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  • FIRST POST
    • Tranquil
    • By Tranquil 13th Jan 18, 4:36 PM
    • 28Posts
    • 19Thanks
    Tranquil
    How do you keep momentum going?
    • #1
    • 13th Jan 18, 4:36 PM
    How do you keep momentum going? 13th Jan 18 at 4:36 PM
    Hi all,

    I have recently joined so apologies if this is not on the correct board.

    After a few years of denial, I have recently started to focus on a management plan of £11,000, rather than just making minimum payments whilst still building up more debt and using credit cards to pay for basic essentials.
    I have recently taken out a £10,000 loan, due to make payments of £285 a month for three years. This meant I could pay off almost all my credit cards and overdrafts. I still have one credit card with a balance of £799 that is interest free until December this year. I feel much more in control and starting to reflect on why I got into this much debt in the first place.

    Despite having a clearly-made budget, the last two weeks of every month, I am struggling to even pay for groceries. This would be when I usually turn to credit cards but I have been very strict with myself and I guess 'lowered my standards', sometimes skipping meals to save money. This seems absurd given that I earn around £29,000 per year (before tax). I just don't understand how other people seem to have so much money! Many of my colleagues seem to be able to book holidays, expensive make-up etc. at no notice, although I guess they don't have the debt repayments. But it always feels like everyone else has more money than me and I really struggle to understand this?! And I think this contributed to me spending more than I had as I couldn't understand this.

    I'm really worried about slipping back into my old ways and was wondering if anyone has any tips/motivation to keep going and living month-by-month until debt has been cleared? I'm hoping by December 2021 I will be completely debt free.

    Thanks for reading. It certainly feels overwhelming at times.
Page 1
    • phizzimum
    • By phizzimum 13th Jan 18, 4:46 PM
    • 1,697 Posts
    • 9,247 Thanks
    phizzimum
    • #2
    • 13th Jan 18, 4:46 PM
    • #2
    • 13th Jan 18, 4:46 PM
    Hi Tranquil

    If you’re finding it hard to keep to your budget do you know where the money is going? Keeping a spending diary or going through your bank statement might help answer this.

    At the start of the month I take out cash for groceries and diesel and divide it into envelopes. It works for me but maybe not for everyone. You shouldn’t be having to skip meals.

    And don’t forget that colleagues may well be putting their holidays and make up on credit cards that they will have to deal with sooner or later!
    weaving through the chaos...
    • sourcrates
    • By sourcrates 13th Jan 18, 5:17 PM
    • 14,326 Posts
    • 13,525 Thanks
    sourcrates
    • #3
    • 13th Jan 18, 5:17 PM
    • #3
    • 13th Jan 18, 5:17 PM
    I just don't understand how other people seem to have so much money! Many of my colleagues seem to be able to book holidays, expensive make-up etc. at no notice, although I guess they don't have the debt repayments. But it always feels like everyone else has more money than me and I really struggle to understand this?!
    Originally posted by Tranquil
    That`s because its, most likely, paid for by credit, the majority just pop it on the credit card, of course some people are cash buyers, there will always be the thrifty ones, but most "wants" are credit funded.

    Bit concerned about how you've gone about this, consolidation can be a double edged sword, and, as you appear to be struggling already, i`m wondering if it was the right choice for you, borrowing to repay existing credit rarely works out well, unless you are super on the ball, and refrain from using those lines of credit again.

    Budgeting is the key to making it work, but I feel you may of underestimated how much you require to live on, on a monthly basis without having to resort to credit.

    You are certainly not on your own, there are times i run short of cash towards month end, and i have no debts to service.
    Last edited by sourcrates; 13-01-2018 at 5:21 PM.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
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    • Anniee88
    • By Anniee88 13th Jan 18, 5:48 PM
    • 81 Posts
    • 158 Thanks
    Anniee88
    • #4
    • 13th Jan 18, 5:48 PM
    • #4
    • 13th Jan 18, 5:48 PM
    I don!!!8217;t have any suggestions on keeping you motivated but I am with you on the !!!8216;everyone seems to have more money than me!!!8217;. But since the light bulb moment I try not to let this bother me anymore and I will not be getting any more credit once I!!!8217;ve paid off all my debts. Good luck on tackling your debts
    • Fireflyaway
    • By Fireflyaway 13th Jan 18, 6:49 PM
    • 1,813 Posts
    • 1,963 Thanks
    Fireflyaway
    • #5
    • 13th Jan 18, 6:49 PM
    • #5
    • 13th Jan 18, 6:49 PM
    I agree with what's been said. Many many people use credit cards to buy extras or are always overdrawn. Few people will admit to being broke and life is like an extension of Facebook. Fake / edited. People want to look successful and feel that other people are impressed.
    Who is most successful? Someone driving a merc with £400 a month payments or the person driving the fiesta that's paid off? The person with a £50k income who has no savings or the person on £20k who has £10k in the bank? Thins are not always what they seem.
    Re look at your budget and see if you can make savings.
    Mostly how great will you feel once you have no debt? When whatever you have is paid for? Remember you can take steps to increase your income too. No reason that shouldn't increase.
    • -taff
    • By -taff 13th Jan 18, 7:17 PM
    • 7,420 Posts
    • 5,493 Thanks
    -taff
    • #6
    • 13th Jan 18, 7:17 PM
    • #6
    • 13th Jan 18, 7:17 PM
    Post up an SOA.
    • Candy0107
    • By Candy0107 13th Jan 18, 9:00 PM
    • 1,594 Posts
    • 9,691 Thanks
    Candy0107
    • #7
    • 13th Jan 18, 9:00 PM
    • #7
    • 13th Jan 18, 9:00 PM
    For me (I had £23k of debt)....I used to go basics shopping....at weekends I would use basic shower gel, deodorant etc - it did the job. I would eat porridge every day as I worked out it was about 3p per bowl + 0p for the water.

    Also, I used to do the sealed pot challenge. When it was over half the pot would go to a debt and the other half would be for me to spend on a great.

    I also liked tracking my debts going down.....I could do without holidays and treats knowing that I was one month closer to debt free
    Debts at the start of my journey - about £23,000 lightbulb moment 01.03.2007 (1st payment to CCCS)..Debt Free Date 25.06.2013 Deposit savings £2,500/£30,000
    • My Own Back Door
    • By My Own Back Door 13th Jan 18, 9:53 PM
    • 14 Posts
    • 20 Thanks
    My Own Back Door
    • #8
    • 13th Jan 18, 9:53 PM
    • #8
    • 13th Jan 18, 9:53 PM
    To keep momentum you need to have a challenging goal that is important to you. For me I now have a plan to undertake house improvements and save for removal costs to get a place with a garden and my own back door. It is important not to try to compare your life with others and deciding what you want for yourself in life is key to that. Good luck!
    • kimplus8
    • By kimplus8 13th Jan 18, 9:58 PM
    • 676 Posts
    • 2,078 Thanks
    kimplus8
    • #9
    • 13th Jan 18, 9:58 PM
    • #9
    • 13th Jan 18, 9:58 PM
    The only advice I can give you is that if you clear your debts now then later in life you will have the money to do things and they will be paying for the lifestyle they lead now. Try not to look at the joneses and focus on the legacy that you will be leaving behind to your family. you need to reach a point where you are angry at your debt, look at those bills and say to yourself 'your going down barclaycard' or 'kiss my butt car finance'. as you see the debts snowball away you will get that sense of accomplishment ad it will spur you on.
    Dave Ramsey and Martin Lewis are my Money Saving Heros.
    • theoretica
    • By theoretica 13th Jan 18, 10:09 PM
    • 5,214 Posts
    • 6,479 Thanks
    theoretica
    Some of it could be not having debt, you have more money to spend now if you aren't paying for past spending, and lenders' profits. But also is it the same people with the holidays and the makeup? Sometimes it is easy to look around and see new cars, holidays, home improvements, clothes... and not really notice they are being bought by different people. Few people can afford everything!
    But a banker, engaged at enormous expense,
    Had the whole of their cash in his care.
    Lewis Carroll
    • Tranquil
    • By Tranquil 14th Jan 18, 12:37 AM
    • 28 Posts
    • 19 Thanks
    Tranquil
    Thanks for all your thoughtful replies and I am now definitely reflecting about my assumptions about other people's spending, with the aim of trying to focus more on myself and less comparison. I think a goal of mine would be for home improvement so that could be a strong motivator for me. I have posted an SOA below...any advice/help would be really appreciated as I am very new/naive to independently figuring out my finances. I have recently cancelled and closed all but one credit card so at the moment, my main debts are my personal loan and the one credit card as shown. Thank you for your support!

    Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 1
    Number of children in household......... 0
    Number of cars owned.................... 0

    Monthly Income Details

    Monthly income after tax................ 1700
    Partners monthly income after tax....... 0
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 1700


    Monthly Expense Details

    Mortgage................................ 317.9
    Secured/HP loan repayments.............. 434.30000000000007
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 0 (don't pay this)
    Electricity............................. 45
    Gas..................................... 0
    Oil..................................... 0
    Water rates............................. 0
    Telephone (land line)................... 0
    Mobile phone............................ 0 (parents kindly pay for this)
    TV Licence.............................. 12.25
    Satellite/Cable TV...................... 0
    Internet Services....................... 30
    Groceries etc. ......................... 180
    Clothing................................ 20
    Petrol/diesel........................... 80
    Road tax................................ 10
    Car Insurance........................... 54.11
    Car maintenance (including MOT)......... 25
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 9.35
    Contents insurance...................... 9.35
    Life assurance ......................... 10.55
    Other insurance......................... 3.33
    Presents (birthday, christmas etc)...... 10
    Haircuts................................ 5
    Entertainment........................... 100
    Holiday................................. 20
    Emergency fund.......................... 0
    Sister.................................. 160 (personal information but this will be a permanent expense)
    Music (lessons, hire etc)............... 30
    Toiletries.............................. 30
    Total monthly expenses.................. 1596.14



    Assets

    Cash.................................... 0
    House value (Gross)..................... 110000
    Shares and bonds........................ 0
    Car(s).................................. 0
    Other assets............................ 0
    Total Assets............................ 110000



    Secured & HP Debts

    Description....................Debt......Monthly.. .APR
    Mortgage...................... 83415....(317.9)....2.18
    Secured Debt.................. 10000....(285)......10.3
    Hire Purchase (HP) debt ...... 3733.74..(149.3)....10.3
    Total secured & HP debts...... 97148.74..-.........-


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    Credit card....................799.......70........0
    Total unsecured debts..........799.......70........-



    Monthly Budget Summary

    Total monthly income.................... 1,700
    Expenses (including HP & secured debts). 1,596.14
    Available for debt repayments........... 103.86
    Monthly UNsecured debt repayments....... 70
    Amount left after debt repayments....... 33.86


    Personal Balance Sheet Summary
    Total assets (things you own)........... 110,000
    Total HP & Secured debt................. -97,148.74
    Total Unsecured debt.................... -799
    Net Assets.............................. 12,052.26


    Created using the SOA calculator at
    Reproduced on Moneysavingexpert with permission, using other browser.
    • -taff
    • By -taff 14th Jan 18, 11:56 AM
    • 7,420 Posts
    • 5,493 Thanks
    -taff
    SO, the above SOA, is this a reflection of what actually goes out, or are you guessing most of it? And guessing, I mean spends that are not actual bills to pay other companies.
    It says you have 33 spare a month, do you?
    Do you psend 33 a month on toiletries? Is this make up?
    Have you compred to see what you can get for buildings and contents? Topcashback or quidco might make a cheaper compared price cheaper too.

    Thiis loan you've just got, does that pay off all the debts or did you get just a little bit extra on top as well? Because if you did, you'd best use that to pay the credit card too, and cut it up.

    You can cut your grocery bill, go to the old style board for advice on meal planning and budgeting food, and cheap meals.
    • KxMx
    • By KxMx 14th Jan 18, 1:12 PM
    • 7,382 Posts
    • 10,650 Thanks
    KxMx
    Keep a spending diary so you can see where the money is going, as opposed to where you think it is going.

    Seeing everything in black and white is a sobering experience and often helps to reduce focus spending priorities.

    For motivation break down your amount owed into small chunks.
    That way, with each chunk paid you can feel satisfied, motivated and find the will to keep going.

    Also continue to think about your general priorities. A brief glance at SOA shows room to be trimmed IMO on entertainment, holiday, music, toiletries, clothing so you should not need to be skipping meals on your income even with debt repayments.

    I also find the £180 grocery bill very high for a single person to start with. Do you meal plan? Buy the most economical sized packs (bigger isn't always better if you are throwing away)? Identify what you really like to eat and identify what you throw away. Plan accordingly to what is in fridge/freezer/cupboards instead of going out and buy more.
    • Tranquil
    • By Tranquil 14th Jan 18, 9:21 PM
    • 28 Posts
    • 19 Thanks
    Tranquil
    SO, the above SOA, is this a reflection of what actually goes out, or are you guessing most of it? And guessing, I mean spends that are not actual bills to pay other companies.
    It says you have 33 spare a month, do you?
    Do you psend 33 a month on toiletries? Is this make up?
    Have you compred to see what you can get for buildings and contents? Topcashback or quidco might make a cheaper compared price cheaper too.

    Thiis loan you've just got, does that pay off all the debts or did you get just a little bit extra on top as well? Because if you did, you'd best use that to pay the credit card too, and cut it up.

    You can cut your grocery bill, go to the old style board for advice on meal planning and budgeting food, and cheap meals.
    Originally posted by -taff
    Thank you. The bills that are definite and not guessed are: mortgage, debt repayments, car payments, electricity, tv, car insurance, life insurance, music, sister. Everything else is guessed! I definitely never have any money spare so I must be spending more somewhere. I might download the 'Yolt' app as I heard it is good to identify 'categories' of spending
    • Tranquil
    • By Tranquil 14th Jan 18, 9:24 PM
    • 28 Posts
    • 19 Thanks
    Tranquil
    Keep a spending diary so you can see where the money is going, as opposed to where you think it is going.

    Seeing everything in black and white is a sobering experience and often helps to reduce focus spending priorities.

    For motivation break down your amount owed into small chunks.
    That way, with each chunk paid you can feel satisfied, motivated and find the will to keep going.

    Also continue to think about your general priorities. A brief glance at SOA shows room to be trimmed IMO on entertainment, holiday, music, toiletries, clothing so you should not need to be skipping meals on your income even with debt repayments.

    I also find the £180 grocery bill very high for a single person to start with. Do you meal plan? Buy the most economical sized packs (bigger isn't always better if you are throwing away)? Identify what you really like to eat and identify what you throw away. Plan accordingly to what is in fridge/freezer/cupboards instead of going out and buy more.
    Originally posted by KxMx
    That is a really good idea for 'chunking' the debt as it is almost addictive to see debt falling!
    I really need to focus more on food budget as I seem to spend so much, yet it is the first thing I run out near the end of the month and I don't eat anymore than the average person! I tend to do small shops each day of around £4-7 so I think meal-planning would be really useful for me. Thanks!
    • Steerpike88
    • By Steerpike88 14th Jan 18, 9:49 PM
    • 74 Posts
    • 188 Thanks
    Steerpike88
    Oh food is what used to get me every time. Sometimes I'd spend a tenner on lunch and think nothing of it. Now I bring leftovers, soup, or pasta. I save a small fortune.



    • theoretica
    • By theoretica 14th Jan 18, 9:50 PM
    • 5,214 Posts
    • 6,479 Thanks
    theoretica
    Is life assurance worthwhile for you? For many single people it isn't, but your outgoing to your sister may mean your situation is different. But do shop around to check it is as cheap as possible.

    I would suggest a big shop of cheap, long lasting food basics. If you run over budget for a month you have stuff to eat, and if you eat more of the basics during the month you are less likely to run over budget. What do you do about lunches? Packed lunches can really cut costs.
    But a banker, engaged at enormous expense,
    Had the whole of their cash in his care.
    Lewis Carroll
    • fatrab
    • By fatrab 15th Jan 18, 10:08 AM
    • 861 Posts
    • 2,234 Thanks
    fatrab
    To answer your original question, my motivation is this:


    In 5 years time I won't have any debt. My house will be paid for. My family will be ok in the even that I'm not here to provide for them.


    Make a plan, have a motto and a goal and aim towards them.


    Slugging out the month between paydays isn't going to be easy, it will be hard to stay committed at times but it will be worth it as you clear your debts.


    Best of luck to you
    You can have results or excuses, but not both - Wannabe debt free by Dec 2022
    June's targets - Be 15st by end of month, 19/30 AFDs
    39 x £2 coins (#32)
    • doingitanyway
    • By doingitanyway 15th Jan 18, 7:40 PM
    • 3,151 Posts
    • 15,801 Thanks
    doingitanyway
    Work out what you need to get by. Don’t compromise on these things or you will start feel deprived and when you feel you are working hard and life is pants you will go off the rails.

    Sometimes it is about finding different ways of doing what is important. So, I have just come back from the beauty salon, but it the beauty salon at a training college so my facial was a fraction of the price it would be in a mainstream salon.

    My essentials include

    Good coffee
    The occasional bottle of wine
    Looking after my teeth
    Swimming in a decent pool

    Make your own list…

    Overall I am motivated by getting rid of the fear and vulnerability of being in debt and putting my life and future in the hands of creditors.

    I want to determine my own future
    JANUARY 2016/SECURED DEBT=24,822/March 2018=0 DEBT FREE 23/03/18
    MORTGAGE FREE 25/07/16
    • zippygeorgeandben
    • By zippygeorgeandben 15th Jan 18, 11:04 PM
    • 840 Posts
    • 1,097 Thanks
    zippygeorgeandben
    Could you not do an online shop every fortnight for say £60-70 pounds? So you use what is in your cupboards?
    End Sep 2016 End May 2018
    £8236.57 £0
    (Tesco 4.8%) £0pcm
    £6185.75 £0 (Zopa 4.0%) £0pcm

    £5344.50
    £490.04 (Sainsburys 0% until 06/19) £140pcm
    £2000.00 £133.38 (Sister 0%) £133.33pcm

    Total debt
    £19.766.82 £623.42 Original DFD May 2019.
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