now??

If my understanding is correct this sounds like a sensible option to me, if it allows you the change to get back on your feet, free up some income to be more comfortable financially and you can also save towards having a better mortgage then what's the problem?

I'm not being flippant about this as I realise that you may find it harder to sell your house in this climate, also that renting can be seen as dead money, etc but perhaps this is a better solution than the alternatives.

Whatever you decide I do wish you lots of luck and happiness

andan

Well done FF, thats fab news, i love reading stories like yours, it makes me feel all inspired. Can't believe you've managed to pay your debt off so quickly, don't forget to have a nice glass of wine to celebrate.:beer:

kizzykizzywizzy

Well done FF :j :j

I feel the same about credit as you - interest free or not, I will save for anything I buy.
Good luck & wishing you & your family joy & happiness:D