A welcome wake up call

twiggy86 · 2 August 2019 at 10:02AM

So it's been a few years since I was last on here, so decided to start a new diary. Here's the background of where I'm at now....

After all my previous hard work, I've let my debts rack up to worse than before. I know this makes no sense but it's partly because I was earning more and so therefore less concerned. So why so much debt?! My OH has a tendency to want things "now" but is crap with money - so whilst its partly his debt its in my name (I wouldn't trust him with a credit card!)

So at the moment I have total debts of £13,256.74 (not including my car finance). This is split over 3 CCs and Ne*t. Two were zero percent but I know at least one is ending soon, so need to look into that.

Why now? My OH is really struggling at the moment and last week he "quit" his job (self employed builder) and our lodger has decided to move out! Effectively meaning I thought I was down about £1500 a month. So I've spent the past week feeling rather sick as to how I can make this work (I can cover all the bills but not much left).

Good news, my OH is going back to work next week. He just needed a break to help his mental state. However, I need to get myself back in line and get this sorted whilst I can, as I think there will be blips with OH again in the future.

twiggy86 · 2 August 2019 at 10:15AM

Now you've got the background, what have I been doing the last week (apart from panicking!)...

Got myself back on here! I feel ashamed coming back with debts worse than last time around but I know how helpful these forums are. So tail between my legs but I'm back!

Sorted out my budget! When I was on here before, I was so good with my spreadsheet and my virtual pots! I put money aside for things throughout the year so that nothing was a big expense. Now... my car insurance is due next month and all I've put aside so far is £110. Home insurance in October - £60! Christmas - nothing! Despite now earning more, clearly I've just been spending more without thinking.

Before OH announced he was going back to work, I cancelled my mortgage overpayment. I've had it set up for years to take an extra £100 per month, which I thought I needed to give me extra to help pay for food. But now it's cancelled I've decided that extra £100 will go off the debts to help get those gone and once that's done I can add it back (and hopefully more). Whilst I like the feeling of getting my mortgage gone quicker, the priority should be the debts at the moment as this will help my mental state more.

I will be looking at other bills to see where I can save some money - TV package will probably be an easy one to reduce. I'm with VM at the moment and to be honest I've had an awful experience so it's about time they stopped getting my money!

I need to sit down and work out which debt to clear first (anyone else having issues with the snowball?). I think the highest interest is Ne*t which only has £360 (small compared to the others!) - so that will probably be my first target. I also need to see if I can balance transfer any of it to help reduce the interest, but again I need to work out which one is best to move.

I'm sure there's plenty more I need to do, but that's enough for me to start I think. At least it will help me feel like I'm doing something but at least I've now had my LBM to help get me back on track!

ratrace · 2 August 2019 at 12:22PM

Hi nice to have you back, and its great to hear you are supporting your oh with what he's going through (your a good un)

as you know the best thing for you to do is post a soa, so we can help you pay this debt off quicker, also you have to include you car finance in the figure as its still debt even though most people dont see it like that

good luck

twiggy86 · 2 August 2019 at 2:35PM

Thanks for taking the time to comment ratrace.

I need to think about SOA - as OH is self employed the amount he gets each week varies, so the amount he gives me varies and in truth I have no idea what that is! Maybe I need a month or two to get some figures together.

The reason (rightly or wrongly) that I don't see the car as a debt is that, at the moment, my intention is to hand it back after 3 years (Nov 2021). I bought it on PHP (I think that's what it's called), so if I hand it back that's it - nothing else owed. So I see it as an expense rather than a debt - if that makes sense!

Thank you again, although I sound like I'm full of excuses, I do appreciate your comments!

twiggy86 · 2 August 2019 at 4:22PM

Must be "new" around here as I'm posting again!

Looked up all my interest rates, so I said that two were on zero percent... shows how out of touch I've been as none are, I'm ashamed to say.

So the interest rates are:-
Hcard - £3,984.46 @ 4.94% (ends 4/23)
Bcard - £4,458.36 @ 18.52%
Vcard - £4,445.67 @ 18.33% (£500 of this was on 0% which has just ended)
Ne*t - £363.05 @ 23.90%

So this afternoon I did look into a balance transfer. I would have been accepted for a 26 month 0% deal BUT only for about £3,300. My issue with this is it means adding another card (as it wouldn't clear any of them in full) and so another monthly payment. I'm not sure I feel "financially stable/ savvy" enough at this precise minute to add another payment in. Need to give this some serious thought as it is silly paying more interest than I have to.

beanielou · 3 August 2019 at 8:49PM

Happy shiny new diary

DebtFreeMonkey · 3 August 2019 at 9:21PM

No need to feel ashamed. We all stumble and fall at times but you're working on getting back to a good place and that's more than others may well do.

Good luck with everything. I'll keep checking in!

enthusiasticsaver · 3 August 2019 at 9:25PM

I would prioritise that Next and close it first as the most expensive and smallest debt.

twiggy86 · 5 August 2019 at 9:19AM

Thanks for the comments - much appreciated!

So confession time... This weekend I have continued my normal habits and not really watched what I was spending at all. Grrr! Frustrated with myself as I've already thrown my budget out for the month. However, I did have a few unscheduled plans and had a lovely weekend, including seeing my brother and one of my nephews which doesn't happen often.

However, the good news is that I realised I had an offer on my Hcard so managed to transfer £765 from Bcard to that at 4.94%. This means that if I do the balance transfer I referred to above, although it will mean I still can't totally clear Bcard, it will be almost gone. So that will be my first job of the day.

Once that's done, I will prioritise clearing the remaining Bcard balance and Ne*t.

New week, new attitude - I can do this!

DebtFreeMonkey · 5 August 2019 at 12:45PM

At least you had a good time and good news about the transfer! Now it's time to knuckle down and cut back where you can. Start small if you have to because it's a start, at least, right? I listened to a podcast and it said about changing 'budgeting' for 'spending plan' and think of it as money to spend, not a restriction. It was pretty interesting and it might help with your mindset, maybe. I see it as I spend a certain amount now so I can spend later on things that are more important than the instant gratification of buying stuff I really don't need/don't benefit me or add to my life.

Either way, today isn't yesterday or the day before or the day before; New day, new start!

Hope you have a good week ahead of you

twiggy86 · 5 August 2019 at 4:54PM

Thanks for stopping by Alicia1804. That's a really good way of thinking about it - turn the language around and it changes the mindset! I don't suppose you can remember the name of the podcast?

I was accepted for a £3,069 balance transfer, which I have now done so waiting for that to be finalised. The deal was 26 months at 0% but with a 1% fee. Leaves just over £600 on the Bcard (£618.41 to be precise!) Bit less than I'd hoped but I have just saved myself god knows how much interest!

I also submitted on online complaint to try to find out if I had PPI on a topshop card I had many many moons ago which I just suddenly remembered! Who knows if they'll still have any paperwork for me, but I'm pretty sure I don't, or if I actually had PPI on it! However, it doesn't hurt to ask and would be bonus if I did get anything back!

Another positive is that my current gas and electric dd is £182(!!!) This is because of a rather large debit had built up, so it went from £84 pm to £182! However, after this month's payment we would have cleared the deficit so I will drop it back down - although possibly not back to £84 as I'd like to build up a small credit for the winter months rather than have it hiked back up again!

All sounds positive today, although not sure I feel it! Still kicking myself for ending up back in debt when I thought I'd learnt my lesson!

A welcome wake up call

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