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thegirlinthegreenscarf · 12 April 2018 at 9:31AM

My existing 0% balance transfer was ending, so I was applying for a new one to help me pay the last £1400 off.

It was only then, I had realised that my next account had "crept up" to nearly £200 after having cleared it before, I was in my overdraft when my wages got paid into the bank (which means I would probably be struggling at the end of the month), and my "normal" credit card (the one I pay off in full every month) was over £400. I have now started a new 0% card and added the extra £600 making my new 0% balance £2000, rather than the £1400 it should have been.

I/We also owe my inlaws £3000 for my car (which they paid in cash to save us having to get a loan) and I have approx £6000 in student loans which I am not eligible to pay back yet due to me not meeting the payment threshold.

I am nearly 40. We have a house and a daugher. We have friends who have nice houses and nice things and go nice holidays (Admittedly some of them will be up to their eyes in credit cards) I am disappinted and disgusted with myself, that not only did I not pay more of the debt off, but that I have had to add £600 to it, yet can't seem to break the habit.

I have recently set up "piggy bank" accounts as I think that my *one* of my downfalls is not budgeting for major purchases. In addition to setting up a new 0% card, I have set up 2 Instant Access Savings accounts with Tesco - one for my car and one to save up for Christmas (although admittedly I will be cutting back).

I'm sorry for being so miserable but I desparately need to break the bad habits and get new ones instead......

enjoyyourshoes · 12 April 2018 at 10:08AM

I guess you need to review all of your spending and distinguish between 'needs' & wants.

Spend on the needs and ditch as much spending on the wants as you possibly can.

Set up monthly DD to pay off the new 0% before the term expires and don't spend on that card. Use it as a free OD and pay into it monthly.

Stop judging yourself against others, it will not lead to happiness. There will always be someone with the newest, biggest, shiniest thing ! But its not a NEED.

Read some of the posts as they will give great advice on reducing spending, budgeting and accruing for major expenses.

thegirlinthegreenscarf · 12 April 2018 at 10:38AM

Thanks. I have already set up a D/D to pay it off before the term expires. Part of the problem was I didn't do that before with the first 0% card. With the first card I was making payments, but not enough to pay it off before the end of the term.

I neveer want to have the biggest, the best of the shiniest. I would be happy being in the middle. I just get tired of being the poor relation and I tend to find spending money makes me happy, and I spend to cheer myself up, but I am trying to stop.

fatrab · 12 April 2018 at 10:48AM

Hi, How long is your new 0% card's term? Without knowing your disposable income it's hard to comment but if you have a long time to pay it off you can do one of two things the way I see it..

Pay the minimum to the credit card and focus on paying extra to the car loan. Once the car loan is clear throw all available funds at the credit card. This will only work if you can clear BOTH before the end of the 0% deal.

Or, divide the total balance including balance transfer fee by the number of months at 0% and set the minimum payment so that the card is clear at the end of the term. Continue making regular payments to the in-laws.

If you can complete an SOA that will give us a far better idea of where you stand, but for now I'd say STOP SPENDING immediately and if there's anything you think you do need to buy then wait 48 hours before buying it. This will help stop impulse spending.

http://www.stoozing.com/calculator/soa.php

Completely agree as above, determine what are "wants" and what are "needs" then get rid of the "wants" for a while until you've cleared your feet.

Best wishes

thegirlinthegreenscarf · 12 April 2018 at 10:58AM

Hi

I am currenly paying the credit card by direct debit from my salary. Any extra income (from any tutoring that I do - cash in hand) to the car loan as its interest free from my inlaws.

I defintely need to stop impulse spending - I think I need to do things like remove my payment cards from websites and thing like that as well as having a 48 cooling off period before spending.

An SOA is complcated - not just because its difficult to see/do - because my DH and I do not have a join account so we share the bills. I can do a SOA for what I spend on my part of the bills etc. I have kind of done that myself on a spreadsheet. But I will also need to do a spending diary. This is part of the reason I have been opening separate accounts as it will force me to look at al the other things I buy. I hope this is making sense. Here goes:

Statement of Affairs and Personal Balance Sheet
Monthly Income Details
Monthly income after tax................ 1500
Partners monthly income after tax....... 0
Child Benefit................................ 82
Total monthly income.................... 1582[/b]

Monthly Expense Details
Mortgage................................ 450
Secured/HP loan repayments.............. 0
Mobile phone............................ 14
Petrol/diesel........................... 60
Other child related expenses............ 50 (golf/swimming lessons with local council)
Life assurance ......................... 23
Presents (birthday, christmas etc)...... 80
Other (haircut/make up)................. 30
Entertainment/clothes etc............... 300
Gift subscriptions (these are mostly payment to our parents for free child care!)....................... 30
Lenses.................................. 17
Car fund (tax/ins/MOT etc).............. 80
Cleaner................................. 66
Total monthly expenses.................. 1200

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 54000....(450)......3.5
Total secured & HP debts...... 54000.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
0% Credit card.................1200......75........0
Family loan for car............3000......0.........0
Total unsecured debts..........4200......75........-

Monthly Budget Summary
Total monthly income.................... 1,582
Expenses (including HP & secured debts). 1,200
Available for debt repayments........... 382
Monthly UNsecured debt repayments....... 75
Amount left after debt repayments....... 307
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -54,000
Total Unsecured debt.................... -4,200
Net Assets.............................. -58,200
Created using the SOA calculator at www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using other browser.

fatrab · 12 April 2018 at 11:19AM

My wife and I keep totally separate finances too so just do the SOA based on your share of the spending but be brutally honest. Nobody here will judge you and there are folk on here who have given me some of the best advice of my life, I'm sure they'll do the same for you.

It's going to be more about working to a realistic budget and throwing every spare penny at the debt for a while, make a plan and stick to it. If you can make any cut-backs along the way then great, if not then at least you'll have a timescale in mind and an end goal to strive towards!

thegirlinthegreenscarf · 12 April 2018 at 11:46AM

April's Goals - 8/21 NSD - 8/20 Lunches - 11/28 AFD - 12/31 TAFD (take away free days)

What does your signature mean?
I get NSD (No spend day) but what are AFT and how to you plan TAFD?
We regulary had a take away once or twice a week (one mid week and one at the weekend) but we cut down to 1 at the weekend or if we had one during the week we wouldn't have one at the weekend.
Even lately I have not been enjoying take aways as much. The best pizza we have is the ones we make ourselves (esp if you "splash out" and buy the tesco bbq base for £1!) but you need to have the ingredients in the cupboard.
We can normally make our own chinese and indian inspired main courses and even the sides, but I can't seem to get the starters (mini spring rolls or pakora) right. Its just not the same.

alan_d · 12 April 2018 at 11:53AM

thegirlinthegreenscarf wrote: »

I am nearly 40. We have a house and a daugher. We have friends who have nice houses and nice things and go nice holidays (Admittedly some of them will be up to their eyes in credit cards) I am disappinted and disgusted with myself, that not only did I not pay more of the debt off, but that I have had to add £600 to it, yet can't seem to break the habit.

I think it's important to not judge yourself on others.
I see almost every house near me has a car under 5 years old on the drive, and i'm always seeing friends on expensive foreign holidays on social media.
By contrast our cars are 10, 14 and 18 years old and we go camping. BUT - I have no car debt, am almost debt-free elsewhere and should have the mortgage paid off in 2 years. I expect most people have expensive car PCP finance or loans and will be busting out the credit-card regularly. I have several friends who consider this normal, and change cars at 3 years old and never stop paying for them.
To me, they are the sheep trying to keep up with each other and I don't really care!

fatrab · 12 April 2018 at 11:56AM

Lol, they're personal goals. I'll go through it ..

AFD's are alcohol free days, look on the "Cutting Down Alcohol" thread for this one.

TAFD's are my own invention. I work away from home so I got lazy and ate out constantly. A take-away to me is anything that you buy from bakeries, cafes, fast food places, even supermarkets if you're buying ready made food. I now plan my meals and buy very little outside of my weekly shopping. I still have a serious snack habit to kick but at least I buy the snacks as part of the weekly shopping instead of spending £4 every day at the bakers or local shop.

Lunches are another thread on here called "Bring your lunch to work" which is again another motivational thread to encourage planning ahead, cooking meals that can be brought to work instead of going to KFC for lunch!

You are correct though, homemade never tastes the same, but it also doesn't cost the same and is usually healthier too!

thegirlinthegreenscarf · 12 April 2018 at 12:13PM

Brill.I usually take my lunches to work anyway. Where 's the thread?
I also need to get onto the one weekly shop and meal planning.
It is something as a family we are very bad at.

I genually prefer home made pizzas and sometimes even the chinese/indian curry sauces
Its the starters that get me..... I'm not sure if I could persuade my husband to go out and buy starters while the main course was cooking! lol

fatrab · 12 April 2018 at 12:20PM

Have a look at the Savvy Shoppers Cookbook, its a reciepe book but the have a website too with loads of good ideas. If you don't already shop there, consider changing to Lidl/Aldi. I'm eating better for less than I ever have.

http://forums.moneysavingexpert.com/showthread.php?t=5820917

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