i NEED A WAKE UP CALL AND HAVE NO WILLPOWER

A question about : i NEED A WAKE UP CALL AND HAVE NO WILLPOWER

Hi everyone.

I have posted on this forum intermittently for a few years under different log in..

To quickly summarise my situation.

I earn 1500 a month after tax and I have unsecured debts
6000 credit card 1
300 credit card 2
5000 loan
2000 2 x overdrafts

I am managing to cope with these repayments, pay my mortgage, bills and food and live pretty well. I have 350 a month left after paying minimums on cards and also paying for my mobile, gym,car etc etc.

Here is the problem. I still spend on my credit cards every month.

I am so worried my debt will spiral out of control and that I will lose everything. My partner knows about the debt but not the full extent of it.

Looking back I have never ever paid anything off, just moved debt, got lucky and then paid it off, then ran it back up. This also doesn't include the 20k student loan debt I have from repeating uni several times.

I need to not spend and realise how bad it is, I do somedays when I panic and go mad, and then I just ignore it.

My loan is due to be paid next September but I'm worried I'll have so much credit card debt I'll need another. I am also due to remortgage in 2015 so need to be free of most of it then.

I have no bad credit or defaults and my credit cards are on 0%
Phone contract expires august and wont be renewed.
We share a car
Gym is the only thing I have not cancelled and I'm working on other things I can do to keep active.

Best answers:

• Hi and welcome back to the forum.
  What spending are you putting on the cards each month? If you are still spending then you are not living within your income. You say you are living pretty well - it sounds like its better than you can afford to.
  Have you tried keeping a spending diary to work out where all your money is going?
  Have you worked out a proper full budget / statement of affairs that allows for all your expenditure and looked to see how much you should be able to put towards your debts each month.
  If you could meet your minimum payments and pay for all essential items but are using the cards for luxuries then what about cutting up the cards? or cutting up 1 and either leaving the other at home/giving to a trusted partner to hide from you or even doing the freezing it in a block of ice trick so you can get to it an emergency but won't be so easily tempted when you don't really need it.
• I really think I am living beyond my means, I have been for years. I am a really emotional spender, I hate being indoors alone. If I am I need to have a drink or some nice food. Its terrible. I think I could cut back and live off around 150 a month with the rest of my money going towards debts and expenses but I am so worried that I will be so miserable that I'll go mad and splurge.
• If you have worked out a detailed budget and know you can live within your income and not reuse the cards then can you remove the ability to spend?
  So pay all your debts as soon as you are paid, then perhaps open a new basic bank account and just transfer your 'spending money' for the month to that account and then only carry that card with you.
  The credit cards can be cut up and the debit cards to your overdrafts kept at home.
  My advice would be don't cut back so much that you won't be able to stick to it long term. Allow yourself a small amount of treat/luxury money a month but limit it and ensure its affordable without using your cards.
  Set yourself a manageble target to repay the Ј13.3k of debt that you have. It will likely take you a few years to repay but once its gone and if you stick to a budget for that time then hopefully it will become second nature for you to budget and you won't run up the debts again.
• Going mad and splurging is temporary happiness, you'll be much better off in the long run if you cut back and live off Ј150.
  It's a bit like eating a pizza, it makes you feel good for a short time, but then after you've ate it you feel terrible.
  I'd suggest posting a full SOA so people can help a bit further, might be able to spot things you haven't. Good luck.
• Thanks for your advice. I know what I need to do. I think I need to address my issues with being down over money. Once I get my head round the fact I am living in a dream world I'm sure it will be easier to cut back.
• I agree that my spending is a short term fix- hence the will power issue!! I am so lucky I have a really understanding family I just feel so dis-organsied and lost with it all.
• Really good that you are on here and facing your demons - remember too that while your credits cards are 0% now, that won't of course last forever - as soon as the card companies see that you are bobbing around your credit limit all the time and only making minimum payments, they will take that as their cue to raise your interest rate to around the 30% mark - that will make paying down your cards sooo much harder - you really should crack into those cards with additional payments as soon as you can and stop spending on them - that will make you feel positive - paying down debt is a buzz - think of it as being a great way to avoid wasting your money on the bankers!!!! Good luck!
• Hello and well done for realising that even though you are managing now it is a bit of a problem, especially if circumstances were to change.
  I think cutting down is hard to do after all we work hard and so why shouldn't we enjoy life a bit but in all honesty it would probably be better if there wasn't that little niggle of living it on debt in the background.
  I know willpower or lack of it can be the biggest stumbling block on anything but IMHO I believe it is better to start facing up to it now when it isn't desperate times for whatever reason and you have absolutely no choice but to cut back, we all think things will be fine but life has a habit of throwing things back at you just when you think all is well.
  As suggested a SOA may be a good idea as long as you can cope with wants not needs advice as it can maybe help you focus on savings, throwing money at the debt but still having a few bonus spends along the way.
  Good luck and I hope you get things sorted to where you want to be.
• Thanks I will do my soa and post it. I have just done the snowballing thing too and it actually cheered me up. I'll be debt free in 2015 if I follow it, thats just the problem!!
  I will start a few more threads about ways to gain more with what I have left and earn extra,
  I have to do this this time xxx
• I would really recommend the use of spread sheets to see what the targets actually look like as seeing it in black and white really does spur you on not too deviate from it.
  By using them for the first time ever I have managed to save a small emergency amount that I would have otherwise spent. Yes it is hard, yes I get moments when I want to splurge and smoke myself to death as currently giving up on that as well but I just work my way through those moments as what I now class as a weakness and not a treat.
• Hi all,
  I think yesterday was my 'lightbulb' moment.
  I have done the following since I posted
  Budget spreadsheet.
  Given myself
  Ј100 a month for spends.
  Ј 50 for buffer toward car tax, mot and any birthdays pressies and stuff
  Ј150 extra toward debt on top of monthly repayments.
  Ј400 repayments for minmums
  I did one of those snowball things so I have to pay loan off first, then overdraft, then 0% card. I have it for 22 months so the balance should be lower when it comes to switching again.
  I also intent to do a huge ebay clearout and then possibly get a bar job or some freelance work.
  Anyone know any good threads to follow to keep me motivated?
  I also need a bit of advice on tax on a second job or freelance work if anyone knows any sources.
  thanks all!!
  I'm alot happier today xxx
• oh the other good news is that I can get a graduate overdraft as I was a mature student so can save 25 a month on overdraft fees. Just need to speak to my bank.
• Really pleased you have been motivated and set a clear budget on what you want to spend, I think that really does help when you check against what you have spent on.
  With the second job you have to work out just how much it is worth if it is low paid and only a few hours as you will be on a BR tax code which means you have no allowance. I did some temp work and it worked out by the time I paid for petrol to get there I only took home about Ј30 per week but was working 60+ hours with the 2 jobs. Freelance work can be even more complicated as it is classed as self employed and then you have to work out tax and NIC's so if you want a second job it is probably a lot easier to go for paid employment where you just get the pay at the end of the week/month.
  Good luck with it all and if you do get tempted to spend don't forget to pop back here first as I am sure we will all say don't do it!
• Well done on setting a budget and addressing the issue. Keep a spending diary so you can see where your money is going. Set yourself a challenge, for example you could decide to sell on ebay and use that money for luxuries or clothes instead of using the cards. Or check out the other challenges on here. It gives you something else to focus on so you get a kick out of saving/paying off debt rather than spending. Good luck.
• You could try joining the March "make Ј10 a day" challenge to get you off to a flying start with your eb@ying, there are also threads such as the PAMAYC (Pay as much as you can) 2013 thread, and some for different times frames for being debt free. Those sorts of threads might help to keep you motivated.
  Good luck.
• Thanks for all the advice- I have made 100 this week selling my text books and have out loads on ebay - as I get distracted and bored easily I'm going to try a little of everything so try and get a cash in hand bar job sell a bit, do some surveys- I think it will add up , I need to get that spending buzz from something else! Xxx