Taking back the control

Thick_n_Thin · 28 October 2018 at 11:45AM

So here goes ...... I’ve been a member of Mse for a number of years under a different user name, not always active and just tended to dip in and out, reading peoples diary’s for tips etc but have decided to take the leap and start a diary of my own, I’ve spent the last couple of days reading some diary’s from start to finish and I have been very inspired by some of the achievements!
So a bit of my back story, we have been in debt for a number of years at its worst it was almost 30k and the monthly repayments where killing us, we where robbing Peter to pay Paul and a lot of the credit was at high interest and I was finding it difficult to swap to lower rates, basically my credit rating was shot. After burying my head in the sand for a number of years years I decided that the only way to tackle this was to remortgage and clear the debt completely, thankfully I found a financial advisor and we stopped our mortgage that was interest only to a repayment and borrowed enough to not only ensure that the mortgage would be paid at the end of the term but also to pay off the bulk of the debt, we now have 1 credit card that we couldn’t quite pay off with the surplus which has 2k outstanding. So fast forward 18 months and I can’t belive the difference that having all my debt consolidated into one place has made to me mentally however I do need to shift this final 2k as I am just making the minimum payments so it’s not really reducing, once this has gone I’d like to start overpaying the mortgage and start thinking about retirement planning. A bit of a long 1st post but I’m looking forward to getting started now.

redofromstart · 28 October 2018 at 12:55PM

Happy new diary, and good luck with your journey.

Thick_n_Thin · 28 October 2018 at 9:06PM

Thanks redofromstart!
Well today has passed by in a flash even with the extra hour, have just been pottering really, taken a few things to the local recycling centre, mowed the lawn and spent an hour with my mum and dad for a catch up, hoovered and dusted all of upstairs rooms and a quick clean of the bathroom, trying to think of how I can pay of this 2k, did a quick assessment of my bank account, I get paid in 5 days and I am currently £17 short, I will use my overdraft to the max and still be over so when o get paid I really want to clear my overdraft of £250 straight away so this is going to be my 1st target on my debt busting mission!

UncannyScot · 28 October 2018 at 9:17PM

Hello and welcome (back

)

First up do a SoA for yourself at least if you don't want to post it up on here. I t should give you a clearer picture of what's going out where and what you may be able to cut down on or do away with etc.

Good luck on your new journey and if you need owt just post up and someone will pop along to help

Thick_n_Thin · 30 October 2018 at 7:15AM

Thanks Uncanny Scot! Sao has been done and there are definitely areas that can be cut back on, it’s not like I struggle with having the money to pay the card off it’s just that it hasn’t been treated as a priority.
So I ideally want to post daily to make myself accountable on a daily basis but I had such a headache when I got home yesterday I was in bed and asleep by 830pm, then spent from 2am till my alarm went off tossing and turning. Yesterday was pretty uneventful I’m terms of moneysaving, not much will happen now until I get paid. Quick wins below.

Low spend day - used a loyalty card to pay for a coffee ( this is one area I need to reduce)
Put £10 out of my purse into my current account and remembered that I have £17 in my PayPal account so that will be transferred today.
Lunch taken in so no spend there
Found 20p - added to my loose change ‘ found on the street jar’

pidge04 · 30 October 2018 at 7:33AM

Good luck!

enthusiasticsaver · 30 October 2018 at 7:43AM

Consolidating debt is usually frowned upon as it does not change spending habits and tricks the debtor into thinking they are debt free which of course they aren't, having just moved the debt rather than repaying it. Usually the pattern of spending continues so now you have an increased mortgage or consolidation loan and continue to build up debt on overdrafts and credit cards so the debt increases. It obviously has helped you by reducing monthly payments but presumably you must have become more disciplined if your debt has not started to increase again.

My standard advice is to reiterate what US has suggested in doing an SOA and a spending diary so you can see where you are spending. Emergency savings should be another priority so you are not tempted to use credit when you get an unexpected bill. Well done on changing your mortgage to repayment. Interest only mortgages are a timebomb. How old are you? Are you close to retirement?

Thick_n_Thin · 30 October 2018 at 8:15PM

Thank you enthusiastic saver, I couldn’t agree more with your comments and I don’t think I have really addressed my spending habits. For a long time I resisted consolidation but in the end it really felt like I had no option as it drastically reduced my monthly outgoings, fortunately I do know that I can never be trusted with credit again and in the 18 months since we consolidated I haven’t used a credit card. Our mortgage will be paid off in just over 7 years which made a big difference to the monthly payments going from £252 per month to now just over £ 800 but at least I know it will be paid off at the end of the term, I was paying just under £1500 in debt repayments alone before that so it’s now more than manageable. In answer to your earlier question I’m 47 and OH is 54 so retirement planning is very much at the forefront of our minds. We both have company pensions but would like to add to this to ensure we are comfortable!
Thanks for your input, I appreciate it x

Thick_n_Thin · 30 October 2018 at 10:15PM

Well today has been a total disaster, £8.50 I. Coffee shop and after a s&;t day in work couldn’t be bothered to cook and picked up 2 ready meals and a bottle of wine on the way home so a further £12 spent

not happy today x

Thick_n_Thin · 2 November 2018 at 8:24PM

So this week has been a total disaster in the run up to pay day and I have been very disorganised resulting in shop bought lunches, take away coffees and the odd bottle of wine. I have realised that talk is cheap and when it comes down to it I spend when I’m stressed or emotional with no regards as to weather I actually have the money. However today is a new day and I have been paid so I can start my debt busting in earnest.
I have listed all outgoings this month and have paid my bills that I can online today, this included tv licence and gas and electricity bill that I pay as and when they come in, one thing I am hoping to do as part of my new attitude to money is to start saving for these monthly and have worked out £100 per month should be sufficient. However this month I have prioritised paying £150 off my £250 overdraft and reducing it to £100. I have also paid an additional £50 off the Tesco credit card, and suddenly my bank account is looking very empty indeed! I have decided not to use my debit card at all this month and have taken all of my personal cash out instead and once it’s gone it’s gone, I think part of my problem is I don’t see the card as spending real money!
Achievements for today-
Organised money for the month
Ate reasonably well
Ran 10 k in the gym
Resisted buying a bottle of wine on the way home, have got into the habit of drinking on a Friday night which isn’t good for my waistline or my purse! Tucked up in bed now don’t really feel like cooking tea so will have some toast later