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    • HairyHandofDartmoor
    • By HairyHandofDartmoor 24th Sep 17, 12:22 PM
    • 8,923Posts
    • 69,643Thanks
    HairyHandofDartmoor
    Finally Debt Free After 34 Years, But Still Need to Live Frugally
    • #1
    • 24th Sep 17, 12:22 PM
    Finally Debt Free After 34 Years, But Still Need to Live Frugally 24th Sep 17 at 12:22 PM
    My DH and I have been in debt for 34 Years, apart from brief periods, ever since I was offered my first credit card at the tender age of19.

    Our debts were caused by us being impulsive spenders and not being very skilled at budgeting or managing our money, so we know it is our own fault. We always believed that one day we would have more money, mysteriously, and that this would bail us out .

    Our full light bulb moment came when we realised, "What if we never have any more money than we do right now?"

    A couple of years ago we were coping with the minimum payments, but didn't have enough to overpay on any of them. We were forking out 1300 a month in minimum payments, and the interest alone was 1000 a month .

    But then in 2015 our small business started to bring in less, and a family bereavement, and illness affected our ability to work. We could no longer afford the minimum repayments and we were scared we would lose our home. We were stricken with stress and depression .

    Step Change shone a light in the darkness for us and they arranged for us to make token payments of 1 a month to our creditors. This saved our sanity and we were reassured that our home was unlikely to be taken from us.

    My DH recently turned 55 and drew out his pension so that we could make full and final offers to our creditors. All but one accepted an offer of 50% of what we owed (which is all we had to offer). We are continuing negotiations with the final creditor and hope to be debt free by Christmas .

    Being so close to being debt free has made me realise what a heavy burden the debts have been all these years, like living our lives wearing lead boots.

    Once we are debt free we will still need to live very frugally because we have no emergency fund or savings, and our income can be irregular. I hope that starting a diary will help to focus me on frugal living, avoid impulsive spends, and keep my spirits up. Because frugal living can be a lonely and isolating experience.

    This site and Step Change has helped me so much, and I hope that my diary will help to inspire others that it's never too late to change your life .
    Last edited by HairyHandofDartmoor; 18-11-2017 at 8:49 AM.
    Finally Debt Free After 34 Years, But Still Need to Live Frugally
    Debt in July 2017 = 58,766 DEBT FREE 31 OCTOBER 2017
    NEW GOALS - Build Emergency Fund & Loss of Income Fund. Save for house repairs.
    EMERGENCY FUND 1 = 4,005. EMERGENCY FUND 2 = 1,505.
    Goal - buy 50 worth of Premium Bonds per month = 50
Page 433
    • HairyHandofDartmoor
    • By HairyHandofDartmoor 15th Apr 19, 8:29 PM
    • 8,923 Posts
    • 69,643 Thanks
    HairyHandofDartmoor
    Thanks TF2 . I'm quite excited about the shed as I've been wanting one for years, so I'm looking forward to it arriving on Wednesday. We won't have time to assemble it until the weekend, but I'll look forward to getting all the decorating stuff and garden tools organised in it.

    What an exciting life I lead .
    Last edited by HairyHandofDartmoor; 15-04-2019 at 9:11 PM.
    Finally Debt Free After 34 Years, But Still Need to Live Frugally
    Debt in July 2017 = 58,766 DEBT FREE 31 OCTOBER 2017
    NEW GOALS - Build Emergency Fund & Loss of Income Fund. Save for house repairs.
    EMERGENCY FUND 1 = 4,005. EMERGENCY FUND 2 = 1,505.
    Goal - buy 50 worth of Premium Bonds per month = 50
    • HairyHandofDartmoor
    • By HairyHandofDartmoor 15th Apr 19, 8:32 PM
    • 8,923 Posts
    • 69,643 Thanks
    HairyHandofDartmoor
    What do people think about my idea of buying premium bonds with my 50 a month savings?

    I know I won't get interest, but there's a chance of a win and also I feel I would be less likely to fritter my savings as I'd have to sell the premium bonds and that would be a psychological barrier.
    Last edited by HairyHandofDartmoor; 15-04-2019 at 8:35 PM.
    Finally Debt Free After 34 Years, But Still Need to Live Frugally
    Debt in July 2017 = 58,766 DEBT FREE 31 OCTOBER 2017
    NEW GOALS - Build Emergency Fund & Loss of Income Fund. Save for house repairs.
    EMERGENCY FUND 1 = 4,005. EMERGENCY FUND 2 = 1,505.
    Goal - buy 50 worth of Premium Bonds per month = 50
    • beanielou
    • By beanielou 15th Apr 19, 8:34 PM
    • 62,688 Posts
    • 272,292 Thanks
    beanielou
    I think the premium bonds are a good idea
    Lou~ Debt free Wanabe No 55 DF 03/03/14.
    **Credit card debt free 30/06/10~** **Weight loss 2 stone 12 lbs **

    "A large income is the best recipe for happiness I ever heard of" Jane Austen in Mansfield Park.
    ***Fall down seven times,stand up eight*** ~~Japanese proverb.
    It starts with you, it starts from now. *** It is ok to be me.***
    ***Keep plodding***
    Out of debt, out of danger. ***Be the difference.***
    • HairyHandofDartmoor
    • By HairyHandofDartmoor 15th Apr 19, 9:10 PM
    • 8,923 Posts
    • 69,643 Thanks
    HairyHandofDartmoor
    Thanks Beanie . I like the idea of spreading my savings around rather than having them all in one place and also I want to make them inaccessible, so premium bonds would be suitable in that regard.
    Finally Debt Free After 34 Years, But Still Need to Live Frugally
    Debt in July 2017 = 58,766 DEBT FREE 31 OCTOBER 2017
    NEW GOALS - Build Emergency Fund & Loss of Income Fund. Save for house repairs.
    EMERGENCY FUND 1 = 4,005. EMERGENCY FUND 2 = 1,505.
    Goal - buy 50 worth of Premium Bonds per month = 50
    • in need of direction
    • By in need of direction 15th Apr 19, 9:29 PM
    • 5,699 Posts
    • 34,866 Thanks
    in need of direction
    I’ve just bought premium bonds with the money I have set aside to pay my tax bill next January. I couldn’t commit to locking the money away for a year without which the interest wasn’t great. I needed the money to not be too accessible and I’m crossing my fingers for a win!
    Mortgage at 01.01.14 119,481.83 today 69,283.91 target 65,000 by 05/04/19 Offset fund today 566.16 target 5,500 by 05/04/19
    Emergency fund 5,500/5.5k & 200/200 cash.
    Weight 24/02/19 14st 7lb now 13st 1lb
    determined to stop defining myself by my mistakes.
    Progress not perfection.
    • HairyHandofDartmoor
    • By HairyHandofDartmoor 15th Apr 19, 9:34 PM
    • 8,923 Posts
    • 69,643 Thanks
    HairyHandofDartmoor
    It would give us some hope of a win at least wouldn't it? Especially as I don't do the lottery so there's no chance of me winning that! And the inacessability is a good factor too.
    Finally Debt Free After 34 Years, But Still Need to Live Frugally
    Debt in July 2017 = 58,766 DEBT FREE 31 OCTOBER 2017
    NEW GOALS - Build Emergency Fund & Loss of Income Fund. Save for house repairs.
    EMERGENCY FUND 1 = 4,005. EMERGENCY FUND 2 = 1,505.
    Goal - buy 50 worth of Premium Bonds per month = 50
    • beanielou
    • By beanielou 15th Apr 19, 9:40 PM
    • 62,688 Posts
    • 272,292 Thanks
    beanielou
    What is the minimum you can buy in premimum bonds?
    Lou~ Debt free Wanabe No 55 DF 03/03/14.
    **Credit card debt free 30/06/10~** **Weight loss 2 stone 12 lbs **

    "A large income is the best recipe for happiness I ever heard of" Jane Austen in Mansfield Park.
    ***Fall down seven times,stand up eight*** ~~Japanese proverb.
    It starts with you, it starts from now. *** It is ok to be me.***
    ***Keep plodding***
    Out of debt, out of danger. ***Be the difference.***
    • HairyHandofDartmoor
    • By HairyHandofDartmoor 15th Apr 19, 9:44 PM
    • 8,923 Posts
    • 69,643 Thanks
    HairyHandofDartmoor
    The minimum is 25 Beanie.
    Finally Debt Free After 34 Years, But Still Need to Live Frugally
    Debt in July 2017 = 58,766 DEBT FREE 31 OCTOBER 2017
    NEW GOALS - Build Emergency Fund & Loss of Income Fund. Save for house repairs.
    EMERGENCY FUND 1 = 4,005. EMERGENCY FUND 2 = 1,505.
    Goal - buy 50 worth of Premium Bonds per month = 50
    • beanielou
    • By beanielou 15th Apr 19, 10:06 PM
    • 62,688 Posts
    • 272,292 Thanks
    beanielou
    The minimum is 25 Beanie.
    Originally posted by HairyHandofDartmoor
    Thanks
    Lou~ Debt free Wanabe No 55 DF 03/03/14.
    **Credit card debt free 30/06/10~** **Weight loss 2 stone 12 lbs **

    "A large income is the best recipe for happiness I ever heard of" Jane Austen in Mansfield Park.
    ***Fall down seven times,stand up eight*** ~~Japanese proverb.
    It starts with you, it starts from now. *** It is ok to be me.***
    ***Keep plodding***
    Out of debt, out of danger. ***Be the difference.***
    • daisy 1571
    • By daisy 1571 16th Apr 19, 7:11 AM
    • 462 Posts
    • 5,539 Thanks
    daisy 1571
    Yup we have premium bonds and I agree with your reasons. 50 a month soon adds up, you begin to forget about the money if its on standing order and it just quietly tootles over each month however there is always the chance of a win which is a nice thought.

    If you need the money back its in your account within about a week but if you do it online its quicker but the fact of having to do something means its just a little bit less accessible than in-the-bank money.

    You can set it up that wins are reinvested or are sent to your bank account. Generally 25 winnings are in your account by about day 8 of the month, bigger amounts go in quicker. You can check on nsandi website from 1st of the month for the high value winners then from day two onwards you can put your holder number in to see if you have won anything.

    It is better if you have more in (just because you have more chance the more entries you have) but dont be disheartened by having just a little in, this month someone from Gloucestershire who has only got 5 worth of bonds (held since 78) won 5,000 as did a few others who only have around 100 in so it's always possible.

    We live in hope Agent Million will be knocking on our door on 1st of a month (yup that happens if you get one of the 2 monthly 1million prizes !!)

    Goid luck

    Daisy xx
    "Never save something for a special occasion. Every day in your life is a special occasion" Take hold of every moment by anon

    The difference between what you were yesterday and what you will be tomorrow is what you do today
    • HairyHandofDartmoor
    • By HairyHandofDartmoor 16th Apr 19, 7:47 AM
    • 8,923 Posts
    • 69,643 Thanks
    HairyHandofDartmoor
    Thank you Daisy . You've convinced me and I'm definitely going to spend 50 a month of my wages on premium bonds. If we were having a bad month I could always lower it to 25 that month. I like the sound of Agent Million .
    Finally Debt Free After 34 Years, But Still Need to Live Frugally
    Debt in July 2017 = 58,766 DEBT FREE 31 OCTOBER 2017
    NEW GOALS - Build Emergency Fund & Loss of Income Fund. Save for house repairs.
    EMERGENCY FUND 1 = 4,005. EMERGENCY FUND 2 = 1,505.
    Goal - buy 50 worth of Premium Bonds per month = 50
    • arsenalbarnie
    • By arsenalbarnie 16th Apr 19, 7:50 AM
    • 318 Posts
    • 2,093 Thanks
    arsenalbarnie
    I love Premium bond day as me and my friend call it. I have the app and you press the button and the disc spins round and it tells you if you have won and how many prizes. I have a fair bit of OH's money in mine as it's harder for him to spend it. We are getting more from it than in savings. In our family we always used to say at the end of the month I wonder if ERNIE will be walking up the drive to knock on our door tomorrow. Ha ha he hasn't yet. It's like being in a raffle but you get your money back, love them. Very quick to withdraw from too if you do it all online.
    • Sunshine girl2
    • By Sunshine girl2 16th Apr 19, 7:52 AM
    • 59 Posts
    • 333 Thanks
    Sunshine girl2
    I do Premium Bonds every month as well 50 , it's my Long term savings .
    • jwil
    • By jwil 16th Apr 19, 8:53 AM
    • 10,284 Posts
    • 35,742 Thanks
    jwil
    Yay to a new shed

    I'm going to get some Premium bonds too in the future. I've been meaning to since the minimum spend went down to 25. I didn't think of doing it monthly though, might consider 25 a month. Thanks
    "If you can dream it, you can do it". Walt Disney
    • teafor2
    • By teafor2 16th Apr 19, 10:15 AM
    • 1,350 Posts
    • 9,942 Thanks
    teafor2
    Morning HHD I think the premium bond idea is a good one. Saving with a chance of winning some money seems a good bet to me. I was given a 1 one when I was christened. No idea if it's still entered into the draw or not but I've kept it for posterity.

    Are you having a quiet day today or are you going under the bed to tackle some more books? xx
    • elizabethhull
    • By elizabethhull 16th Apr 19, 10:55 AM
    • 450 Posts
    • 3,804 Thanks
    elizabethhull
    The financial sense of buying premium bonds depends almost entirely on current interest rates. As they are still very low, your chances of a modest win far outweigh the measly interest on the same sum. Low interest rates mean that as you can take out what you put in, the real value of the money is barely changing.

    Again, if they were difficult to redeem, the answer would be different.

    Also, with the minimum purchase having gone down from a ridiculous 100 to a very sensible 25, they are much more accessible to those with only small amounts to invest.

    Premium Bonds are buying into 'hope', a positive commodity, whilst not burning your boats with risky investments.

    I would say - go for it !!
    • EssexHebridean
    • By EssexHebridean 16th Apr 19, 11:17 AM
    • 9,181 Posts
    • 48,185 Thanks
    EssexHebridean
    This is making me want to commit some money each month into Premium Bonds too! There really is nothing to lose, is there!
    MORTGAGE FREE 30/09/2016
    SOA CALCULATOR (for DFW newbies): Stoozing.com SOA Calculator
    • HairyHandofDartmoor
    • By HairyHandofDartmoor 16th Apr 19, 12:17 PM
    • 8,923 Posts
    • 69,643 Thanks
    HairyHandofDartmoor
    I love Premium bond day as me and my friend call it. I have the app and you press the button and the disc spins round and it tells you if you have won and how many prizes. I have a fair bit of OH's money in mine as it's harder for him to spend it. We are getting more from it than in savings. In our family we always used to say at the end of the month I wonder if ERNIE will be walking up the drive to knock on our door tomorrow. Ha ha he hasn't yet. It's like being in a raffle but you get your money back, love them. Very quick to withdraw from too if you do it all online.
    Originally posted by arsenalbarnie
    I do Premium Bonds every month as well 50 , it's my Long term savings .
    Originally posted by Sunshine girl2
    Yay to a new shed

    I'm going to get some Premium bonds too in the future. I've been meaning to since the minimum spend went down to 25. I didn't think of doing it monthly though, might consider 25 a month. Thanks
    Originally posted by jwil
    I'm getting more convinced by the minute .
    Finally Debt Free After 34 Years, But Still Need to Live Frugally
    Debt in July 2017 = 58,766 DEBT FREE 31 OCTOBER 2017
    NEW GOALS - Build Emergency Fund & Loss of Income Fund. Save for house repairs.
    EMERGENCY FUND 1 = 4,005. EMERGENCY FUND 2 = 1,505.
    Goal - buy 50 worth of Premium Bonds per month = 50
    • HairyHandofDartmoor
    • By HairyHandofDartmoor 16th Apr 19, 12:19 PM
    • 8,923 Posts
    • 69,643 Thanks
    HairyHandofDartmoor
    Morning HHD I think the premium bond idea is a good one. Saving with a chance of winning some money seems a good bet to me. I was given a 1 one when I was christened. No idea if it's still entered into the draw or not but I've kept it for posterity.

    Are you having a quiet day today or are you going under the bed to tackle some more books? xx
    Originally posted by teafor2
    The financial sense of buying premium bonds depends almost entirely on current interest rates. As they are still very low, your chances of a modest win far outweigh the measly interest on the same sum. Low interest rates mean that as you can take out what you put in, the real value of the money is barely changing.

    Again, if they were difficult to redeem, the answer would be different.

    Also, with the minimum purchase having gone down from a ridiculous 100 to a very sensible 25, they are much more accessible to those with only small amounts to invest.

    Premium Bonds are buying into 'hope', a positive commodity, whilst not burning your boats with risky investments.

    I would say - go for it !!
    Originally posted by elizabethhull
    This is making me want to commit some money each month into Premium Bonds too! There really is nothing to lose, is there!
    Originally posted by EssexHebridean
    I'm totally convinced now! As soon as I get paid I'm going to buy some premium bonds .
    Finally Debt Free After 34 Years, But Still Need to Live Frugally
    Debt in July 2017 = 58,766 DEBT FREE 31 OCTOBER 2017
    NEW GOALS - Build Emergency Fund & Loss of Income Fund. Save for house repairs.
    EMERGENCY FUND 1 = 4,005. EMERGENCY FUND 2 = 1,505.
    Goal - buy 50 worth of Premium Bonds per month = 50
    • HairyHandofDartmoor
    • By HairyHandofDartmoor 16th Apr 19, 12:20 PM
    • 8,923 Posts
    • 69,643 Thanks
    HairyHandofDartmoor

    Are you having a quiet day today or are you going under the bed to tackle some more books? xx
    Originally posted by teafor2
    I'm going under the bed to tackle more books TFW . I'm obsessed!
    Finally Debt Free After 34 Years, But Still Need to Live Frugally
    Debt in July 2017 = 58,766 DEBT FREE 31 OCTOBER 2017
    NEW GOALS - Build Emergency Fund & Loss of Income Fund. Save for house repairs.
    EMERGENCY FUND 1 = 4,005. EMERGENCY FUND 2 = 1,505.
    Goal - buy 50 worth of Premium Bonds per month = 50
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