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    • GeorgianaCavendish
    • By GeorgianaCavendish 27th Jan 17, 5:30 PM
    • 802Posts
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    GeorgianaCavendish
    Small Steps Out Of Massive Debt!
    • #1
    • 27th Jan 17, 5:30 PM
    Small Steps Out Of Massive Debt! 27th Jan 17 at 5:30 PM
    Hi Everyone,

    I'm so glad that I've found this website because I really need to get serious and DO SOMETHING about my debts. I thought that keeping a diary on this forum would keep me accountable.

    I have taken stock and I have over 35,000 of personal debt on loans and credit cards, which does not include my Student Loan (around 18,000 but I need to check the last statement). I have no savings at all and am living pay day to pay day. I have a pension, which is probably the only semi-financially responsible thing I've done in my whole life.

    I have always had a problem with spending money. I never knew when it was time to stop spending. The idea of a budget was a foreign concept. I'd spend until everything had gone, whether that was my wages, student loan payments or birthday money. I go through phases of pretending to be responsible and looking at debt consolidation, but what usually happens is that I don't close the old accounts so a few months down the line I end up spending money on the cleared card.

    I know that I need to sort out my spending and to take a brutal look at the state of my finances and what I spend money on. I need to stop seeing credit limits as targets to reach (!!!!) and start seeing them for what they are - invitations to get into debt!

    This is what I have outstanding:

    13000 on personal loan
    10500 Barclaycard
    8000 MBNA
    2500 HSBC
    870 on catalog
    800 left on furniture (this one is interest free, there are 9 repayments left)

    I've been reading the advice for newbies threads so this weekend I am going to go through my last bank & cc statements with a fine tooth comb to work out what I am spending money on, and I'm going to find out the interest rates on all my credit accounts.

    Thanks for reading and wish me luck!


    PS. My forum name is from a Duchess in the 1700s. She was so bad with money that after she died her husband found out she was around 4 million pounds in debt. Sadly I could imagine this happening to me if I had access to that much credit
    Last edited by GeorgianaCavendish; 07-03-2017 at 3:31 PM.
Page 59
    • Fortune Smiles
    • By Fortune Smiles 4th Jan 20, 11:08 AM
    • 3,199 Posts
    • 26,370 Thanks
    Fortune Smiles
    Hello Georgiana

    just wanted to pop in and say congratulations on your progress. Well done - exciting times indeed

    Fortune x
    Mortgage: 16% paid Overpayments 2020: 546.70 Emergency Fund: 73% Tittervating Pot: 104.47

    All we have to decide is what to do with the time that is given to us - J R R Tolkein
    • GeorgianaCavendish
    • By GeorgianaCavendish 6th Jan 20, 10:39 AM
    • 802 Posts
    • 5,309 Thanks
    GeorgianaCavendish
    Hello Georgiana

    just wanted to pop in and say congratulations on your progress. Well done - exciting times indeed

    Fortune x
    Originally posted by Fortune Smiles
    Thank you Fortune, I really appreciate it!
    • GeorgianaCavendish
    • By GeorgianaCavendish 7th Jan 20, 10:19 AM
    • 802 Posts
    • 5,309 Thanks
    GeorgianaCavendish
    Hmm. No call back from Aviva yesterday, so it goes on my list of tasks to sort out this week.
    • GeorgianaCavendish
    • By GeorgianaCavendish 13th Jan 20, 2:22 PM
    • 802 Posts
    • 5,309 Thanks
    GeorgianaCavendish
    Embracing the suck
    Ugh! I hate this time of year. I got paid early in December so I'm now in week 4 of 6 of the Dec-Jan pay cycle (instead of the usual 4 weeks).

    I'm on track budget-wise but I'm finding it a bit of a grind at the moment. I realise that making small debt repayments has replaced making small purchases when I'm feeling a bit down or fed-up, but at the moment I'm trying to stick to my snowball plan and not just 'round down' non-priority debts. I think I might have some money left at the end of this month to make another small overpayment but I'm not going to sweep this money over to my debt repayment account until I get paid because I don't want to have to take it out again.

    So I'm following some advice from Brene Brown and embracing the suck. My situation is not ideal, but it is what it is, so I'm going to say "yes this sucks" and stick with it. Hopefully it will not suck forever!
    • EssexHebridean
    • By EssexHebridean 14th Jan 20, 1:31 PM
    • 9,896 Posts
    • 50,325 Thanks
    EssexHebridean
    Ugh! I hate this time of year. I got paid early in December so I'm now in week 4 of 6 of the Dec-Jan pay cycle (instead of the usual 4 weeks).
    Originally posted by GeorgianaCavendish
    I'm unsure from your post whether this is just as a result of having already done your "money wrangling" for the month so you don't feel that there is any progress being made this month?

    That sounds like a great goal on the pension payments, and yay to getting rid of accounts too! Brilliant progress!
    MORTGAGE FREE 30/09/2016
    SOA CALCULATOR (for DFW newbies): SOA Calculator
    • GeorgianaCavendish
    • By GeorgianaCavendish 14th Jan 20, 2:00 PM
    • 802 Posts
    • 5,309 Thanks
    GeorgianaCavendish
    I'm unsure from your post whether this is just as a result of having already done your "money wrangling" for the month so you don't feel that there is any progress being made this month?

    That sounds like a great goal on the pension payments, and yay to getting rid of accounts too! Brilliant progress!
    Originally posted by EssexHebridean
    No worries, it was a confusing post!
    I have done my monthly money wrangling (love that term!) and I'm starting to feel restless because there is nothing more to be done at the moment.
    I keep thinking that I could do a couple of sneaky over payments as well. I'm being really strict with this because I want to wait until the day before payday to do any sweeps of "extra" money into my Debt Busting Bank Account, rather than optimistically decide now that I can cut a bit from the food budget for debt repayments.

    I guess my point is that I'm trying to accept the daily 'discomfort' of our financial situation (if that makes sense??). We're doing as much as we can to tackle the debt and we are fully aware of the reality of our situation, but focusing on it too much can be counter productive because it makes me want to do anything to feel like we are making progress, and some of the things I choose to do are counter-productive (like under-budgeting in one area and needing to backtrack to get through the month). It feels like a slog at the moment with the extra long pay cycle!
    • GeorgianaCavendish
    • By GeorgianaCavendish 14th Jan 20, 2:23 PM
    • 802 Posts
    • 5,309 Thanks
    GeorgianaCavendish
    A MSE-ish Tip
    Thought I'd post this here after chatting to a friend. She was amazed that I haven't bought a new phone for "years" (3.5 years, not a big achievement) and that my phone has no damage to the screen.

    I bought a really good case that makes it practically indestructible. The case was expensive (I think RRP is 70 although it was on sale when I bought it and I used some of my survey-reward Amazon vouchers as well) but so worth it - my phone doesn't have a scratch on it. Even after the time I dropped it in the airport and it skidded about 10m along the hall.

    I also made sure that our phones are covered on our contents insurance policy (we've got an 'items away from home' add in that covers mobiles) but that is another story.
    • EssexHebridean
    • By EssexHebridean 14th Jan 20, 3:28 PM
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    EssexHebridean
    My phone is now also over 3 years old and again thanks to a nice rubberised outer case and ALWAYS having a screen protector on it it certainly doesn't look that age. It amuses me when I see friends routinely upgrading to the new phone each two years "because it's upgrade time" when their existing phones are absolutely fine! Thankfully I like my current one and won't be able to get a replacement with the same dimensions (it's an iPhone SE) so I'll be very happy to keep it as long as I can!

    As for your slump where nothing much can be done - might the odd pennies in your bank accounts be your friend here? Each time I log in to our online banking I "round down" our joint account and my personal one at least to the nearest pound, and often to the nearest 5, and then pop that money that I have "skimmed off" into savings. You could pay across to debt instead, or even start a savings account which you stash money into then pay to debt when you reach a certain level?
    MORTGAGE FREE 30/09/2016
    SOA CALCULATOR (for DFW newbies): SOA Calculator
    • OnlyPariah
    • By OnlyPariah 14th Jan 20, 4:05 PM
    • 123 Posts
    • 304 Thanks
    OnlyPariah
    I used to be that person. I would change my phone every year or two years. Whenever my contract was up. It's so much cheaper to hang on to your phone.
    Tesco 7647.88 7,488.96 Asda 2,552 2,300 Virgin 4,204.95 4,204.95
    Halifax 2,853 2,796.64 Barclaycard 7,866.32 7,866.32 Wedding 488 EF 63
    • GeorgianaCavendish
    • By GeorgianaCavendish 15th Jan 20, 12:15 PM
    • 802 Posts
    • 5,309 Thanks
    GeorgianaCavendish
    I used to change at upgrade time too and I always used to buy the handset from my network provider. So expensive! I'm on a SIM only deal now and I love it!

    Good idea about the rounding down balance, I'm also curious about the "rounding up transactions savings" thing that various banks are doing now (is there a proper word for it?). I'm going to ride out the rest of this pay cycle - 12 days and counting! - before making any changes, but I'll do some more research.
    • EssexHebridean
    • By EssexHebridean 15th Jan 20, 12:17 PM
    • 9,896 Posts
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    EssexHebridean
    Oh the "save the change" thing you mean? It does seem like a good idea in theory - if you make a lot of transactions though and always do that it could certainly risk throwing a budget off kilter.
    MORTGAGE FREE 30/09/2016
    SOA CALCULATOR (for DFW newbies): SOA Calculator
    • Naomim
    • By Naomim 15th Jan 20, 1:26 PM
    • 1,338 Posts
    • 3,261 Thanks
    Naomim
    Thought I'd post this here after chatting to a friend. She was amazed that I haven't bought a new phone for "years" (3.5 years, not a big achievement) and that my phone has no damage to the screen.

    I bought a really good case that makes it practically indestructible. The case was expensive (I think RRP is 70 although it was on sale when I bought it and I used some of my survey-reward Amazon vouchers as well) but so worth it - my phone doesn't have a scratch on it. Even after the time I dropped it in the airport and it skidded about 10m along the hall.

    I also made sure that our phones are covered on our contents insurance policy (we've got an 'items away from home' add in that covers mobiles) but that is another story.
    Originally posted by GeorgianaCavendish
    I must admit I'm pretty good and only upgraded from SIM only last time because my phone was on it's last legs and I secured a much better deal with cashback with another provider.

    however, I must check my insurance policy and see if our phones are covered at all as I don't have any separate insurance for them.

    Naomim
    Credit Cards 33,220.42 NOV 2019

    Here's my diary: A Ditherer's Diary Again
    • GeorgianaCavendish
    • By GeorgianaCavendish 15th Jan 20, 4:48 PM
    • 802 Posts
    • 5,309 Thanks
    GeorgianaCavendish
    Oh the "save the change" thing you mean? It does seem like a good idea in theory - if you make a lot of transactions though and always do that it could certainly risk throwing a budget off kilter.
    Originally posted by EssexHebridean
    Definitely something to keep in mind! I'm not sure how many transactions I make over a month (off to check that now) but I can imagine that if everything was rounded up to the next it could prove a nasty shock!

    I must admit I'm pretty good and only upgraded from SIM only last time because my phone was on it's last legs and I secured a much better deal with cashback with another provider.

    however, I must check my insurance policy and see if our phones are covered at all as I don't have any separate insurance for them.

    Naomim
    Originally posted by Naomim
    It is definitely worth checking in the wording. Our current policy covers them as part of the "items away from home", but in a previous policy with a different supplier we had a separate add-on for electronics that included mobile phones in & out of the home.
    • Moguline
    • By Moguline 15th Jan 20, 6:30 PM
    • 743 Posts
    • 2,421 Thanks
    Moguline
    I have the save the change thing and it doesn't ruin my budget because I always round up to the nearest pound in my budget anyway. So if I've spent 6.18 in Aldi, I'll take 7 off the grocery budget.
    I save on average 15-20 per month with it.
    Current debt (01/11/2019): 18,941 32.3% paid
    • GeorgianaCavendish
    • By GeorgianaCavendish 16th Jan 20, 12:49 PM
    • 802 Posts
    • 5,309 Thanks
    GeorgianaCavendish
    I have the save the change thing and it doesn't ruin my budget because I always round up to the nearest pound in my budget anyway. So if I've spent 6.18 in Aldi, I'll take 7 off the grocery budget.
    I save on average 15-20 per month with it.
    Originally posted by Moguline
    Does your bank offer the service or do you use a 3rd party app? Turns out that my bank (HSBC) doesn't offer it any more
    • Moguline
    • By Moguline 16th Jan 20, 9:14 PM
    • 743 Posts
    • 2,421 Thanks
    Moguline
    Yes, my bank offer it. I think only Lloyds and Halifax do.
    Current debt (01/11/2019): 18,941 32.3% paid
    • BISCUIT1
    • By BISCUIT1 17th Jan 20, 5:15 PM
    • 84 Posts
    • 106 Thanks
    BISCUIT1
    Hi I have just read from start to finish today-very inspiring and well done-reading this has given me more momentum to keep going with my credit cards debts x
    • MidlandsMumof2
    • By MidlandsMumof2 18th Jan 20, 11:04 AM
    • 1 Posts
    • 5 Thanks
    MidlandsMumof2
    Hi GC
    I’ve read your diary over the past 3 days (usually during my 2 year old’s nap time) and have found your journey inspirational. I’m really pleased that you didn’t decide to delete this diary a couple of years ago because your situation back then really resonates with me now and reading your progress has helped to motivate me to start to battle with my own finances.
    So, thank you! And good luck for the rest of the journey; particularly now the personal loan is paid of.
    Can someone tell me how I can subscribe to this diary? X
    • janb5
    • By janb5 18th Jan 20, 11:58 AM
    • 2,006 Posts
    • 7,374 Thanks
    janb5
    Hi MidlandsMumof2 ! Go to Thread tools at top of page and then click on subscribe to thread. HTH
    Last edited by janb5; 18-01-2020 at 12:02 PM.
    • db2016
    • By db2016 19th Jan 20, 6:09 PM
    • 231 Posts
    • 520 Thanks
    db2016
    read from mid 2019 to date, good progress!

    im with you on the phone case, i pay 30 at least on a case, and they always pay for themselves.
    not so much from drops etc, because i have a simple rule, unless its being used, it goes back in the pocket - it annoys me seeing people leave it on tables or whatever to get messed up / risk of a drop.
    and the last 3 phones going back about 5-6 years i have bought sim free - and this at first was a big it out from the "upgrade with network" trap i wouldnt go back now.

    then when it comes to sell i get the best price because it's in best condition (and the case goes with so the new buyer gets it safe too).

    savings going sim only, even when i have unlimited everything are big! even if i did buy a new S10+ outright! but i done it right, on a 0% card etc and got 300 for old one.
    and i have a thing of, do my gadgets work for me, eg my DSLR, its produced photos that have sold for 1000+. so its paid its keep. my PC (a price many would screech at), but it's produced work thats paid for itself in a year. same with my phone, its again produced work or pics that have paid its cost.

    also a top tip is, skip a version - eg i have had galaxy s4 - 6 - 8 and now the ten. when the 11 comes out eg, there wont be much of a "jump" in performance etc,
    and i have a friend who has had the 5 - 7 and now the 9 and we had a play with each others phones and theres not much difference between models at all,



    so from now on she goes up the "odds" side, i do the "evens" / or miss one version (every 2 years) and it works out great.
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