Debt Number 3 : For those who feel they are drowning and want a way out

[TalkinPeace]

This thread follows on from Nerf's incredibly useful
FIRST www.mumsnet.com/Talk/legal_money_matters/1969188-Can-we-have-a-support-thread-for-people-who-are-massively-in-debt
and then
SECOND
www.mumsnet.com/Talk/legal_money_matters/2011878-Debt-support-thread-2?
threads about realising you are in and supporting each other out of debt.

I am not in debt, any more.
Here is a link to some spreadsheets that might help
www.mumsnet.com/Talk/legal_money_matters/1987219-SPREADSHEETS-for-Debt-Control-Budgeting-Mortgages-etc

and lots of people use this
YouNeedABudget

The important thing to remember is

• yesterday is as past as the Crimean War

( we will not judge how you got into debt, but we will support you on the way out )

• this is an anonymous forum

( we will not tell your employer, family or friends of the reality of your numbers )

• this thread is about supporting people through the huge mindset changes needed to come out of debt

( feel free to offload all of the feelings that drive you to want to spend, that make it hard to save and that generally make life crap at times )

Join in, bare your soul and come out the other end.
Its worth it.
You are worth it.

Kazza
I tend to use it as sort of 'cut and come again' - grab a few leaves from each group each evening for a salad
that and 'walking onions' chives and a bit of basil (buy a small pot and grow it on ....) and salads become cheap and meals become healthier

moneyone
you are heading in teh right direction .... good stuff

good things to report here

DP has a temp to perm job now which means I will be able to pay more than £40 per month off our debt

Thanks TiP, I'll look out for some and try it.

Winter lover, pleased for you x

Thanks Nerf Its quite daunting really, there will be potential of knocking £120 per month off the overall total BUT im so scared with doing that. What I think I'll do is up the standing orders to total £90 then whatever is spare at the end of the month make additional payments.

I still dont know what we'll get from tax credits and if we will get any help from housing still.

Gosh I hate the interim of new jobs. The one good thing though is that im going to have enough by 12th july to pay and close a store card (£140) which has been a nightmare from day 1

I am excited though as i will be able to join in with the monthly totals!

Yes it's almost scary having more money, like a massive responsibility

Nerf
I sense a new thread brewing for those who can clearly see the light at the end of the tunnel and need to learn to "maintain"
( a bit like the weight loss maintenance threads that I post on )

Morning all from sunny Jockland! Another 2 NSDs under my belt this week! Pay day on Friday and everything on track-emergency fund in tact and 'envelopes' all balanced.

Have guy coming to quote for new bedroom carpet which I'm hoping will still leave me money left over to start overpaying the loan

thats ut nerf plus im so scared our extra income will be spent on crap

Hi there Nerf and Winter
Once you get the debt cracked,
you'll be in the habit of not paying interest and charges.
You'll be in the habit of having a buffer in the bank at the end of the month.
You'll be in the habit of buying what needs buying rather than spending for the sake of it.

And all the money that you have been using to pay down debt while learning to live within your means starts to go towards savings - for holidays and cars and house repairs and university fees for children.

But you WILL get used to thinking : I have money left over, I'll save it till I need it.

Talkin Thats how I think now, however getting DP to think along those lines is hard work. My plan is to allocate as much of the money as possible so that there is less left over each month.

Just got to work out my budgets once I get a first proper week's wages from DP. Got part of a week which I can just about work it out on, but until I have the first full week I wont be happy.

Well for reasons best known to my employer I have nearly £200 more salary than I was expecting this month! Think it's to do with tax and my share sale earlier in the month, I seem to recall same happening last year...so will def be making loan overpayment alongside getting new carpet this month

New to thread but need it. Marking my spot for later when kids are in bed and I can read all and take advice. Noting i need to find out what YNAB is and dave Ramsey podcasts.

Wow Mum! I wish things like that happened to me

Hi Talkinpeace - I'm new to thread today but have downloaded your wonderful spreadsheets from the links you provided. I have a capital and interest mortgage and was wondering is there any chance you could create a spreadsheet for this rather than just the interest only one that exists. Can you also explain what "bank profit" at the top means. I'm a real novice when it comes to understanding financial matters and terminology.

Hi Mojito Welcome aboard
On the mortgage thread, if you scroll across to the right you'll find the Repayment mortgage figures generated in the same way as the endowment mortgage ones ....
The bank profit is how much interest you pay over the amount you actually borrow during the time of the mortgage.

YNAB is "YouNeedaBudget" its software / app thingy

moneyone
disposable income arises from getting in the habit of NOT buying stuff just because there is money in the bank. Its a more long term view. Its a values rather than a numbers thing.

My 'disposable' has really only come about since making a concerted effort to rid myself of debt. Currently it all goes on debt overpayment but I'm can finally see the day when the debt is gone and it all becomes mine to do as I please

We would be able to live a lovely life if we could get rid of this sodding debt. Not rich, but enough money to treat ourselves to occasional clothes, meals out etc.

I am feeling inordinately pleased with myself. I have made £17 selling DVDs and £10 selling maternity dresses this week. Little steps!

money and pixie

when all of the credit cards are at zero, and the monthly repayment is money you have already put aside, the "interest" money is yours
to spend well
PLEASE trust me, its worth it
you suddenly find yourself not looking at totals any more, because your GUT tells you when to stop shopping

I've got a £4000 credit card bill and £8000 of tax to pay by the end of next month, and I know exactly how I will do it
and had a bottle of wine tonight
its about learning to think at least a year forward

you are all making huge strides (even those who largely lurk) I'm effer so chuffed at your progress.

Payday in less than a week and I have more money in my account than I ever have had in the past at this stage of the month.

That includes having spent some little treats like the garden chairs from the tip and having paid for my back treatment

It's my birthday on Monday and DH is making me a cake, I'm not doing presents, if we get some vouchers through as we expect we might go somewhere like Pizza Express for dinner.

Tomato plants are flowering too...

25 min on the phone and thats tax credits renewed and updated fingers crossed it gets sorted quickly.

Feeling really positive about money for the first time in years. Made some decisions about our additional income. Until I find whether I am entitled to Maternity Allowance from Oct, im going to put half our extra money on debt and the other half into a savings account. Then if I get MA i'll make an additional payment off our debt. If I wasnt pregnant I wouldnt be bothered about having a savings buffer, but there are some things we need to buy, plus consumables and if BF doesnt work I'll need to buy milk.

I also realised that our oil fund was seriously low (about as low as the oil in our tank) and that the car maintenance fund had been used up on repairs last month. DP needs his car for work and im out in the sticks so need my car for DS to nursery etc.