OK, so we all know how the whole country's in the grip of a winter chill? Well that's nothing compared to the chill that ran down my spine when I finally added up all my outstanding debts... a grand total of (drum roll please) £21049.95!!! So, not as bad as it could be, I hear some of you cry, but believe me, when you know this particular round of debt was only accumulated in the space of around three years, then that's pretty scary! Hmmm, that's an average spend of £7000 each year, or £584 a month, or £135 a week - ON NOTHING!!!
This shameful amount of money is spread across 4 credit cards and 3 loans. The last two loans were supposed to pay off the credit cards, but that zero balance just looked too inviting on my statements, I swear the cards were luring me to spend again. Which, duly, I did, right up to the goddamn hilt again. You know how it is though, you think this time you'll be able to control the spending. You think you won't close the card accounts, but keep them for an emergency. Then some truly fabulous item comes across your radar (usually in the sale, just to be even more of a bargain), so you think that's OK, I have a zero balance on my card(s), I can just buy this one thing, but I WILL pay it off next month. Next month arrives, as does another truly sparkling bargain, you may the minimum amount because you got caught up in other bills during the month and we're on the credit merry-go-round once more, la la la la la!!
Then, the shock comes. We hit a credit crunch and suddenly all the financial institutions are no longer your best friend, in fact they totally abhor you. So, when you decide to take another loan out to cover the newly maxed-out cards and consolidate the other loans, where are they? Now you know what it means to be left out in the wilderness. Now I'm not blaming anyone but myself for getting into this situation. The card and loan companies did not stand over me with a gun pointing at my temple insisting I sign the agreements. No, it was my choice, just as it is now my choice to do something about it.
So, in addition to the 'rules', I have been trawling around looking for more ways to cut my spending and, hopefully save even more to go towards paying my creditors. To this end, I've spent quite a bit of time on the Martin Lewis website, MoneySavingExpert.com. I would recommend the forums if you're a newbie (like me) at this money saving lark, as they're packed with useful tips, info and challenges. I've just joined the 'January Grocery Challenge' where people decide how much they're going to pay for groceries in the month and, hopefully, stick to that budget. I've got mine set to £200 for the month, so I'll let you know how I get on (evidently not very well at the moment, as I've spent around £65 already!). This might sound like a load of old cobblers, but it sets you thinking. I can only liken it to the same feelings I had when I joined Weight Watchers a few years ago. You're being weighed publicly each week, hence you develop a mindset that doesn't allow you to fail, i.e. put on weight, because you don't want to be publicly perceived as failing. To post how much you've spent on groceries for everyone to read is a similar thing. OK, I may be talking complete rubbish, but it works for me!
Until we meet again xx
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