Had my lightbulb moment!

MoneyMission2015 · 4 April 2016 at 12:59PM

scottishbrummy wrote: »

So it's looking ok.... there's just under £400 I can put towards my debt each month, however, I get paid 4 weekly which I think is what's contributed to my issues. I get paid on the 8th April and because some things bounced on the 1st I'm going to have to pay two lots out of the one pay (mortgage, loan, life insurance) so for me this month will be about getting back on track, and then paying back as much as I can every month from Mays pay - the 6th.
Luckily though the flipside of the 4 weekly pay is that I won't need to pay out mortgage loan or life insurance from my pay in June so I'll have an extra £532 on top of the £400 I'll be trying to put towards my debt

Hi SB

Just a suggestion, instead of using that £532 straight away to make debt repayments, why don't you keep it in a separate account to save as a buffer just in case. Or maybe pay £200 towards debts and save the rest. Keep adding a little bit every month then. Whenever I read newbie posts on here starting out on their debt repayments, the general advice is to build up a bit of an emergency fund before making huge payments to the debts. That way if anything goes wrong in the future, you've got a pot of money to use rather than having to use credit cards etc again.

lynz68 · 4 April 2016 at 2:33PM

But do you actually have £400 at the end of every month? I'm guessing not or you would have enough to pay your mortgage. I don't mean that to sound cruel but what your budget says and the reality seem to be different. I think you need to start a spending diary just to see where your money is actually going.

I would also agree with not rushing to pay the extra you will have in June towards your debt but keep it as a buffer to ensure you can always pay your mortgage on time.

As for what you have included in your budget look at cutting your sky and mobile bills the are a luxury you can't really afford at the minute.

scottishbrummy · 5 April 2016 at 6:01PM

I hadn't thought of keeping some as a buffer, but surely I'm better off putting it towards the debt so I pay less interest?
In regards to the £400, I've not had anything left at the end of the month, but since having my LBM I've realised I need to change my lifestyle until I can afford to do things eg. nights out, alcohol etc.
Unfortunately, I can't reduce my sky or mobile bill as I've still got a year to go on my contract with the mobile and I recently spoke to sky threatening to leave - they reduced my bill in exchange for me locking in for 12 months (£60 down to £38)
Again thanks for all your words of advice.

asparagus1968 · 5 April 2016 at 6:44PM

Hi there, try this SOA, you may find out where some of that £400 is going, good luck.
i would go with having a couple ££ in an emergency fund too i think, and not use those cards again.

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

scottishbrummy · 5 April 2016 at 7:07PM

Thanks, I'm pretty determined to change my lifestyle as I've been living beyond my means for years, which is what has got me into this situation. For example, I saw Adele last night in London (Christmas gift) and I did spend the minimum that I could as it was a special occasion, however, I did still spend £67 (took the cash out earlier in the month to make sure I had it) which included all transport from Birmingham to London and tube; a 2 course meal; alcohol. I understand that I won't be able to do this kind of thing anymore, although I do have flights booked to Italy in September.
Ooo and actually just remembered I'm going to be able to get my ticket back from London refunded because of all the commotion today making me over an hour late in arriving back in brum.

Debtslayer · 6 April 2016 at 7:34AM

Can you not change the date direct debits are taken out of your account to about the 10th of each month? As you seem to get paid on 6th or 8th, then at least all your bills will be paid and won't both cue and then what you have left in your account is what you have left for the month

yasmin2 · 6 April 2016 at 9:02AM

scottishbrummy wrote: »

Thanks, I'm pretty determined to change my lifestyle as I've been living beyond my means for years, which is what has got me into this situation. For example, I saw Adele last night in London (Christmas gift) and I did spend the minimum that I could as it was a special occasion, however, I did still spend £67 (took the cash out earlier in the month to make sure I had it) which included all transport from Birmingham to London and tube; a 2 course meal; alcohol. I understand that I won't be able to do this kind of thing anymore, although I do have flights booked to Italy in September.
Ooo and actually just remembered I'm going to be able to get my ticket back from London refunded because of all the commotion today making me over an hour late in arriving back in brum.

It's easy to beat yourself up and regret all the money that has been spent but you need to look forwards and not backwards. The important thing is you have realised that you are living outside your means and that you need to change. My personal opinion is that being DFW isn't about depriving yourself but doing things in a money-saving way. Be imaginative:) Is there any chance that you can make some extra money on the side as well - a few extra hours at work, a bar job - very social:), ebay, gumtree... If its only you, can you shave some money off your food bill? Go to the no frills supermarkets/visit when items have been marked down, Asian shops in brum sell fruit and veg cheap.. My parents go to the fruit and veg stall in Brum town centre and buy carrier-bags full of vegetables for £1 only.. A spending diary is a must..

Good luck:)

jdvhsully · 6 April 2016 at 9:30AM

When my husband got paid 4 weekly we opened a separate bank account for just bills. We worked out how much needed to be transferred into it to cover outgoings and then transfered this on payday. This meant that the bills were always covered regardless of the pay date changing, we knew exactly what was left in the spending account and as we also did this with the extra pay packet we had a buffer for extras or unexpected bills.

scottishbrummy · 6 April 2016 at 1:48PM

I've started a spending diary...hopefully it will help! I am committed to getting rid of my debt now - more than I feel I have been in the past. I do agree that life should be enjoyed. I've got a couple of things planned for this year (Beyonc! at Wembley in July and a 10 day road trip in Italy in September), but I won't be booking anything else extravagant until I've made a big dent in my debt.
While I'm here I can let you know I'm up to £3.75 on valued opinions - I'm planning on using the credit I earn on there solely on Amazon to make birthdays/Mother's Day/Father's Day/Christmas a bit easier. If I've got £3.75 in a week that's almost a couple of hundred quid a year! (I know I'm being hopeful!)

scottishbrummy · 7 April 2016 at 7:11PM

Well finished work and feeling a little bit stressed today! Spoke to RBS on the phone and they'll take out my missed loan repayment tomorrow as I get paid (170). I'll need to call up and pay my mortgage too (362). I know it's stupid of me but I hadn't clocked the fact that I'll have to pay 2 of each of those payments out of my pay this month, which, after paying my gas/electric (200) and my other bills leaves me with negative numbers...
Think I'm going to book in an appointment with RBS on my day off next week to see if there's anything they can do to help. It's so annoying as I know I'll be fine once I get to my payday in June!
(I know I have noone but myself to blame)

Had my lightbulb moment!

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free