Small Steps Out Of Massive Debt!

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  • I don't have an emergency fund, is it worth setting one of those up before I start overpaying on credit cards? I will look around the forums for more info on emergency funds!
  • joedenise
    joedenise Posts: 16,481
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    An emergency fund is essential! Try to get to 1K before overpaying your debts. It will stop you using the credit card if for example your washing machine packs up - you use the emergency fund.

    Denise
  • kirtsypoos
    kirtsypoos Posts: 3,824
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    joedenise wrote: »
    An emergency fund is essential! Try to get to 1K before overpaying your debts. It will stop you using the credit card if for example your washing machine packs up - you use the emergency fund.

    Denise

    Exactly what Denise said - if anything goes wrong, the last thing you want to have to do is utilise credit cards when you get into the swing of paying them off :)
    :j PAID VERY, Barclaycard x3, Vanquis, Natwest, O/D, Tesco & MBNA x2 PAID :j LBM 24/07/15 - Original Debt: £0/31010.23 (100% paid) :eek:
    Mortgage - £151.316.54 :eek:
  • Thanks both! I will work on the emergency fund first then! I think I will open an account at a different bank than my current account so that I can't see the balance there staring at me every time I log in!
  • Bobarella
    Bobarella Posts: 10,824
    Savvy Shopper! I've been Money Tipped!
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    Well done for getting your SOA up, great place to start.
    " 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
  • You could probably certainly cut back on some of your monthly subscriptions, keeping only the ones that bring you the most pleasure. Even just for a year - a nice target for yourself could be to reinstate them after a successful year of debt-busting :-)

    Delete your card from your PayPal account and do the same with all other online shops you frequent - those few seconds you spend grabbing your card and typing in numbers might just be long enough to talk yourself out of it. And when you do shop online for the essentials, use cash back sites!!

    Finally, your counselling is a lot, but I do appreciate the value of a good counsellor is actually priceless. I presume you have been going for a fair while and probably have a good relationship with your counsellor, so perhaps you could consider asking for a small reduction in costs? A lot of places/people will operate sliding scales, and since you spend £220 a month, if you explain you're in financial difficulty, they may offer to reduce your weekly rate, despite you being on a decent income. Even if they only dropped it by £20 a month for a year as a goodwill gesture, it's £20 you could throw at your debt. Maybe worth an ask if you feel up to it :-)

    Good luck and to echo everyone else - well done on facing up to it, just imagine how you will feel as you start to make inroads!

    Ada
  • You could probably certainly cut back on some of your monthly subscriptions, keeping only the ones that bring you the most pleasure. Even just for a year - a nice target for yourself could be to reinstate them after a successful year of debt-busting :-)

    Delete your card from your PayPal account and do the same with all other online shops you frequent - those few seconds you spend grabbing your card and typing in numbers might just be long enough to talk yourself out of it. And when you do shop online for the essentials, use cash back sites!!

    Finally, your counselling is a lot, but I do appreciate the value of a good counsellor is actually priceless. I presume you have been going for a fair while and probably have a good relationship with your counsellor, so perhaps you could consider asking for a small reduction in costs? A lot of places/people will operate sliding scales, and since you spend £220 a month, if you explain you're in financial difficulty, they may offer to reduce your weekly rate, despite you being on a decent income. Even if they only dropped it by £20 a month for a year as a goodwill gesture, it's £20 you could throw at your debt. Maybe worth an ask if you feel up to it :-)

    Good luck and to echo everyone else - well done on facing up to it, just imagine how you will feel as you start to make inroads!

    Ada

    Thank you for your suggestions, they are really helpful! I am going to remove my cards from Paypal now. I do have a TopCashBack account which has been fantastic but it can also tip me into thinking that I've saving money by spending! But I agree, if I do HAVE to spend money then I would rather use TCB and get some money back.

    I only have one magazine subscription and that is for an industry periodical connected to my job so I'd rather keep that , but I have decided to cancel my Book Club and Audible subscriptions. There is a really good library not far from my office and it will be nice to get a walk in a few times a month to pick new books. I will listen to free podcasts like This American Life instead of audio books. That is £18.48 that I can put towards my debts each month.

    The cinema costs is for the Cineworld Unlimited Card (unlimited trips per month). OH & I go to the cinema about once a week to get our money's worth from the card (and have a cheap night out!) I've already started bringing my own snacks to the cinema because even I have realised what a rip off cinema food & drink is ;)

    I will definitely consider speaking to my counsellor about fees, I don't feel able to do it right now because we are tackling some really difficult stuff but I will bring it up when I am feeling more resilient.
  • Going through my bank & credit card statements yesterday has made me realise how much I have been spending for the life I want rather than the one I have.
    Things like not making my own lunches because I convince myself that I will make healthier choices if I buy my lunch near work (guess what, this never happens - I usually end up buying a baguette and a packet of crisps from Pret!) ; paying for Personal Training sessions but not making a commitment to go for a walk every lunchtime or similar (I stopped PT in December but it was £200 a month); not planning meals in advance and then spending lots more money on food from the more expensive supermarkets near my office because I was shopping when I was hungry; and overspending on Christmas and Birthday gifts (and not budgeting for this throughout the year).
    Never wanting to be the friend who suggested a cheaper restaurant or bar, or turned down an invitation because of the cost, I would rather add debt to my credit card than admit that I couldn't afford something. Being skint before payday and then going crazy as soon as I got paid with all the little "treats" like takeaway coffee, a fancy bubble bath, a pedicure or something.

    I've decided that I need to get much better at planning and budgeting, and stop thinking that the answer to everything is to throw money at it. I brought lunch and coffee with me today, the coffee was much much nicer than the one I usually get from Costa - why do I waste £2.40 on burnt tasting coffee when I can bring a lovely one with me to work?!
  • Oh, and good news on the Student Loan account. I checked last night and the balance as at April 2016 was £15,199.37 (so around £3000 less than I thought and this doesn't take into account payments I've made between April and now). Student Loan is at the bottom of my list of priorities but it is nice to know that one thing is less than I was expecting!
  • Bobarella
    Bobarella Posts: 10,824
    Savvy Shopper! I've been Money Tipped!
    Forumite
    It is hard to try not to see a take away sandwich or coffee as a treat, but actually a complete waste of cash. Because the marketers want you to think that! That's why this site is great for meeting like minded people who are also trying to keep on the straight and narrow.

    Great on the student loan.
    " 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
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