Starting Again

Skint_but_Optimistic · 10 May 2011 at 2:32PM

Ive not done badly with reducing my debt. Ive lived within my means for a year, had maternity leave and I have reduced my debt by over 30000. However, Ive not done well enough, and I waste money.

Wasting money is so easy. Its a packet of crisps from the work canteen at 48p, when a packet in a multi pack works out at 22p. Its getting a Christmas present for a cousin for £25 when you budgeted £20. I need a kick up the backside, support and a bit of advice.

I work full time and I have three children. I have a full range of ages... one is 22 and finishing her degree, about to move in with the boyfriend, one is 11 and about to start secondary school, and the youngest is 1 and about to make a mess normally. I am married and we live in a rented house. We also have a house which was awarded to me as a divorce final settlement (10 years after the fact) which we are renovating, and thats both an art and a financial juggling act. We will need to move in there and consolidate and stop wasting £350 a month on rent when we are also paying a mortgage. At the moment we cant live in the house, its only just been rewired and needs a little more fixing up. We are on course to have part of the mortgage released from retention. The 10000 will be put towards repaying debt - hoping to secure decent settlement figures....

I am starting again and keeping a diary on here. I am going to give myself some targets and try and check in regularly, during my break at work. Im going to sit and do the snowball calculator using what I can use now. I sell all my kids old clothes on ebay. In fact I sell anything on ebay! I just need to get a grip, some form of control, and get sorted! I shall check in tomorrow!

Tixy · 10 May 2011 at 2:46PM

Thats a fantastic amount of money to have paid off in a year, especially with having your little one and maternity as well.

I know what you mean about wasting money and always feeling like you could do better but at the same time I think you should congratulate yourself for what you have achieved.

Have you set yourself a deadline for when you want to move into the house? maybe that would be a good idea to give yourself a date to work towards (or work backwards from). How long notice do you have to give on the rented place? or is there a break point coming up which you could use as a target date?

worried1969 · 11 May 2011 at 7:07AM

Well done on reducing so much debt already, i've just started on my DMP with 32K to clear a long road ahead of me. Like you have been selling lots on ebay it's surprising what money can be made with things.

Good luck with everything

Skint_but_Optimistic · 13 May 2011 at 1:01PM

Thanks both for that. I tend to concentrate on whats "to do" not what I have done. yes Tixy, we aim to be moving into the house by 30th June. I can then pay one lot of bills and basically use that additional money to clear more debts, and make some savings. Its nice to have money to fall back on, and as my fuel pump went on the car this week we were over the moon we had a small contingency fund. That now needs topping up! Worried I can completely empathise. The amount of money is absolutely terrifying. You feel like you are choking on sand with debt. I dont feel Ican use the snowball calculatlor effectively til Im paying just one lot of council tax and one lot of electric etc. Ive done it as a guide and will follow the paying off the most interest rule, but I will park that for now!!

Ive just made an offer to clear an 8000 debt, with 3500. I can borrow that interest free from family, and repay it when I move over an easy term. As im moving soon its not going to be an issue. At the moment they might accept it as I did an income and expenditure illustration and its all fairly tight while we are running 2 houses. Heres hoping. Ive also written to the bank complaining they kicked me when I was down with charges. Chancing my arm for a goodwill gesture!! Keep plugging away... Will treat myself to a half price bottle of wine. :-)

Skint_but_Optimistic · 14 May 2011 at 10:40AM

Paid some more bills, theres £62 paid off my Amex and Ive paid 90 from vanquis, I wont count the vanquis as I am using it to rebuild my credit rating so spend on it and settle as an ongoing thing and in full at at the end of the month. Ive got capital one to pay next week, but that will be completely settled and Ive got a tiny credit limit, again its just a tool.

Am wondering about making bigger one off payments to bring debt down... or whether its wise to try and make a pot to settle things in ful and maybe get offered a settlement figurel? Or halfy half? Ive a welcome loan (I know, stupid) and its got a 2600 balance. They have told me they arent offering any discounts for early settlement. Its got incurring any interest as I managed to negotiate that, but hey. Just wanted to try and get some sorted.

Lloyds have got back to me and they are sorting the disputed PPI payment, which is good news. They also offered a 50% settlement figure. Thats a 13k debt, they havent sent the calculation for the PPi through yet but Im hoping it drops by at least 3k, so that would make a 5k settlement, which is going to be manageable once we move we will be able to save an additional 500 a month.

Ive a paragon loan too, balance at 8k, and Im asking for a figure for that. I have told everyone I may not be in a position to proceed immediately, but I need an idea of what to aim for and then amke an approximate offer. Need the monkeys off my back!

Photographed 22 lots for ebay last night. Im having an ebay weekend. Joined the decluttering group and Im hoping that generates some more possible sales, so far its just filled the bin and recycling, haha. What a load of rubbish we hoard!

Skint_but_Optimistic · 15 May 2011 at 8:17PM

Whoo did another ebay day, got 34 lots listed, loads of baby clothes and kids clothes and tops I was optimistically hanging on to. Im not going to be a size 6 or 8 again. Have done lots of bundles so should be good!. Looking optimistically at the coming week. Hoping the surveyor can get out soon and get the house retention lifted (waiting for call from them) and do the final work and settle some more debts. Want the settlement figures through. Will sort through some books to put on Green Metropolis this weekend. Continue to do ebay at a rate of four a day to clear this clutter next to the pc! Aims this week, 2 no spend days and start a £2 pot. Go me!! DD has found things like hiking boots so I can sell them too. I used to find myself worrying about the debts so much until I started doing this diary... its a bit like talking to myself but its therapy.

Skint_but_Optimistic · 16 May 2011 at 10:45PM

Managed to iron photograph another 6 lots for ebay and list a couple.! Didn't have much time but plugging away. X

Skint_but_Optimistic · 17 May 2011 at 9:24AM

Im really looking forward to payday. Not in the sense of "ooh I can get new shoes" but "ooh I can pay more bills" im looking forward to the target coming down even by a bit. Its addictive.

I made another ebay sale and now intend to save my ebay sale money!! No longer will it be used to prop up my salary, she says optimistically....

jonjamie1970 · 17 May 2011 at 9:40AM

Keep going ! Its addictive, your right, that debt will be dropping and every £1 that you throw at it means less interest and you will be snowballing even faster.

Skint_but_Optimistic · 17 May 2011 at 4:00PM

Oh i really hope so. Im optimistic the Lloyds PPi will come through soon, and am hopeful of a decent amount, over 2000 plus interest....
Un the upside that will reduce my loan by 2000+ and as they offered me a 50% settlement Im hoping to fully clear that one once the mortgage retention money is through.... speaking of which, there has been no contact from the valuers, so I have had to ring them up today, a week has passed and the halifax have not instructed them.... what??? so the other half now has to ring the halifax... this is dragging on and on.... more later!

Skint_but_Optimistic · 18 May 2011 at 12:19PM

Well we have had another productive few hours. OH had some money left over so we put that against the credit card. Another step... I was quite excited to discover a compound interest calculator. If Lloyds are paying out the 8% interest on top of the PPI this will be about 4.5k off my debts!

How wonderfully exciting!! Right now I am focussing on it being the basic 2000 they will offer, still fabulous!!

OH rang the Halifax, and they are now instructing the valuers. Apparently. This is the second time they have been doing this! Im wondering about the money I make off ebay, how best ot use it. I had thought intially treat money only, but now I am pondering using 50% in a savings pot and 50% as treat money. I just am clamouring for a little security, perhaps a small maturing bond of £100 every six months would be nice moving forwards, all from what I would have spent for a day in a theme park, additional to the treats we have already budgeted for.

Hmm food for thought.

Starting Again

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