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Spend Nowt, Buy Nowt, Owe Nowt

edited 30 November -1 at 1:00AM in Debt Free Diaries
1.4K replies 147.1K views
XSpenderXSpender Forumite
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edited 30 November -1 at 1:00AM in Debt Free Diaries
How do I start what feels like yet another diary?

After being on the MFW board I have come back to the DFW board to shift the debt we have run up in the last 12 months.

A quick back story….DH and I are classic impulsive over spenders who went pop back in late 2008 and managed to climb out of the pit of debt we were in by me losing my job and a big redundancy pay out in early 2010. We avoided debt until 12 months ago when we found our dream house about 4 months before we had planned to start looking which we could afford but were short on the deposit. If we had only ended up borrowing the bit we needed to top up the deposit we would be have been debt free by now. :mad:

We have run up debt on buying the house, having some work done in the house and some furniture and soft furnishings and impulsive spending on holidays, meals out and the odd high ticket item. We thought we were past making these kinds of stupid decisions and are both worried and angry with ourselves at the level of debt we are in once again.

The one thing we are agreed on is that we will live on fresh air to keep this house and we need to sort our finances out to give us the security that this could never happen. One day I will get to be a MFW again!

To make matters worse 6 months after we moved DH has had some issues at work and has taken a job (same company) at a different location which has resulted in a reduction in the bonus he is paid monthly effectively reducing his monthly take home pay and his travel costs have gone up significantly. It hasn’t done much to reduce his stress levels either!

Worrying about money and our financial security has started to get to me and I don’t want to feel like that again, I thought I had left that behind in 2010. It makes me worry about losing my job and I then start to doubt my ability to do my job. I also worry it will impact on our ability to re-mortgage at a good rate in 12 months’ time.

I manage the finances but DH has (finally) got on board and has been writing his own plan about how we can stop spending and stop buying so we can owe nowt. Our good friends are also pulling in the purse strings as they have a family holiday to pay for so we have agreed to entertain each other at home rather than go out for meals with the kids which we did at least twice a month.

Current Debts

Bank of Mum and Dad - £4336.66 (17 payments left)
Bank Loan - £12,114.51 (49 payments left)
Bank CC - £9019.51 (1% payment to come off for May) – all at 0%
DH CC - £5500 approx. – all at 0% until August
My CC – £5782.31 – mostly 0% but some spending at standard rate
BNPL – £400 – due 21st December 2017
Owed to DS – £1296.79 – 0%
Balance of trip to New York - £1098 due October 2017

TOTAL £39,547.78

Our plan is to drastically cut our spending and cancel the trip to New York for a start. There is not much we can do about our bills until June/July when they will all be up for renewal and I will hit the comparison sites. It is our spending on food and booze and stuff that needs to be reigned in hence the title of this diary.

If we can stop adding to the debt by paying the minimum payments each month as well as clearing the BNPL we will knock £6000 off the balance by the end of this year. My goal is to be under £30,000 owed by the end of the year and then have cleared all CCs by June 2018 which is a massive challenge. We both get performance related bonuses, DH quarterly and me twice a year but none of these are guaranteed.

Wish us luck and control over our spending urges.
PAYDBX 2020 £6,923.64/£10,000 69%
Target CC - £999/£1030 SIF by Dec 2020
Target Loan - £422.94/£493.43 by Nov 2020
Big Emergency Fund Part 1 by 31.12.20 - 37.5%

Days since CC used - Christmas Eve 2019 - 224 (7 in 2019 + 2020)
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Replies

  • edited 4 May 2017 at 11:53AM
    lessonlearnedlessonlearned Forumite
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    edited 4 May 2017 at 11:53AM
    Good luck, you can do it.

    Hang onto your dream house, it will be well worth the sacrifices.

    I am just embarking on an extreme frugal living challenge too because I am searching for my dream house.

    I think it's easier to stay to stay focussed if you have a specific goal.

    You've set your targets - just go for it hell for leather. You'll get there.

    And so will I;)

    Ps I've decided to cancel a planned holiday too. I am going away next week but will cancel the October one. I don't NEED two holidays in a year........lol.
  • edited 4 May 2017 at 8:50PM
    XSpenderXSpender Forumite
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    edited 4 May 2017 at 8:50PM
    Hi lessonlearned. Thank you for your words of encouragement. Good luck with the search for your dream house. We discounted this house due to it being at the top of our budget and offered on somewhere else but when that sale never progressed and nothing else was coming on the market we decided we might as well have a look at this one and that was it, we fell in love with it immediately!

    Bought nowt today and made some risotto for dinner using some parmesan with a mouldy rind and some OOD sundried tomatoes but it was tasty and hopefully we will wake up tomorrow :eek:

    Spent a whole £1 today as the tooth fairy will be visiting DS tonight ;)

    Spending tomorrow on:
    1. GF flour as Mr T didn't seem to have any for my online order today
    2. Birthday cake for DS
    3. Birthday card and wrapping paper for DS
    4. Couple of small gifts for DS birthday
    5. Mr T delivery

    DH bought DS a big number balloon a couple of weeks ago from Mr A so I will need to go back there as it can be blown up for free ready for his birthday.

    Submitted meter readings today and went from being £1000 in credit to £85 behind in the blink of an eye :( This is a big, old, poorly insulated house with an old and inefficient heating system. Replacing the boiler and insulating the roof are on our (massive) to do list.

    I remembered that I will get 2 Child Benefits in this pay month so have adjusted YNAB to take this into consideration. I am hoping to pay another £50 off the Argos BNPL this month. :) Once this has been cleared I am going to tackle my V1rgin CC as most of the debt is in my name. Not that it matters as all our finances are joint anyway.

    Also, DFIL has finished painting the fence and there is a tub and fence brush unused which I will take back at the weekend which should be £21 credit to the V1rgin CC.
    PAYDBX 2020 £6,923.64/£10,000 69%
    Target CC - £999/£1030 SIF by Dec 2020
    Target Loan - £422.94/£493.43 by Nov 2020
    Big Emergency Fund Part 1 by 31.12.20 - 37.5%

    Days since CC used - Christmas Eve 2019 - 224 (7 in 2019 + 2020)
  • BobarellaBobarella Forumite
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    Savvy Shopper! I've been Money Tipped!
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    Hi XSpender

    Nice to see another Turtle diary here. I will be cheering you on of course!

    Bob
    " Your vibe attracts your tribe":D

    Debt neutral :) 27/03/17 from £40k:eek: in the hole 2012.
    Roadkill 17 £56.58 2016-£62.28 2015- £84.20)
    RYSAW17 £1900 2016 £2,535.16 2015 £1027.20
  • hex2hex2 Forumite
    4.7K posts
    HI XSpender - another one bookmarking and cheering you on.

    We fell in love and bought a needs work at top end of budget house too. A curious mixture of pain and joy!
    'If you have a garden and a library, you have everything you need' Marcus Tullius Cicero
  • XSpenderXSpender Forumite
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    Hi Bob and hex2! All cheers gratefully received.:)

    Struggling with the hay fever fog today and feel like a sloth with earache wading through treacle. Must drink more water.

    Mr T order received and baking bits and party rings bought from Mr A comes to £67.17 spent on food and some beers for DH today. Not bad as a lot of crisps and cakes in there for the party tea. I still need to get DS a cake as Mr A didn’t have the exact one he wanted. I have to pick up his last birthday gift from Arg0s in Sains later so will get it from there hopefully, I don’t fancy having to visit another supermarket today!

    I picked up the last couple of gifts for DS and have come in just 97p over his birthday present budget.:D

    I have been playing with the snowball calculator today as DH suggested this morning he took out a loan to clear the CCs. I wasn’t keen as the payment will be more than we pay out now and I didn’t think we would be debt free any quicker. The snowball confirms it isn’t a good idea and would push out our DFD significantly. Our DFD is May 2021 if we pay £60 a month on top of our existing FCPs and Aug 2020 if we pay my next 3 annual bonus off our debt too. This is also subject to being able to get 0% balance transfers for the existing 0% cards, 2 of which are up this summer!

    Some positives since my light bulb turned back on this week:

    All clothes have been dried on line and I haven’t used the TD at all (they smell so much nicer too)

    Turned the heating off

    We haven’t done any nipping (as in nipping to the shop for something and spending £28! Why is it always £28??)

    DH has not bought any more beer (probably why we haven’t been nipping)

    Meal planned and stuck to it although it’s a bit warm for pork cassoulet tonight

    Got up early to make DH his lunch and coffee every morning (10 to 6 this morning!):eek:

    Had friends for lunch instead of all going to a restaurant and we all had a much lovelier time too :)

    Worked out our DFD :think:

    Will dispose of our own (massive pile) of garden waste rather than pay £200 for someone else to do it

    Agreed with DH that CCs are the work of the devil and we can’t be trusted with them so we are never using them again :mad:

    Found out I can get land of leg0 tickets for 50% off and possibly even for nowt through work as DS decided he would rather go there than have a party

    Have started to think about our first set of milestones in becoming debt free and will discuss and agree them with DH over the weekend
    PAYDBX 2020 £6,923.64/£10,000 69%
    Target CC - £999/£1030 SIF by Dec 2020
    Target Loan - £422.94/£493.43 by Nov 2020
    Big Emergency Fund Part 1 by 31.12.20 - 37.5%

    Days since CC used - Christmas Eve 2019 - 224 (7 in 2019 + 2020)
  • lessonlearnedlessonlearned Forumite
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    Good progress Xspender. You have definitely got your thinking head on.

    Final visit to the dentist today - have paid out £370 in dentists fees this month. Hey ho it had to be done. Fingers crossed that's it for now.

    Have just taken out new health cover so at least the next lot of treatment will be covered by insurance.

    Had a little spend this week but apart from the dentist nothing too outrageous.

    Had a back massage yesterday. £25 but a need rather than a want. Back feels much better now.

    Bought 4 new dresses. Not quite as bad as it sounds - they were all off the bay of E. so £35 for 4 gorgeous evening dresses isn't so bad.......:rotfl:

    I'm off on holiday on Monday so went to Aldi and stocked up for DS2 - came in at £47. Will need to get a few more bits for him tomorrow. Hopefully should come in at around £20.

    He's going to paint my bedroom for me whilst I'm away, so bought the paint the other day, around £58 all in.

    Sooooo not great but could have been worse.
  • enthusiasticsaverenthusiasticsaver Forumite, Board Guide
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    10,000 Posts Seventh Anniversary Name Dropper I've been Money Tipped!
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    A word of caution. Taking out a consolidation loan is usually a very bad idea. You might mention to your OH that taking out a loan is not clearing the credit cards it is just moving debt around. A very very bad idea if the credit cards are on 0% as most of yours are. Glad you saw the light and hopefully your OH will listen to you.

    Paying off more than £9500 in 8 months is a massive challenge but I hope you do it. That would be wonderful to be in the 20s at the start of 2018.
    Early retired in December 2017

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to [email protected]
  • hex2hex2 Forumite
    4.7K posts
    I really like the sound of the party tea, I spent ten minutes wallowing in nostalgia and am still craving pink biscuits.

    Sometimes consolidation is good - it depends on the interest rates but sounds like you have looked into that and already have a sensible balance.

    I make lunch and coffee for my DH to take to work, only I'm not a morning person, so he has a insulated cafetiere coffee mug that I add a spoon of ground coffee to the night before (cup was c£7 on Mr. Am. will do link if you want) so all he does in the morning is add hot water. Once a week I bag up the weeks packed lunch extras for each of us, so in the evening I am grabbing an extras bag and prepping any fridge bit. At least then if he forgets the fridge bit he has fruit/nuts/drink in his bag so he won't 'starve'. Saves us a fortune and gives me ten precious minutes with the bed to myself.
    'If you have a garden and a library, you have everything you need' Marcus Tullius Cicero
  • XSpenderXSpender Forumite
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    Paying off more than £9500 in 8 months is a massive challenge but I hope you do it. That would be wonderful to be in the 20s at the start of 2018.

    Hi enthusiasticsaver

    The biggest challenge will be not increasing the credit card debt through more impulse spending :o. The monthly payments, an extra £60 a month and my annual bonus will be enough for us to hit the earlier DFD. DH also gets bonuses each quarter and we will be using these smaller amounts for work on the house, EF, Christmas etc. with maybe a little going to debt repayment.

    I went through the snowball with DH last night and we are definitely not getting a consolidation loan.

    New bill from Sains Energy this morning. My £85 debit has resulted in a £35/month increase to my DD:eek: I used to work for an energy company and I still don't know how they calculate these increases especially when I have just come out of the coldest part of the year only £85 behind :mad:

    DH and I agreed this morning that reducing our consumption is a priority. We can't do much about the boiler or the insulation without spending so reducing our usage is the only way to bring the bill down.

    hex2 Putting hot water in a cup is a step too far for DH :rotfl: I make him a coffee to drink and one in an insulated therm0s mug I bought him for his birthday. The cup is so good if you don't add cold water to the coffee/tea it is still too hot to drink for hours and will still be warm at the end of the day. I would gain a few more minutes in bed if I made the sandwiches when I was making tea the night before so may start this from next week.

    lesson learned I love a good massage. I have dodgy hips from too much running and a good if slightly painful massage sorts them out :)

    Plans for today:

    Buy an incinerator bin for the garden waste - £19.50 @ B&Q and some summer bedding plants for planter at front £10?
    Buy some beer for DH - £6.00
    Make fairy cakes for DS party with his help
    Sort out the clean laundry that is covering the bed
    Wash rest of laundry and line dry including 1 whole load of knickers and socks which I washed last night!
    Hoover
    Clean kitchen and mop kitchen, breakfast room and conservatory
    Change sheets - our room and guest room
    Boxes into loft (including Xmas decs :eek::o)
    Find some sellotape and wrap DS presents and write his card
    Make chocolate banana loaf to use up 3 dodgy bananas
    Decide what to make for tea as I have realised I am a meal short on meal plan:doh:
    PAYDBX 2020 £6,923.64/£10,000 69%
    Target CC - £999/£1030 SIF by Dec 2020
    Target Loan - £422.94/£493.43 by Nov 2020
    Big Emergency Fund Part 1 by 31.12.20 - 37.5%

    Days since CC used - Christmas Eve 2019 - 224 (7 in 2019 + 2020)
  • lessonlearnedlessonlearned Forumite
    13.3K posts
    I've been Money Tipped!
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    Does your husband gave access to a microwave at work and one a coffee/tea machine with a hot water only facility.

    I sometimes give my son leftovers which he bungs in the microwave, esoecually in winter. He works in a garden centre and likes something hot when it's cold.

    Re the coffee....have you tried one cup filters, they just fit over the cup. Real filter coffee, rombouts or sainsbugs do their own.

    Can he be "taught" how to add water. .......:rotfl:
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