Reducing Debt - being accountable and taking responsibility
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From my meticulous combing through of spends on CC2 over the past 3-4 years, I have discovered a whopping £1,855.76 in work expenses that I charged in one 12 month period, at a time I was working remotely, away from the office on secondment or at events, for a significant part of that year.
I’m pretty sure I didn’t pay off those charges when I got my expenses rebate a month or so later.
Even more, I discovered I paid around £420 in interest and fees in 2013-2014 and £440 in 2015-2016. I don’t seem to have the annual statement for 2014-2015 but I can guess the figure would probably be around £500, maybe even more. These aren't just the result of using CC2 for expenses. The other spends listed above also contributed. But, the expenses didn't help!
I must remember not to get stuck into this mentality ever again. Frivolously spending the rebates as if I’d been given a bonus is a classic and caustic debt cognition.
Charging expenses and not paying them off with the rebate has clearly been a contributing factor to keeping me in debt, if not getting me further and further into debt.
Another salutary lesson for me!0 -
In other news...!
Today has been a WFH day. I went into town over lunch to return / collect my various bits and bobs and do a little supermarket shop. I returned the M&5 jumper but picked up DF some new socks (he is desperate and I could help but treat him) so I guess the payments balance each other out. I'd ordered a couple of winter knits in the sale from my favourite brand, to replace the disaster knit I bought using my treat money, and they are perfect! I'm so happy with them. Can't wait to show DF when he gets home.
It's my birthday in less than a month and I'm being given money by a few family members, so I need to think about what to get as their gift to me. I'm tempted to get a few things on my A/W capsule wardrobe list, probably a warm winter coat and a good quality chunky winter knit. My favourite brand has both these on offer at the moment, so I may pick them up and see whether they suit.
Feeling like I've had a few treats this month and will have a few more in my birthday month, plus we'll be on our holiday next month too, so I mustn't get carried away and indulgent, particularly with the sales on.
Sorting out our little garden this weekend. The sun and rain has caused significant and messy overgrowth and it's looking a bit unkempt. Also need to clean the house. I seem to spend so much time tidying that I cba to hoover, dust and clean as often as I should!
DSL0 -
Useful exercise. Going forward having saving pots for holidays, Christmas and paying for hobby equipment from budgeted personal spends should avoid many of the credit card spends. Maybe less impulse holidays?I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.0
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Hoover gone bang. And so life happens! Good job the sales are on and I have some spare money. J0hn L3wis to the rescue!
Otherwise, I've had a really good day sorting out DF's wardrobe and getting rid of old clothes he doesn't wear or that are looking tatty. A nice big pile for the charity shop.
Garden trimmed. Floors cleaned. Dinner sorted. A productive day.
DSL0 -
Hello Dr Spendlittle,
I've just read your entire diary in two days. I've not come across it before, or perhaps I have subconsciously avoided it as your user name makes you sound like a mean Bond villain! :rotfl:
A few things I have noticed:
1) For gawds sake, give that poor window cleaner a line in your YNAB budget, woman! Stop ignoring the poor man!
2) You NEED an expenses account! Between how easy it is just to not pay them off on the CC once you get them and the interest you will have paid on the CCs, your partial calculation for the past three years are ridiculous, that's without calculating the interest you paid on the CCs while waiting for reimbursement, never mind whether you paid the money back or not once you finally got it. What's the most you have ever had outstanding in work expenses at one time? Open an account, put that amount in it, be ruthless about putting the money back in once you get it and as a small bonus, enjoy whatever interest it brings you instead of you paying interest on a CC.
3) Don't get comfortable: much like myself in my debt-free journey, I'm no longer at a point where it's as 'critical' to pay things off as it once was and I could allow for more treats and to get a bit looser with the budget now that my remaining debt is at 0% but I know that if I start thinking like that, it's the start of a slippery slope. Personally, given how positively you have reacted to your car being 100% paid off, I would be tempted to pay off the remaining debt ASAP then start stockpiling cash for your 'proper' emergency fund and then get rid of the credit cards so you can't ever be tempted again! :cool:
Other than that, well done on getting to grips with things before they got any worse....and think about how *rich* you could be if you keep a grip on your budget and start investing once you are 100% debt free! :T :ADebt: £11,640.02 paid in full! DFD: 30/06/20
Starter Emergency Fund (#187): £1000/£1000
3 month Emergency Fund (#45): £3300/£33000 -
Just discovered your diary Dr Spendlittle.....really interesting hearing you talk about these debt behaviours....I recognise them very easily!! Well done in how far you have got, and in changing your mindset.0
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PositiveBalance wrote: »Hello Dr Spendlittle,
I've just read your entire diary in two days. I've not come across it before, or perhaps I have subconsciously avoided it as your user name makes you sound like a mean Bond villain! :rotfl:
A few things I have noticed:
1) For gawds sake, give that poor window cleaner a line in your YNAB budget, woman! Stop ignoring the poor man!
2) You NEED an expenses account! Between how easy it is just to not pay them off on the CC once you get them and the interest you will have paid on the CCs, your partial calculation for the past three years are ridiculous, that's without calculating the interest you paid on the CCs while waiting for reimbursement, never mind whether you paid the money back or not once you finally got it. What's the most you have ever had outstanding in work expenses at one time? Open an account, put that amount in it, be ruthless about putting the money back in once you get it and as a small bonus, enjoy whatever interest it brings you instead of you paying interest on a CC.
3) Don't get comfortable: much like myself in my debt-free journey, I'm no longer at a point where it's as 'critical' to pay things off as it once was and I could allow for more treats and to get a bit looser with the budget now that my remaining debt is at 0% but I know that if I start thinking like that, it's the start of a slippery slope. Personally, given how positively you have reacted to your car being 100% paid off, I would be tempted to pay off the remaining debt ASAP then start stockpiling cash for your 'proper' emergency fund and then get rid of the credit cards so you can't ever be tempted again! :cool:
Other than that, well done on getting to grips with things before they got any worse....and think about how *rich* you could be if you keep a grip on your budget and start investing once you are 100% debt free! :T :A
Thanks for swinging by PositiveBalance! Good effort on reading my ramblings! I like the idea of being the resident MSE Bond Villain. Will give some thought to my niche skills.
Funnily enough, your diary recently attracted my attention as we have similar original and current debt levels and I was keen to learn from your experience. It's top of my list to read from start to finish!
I like the idea of an expenses account. I have a spare current account with my main bank so I may well start doing that. Good idea!
Poor window cleaner :rotfl: I will start a line item in my budget for Household misc. and he will live peacefully there. DF and I talk about having a cash kitty jar at home, we must do that.
And yes, I'm keen not to get too complacent now I've paid off over 60% of the initial debt. I'm definitely conscious of it and think my STIF list will help. My plan is to pay it all off by November 30th, which I think is possible, and then start 2019 debt free and with all the line items in my budget fully stocked.
DSL0 -
Just discovered your diary Dr Spendlittle.....really interesting hearing you talk about these debt behaviours....I recognise them very easily!! Well done in how far you have got, and in changing your mindset.
Thanks Gemsy! I've spent a lot of time, since starting my diary, thinking about what causes my spending and why. I seem to dive really deeply into things and just have to have everything all at once, like my sport hobbies. Hopefully I'm much more measured now.
DSL :j0 -
Yesterday was a good day of sorting, cleaning and updating the 'hoover cupboard', a place where stuff without a home is dumped. I cleaned it out, sorted stuff into 'keep' and 'bin' piles and then took the loosers to the tip / stuff heaven.
I then went into town to pick up the new hoover (we also bought an e-cloth deep cleaning mop which I highly recommend) and did a little food shop. Whilst I was in town, I bought a plastic box from the charity shop to store all the miscellaneous items that had been shoved in the hoover cupboard (car wash, shoe cleaner etc etc). I love a good bit of organising.
I spent some time yesterday evening working through my monthly budgets for the rest of the year to ensue my DFD of 30th November can be realised. My rough debt repayment plan, notwithstanding any significant car, house, teeth or emergency expenses, is:
August £200 (a small payment as I need to cover holiday expenses and top up my EF)
September £1,489.20
October £1,218.71
November £778.71
December £988.61 (made using November's last day of the month salary payment)
The above payments account for birthday, xmas, car insurance, house insurance and car service costs that I will incur from October to December. I also need to take £324.76 from my work fee, due to be paid soon, and make a one off payment, probably in October.
DSL0 -
Good morning peeps,
In the office bright and early this morning. Got a few busy days ahead of me and then its a WFH on Friday. Not sure on plans for the weekend just now. We're seeing friends at some point but haven't firmed up plans.
I think I'm going to overspend on groceries this month. Not sure why. Maybe I've done most of the food shopping. Anyhoo, DF will be frogmarched to the supermarket to do the next shop
Finances are feeling tight at the moment with a few unexpected expenses. But, I've got a fairly healthy holiday budget (we don't spend too much on holiday really, just fuel and groceries mainly) so I'm hoping that I can move money around my budgets once we're back. This will be my first MSE summer holiday (I had a short break with family in April) and I'm looking forward to observing my own spending behaviours and seeing how 'normal' my MSE ways have become.
Right, back to the grind. A full day of fairly interesting meetings and its not too hot so all is good!
DSL0
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