Starting over again- Take 2

A question about : Starting over again- Take 2

Hi MSE world, I've been MIA for so long I don't even know where to start…I didn't hit my target (to be financially free by 31.12.2013) in fact I went in the opposite direction, by November I got my debt down to 3k I could almost see the light…then I got hit with a further debt of Ј21600 odd….cue panic despair, panic, self-loathing and general attitude of sod this (reckless behaviour) which meant further abuse on my credit cards….the result an increased debt figure of a whopping cc1 Ј2456.77 cc2 Ј5865.00 and a fixed settlement of Ј21615.00 total debt owed Ј29,936.77…even just looking at this makes me want to go out and try and forget my troubles…talk about from the frying pan into the fire. I can make jokes now but the last few months have been challenging I can tell you.
Some saving graces are I'm ready to deal with this head on now I can't keep putting it off and chances are no one is going to save me, so this is me announcing to the world (MSE one) that yes I'm in trouble but I'm going to dig myself out of it again once and for all. So things working in my favor are all my debts are at 0% at the moment cc2 is good till Dec14 and cc1 jul14 (I think) I know I'm not getting charged interest this month and will keep checking to be sure. The 21k if fixed and am paying off over 4 years. I won't be doing this for that long the idea I have is to keep paying the instalments as agreed whilst putting any other surplus income into a savings account this way it can earn interest and when I have a decent amount I can approach my creditor and see if they will be able to settle for this sum and write off the rest, failing that at least these savings are growing quicker, 6% &1.75% rather than 0% so it's helping me pay off my debt a little in the savings pot I have
Ј4000 odd which can also be used to offset the cards as they come out of term. I know my logic is strange but bare with me. I've never been good with not having a safety net just in case and I genuinely feel better knowing I have access to funds just in case. Wow this is even worse when I have it written out in front of me…so anyway this is my confession and now I'm back to try sort this out once and for all…take two!! Wish me luck, I'm going to need it!!...x

The Action plan-
To do as many challenges as I can and most of all cut back and spend less where ever possible, back on the bike and when I do cycle to pay the daily amount of travel I would have used to my card. Keep paying the minimum payments on my credit cards along with a payment a day using the virtual money pot idea, any additional income and what's left in the bank. As many NSD as I can muster…general frugal living. I need to do a statement of affairs and sort out a proper plan but I guess first step DFW road to rehab is showing up and putting myself out here!! So here I am again…ready for battle x

Best answers:

• Just working on my SOA and looking through debts, income & outgoings..found that because of payments made Dec- Mar (monthly payment Ј450.25) Debt 3 is actually Ј19811..ok so its still colosal but hey its smaller than I thought, so can update signature and feel a little better.Virtual sealed pot payment made to cc1- of 70p, tiny but an offering...Okies off again to finish SOA and a general budget for the year...will post later once i've sorted it...enjoy the sun everyone x
• Day 2 of Take Two- Good start to the day paid over my ebay proceeds, so thats Ј31.22 to cc1. looking to have a spend free day... Actually am hoping to make it to the weekend so 5 days with my purse strings held tight...maybe slightly optimistic but im game...fingers crossed!! Hope your all enjoying the sun x
• Day 3 of Take Two- Awoke and made a payment of Ј132 to cc1. aim for the day, to not spend anything. cycle into work, make lunch. and spend time thinking of ways to boost my income...Pay day isnt for another week or so..hmm too far away. Have a happy Tuesday everyone x
• Day 5- made payment to cc1 of Ј3.04 & another Ј1...nsd went well aside for top up of my oyster, needed to venture into the city and a Ј1 to man who asked me for change...beautiful day so ill take my bike..once I get back the train fare saved is going to the cc. Lunch made, motivation on....lets go...have a fun and frugal day mse's x
• belated happy financial new year everyone!! Ive been MIA again but opened my post and had the shock of my life...the dreaded annual credit card statement...well not so much dreaded but was a real eye opener. So whilst reading to check if my NW cc is still interest free i found the annual breakdown for the year, guess its the credits cards version of p60. Have never notice this before...the scary thing was the statement ssaid that my expenditure for the year was 18k which means ive squandered 18k and paid off 16 k with out even realising it. in addition to my debts, I do use it to pay my rent to build up points but that only counts for about 9k where did the rest come from...i guess thats just living expenses but way too high. So today i am enbracing the MSE ways. If I can pay back 16k and not even realise
• opps hit send..if i can pay back 16k and not realise then i can dig myself out of this mess easily and much quicker than i think. SO it begins. I need to watch my frittering money more carefully thats for sure. so MSE things to do today. Cycle in, make lunch, bank cheque Ј32 and Ј20. pay to cc. so far this month have paid Ј530 to debt monster. Need to work out remaining outgoings for this month and see what else i can send there. This month ive been frivolous I need to take control. Have a parking fine refund pending so that will be nice. oh and all credit cards will be left at home, today is a no spend day. From now on I use cash, at lest then i can track it and will be less likely to use it...18k on what? I think this is another light bulb moment ...aka kick up the pants...have a fab and frugal day guys x
• Happy Good Friday folks...updates as to whats happened past week or so, Peddle fell of bike, need to get that fixed extra Ј3.20 to get to work was lovely to read on the train though. Car MOT & serviced for Ј150 (very happy with this) got a family discount (not family)...bless my mechanic, very nice man hope his blessed with lots of business. need to pay balance for my Thailand trip (been & gone) & for my bestie hen weekend (in the summer), guess ill do that next pay day. Paid my share of solicitor fee so hopefully will have my name off of my mortgage. To say ive lost patience is an understatement, but lets not go there. Having a girls night in tonight, cheaper than clubbing this bank holiday weekend & just as much fun. Email from Qu$co to say that payment pending Ј8.00 very nice. Need to head to the bank & bank some cash received. need to pay rent. payment to credit card made of Ј65 this morning. Waiting on payday to see whats left in my accounts to chomp into the credit card. have to admit haven't really used a budget this month so have lost track. Looking forward to a cash injection...Am feeling really optimistic recently and happy. feel everything is moving in the right direction at least. right off to bank and quick food shop...hope you all have a fab day x
• Well done Shelbi.
  Just keep on going and you will get there....
  Not to sure about you going to the bank on a bank holiday though
  I have subscribed and will keep watching your progress
• Hi Debsnewbudget,Thank you....ah yeah sadly didnt realise till I got there (silly me) now to shop with Ј90 burning a hole in my pocket eek...am resolved to nab only a bottle of vino & a snack offering for tonight..have a good day hun x
• Afternoon...Totals updated this month...really not lookng as good as I would like, still didnt get my peddle fixed so was train today, meeting a friend in town so will be train tomorrow. I really need to get a handle on this..Had a spendy day- oyster top up, flowers, lunch, breakfast...not MSE at all . I really do need to get a handle on this and I want that debt gone preferably by the end of this year but as thats unlikely I can at least put a little dent in it! actually make that a big dent. Time to get serious again and see this through. worked out Ј472.88 in my account, need to reimburse work Ј212odd but the rest I will endavour to save & throw on CC1. small but itll help. My goal is to clear this once and for all...excited for the weekend payday so I can throw somemore on getting financially free again...gonna be a rough few months ahead...frugal hat on purse stings tightened (lord help me & my spendy ways)...off to do a budget will post later..happy Tuesday everyone x
• Okies so rough Budget for April- May:
  Income totals Ј2,285.29
  first direct regular saver- 6%-(ffa)300.00
  Premium Bonds Savings0.00
  Pension Payments 239.86
  Mobile Phone dd26.00
  Rent/MORTGAGE/house keep325.00
  Electricity30.00
  Gas10.00
  Council Tax65.00
  Food Shopping50.00
  cinema dd15.90
  National Lottery dd18.00
  Car Petrol40.00
  food bank donation 3.00
  debt 1 &2 (CC1 & 2)-155.00
  Debt 3-450.25
  Purse funds (oyster top up)20.00
  TOTAL Total expenses Ј1,748.01
  Expected payment to CC- Ј537.28
• Happy Saturday folks...My morning has been pretty productive, spoke to mortgage people to see if i have been released yet, no such luck...but its coming. Ordered my experian credit check, quick check to see whats going on & then shut down, works out free as you have a cooling off period, they're really nice too. Turns out credit is hunky dory not excellent but good and that made me happy its gone up 200 points since I last checked. Also turns out I was due a refund Ј6 for some services I had but didnt use (have to say I have no idea what that was as I dont pay for any services- confused but never turn down free money). Every thing looked dandy just need to get my name off of the joint account I actually forgot about it, once that and mortgage off..Ill be celebrating. Also was nice to see what I owe, gave me determination to pay off these credit cards. Also am hoping to move in the next month or so, will need to be in a stronger position.
  What else have I done: experian, mortgage, draft of bank name off account letter (will pop in Monday). Paid funds into bank (& it was open...yay!)...Monthly shop- over budget -Ј85& brought a kettle and scales- Ј44..(wasnt in the budget) but was needed, mine was so broke that I have to stand there with my hand on the button to boil it...cant be dealing with that, not at the saucepan boiling stage yet..the one i had was 5years old so i brought the same make (its got serious wear&tear value)..scales i brought because were doing slimming world weigh ins at work and motivating and tracking each other (saves Ј5 per week) see how we get on....fingers crossed!!..have paid C/tax, rent (this week anyway)..dyed black items black..so new jeans & leggins (tip from another thread). Brought accessories for hen weekend, im sorted for that now clothes wise (god bless primany). Having a day in nothing but more study & film, my boss gave me killer recipe for sw humous, shes cool like that, learn loads from her....so will make that tonight. transferred Ј200 to C/Crd yesterday (left overs in account before payday). Ј2 odd there today (virtual pot). Took sis shopping (paid for that out of savings Ј115- she needed clothes)...made a firm decision that nothing goes on the credit cards from now on. Ill feel it more and will be more aware if I use savings and actual physical cash ... Need to go do food bank donation & sort out food bank donation for work (toiletries)...coin jar started again its small (few pennies but it will grow)- just waiting for transfers and dd's on my account to move then I can shift some more funds to ccrds.
  Aim for this month is to have 20 NSD's for May not sure how possible it is but im willing to try, two nights out planned- need to budget for that now too- still want to make an additional Ј500 payment to card as well as the Ј600 standard payments I make, so need to regiggle things. will pay this at the end of the month. I think thats everything... please forgive the ramblings x
• Hi Shelbi, no great words of advice but just read through your diary, keep going, sometimes one step forward, one or two back, you sound like your doing ok at the moment and helping the food bank is generous, hope karma plays its part and something comes back to you.
• Hi shelbi
  Reading your diary and empathising. Just starting my journey and diary too and seeing someone at same stage is comforting. Keep up the mse ways and updates
• Happy Sunday!! Hi Mismatch & Anita55 Thank you for your messages of encouragement, I really appreciate it!!
  Been having a good old snoop through mse diaries this morning looking at challenges and anything that will help, loads on here which I love! One thing I picked up on again was the 1% challenge, someone mentioned that the overall debt was overwhelming even as 1% payment (I can relate mine at updated total would be Ј278, which is doable but will span for a longer time) Instead they suggested to just take one debt the first you want to clear and start there building momentum....so this is what im going to do..Pay minimum on others Ј425.50 & Ј128 & Ј28 odd...then make debt payments onto just one card where 1% is Ј27. Will print off a grid when im in work tomorrow...Thats something I can get into and not so scary.
  Little annoyed yesterday as was asked by someone I care for to borrow him Ј25 he owed to someone else I care for..as i know the latter is struggling a bit I did, when talking to them they told me they received Ј20 of it...I will not be loaning money to that person again not so much that i wont get it back (I probably will) but I really dont like being lied to, its not the money its not being respected enough with the truth... Anyway today is a good day, think ill ask for Ј30 back (extra Ј5 penalty charge for lies)
  Need to check 0% end dates on cards ensure I dont go over them Im sure its July cc1 and December cc2- though cc2 has a few deadlines through balance transfers need to check how much ends when....so not to get caught out...a plan is needed... I no longer like surprises..not of that nature anyways...
  Sunday to do list: Drop sis Dancing, fix my bike, if not fly to halfords (cant wait around for the neighbour, ill fix it myself)....god bless you tube!! check 0% end dates, make lunch for tomorrow, study like a demon, cook healthily, exercise...a bikini body is needed in 3months ....have a wonderful Sunday everyone x
• Happy Tuesday...
  So today started off quite good, lunches made, cycled in..all is going to plan with one exception...brought concert tickets for sis, made her year, shes totally in love with them so for me thats worth everything..unexpected Ј125 though..This was paid for with savings.
  Had a look at the 0% end dates so heres how it stands cc1 due to end July..CC2 is in stages- Ј1417.50 due 1 sep14, Ј1272.87 due 1 Nov 14 and Ј3042.67 due 10th December 14 ...Dont really need to be a genius to work out Im going to need to sort this asap, cant move cc1 to cc2 as its no longer 0% offer its now 6.9% till that balance is paid...no thanks. Could try get another 0% card but i think ill leave that as a last resort. Nope im going to try takle this all without applying for more credit...and not shift it...tbh I dont want to pay any more fees not even balance transfer ones if i can help it.
  So POA today emptied my premium bond saving pot -Ј400 not with me yet as too close to draw day but once it arrives will put that on cc1..thatll be 14% payment there. Also made calls for iou recovery, not urgent and I know my money is safe- total owed Ј525..between different family members so that will be nice when it comes back...I have no idea exactly how it will work out but I know it will...things always do...just gotta stay the course and not spend anything else...bit by bit I will get there!
  Feeling focused and determined to sort my life out.
• Happy Friday Folks..
  In a kick debts a$$ kinda mood, New month, new start! After reading NSK May challenge and other diaries ive been motivated to make a debt payment at the beginning of the month Ј702 (26% of cc1) instead of the end, I was hoping to make a payment of Ј500 but nope lets get it out of the way a little higher so ill be forced to underspend on some things. No additional spends allowed & if i want more ill have to earn some money..no more dipping intosavings or call in an IOU...Either way main thing is to tackle this head on. Trying for 20 NSD's....combineed with the Ј128.99 cc2 min payment thats a may debt payment Ј830.99...Still waiting on the Ј400 which is nice just incase i run into trouble, im sure I wont...long way to go but a step in the right direction.....have a fab frugal Friday evening everyone x
• So didnt quite manage to keep the purse strings completely tight, bike peddle loose needed a new crank arm, man fixed it at the bike shop Ј20 and sis needed a new piano book Ј8. On plus side received Ј30 iou 1...and Ј110 from someone else...also they said theyd give me Ј36 next week that ill be honest I forgot about. also found Ј1.01 which was a pleasant surprise. Will pop to bank tomorrow and cash int the funds. Friday night and whilst im not spending money i am bored and lonely....wheres my damn cat when I need her lol! Still no time for moping i can change the dating situ once ive sorted my life out, no point bringing anyone else into this madness. Have received new exercise dvd and made a pact with my friend to get trim (May as well do some prep for when im sorted and ready to get back out there ) so its exercise everyday for 30 days, though I actually have 3 months to get bikini fit...But better to get a handle on it now...not stopping till I see some abs (at least the line)...theyre there just under a bit of padding...Slimming world going well, weighed in @ work...gotta stone to lose according to my bmi. To be honest i like my shape would really like a flat tum to go with it...time to work! Boss gave me a SW take out book (shes too good to me..bless her) so instead of takeaways ill be cooking fakeaways and keeping trim!....well early night...got shredding to do in the morning aka cost effective activies...night all x
• Good morning MSE's
  Quick check in-So I didnt quite get up at 5am was more like 7.30, did manage my first workout was fun (when it was over)...& so the change begins, also went to bank that Ј140 before it burnt a hole in my pocket. Have just transferred it to cc1 which is another 5.18% round that to 5%...woohoo getting there. 0% on ebay so will look for bits to sell later. Today will be a no spend day, Ill be staying home to study& save...
  Phones going off, will check in with the girls later to hear what they got up to, looks as though ill be living vicariously through them this weekend lol!!...
  Beautiful weather I hope everyone has a wonderful Bank holiday weekend x