Umpteenth time lucky

A question about : Umpteenth time lucky

Hi all!

As you've probably gathered from the title, this isn't the first time I've tried to do something about my debt. Hopefully it'll be the last, but I've had numerous false starts in the past.

It all started at the beginning of University, where the easy availability of interest-free overdrafts quickly got me my first Ј3k of debt. This stayed with me right through until graduation, and despite a half-arsed attempt to clear it, the debt remained. After getting myself a reasonable job, I then took out my first loan for Ј12k, to buy a car, clear existing overdrafts, and to go travelling with (I know!).

Then began the credit cards. And after that, the consolidation loans. All the time I kept it just about affordable, although 5 years ago I had two DDs bounce due to my poor financial management living payday to payday.

Things are a lot tidier than they were a few years ago. At my worst, I had over Ј25k on CC and loans, and on top of that I had a Ј22k student loan. All inclusive, I've no doubt my unsecured debt peaked above Ј50k. Currently, I have a single loan of ~Ј13.5k (@4.9%) and a remaining student loan of ~Ј7,700 (@1.5%), leaving a grand total of just over Ј21k to pay off. No credit cards, woop!

I've recently swapped a gas guzzling Ј560pcm full-on sports car for a much cheaper sporty compact (I couldn't face going full-eco, cars are my passion, so it's still plenty of fun!). I've also had a good clear out of boys-toys, and managed to put together a small emergency fund together. All in all, there is no reason I shouldn't me making serious inroads into my debt mountain.

One utter revelation for me was discovering YNAB, only yesterday. I spend a good two hours getting my head around the ethos of it all (budget for what cash you have, not what you will have, and give EVERY penny a job!). I felt like I had my lightbulb moment there and then. As I started filling in my future expenses and contingency funds, I now clearly understand where I have been going wrong (Cash in the bank? I must be well-off, I'm going to spend it on something stupid and unnecessary!). Time will tell whether it's going to work for me, but I felt like the penny dropped.

Anyway, here goes nothing...

Best answers:

• Well, it might not be the first time you have tried to deal with your debt, but it sounds to me as though you have achieved a great deal already
  Good luck x
• Hey there, I was reading your post and I am in a similar situation. I'm trying my best to manage my money, but I have so little left after I pay my monthly loan and other expenses, this task proves very difficult. I'm down for anything that will help me improve my debt situation (Ј8K loan, Ј256 pcm). You mentioned YNAB, apologies for my ignorance but what does it stand for and how does it help?
• YNAB is 'you need a budget' and is a budgeting tool, where all you money is 'spent' or allocated a job.
• I'd like to use YNAB but I have an iPad. Am I right in thinking you need a Windows laptop/computer?
• Although I've been on the road to clearing my debts for what seems a very long time, what has really woken me up is the fact that the amount I'm paying each month could be spent on some very nice weekends away every month.
  OK we probably wouldn't go away and spend what I'm repaying each month but you get my drift. In some respects its made me very depressed that I was such a fool when I was younger.
  However it has made me all the more determined to clear the debts