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Sunday, 9 November 2014

Debt Update - November



DEBT

October was a financial disaster! 

At the beginning of each month I calculate what I have to spend and set a budget. However, somehow in October I over calculated by £200! I really have no idea how I did this but come 15 October I checked my bank account and I had £98 left. I was expecting nearly £300 to be available. To say I was shocked was an understatement. Out of that £98 I had to pay £49 for my credit card minimum repayment and £45 for my phone bill. I had no money left. 

I had to cash in my change jar (£48) and dip slightly into my overdraft (only £20). I am starting to see the benefits of an emergency fund (albeit this was sloppy maths rather than a real emergency)

Anyway.....

My debt is now as follows:-

Credit Card 1 - £2,989.11
Credit Card 2 - £4,814.28
Credit Card 3 - £1,871.02

TOTAL: £9,674.41

HOME

My landlord has informed me that they wanted to increase the rent by £100 per month. Given that our rent is already stupidly high, we have decided to move. We are still looking but will hopefully secure a property with lower rent. The problem in terms of debt repayment is that we now have to find money for a removal van (we have looked into just hiring a van but it only works out a little cheaper compared to hiring a removal firm and quite frankly I think a professional will move things quicker), a professional cleaner (its in our lease), letting agent fees and a deposit. I, sadly, expect my credit card will be used this month and my debt will increase.

POSITIVES

On the plus side I have purchased nearly all my Christmas presents and have lucked out in obtaining deals so am under budget. I only have two presents left to buy and I am done!

GOALS

I don't normally set goals, but I thought I would this month. So my goals are as follows:-
  • List at least 10 items on Ebay each Sunday. 
  • Practice yoga x 2 a week.
  • Go swimming x 1 a week. 
I hope your debt repayment is going well. If you are paying off debt check out Money Smart Guide's Debt Pay Off All Stars. 



Thursday, 6 November 2014

Debt Disciplines interview series

I am participating in at Debt Disciplines interview series. Please remember to check it out and all their other fantastic interviews - its inspiring stuff! 

Sunday, 2 November 2014

HAVE A SPENDING FAST


Image courtesy of www.freedigitalphotos.net 

At the beginning of October Michelle at Budget Bloggess posted a challenge to herself to have a no spend year following her realisation that she is a shopaholic. 

Back in 2011 I had to move out my home at short notice. I couldn't afford to move out but had to. I had to find a deposit, one month's rent in advance plus furniture. I just about managed to scrape together the deposit and advance rent from my salary (I had a rare bonus that month) but this meant I had to spend the next 5 weeks solely living off my credit card. I also had to buy the furniture and household items on my credit card. The amount of spending I did on my credit card completely scared me. You would have thought that that would have been my 'a ha!' moment and I would have started paying off my debt - did it heck!! However, it scared me enough to at least be a little more careful with my spending. 

I decided that I had too much stuff and that I did not need to buy anymore items so I vowed not to buy any clothes, shoes, handbags (my particular weakness) and unnecessary beauty products for six months. 

How to survive a spending fast?

Beauty Products 
  • Use a little water to get the excess out of shower gel/shampoo/handwash etc.
  • Put mascara tubes in hot water in order to loosen the excess. 
  • Use a tiny amount of nail polish remover to loosen old nail polish.
  • Cut the ends off hand cream/toothpaste tubes to use it all up.
Clothes/shoes/handbags
  • Have a look through your wardrobe. If you are a spendthrift/shopaholic I bet you have some items in your wardrobe you have never worn or only worn once. 
Triggers
  • Identify your triggers. Is it depression? Payday treat? Feeling down? Feeling anxious? New outfit for a party/date? 
  • Do not go shopping. Seriously, stay away from the shops. 
  • Unsubscribe from store emails. Avoid the temptation!

Benefits of a spending fast?
  • You will save some cash!!
  • My compulsive spending is weaker than ever. I still have my moments but in general I am stronger at not giving in to compulsive buying. 
  • I actually do not particularly like shopping anymore (I am a reformed shopaholic) and enjoy being more minimalist. 
Now I would like to say that my spending fast resulted in me being more careful with my spending but that did not completely occur. It certainly helped me get use to not shopping and having less and my shopping habit is now under control. The debt I incurred since 2011 is due to not budgeting or saving and buying food and holidays on credit cards. 

Have you ever undertaken a spending fast before? How did it go? Are you a shopaholic? Do you have any tips for a spending fast?