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  • FIRST POST
    • ftbwannabe
    • By ftbwannabe 1st Aug 18, 9:06 AM
    • 181Posts
    • 613Thanks
    ftbwannabe
    I hope I can do this
    • #1
    • 1st Aug 18, 9:06 AM
    I hope I can do this 1st Aug 18 at 9:06 AM
    Hi

    Why am I a Debt Free Wannabe? Because someone in my family has just offered to give my partner and I money towards a deposit for our first house, but I owe 17k in unsecured debt & I think that will make it hard to either get a mortgage at all, or get a decent deal. Now I feel like I'm ruining both my partner's chances & my own.

    I never thought I'd be able to get on the housing ladder. I've been in debt since I was 18 (I'm just past 40 now) & getting out of it has always seemed either impossible or unimportant.
    But my SOA reckons I have hundreds of money spare each month that I could throw onto my cards & clear them in about 2 years. If I make a big effort over the next 12 months, apparently (I find it hard to believe) I could halve my debt, & then we'd be a better prospect for mortgage lenders.

    Typing this makes me want to cry, & has my stomach in knots. My inner critics are saying 'you stupid girl, you could have got out of this years ago' and 'don't bother trying, the numbers are wrong, you won't be able to keep this up and then you'll fail and feel worse' and 'he'll resent you and your money problems'. Also, 'life will be miserable, you'll have no fun, no friends and everyone will think you're boring & badly dressed'. 'LIfe's too short to scrimp' and 'you'll never get on the housing ladder anyway, or the market will crash & leave you in even more debt'

    But the more positive practical side of me is hoping that accountability will help me focus on this one day at a time, and then in 365 of those I'll look up & see 7k wiped off my debts. Even if we don't get on the housing ladder, at least I'd be debt free! My salary seems much more generous if I imagine not paying my credit cards back each month.

    Using apps to honestly track my eating, weight & spending has been really effective for me this year - I use myfitnesspal & Monzo. I love Monzo! And I will be relying on it to help my spending stay visible & something I'm in control of.

    I hope starting a diary here will help keep me accountable, and help me when it's the small day to day actions that are making a difference, not just the 'i've just started this and yes I'm going to change my life' big drama moments. (I really like the 'what small DFW things will you do this week' thread, & want to do something similar here.

    My SOA is below. The credit card payments listed are the minimum, I reguarly pay more (never the minimum) & have today changed my direct debits to pay 100 a month to each. I always have 0% deals so tell myself it's fine to have the debt- but year by year, the amount never goes down:
    SOA DFW
    Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 2
    Number of children in household.........
    Number of cars owned....................

    Monthly Income Details

    Monthly income after tax................ 1964.89
    Partners monthly income after tax....... n/a,
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 1964.89


    Monthly Expense Details


    Rent.................................... 625
    Council tax............................. 134
    Water rates............................. 39.8
    (all other household bills paid by partner)
    Mobile phone............................ 17.66
    Internet Services....................... 4.99
    Groceries etc. ......................... 265
    Clothing................................ 0

    Medical (prescriptions, dentist etc).... 17
    Presents (birthday, christmas etc)...... 0
    Entertainment........................... 40
    Holiday................................. 0
    Emergency fund.......................... 0
    Socialising............................. 100
    internet costs.................. 5.89
    Charity................................. 12
    Toiletries.............................. 10
    Total monthly expenses.................. 1291.34

    [b]


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    C Card 2........................1079.23...10.79.....0
    C Card 1...........................8839.83...88........0
    C Card 4.......................1605.63...37........0
    Student Loan 1...................800.......25........3.1
    Student Loan 2...................600.......83.28.....3.1
    C Card 5...................4280......90........0
    Total unsecured debts..........17204.69..334.07....-



    Monthly Budget Summary

    Total monthly income.................... 1,964.89
    Expenses (including HP & secured debts). 1,291.34
    Available for debt repayments........... 673.55
    Monthly UNsecured debt repayments....... 334.07
    Amount left after debt repayments....... 339.48


    Personal Balance Sheet Summary
    Total assets (things you own)........... 0
    Total HP & Secured debt................. -0
    Total Unsecured debt.................... -17,204.69
    Net Assets.............................. -17,204.69


    Created using the SOA calculator at stoozing com.
    Reproduced on Moneysavingexpert with permission, using other browser.
    Last edited by ftbwannabe; 30-08-2018 at 8:18 PM.
Page 3
    • ftbwannabe
    • By ftbwannabe 7th Aug 18, 11:45 AM
    • 181 Posts
    • 613 Thanks
    ftbwannabe
    I've finished my new budget, taking on advice given here & taken time to think what's practical in the long-term. Changes are things like:
    -not pretending I can go months without spending anything at all (so I keep an entertainment/socialising stash, started an emergency fund & will put aside a small amount for clothes)
    -not pretending I can't go months without luxuries (cancelled Spotify & cut down my groceries bill). I'm going to keep the charity donation & non-council recycling service because they are important to me.
    -I've rearranged my c card payment to snowball my cards, clearing one Halifax this month & the other by November.
    I'm not prioritising my S Loans, even though they have interest, because they aren't on my credit report. But I'll switch to clearing those once I'm down to only 2 c cards.

    Here's what I'm planning, let's see how the first month goes

    wages 1964.89
    Rent 625
    C tax 134
    Water 39.8
    Phone 16.99
    Charity 12
    extra uttility 3.33
    cc4 37
    cc1 83
    cc2 11
    cc5 90
    S Loan 1 83.28
    S Loan 2 25.51
    Groceries 165
    Toiletries & contact lenses 30
    Social 120
    Travel 35
    internet 5.89
    Clothes 10
    emergencies 50

    total spent 1576.8
    Surplus to snowball onto credit card balance 388.09
    Total going to clear credit cards 609.09
    Total going to clear debts 717.88
    Last edited by ftbwannabe; 30-08-2018 at 8:25 PM.
    saving for house-buying costs 1632
    emergency fund 150//1330
    debts 1229.6/17,483 | Outstanding Debt: 16,253.40
    • ChasingSunshine
    • By ChasingSunshine 7th Aug 18, 12:43 PM
    • 144 Posts
    • 1,043 Thanks
    ChasingSunshine
    I would never be able to keep a two week supply of treats at home. Still trying to beat the habit of buying multipacks of chocolate bars. In theory cheaper than buying one bar at a time but not good for my waistline or wallet as they seem to disappear a hell of a lot quicker than I planned. Wine is less of an issue but once the bottle is open well if it goes off it's a waste of money so..

    I think with your new budget you are just going to have to review it as you go. I know mine needs to be changed every few months, sometimes it's little tweaks, sometimes sweeping changes but you will have a better idea as you go along and have lived with it for a little while.
    • ftbwannabe
    • By ftbwannabe 8th Aug 18, 12:15 PM
    • 181 Posts
    • 613 Thanks
    ftbwannabe
    Yesterday was a no-spend day. & a no-smoking day.
    Today's a restaurant & pub day, yay! I've budgeted for it so will be guilt free

    Also, today I cleared CC3! It was the card I used to pay for stuff on holiday recently, & before my LBM I would have been tempted to leave it as it 'wasn't much'. Now it's gone! happy dance...
    Last edited by ftbwannabe; 30-08-2018 at 8:26 PM.
    saving for house-buying costs 1632
    emergency fund 150//1330
    debts 1229.6/17,483 | Outstanding Debt: 16,253.40
    • jwil
    • By jwil 8th Aug 18, 1:51 PM
    • 9,066 Posts
    • 28,639 Thanks
    jwil
    Well done on clearing a card
    "If you can dream it, you can do it". Walt Disney
    • Lacherlich
    • By Lacherlich 8th Aug 18, 3:40 PM
    • 88 Posts
    • 198 Thanks
    Lacherlich
    Good luck with your diary!

    Can totally relate to a lot of what you have talked about; i.e restricting my social budget in an effort to throw more at my debt; which in theory should leave ample for what I want to do with my friends etc... yet somehow never is!

    Food shopping is also similar to you; i have a budget but the odd trip to Tesco express and a bottle of wine later...!!

    Its difficult. But i think the key is not to beat yourself up too much. As long as you dont go overboard with anything and are still paying off roughly what you want to each month. I make that mistake and feel disheartened; but its not easy. But keep going it will be worth it
    Debt: 19,600/ 25,000 loan - monthly payments of 450. Overpaying 850 a month.
    • efes shareholder
    • By efes shareholder 8th Aug 18, 4:21 PM
    • 330 Posts
    • 892 Thanks
    efes shareholder
    well done on clearing a card - one of the monkeys knocked off your back

    And well done with your smoke free day

    Enjoy the meal ........but maybe getting the happy dance out of the way before you enter the pub
    • ftbwannabe
    • By ftbwannabe 9th Aug 18, 10:50 AM
    • 181 Posts
    • 613 Thanks
    ftbwannabe
    Thanks guys!
    Stuck to my budget last night (actually spent less than planned) & managed to accept a drink without insisting I buy one back (friend knows I am saving & earns a lot more than me, but I'm not good at letting people treat me). Had such a massive pizza (Zizzi, tastecard) that I couldn't have managed dessert even if I'd budgeted for it.
    Should be a quiet one today, then only 1 more day to go before the weekend :-)
    saving for house-buying costs 1632
    emergency fund 150//1330
    debts 1229.6/17,483 | Outstanding Debt: 16,253.40
    • ftbwannabe
    • By ftbwannabe 9th Aug 18, 4:07 PM
    • 181 Posts
    • 613 Thanks
    ftbwannabe
    Urgh, suddenly noticed that I had bungled a money transfer a few months back & was about to start paying interest on some of my mbna balance. Did a balance transfer to another card to keep it 0%, but that cost me 20 odd in fees so that's pretty annoying & now I have to redo my spreadsheets.

    Still, at least I noticed. By being slightly obsessed with my debts these days & logging in everywhere so often, so far I've spotted a direct debit with the wrong details, another direct debit to a company I've never heard of, & narrowly missed paying interest on 2 cards. If my head was still in the sand, I wouldn't have noticed any of them.
    saving for house-buying costs 1632
    emergency fund 150//1330
    debts 1229.6/17,483 | Outstanding Debt: 16,253.40
    • ftbwannabe
    • By ftbwannabe 10th Aug 18, 9:49 AM
    • 181 Posts
    • 613 Thanks
    ftbwannabe
    Yesterday:
    Had a big slump last night & felt really down & like I was making no progress. Eventually realised it was 99% likely to be because I haven't had a cigarette in a week & I just needed to let it pass.
    Treated myself to some comfort tv & had an early night.
    Woke up feeling shiny again, & now on week 2 of no nicotine, yay!
    Listed some stuff on ebay & gumtree yesterday & woke up to 24 of sales, that cheered me up, too. In my gloom last night I'd forgotten I'd even listed stuff, even though I spent ages taking photos. Brains are weird.
    saving for house-buying costs 1632
    emergency fund 150//1330
    debts 1229.6/17,483 | Outstanding Debt: 16,253.40
    • efes shareholder
    • By efes shareholder 10th Aug 18, 10:05 AM
    • 330 Posts
    • 892 Thanks
    efes shareholder
    Well done with the no smoking - in awe that you can do this cold turkey

    It's bound to bring the odd mood swing as your body adjusts , we are after all only human

    And win , win with the sales - I wish I had something to sell but after 3 moves in 7 years the final one back to my childhood bedroom , I am given away more then I can remember
    Might get the odd 5 for my body :~)
    • ftbwannabe
    • By ftbwannabe 10th Aug 18, 12:01 PM
    • 181 Posts
    • 613 Thanks
    ftbwannabe
    Thanks! The only reason I can do it cold turkey is cos I'm stopping after a recent lapse, & I wasn't smoking loads - I'd been smoking 1 or 2 most days for a couple of months. When I gave up from being a long-term smoker, smoking way more a day, there's no way I could have done it like this. I would have burned the city down in rage, and then lit a fag off the embers.
    saving for house-buying costs 1632
    emergency fund 150//1330
    debts 1229.6/17,483 | Outstanding Debt: 16,253.40
    • ftbwannabe
    • By ftbwannabe 10th Aug 18, 9:50 PM
    • 181 Posts
    • 613 Thanks
    ftbwannabe
    God, even with all the repayments & willpower I'm planning, best case scenario is being 8k in debt this time next year. Wow. How did my debt get this big? Thank god I'm addressing it now. Jeez. Exhausting.
    Last edited by ftbwannabe; 11-08-2018 at 4:27 PM.
    saving for house-buying costs 1632
    emergency fund 150//1330
    debts 1229.6/17,483 | Outstanding Debt: 16,253.40
    • pidge04
    • By pidge04 11th Aug 18, 9:02 AM
    • 475 Posts
    • 1,284 Thanks
    pidge04
    Oh ftbwannabe! Please describe to me the feeling of clearing one credit card! I am hoping it will happen to me one day!

    Sorry for your recent gloom. I can honestly say you are doing amazingly well.

    When I am in a slump, I like to come and read your diary to lift me up - always busy, proactive, determined!
    CC1 2400/422 CC2 3000/2269 CC3 600/233 LOAN 13,000/5235
    • ftbwannabe
    • By ftbwannabe 11th Aug 18, 4:25 PM
    • 181 Posts
    • 613 Thanks
    ftbwannabe
    Thank you, Pidge! That's sweet to remind me about that one card. It felt BRILLIANT, gave me a big grin & showed me I could reverse this cycle (instead of just spending more). Hope you get to clear one soon, too. And you'll be under 10k soon!
    I wanted to be honest about how post LBM sucks sometimes, even though we're on the right track. I don't know how on earth I was so comfortable having 16k in debt a month ago (tho tbh I thought it was about 12k) whereas now even half that sounds massive. I love reading the diaries here, too, it really keeps me going.
    Onwards...

    Made another ebay sale today & took some stuff to the post office. I've listed everything now, there wasn't much as I'm fairly good about clutter, but I had a few brand names that should shift & when I do eventually get a mortgage, it'll be less stuff to carry :-)

    All my direct debits & standing orders can be set to snowball CC2 now & if my plan works I'll have cleared it in November. Wow. Just gotta stay focussed (& away from snacks & treats)
    Last edited by ftbwannabe; 13-08-2018 at 7:08 PM.
    saving for house-buying costs 1632
    emergency fund 150//1330
    debts 1229.6/17,483 | Outstanding Debt: 16,253.40
    • pidge04
    • By pidge04 12th Aug 18, 9:32 AM
    • 475 Posts
    • 1,284 Thanks
    pidge04
    Oh yes, I do feel exactly the same way. Yes, we are on the right track but still I find it all consuming. I think about my debt all the time. I feel like I am being very frugal so I feel like I should have some money in my purse. Absolutely nothing!
    I do not know what I would do without these diaries.
    I will feel restless for the rest of the day because I am not doing anything proactive to reduce my debt. I suppose I am not doing anything to add to it though!
    Yes, strange to think of a time when we just carried the debt without doing anything to reduce it.
    How are you? Feeling focussed?
    Take care.
    CC1 2400/422 CC2 3000/2269 CC3 600/233 LOAN 13,000/5235
    • ftbwannabe
    • By ftbwannabe 12th Aug 18, 2:21 PM
    • 181 Posts
    • 613 Thanks
    ftbwannabe
    You absolutely are doing something, and you've hit the nail on the head - not adding to the debt.
    I just had a tiny slip up & bought a chocolate dessert from sainsburys, but I'm happy it was a 1.50 treat that I enjoyed, not a mindless tenner gone without me noticing or caring.
    A snuggled up day with books & telly for me today, I've done my budget & got all the groceries I need in the house so I just have to stick to the plan. Hope you manage to settle & enjoy a Sunday, too. If you must do something, how about planning & costing some tasty meals? Heh, my appetite!' always up for thinking about food. Do you have anything nice planned for the next week of school hols?
    Last edited by ftbwannabe; 13-08-2018 at 7:04 PM.
    saving for house-buying costs 1632
    emergency fund 150//1330
    debts 1229.6/17,483 | Outstanding Debt: 16,253.40
    • ftbwannabe
    • By ftbwannabe 12th Aug 18, 11:04 PM
    • 181 Posts
    • 613 Thanks
    ftbwannabe
    Today I:
    -Couldn't resist Sainsburys but wasn't too unhinged with my spending. Spent 2.80, def could have survived without it. But the garlic bread & profiteroles were worth it :-)
    -Tried & swiftly deleted YNAB, again. Third time now. I hate it! That was it's last chance. I'll stick to Monzo + excel.
    -Arranged a sale through gumtree, so if they turn up tomorrow that'll be 20 for the debt fund
    -set a goal for my emergency fund: 1 month's essential outgoings. 1 month's wages felt too high a number, this is what i'd need to cover rent, billls, minimum payments & some savvy cupboard scrabbling. Nice to have a fixed figure to aim for rather than something arbitrary.
    saving for house-buying costs 1632
    emergency fund 150//1330
    debts 1229.6/17,483 | Outstanding Debt: 16,253.40
    • pidge04
    • By pidge04 13th Aug 18, 7:23 AM
    • 475 Posts
    • 1,284 Thanks
    pidge04
    I really wish I had got an emergency fund together. Perhaps I could try and get a little buffer together of a few hundred for now.
    Great news about the 20 sale!
    A good start to the new week!
    CC1 2400/422 CC2 3000/2269 CC3 600/233 LOAN 13,000/5235
    • ftbwannabe
    • By ftbwannabe 13th Aug 18, 7:42 AM
    • 181 Posts
    • 613 Thanks
    ftbwannabe
    Heh, well I don't have one yet, either. Imaginary me in the future has one. I calculated it'll take me 2.5 years to save it if I prioritise card repayments first!
    saving for house-buying costs 1632
    emergency fund 150//1330
    debts 1229.6/17,483 | Outstanding Debt: 16,253.40
    • pidge04
    • By pidge04 13th Aug 18, 6:16 PM
    • 475 Posts
    • 1,284 Thanks
    pidge04
    Do not fear! I am sure no emergencies will crop up at all in two and a half years!
    CC1 2400/422 CC2 3000/2269 CC3 600/233 LOAN 13,000/5235
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