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  • FIRST POST
    • Lydia42
    • By Lydia42 6th Jun 18, 1:46 PM
    • 37Posts
    • 114Thanks
    Lydia42
    Extracting head from sand and facing the truth
    • #1
    • 6th Jun 18, 1:46 PM
    Extracting head from sand and facing the truth 6th Jun 18 at 1:46 PM
    Hi

    Not done anything like this before, not even sure what I'm about to write but i'm hoping this will keep me on track now that i am facing our situation once and for all. Joined years ago, started reducing debt, had two kids (now 8 and 10) and need to finally get a grip on finances as they are spiraling again.

    I'm currently signed off work - due back 25th June. Trying to use the time constructively to sort money and budget. Feeling positive about the changes i have made so far, but still lots to work on.
    Current debts, excluding mortgage:

    Santander O/D 2,560.00
    Barclaycard (1) 1,133.00
    Barclaycard (2) 4,058.00
    Virgin CC 5,508.00
    MBNA 5,267.00
    Total 18,526.00

    I've compared and reduced our car insurances, home insurance, gas/lecci, pet insurance, mobile phone insurance, council tax is already spread over 12 months. Currently re-jigging above debts to 0%, awaiting a decision on Santander CC - keeping fingers crossed as Barclaycard 2 0% runs out at the end of this month so i'm hoping to transfer as much as i can to new card if approved.

    Have been trying to keep a food spending diary and note alcohol spending too as i know we over-spend massively on food and alcohol. Absolutely horrified on what we are spending. This MUST be addressed!!!!

    Have also been introduced to Dave Ramsey from reading others posts. It's finally hitting home this time. I want financial security and peace - not sleepless nights, stress and kids learning bad money habits!
Page 2
    • Brookside88
    • By Brookside88 11th Jul 18, 10:29 PM
    • 204 Posts
    • 294 Thanks
    Brookside88
    Hi Brookside
    Thanks for subscribing. Do you have a diary? Would be great to follow you if you have similar debts. Scary when you total them all up and face the truth isn't it!!
    How are you finding snowballing? Have you been doing it long?
    Originally posted by Lydia42
    Yep I do, take a peak (it's not very exciting and I'm not great at keeping up with it).
    Started snowballing in January, it's good to focus your efforts in the right place. I'm chipping away at it, albeit slower than I'd hoped
    Barclaycard CC 5,912.12/0___Virgin CC 5,536.81/5,536.81___Zopa Loan 5,680.83/4,906.17___Tesco CC 1,922.46/1,772.46___MBNA CC 6,323.15/5,696.73
    Total 19,838.56/17,912.17 (9.7%)
    • BabyStepper
    • By BabyStepper 12th Jul 18, 4:29 AM
    • 21 Posts
    • 33 Thanks
    BabyStepper
    Thanks for explaining about sinking funds. They sound like a very good idea. Our emergency fund is being used like that, and although saving up means you can't get to the debt repayment as quickly as you would like, it's worth the effort and the wait. Once you have snipped up the credit cards there is no option to use them and increase the debt. You need cash for things that come up, like your car maintenance and fixing your shower (how annoying for you, hope it gets sorted). In my mind, baby step 1 is as much about stopping using the cards as is it about saving and that is a huge change already. I was terrified cutting ours up, I seriously thought we couldn't cope without them. But it's been fine. We have borrowed and pad back the emergency fund to help with cash flow but the situation is better than it was.

    Lidl is good for cheap food.
    • Lydia42
    • By Lydia42 12th Jul 18, 1:44 PM
    • 37 Posts
    • 114 Thanks
    Lydia42
    Wowsers will i be glad when the school term is done. Will be glad when the requests for payment for school trips, teacher's leaving collections, ice lollie Wednesday, Mufti day payment, etc, etc are over for the summer holidays and i can budget a little better. I know i'll have the kids at home for the holidays but at least i can manage things better when i am in control.

    We're lucky that we live by the coast, and also on the South Downs so we can do awesome days out for the price of a home made picnic. Also planning on making the most of membership to the local theme park that we have (courtesy of Nanny on the kids birthdays). I've also kept our membership to National Trust to make the most of it over the holidays - likely to cancel in September to save money each month.
    Total Debt June 2018: 19, 444
    • BabyStepper
    • By BabyStepper 13th Jul 18, 6:20 AM
    • 21 Posts
    • 33 Thanks
    BabyStepper
    Just wondering how much your National Trust membership costs? It sounds like you live in a beautiful area, great for cheap days out.
    • Lydia42
    • By Lydia42 13th Jul 18, 6:40 PM
    • 37 Posts
    • 114 Thanks
    Lydia42
    Yep I do, take a peak (it's not very exciting and I'm not great at keeping up with it).
    Started snowballing in January, it's good to focus your efforts in the right place. I'm chipping away at it, albeit slower than I'd hoped
    Originally posted by Brookside88
    Just subscribed, so will have a read when the kids go to bed. Well done chipping away. At least it's going in the right direction, even if not as fast as you'd like. And with snowballing it'll speed up as you go
    Total Debt June 2018: 19, 444
    • Lydia42
    • By Lydia42 13th Jul 18, 6:46 PM
    • 37 Posts
    • 114 Thanks
    Lydia42
    Thanks for explaining about sinking funds. They sound like a very good idea. Our emergency fund is being used like that, and although saving up means you can't get to the debt repayment as quickly as you would like, it's worth the effort and the wait. Once you have snipped up the credit cards there is no option to use them and increase the debt. You need cash for things that come up, like your car maintenance and fixing your shower (how annoying for you, hope it gets sorted). In my mind, baby step 1 is as much about stopping using the cards as is it about saving and that is a huge change already. I was terrified cutting ours up, I seriously thought we couldn't cope without them. But it's been fine. We have borrowed and pad back the emergency fund to help with cash flow but the situation is better than it was.

    Lidl is good for cheap food.
    Originally posted by BabyStepper
    Definitely agree that baby step one is a learning curve for saving and not using the cards.
    I think using the emergency fund, instead of also trying to build up sink finds is probably the best way to go for now. I'm going to have to raid the emergency fund to get through the end of this month due to the car and bathroom. Then try and keep a tight budget during the hols. We pay approx 9 a month for national trust, but they often have deals for newbies which are even better if you look about

    PS. Love Lidl
    Total Debt June 2018: 19, 444
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