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    • rachel90rl
    • By rachel90rl 10th Oct 17, 2:52 PM
    • 19Posts
    • 7Thanks
    One step at a time....winging it!
    • #1
    • 10th Oct 17, 2:52 PM
    One step at a time....winging it! 10th Oct 17 at 2:52 PM
    A bit of background:
    I'm 27 years old, in FT employment and living with parents. I have ignored my financial situation for a while and overspent a few too many times which has left me with a 4000 overdraft, 3 credit cards, each with at least 1000 on and a car loan of just over 7000.
    I'm so disappointed in myself, I've never been one to check my account constantly, generally once a month to pay one of my credit cards which isn't set up as DD.
    I think the issue started late 2013. My long term relationship ended, I started a new job and blew all my savings (not that I had much saved - around 1500). In December 2014, I was diagnosed with Epilepsy and had to surrender my driving licence. In 2015-early 2016, following a car accident I was off work long term with migraines, stress and depression. Although I get sick pay, it goes to half pay after a while and then to no pay which obviously meant I was spending more than I had coming in. I think I was looking for ways to make me feel better too. I sold my car for half its value as I needed it gone. Once I got my driving licence back, I got a 10k loan for another car.
    Another of my problems is that I'm too generous. I have a sister who is a single mum, on benefits etc. Her kids are my world and I will do anything to make them happy, taking them out, buying them treats etc, the usual! I don't want them to go without because my sister can't afford to treat them all the time but I've realised actually I can't afford it.

    So anyway:
    • Step one for me was admitting to myself that yes, I do have a problem with debt.
    • Step two was opening a new bank account with no overdraft facility.
    • Step three was to change my account details at work to get paid into new, no overdraft account.
    • Step four was to think about how to increase my income.
    • Step five, I handed out my CV for part time, Christmas jobs in retail, I have also applied online in some cases.
    • Step six is to write down ALL my income/outgoings this evening and have a look at more PT jobs.
    I'm starting to feel like I am getting somewhere with this. I'll have my salary/salaries paid into my new, no OD account and will then transfer the money to old, OD account to pay that off gradually, as well as my DD's and CC's.

    Does anyone have any tips for me? Should I arrange DD's to all come out of new account?

    Thanks for reading!
Page 1
    • UncannyScot
    • By UncannyScot 10th Oct 17, 10:01 PM
    • 1,471 Posts
    • 8,257 Thanks
    • #2
    • 10th Oct 17, 10:01 PM
    • #2
    • 10th Oct 17, 10:01 PM
    Hi and welcome

    A few things that are essential;
    account for everything coming in and going out and look to see what you can cut out completely and what you can reduce / make savings on...
    ensure that all your essential costs and bill payments are being met...
    be brutally honest with and about yourself and your spending / finances...

    Join in and read and comment in other folks diaries and ask for advice and info.
    We are a helpful and supportive bunch on here
    It is important that we know where we come from, because if you do not know where you come from, then you do not know where you are, and if you don't know where you are, then you don't know where you are going. If you don't know where you're going, you're probably going wrong.
    R.I.P. T.P.
    • rachel90rl
    • By rachel90rl 11th Oct 17, 9:41 AM
    • 19 Posts
    • 7 Thanks
    • #3
    • 11th Oct 17, 9:41 AM
    • #3
    • 11th Oct 17, 9:41 AM
    Thank you, UncannyScot!
    It's going to be difficult but as long as I stick to it, I should be ok. I just need to confirm the amount I have on each debt and then I will be able to get an idea of when I can be debt free!
    • DebtFreeDuo
    • By DebtFreeDuo 11th Oct 17, 10:15 AM
    • 814 Posts
    • 4,184 Thanks
    • #4
    • 11th Oct 17, 10:15 AM
    • #4
    • 11th Oct 17, 10:15 AM
    If I were you I would start with an SOA, be completely realistic about how much you spend in each area and it will give you an honest picture of where you stand. You don't have to post it here but if you do then there are lots of people here who would be willing to suggest areas you could cut back on. Doing an SOA will also reveal the true picture of all of your debts as you will need to input exact figures.

    As UncannyScot has mentioned you need to make sure that your bills are still being met each month too, in your position I would probably transfer all the direct debits over to your new account and just leave the overdraft there to clear as and when you can but make sure you have enough of your overdraft left to cover interest each month.

    It would also help to know all the interest rates of each of your debts then you will know which ones to overpay on first if you're in a position to do so. I'm not sure if you have any debt on 0% but if not have you considered looking into whether it is possible to shift it over to 0%?
    Debt free by Christmas 2018 #004: 2565.82/7445.69
    2018 in 2018 #25: 674.21/2018
    SPC 586
    • beanielou
    • By beanielou 11th Oct 17, 6:46 PM
    • 55,063 Posts
    • 219,972 Thanks
    • #5
    • 11th Oct 17, 6:46 PM
    • #5
    • 11th Oct 17, 6:46 PM
    Baby steps are good.
    Also choose the highest rate debt to target first.
    Keep posting!
    Lou~ Debt free Wanabe No 55 DF 03/03/14.
    **Credit card debt free 30/06/10~** **Weight loss 2 stone 11 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.
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