Debt Free by 40 Debt Diary

A question about : Debt Free by 40 Debt Diary

I've decided to take the plunge and do a diary to keep me motivated.

I'm 36 and since I've been 18, I've done the spend, debt, consolidate, spend, debt,consolidate cycle.

In 2003 I split with my partner of 14 years and I actually had 5k in the bank to furnish my new house. Stupidity and a desire to furnish it quickly along with reckless and inane spending means I now have 25,000 of debt, 5,000 of it on CC's and 20,000 secured......stupid, I know........

I joined MSE last September and made big strides. A bit of a lull earlier in the year and I've gone a bit backwards.

I was going to re-consolidate the 5,000 onto the 25,000........and my BF found out. We don't live together, but he stays here each night and picks up the post and wanted to know why he signed for a Special Delivery from the loan company.......it was the return of my ID I'd sent ........

He made me tell him what was going on and be-grudgingly I did.....although I only told him about the 5k, which he was appalled at - I couldn't bring myself to tell him about the other 20k. He has been good in that he helped me to find more ways to cut back, he thought I was saving each month, when in reality, a single salary, a house full of bills and a whole lot of spending has pushed my situation close to breaking point.

I want to be debt free by the time I'm 40. That gives me 4 years to get rid of the 5k unsecured debt and then try to get rid of the 19k secured (can that be done?)

I work full time and am now madly signing up for just about anything else I can find to get a few extra pounds to throw at the CC's.

I'll post an SOA in a few minutes, along with what I've done already to sort out the situation.

I have to say..........I'm already a regular MSE contributor, but because my partner doesn't know about the other 20k, and that I've managed to get all 6 of my work colleagues to sign up to MSE (and two of them use the boards), I want to hide behind a different user name as my normal one is too close to my full name. Silly I know, but this is a big step doing a diary when I've spent 36 years sticking my head in the sand and trying to sort out everything I've hit (financially) on my own.

Best answers:

• My SOA
  Income 1490
  Mortgage 628
  Council Tax 82
  Water 34
  Electric 35
  Gas 35
  House insurance 16
  TV Licence 11
  NTL 36
  Car Insurance 31
  Pet Insurance 13
  Mobile 15
  OU 50
  Petrol 40
  Food for 2 adults 200
  Loan 238 9 years left at 7.9% secured
  Next 10 100 outstanding at 15%
  Capital One Visa 5 60 outstanding at 12.9%
  Capital One Mast. 18 520 outstanding at 19.9%
  Barclaycard 59 2000 outstanding at 19.9%
  RBS 35 1500 outstanding at 16.9%
  Mint 8 400 outstanding at 15.9%
  I'm also permanently overdrawn 1200 each month with the Abbey.
  I'll tell you all where I was before and how I've made inroads next!!
• What I've already done to reduce my debt.
  House insurance
  previously 25 a month, changed to Barclays 2 months ago, now 16
  NTL - was paying 50 a month for phone/TV/broadband. Called them last weekend, downgraded and now paying 36
  Car Insurance
  Had to start with no claims in my own name when I left my ex and was paying 60 a month, then 40. Now 31 and hoping to reduce when I hit three years no claims in November. I'll use confused.com to change .
  Mobile
  Dead money - I'm stupid. I have a fantastic tariff 15.00 a month and 50 texts and 750 minutes a month - but only fantastic if you ever use it. Asked T-Mobile about escaping and they said no. Have to wait until the end of Jan. Will then get a sim card and go PAYG
  OU - Open University
  i signed up to do a Masters Degree and the fee this year is 520 split over 5 months. I couldn't afford it so called them and they've agreed I can pay 50 a month until October and then review it from there.
  Petrol
  After my BF finding out, he has said he will start contributing and will put petrol in my car. Hoping that monthly cost will reduce hugely to zero.
  Food/cleaning stuff/supermarket generally
  when I joined MSE last September I was spending 350 a month on the two of us!!!!!!!!!! I've been cutting back each month and in June spent 200. I'm aiming for 160.00 in July and my BF has said he will contribute where he can (he eats at my place 7 nights a week and has never given me a penny so I'm glad in a way this has all happened) I'm a mad keen cook and cook everything from scratch, already meal plan (it's onthe fridge!), collect and use coupons, and visit the OS board more than once a day.
  Loan
  Secured. Was 9.9 %when I got it, over a 20 year period. I called in December to see about reducing the term and they also reduced the APR as well as taking the term down to 10 years.
  Capital One Visa
  was 29.9% . Called them last weekend and they reduced to 12.9%
  Capital One Mast.
  Was 29.9% called them last month and they reduced APR to 19.9%
  Barclaycard
  was 29.9% .Called them last weekend and they've reduced it to 19.9%
  RBs - wouldn't change APR
  Mint - wouldn't change APR
  Abbey - 610 of that is bank charges and they have 7 days left before I file a claim for the return of the charges
  I've also:
  Capital One card from 2001 - old closed account - loads of charges at the time, I sent a DPA letter yesterday for the statements
  Associates card from 2001 - old closed account - loads of charges at the time, I sent a DPA letter today for the statements
  I'm a big freebie fan and any CD Wow vouchers are spent on a chart CD which goes straight on ebay. i've been an ebayer since 1999 and have sold off a few bits already. Transferred 27.00 today to my bank account.
  Mystery Shopping
  was taken on by IMS last month and have done three merchandising audits for them, so 63.00 will be due to me this month - any money from mystery shopping will be my 'spending money' for clothes/nights out, so I need to get those assignments!
  taken on my Gapbuster this month and am doig a mystery shopper assignment this coming Sunday.
  AQA - filled in their form today and did their Research test .
  Yellow Pages delivery - signed up to be a Routechecker with them when and if they need me.
  I have a poor credit report. I can't get a 0% card or an unsecured loan. I got a CCJ for £600 in 2001 and it has affected my credit worthiness since.
  Phew....................don't think there is anything else to overload you all tonight with..........i'm on this site A LOT (but by my other user name!) so will hope to keep this up to date frequently.
• Hi Oakdale_minx,
  It sounds like a really positive step that you have taken, firstly by recognising and documenting here the amounts that you owe and secondly by holding a strong desire to clear your debts.
  Mystery shopping also sounds a great way to bring in a few extra pounds.
  Your boyfriend seems to be making the right noises with an offer to help towards petrol, however I can't help but feel he should offer to contribute in other areas, especially if he is staying and eating at your house pretty much full-time.
  You may want to suggest something like you continue to feed him, he pays for insurance/petrol for your car in full and OU course? The only reason I suggest this approach is that I seem to remember that if he were to contribute significantly towards household expenses the potential might exist for him to argue for a percentage of ownership? (I may well be wrong).
  Just a thought. Best of luck, I would say the £5k in four years should be acheivable. £20k of debt is a lot but will soon come down with good discipine built up by repaying the £5k. The main thing is you stick with it.
  Hope this helps.
  Kind Regards
• cheers snowstorm......my BF owns his own place and is self employed, so money comes to him in huge chunks or not at all.........he admitted he had been taking the p*** though, where money for food was concerned. I'm rubbish at asking for money - I'd lend anyone a fiver (don't all shout please i'm roke remember!!) but I couldn't ever ask anyone to lend me even a quid or so. i'm hoping he doesn't forget his promise, as I'll find it difficult to raise it again. Even £20 a month from him would be good - I'd chuck it at the CC's.
• Completely agree and is much easier said than done. I think I would find it really difficult to ask too. Best of luck with it though, hopefully he will remember.
  Maybe you could spend some evenings at his, that'd shield your heating/electric bills especially in winter and might highlight that he's got no food at home!
  Again, fine ideas, I know difficult to put into practice. Hopefully someone will come along and suggest a cunning way around this.
  Kind Regards
• Well done on coming forward! re the OU, I know you can't get direct funding from the OU, but have you considered applying to OUSET or Alumni to see if they can help?
• I'll look into that ali - if I was doing a BA/BSc with the OU, I'd qualify for £200 study expenses, based on my salary (looked into that as well!) but doing postgrad courses don't count.
• Hi there, My GF an I are currently trying to cut back and also look for other ways of bringing pennies in, so would be interested in details or links on your mystery shopping adventures please.
  As regards your other half, personally we think its a bit rich to be appalled at your debt, yet on the other hand he wasnt contributing to food. (and we assume etc. !!)
  Seems to me that a sit down between the two of you - a warts and all discussion about the situation you are in - would do you the world of good. He could get a grasp of what you are facing / feeling - and if he's a goodun he'll support you and not be judgemental.
  With my GF i waited nearly a year from going out together, to tell her about my debt (£38k) - but it was the best thing I ever did. A problem shared etc.... She was ace and admitted she was not in the best of situations either.
  Hence we are looking at PT jobs, mystery shopping, car boots, veggie growing, e-bay - allsorts.
  How about broaching the subject of moving in to his ?? And renting out a room or two or even your house ? Or vice versa (got to say though - you gotta want the move !!! but him staying at yours every night is a good sign !!)
  All the best !!!!!!!!!!!!!
• Done my finances for the month ahead - car tax due which is a nasty unwanted expense.
  With car tax due and the money due for mystery shopping during the month I will have £175 for groceries/petrol and going out etc. I've set myself a £120 food budget and £50 'spare' and I've got no nights out planned, so hopefully, as long as I am mega careful I can survive without hitting the credit card. If my BF pays for some more petrol during the month I should be ok. I hope.
  Sigh.....£120........it's going to be hard, but i'm going to try to stick to it, I haven't much other choice this month.
  I've just cancelled my pet insurance direct debit (12.28 per month with Tesco)
  Using moneysupermarket, there are a few options for £6.50 a month, so it will save me £6 a month. Cancelling the DD with Tesco will stop the DD for July coming out. I'll set up the DD on the 1st of july with the new company at £6.50 a month instead of £12.28 and there won't be a break in cover.
  Or should I wait until the 1st of August , save £12.28 on next month's budget and hope that my springer doesn't have an accident in July? If sod's law happens , I guess I'll still be ok with the Tesco policy for a couple of weeks? Or not??
• Got home from work - received confirmation from the Natwest that my Step account is fully opened.
  That's the parachute account sorted if the Abbey get horrible over the re-claimed charges.
  I'll tuck away the letter hoping I don't need it, but knowing it's there if the Abbey turns nasty.
  I'm at the letter before action stage with the abbey for charges in 2006, I've decided to send a DAP letter for my 2001-2004 statements. They will make horrible reading bankcharge wise, but should add up to a sizeable chunk. i've now got four bank charge claims - one at LBA and three at DPA - maybe debt free at 40 might happen afterall!
• GGRRRRRR........I am cross with myself!!
  I'm a webmaster by trade and I'm online from just after 8am until, well , around now, and I've ALWAYS got my email open. :rolleyes:
  IMS, who I've started doing the merchandising and auditing jobs for ,release their work online at 7am and 7pm.
  I checked at 7.05 pm to see if there was anything for my on my profile - nothing.
  I decided to get away from the computer. I weeded for a bit, I watched Big Brothers Little Brother, got a bath, put the dinner on, came back to MSE......at 9.15 I realised my email was off, opened it up and sitting there, at 7.21 was an email from IMS saying there were NINE calls for my area. I logged on, knowing the inevitable - all gone......all I can hope is that someone drops out and they call me. I'm on holiday tomorrow and Friday so would have been around !!
  Even 3 or 4 of the calls would have netted my between Ј40 and Ј100 depending on how long each would have took.
  GGRRRR....... ...the stupid weeds can wait now and we all already know Pete will walk it on BB - that's the last time I walk away from my email for a couple of hours!!!
• Fell very down today.
  I've got two days holiday, and it's bad enough that the only thing I can think of doing with them is studying. And I can't be bothered to do that.
  My hayfever today is bad - really bad. I actually feel ill. I've closed all the windows and it's only 9am
  Now have all the CC statements for this month, so decided to do an 'official' calculation of what I owe. I'd guessed the CC's plus o/d to be 5,500 - it isn't, it's nearer Ј6,000. I have Ј35 of my overdraft left and I've got Ј27 on its way over from Paypal, so I'm going to use them tomorrow to pay off my lowest debt - the Capital One card with Ј60 on it.
  I also get paid tomorrow , so I'll be making the payments on the other cc's, but it will only be the minimum payment on each this month
  Have to go to the PO today to post an ebay parcel, send a DPA letter to the Abbey and get my car tax. God, that car tax is a pain. I can't decide whether to scrabble around on the floor finding all the documents, or do it online tomorrow. I guess as long as I buy it tomorrow and its on its way then they won't do me for not having a valid tax disc displayed for the first couple of days of July.
  Fell asleep on the sofa late last night and was woken up by my OH telling me that I should be applying for a 0% BT Natwest on the TV. I said it wouldn't be worth it as I wouldn't get it. I know I wouldn't because I applied about 2 months ago and got turned down. This is after the woman on the phone had assured me that I'd definitely 100% been accepted. I expect she gets a commission for every applicant that she gets.
  My OH seems to think that if I get a new CC it will have this magical Ј6000 limit on it that I can transfer everything onto at a rate of 0%. I'm not sure what planet he lives on sometimes....
  The stupid thing is, Ican't even be bothered to go and splurge. I feel so poo that I'm almost expecting to find myself down the shops spending Ј100 on a new outift - and now it's mix of being unmotivated and a big bell going off in my head if I dare spend any money - a good thing I guess, but I've not even been out for a drink for over a month, and I can't even be bothered to do that.
  Sorry to moan........my hayfever is making me feel so lousy today
• Not sure whether to laugh or cry......laugh I think at what's just happened!!
  I went to the PO to post my ebay parcel and to get a stamp for my DPA letter to the Abbey for my old statements. I'd applied online back in March for them, but they never came and then I realised I'd have to send the £10 fee.
  I saw the postie as I drove down the road and nearly stopped. Went to the PO and asked the guy to put the letter inthe bag rather than me putting in the box (good decision it turns out!!!) and came home.
  Yep........you guessed it.........on the doormat was a bit fat envelope from the Abbey. I thought it was a bit big and fat to be telling me they weren't going to pay my other claim for charges, and I couldn't believe it when I opened it. The four years worth of statements I'd applied for back in March. Delivered 10 minutes after I'd posted a cheque to request them formally!!!!
  I was back in the car and hurtled off . The queue was huge in the PO (pension day as well as car tax day!) and with it being a sub post office it was just one man on the counter. I asked him for the letter , he rummaged and gave it to me - I was sooooo happy!!!!
  Madness - what are the chances of that happening!!!
  So, I'm now sat here with 4 years worth of statements.........this is going to be a frighteningly high figure..........time to rummage for a highlighter.....although it isn't hard to pick out the charges -there are just loads of them.........
• hey there (or should i say hay there!)
  as a fellow hay fever sufferer i know exactly how it can make you feel. not much i can say but jump in the shower, it washes off the pollen off you and makes you feel better.
  well done for getting your £10 back!! and for getting your statements. i hope this is a mark of the day turning around for you.
  you're doing so well. keep it up.
• From mid 2001 (I became very ill, which is when it all started) until I sorted myself out when I became better at the end of 2003, I incurred
  £2,734.50 in bank charges.........
  That's on top of the £610 I'm already claiming back.......
  I keep almost crying - I think it's shock more than anything else.....I'll be ok once I get over it. My OH will fall off his chair tonight when I tell him. It's before we got together so I don't mind telling him the figure. In his job, he spends a lot of time working with the courts, adjudications and mediations and knows the small claims court inside out making claims for clients......he sounded excited when he found out Ihad a claim for £610, he can't wait for me to put my claim in - he wants to help me make sure I do it right - god knows what he will say to another £2,734.50..........
  Think the shower is definitely needed to clear my head now melabarrie - it is killing me!!
• WOW that's humungous, can't wait to hear the progress of you getting it back!!!!
  (and then the party!!!!!)
• I know ali007.....that's on top of the 610, plus 8% interest.......it will clear over half of my CC's and overdraft total......and I'm going for some really old CC charge from closed accounts - I don't like to rely on it happening, although I know it will eventually because everyone else is getting theirs back, but I'll believe it when it happens!
  busy busy busy day today financially.
  Payday, so paid the CC's online, all minimum payments, but, I paid off my lowest debt!!!! YYYaaaayYYY!!
  Well, ok, it was £60, but, it's still one gone!!
  Done a letter for the Natwest to request two bank charges back, will send that off.
  I re-did my sums on the Abbey claim and found another £60 in charges I'd missed yesterday, so the new sum is £2794.50. I need to do a schedule of the charges so that will take me a while to type out.
  Had a letter from citicards about my old Associates card - they've found the old account number which isfab news, but as i've moved since the card was closed, I need to fill in a form and send some ID. I've filled in the form and will get that together. It needs an A4 envelope though, so that might have to wait until I buy some later today.
  Sent off for the car tax, so that should arrive in the next day or so.
  Told my OH that i'd managed to plan all the monthly shopping to come in at £120 (remember , I was spending £350+ a month when i discovered MSE last year!) and he said - no you are only 'allowed' £20 a week for shopping........quick as a flash, I said back 'only £20?? aahh yes, I forgot, you weren't going to eat here unless you gave me some money'.......he didn't say any more, as he's not given me any money since this all came out two weeks ago, and he's still eating here every night.
  Printed off the meal planner for the week ahead and put it on the fridge.
  My sister phoned and I told her all about the joys of buying clothes off ebay - she is losing weight (wish I was!) and needs smaller clothes, but has no money - she hadn't thought about buying them off ebay! So , she's off to Next and New Look tomorrow to see what size she needs, then is going to look at buying a few bits off ebay - my MSE good deed for the day!
  Typing the schedule of charges is going to take me ages. Sigh....It's getting me out of doing my OU work which is good because I keep pushing it to the bottom of the pile, but I must try to do some today!!!!
• superb progress but make OH pay his way!!!!!!!
• Wonder what today will bring........other than sniffing and sneezing!
  Typed all my charges into the fab CAG spreadsheet so have that, along with a letter to the Nat west to send off. Citicards want ID so that will need to go recorded delivery. Going to go to the PO very early as it's going to be scorching here today and I really hate the heat.
  Another bad hayfever day. Just had a mad sneezing fit all over the DFW board. Not nice!!!
  Signed up with another market research company, so will see what they post to me to fill in. Was hoping to hear back from AQA, but nothing yet either way.
  Off to do my gapbuster mystery shopping this morning. Will only take 5 minutes and will earn me Ј6 and I'll get back the Ј5 I have to spend in store.
  Got a gapbuster email overnight with some small assignments, but the email had taken three days to arrive and they'd all gone unfortunately.
  Cancelled the monthly shopping I'd done with Tesco as it will arrive before my money from my merchandising jobs will arrive as well as the Ј35 or so I'll get from Greasypalm this month. After doing the sums if I had the shopping delivered next week, my a/c would go Ј40 over its limit, so I'd rather carry on shopping weekly knowing the money is coming into my account in dribs and drabs and I won't be needlessly incurring any charges (hopefully).
  Didn't do any OU work yesterday. Have to write the essay next weekend, so need to get my bum in gear and do some reading today and tomorrow. :rolleyes:
  Made a big yoghurt cake last night from the reipce database onthe OS board. Put a tin of peaches at the bottom of the cake tin then turned it upside down when it was cooked. Was ok actually, amazing that vegetable oil can work in a cake. Still 3/4 left, but I'm sure it will be a lot less by the end of the day!!!!
  After finding some of the herbal essences shampoo with the free cut and blow dry on ,I'm pretty chuffed. I have the hair of a mad scarecrow , so it will be a welcome freebie.
  Aaaaaaaaaatcchoooooooo!!!!!!
  Sorry.............