A few weeks ago I mentioned that I had FINALLY paid off my
overdraft. I thought it would be nice to do a little post all about how I
managed to pay it off. I really hope that if you're struggling with debt and
financial issues that this helps you too.
Write it down
Write down every single thing you owe, from credit cards to
overdrafts. Write down exactly how much you owe and what you pay each month
(minimal payment and the interest you have to pay) Admitting to myself not only
shocked me but brought me to my senses. Writing everything down was a big
shock, when I just thought about it, I was like 'Ah, it's only a few hundred
pounds, its not that much.' But when I actually saw in writing that it was
almost £1000, I burst into tears, I knew I needed to get it sorted out before
it spiralled (even further) out of control.
Work it out
I worked out how much I needed to spend each month: I jotted down how much I earn each month,
then took away any bills (Water, Gas, Electric, Council Tax, Mobile Phone) and
believe me, there wasn't a lot left at the end of the month. With what was
left, I divided it up into what I could put aside to pay off some of what I
owed. I managed to put aside £100 a month from my wages (which meant that I
didn't have much left over to spend on crap for myself)
Understand your spending habits
I went through my bank statements to see what I was spending
my money on: I highlighted all the things that were deemed unnecessary (£40 in
Lush?! There's only so many bath bombs a girl can use) I decided not to buy any
new make-up for a while and use up what I've already got: I had some
foundations stashed away and decided that it was better to try and use them up
while I could. So see if there's anything you can cut back on (whether it be
make-up or nights out) I think you will be shocked how much you spend on random
stuff!
Tell Someone about it and see if they can help
I told my mum and dad
about the debt and they were amazing and really helpful. They gave me some
money towards paying off some of the money and they were relieved that I was
finally paying off my debts instead of just spending money on crap. Honesty is the best policy and although
others may not be able to give you money, they may be able to offer advice and
support while you save up.
Write down what you need and stick to it!
I made a shopping list and stuck to it, instead of just
buying stuff I thought I needed (and ending up with things rotting in the
fridge at the end of the month) Try and only buy food you know you will eat.
Try not to waste anything at-all!
You will have to cut down on things you love, but it'll be
worth it in the end
I stopped going to the cinema, it was tough, but each time
me and husband ended up going we would spend almost £50, on tickets, a pizza
and sweets, instead we cuddled up on the sofa with a DVD and some cheap
sweeties from the local shop. And, in this cold weather, who wants to go out
anyway?
Set a Budget
I set myself a budget for nights out. If I only had £20 to
spend I would only take £20 with me, that way I could ensure that I wouldn't
spend anymore than what I had budgeted for.
Save Your Change
Each week I took out all the change in my purse/coat pockets and popped it into an old Lush pot, at the end of each month I would count the change and then pay it into the bank: All those two's and one's add up you know : ) One month I had £30 in penny's, its amazing how it all adds up.
You will pay it off eventually
It took 16 months to finally pay everything off and to be honest I'm still in shock. Firstly I can't believe that I used to be that reckless with money. And secondly the amount of crap I used to buy and simply not use is offensive!
It's crazy how it spirals out of control and one day you owe £200 then the next its £1000! Sticking to these things was really hard, but it was worth it, my attitude to spending money has changed so much: I now see that things just aren't worth it. Getting up at 6.00am and spending £100 on the MAC website so that I can get the new lipstick collection before it sells out?! So silly and so not worth it (plus I now get more time in bed)
Of course saving money isn't always this simple and things do have a tendency to crop-up unexpectedly, but don't give up, if one month you haven't saved-up any money, try and save it the next month. It may seem impossible, but if I can do it, anyone can. Don't give-up, you will unbelievably proud of yourself when you can officially declare yourself debt-free.
Save Your Change
Each week I took out all the change in my purse/coat pockets and popped it into an old Lush pot, at the end of each month I would count the change and then pay it into the bank: All those two's and one's add up you know : ) One month I had £30 in penny's, its amazing how it all adds up.
You will pay it off eventually
It took 16 months to finally pay everything off and to be honest I'm still in shock. Firstly I can't believe that I used to be that reckless with money. And secondly the amount of crap I used to buy and simply not use is offensive!
It's crazy how it spirals out of control and one day you owe £200 then the next its £1000! Sticking to these things was really hard, but it was worth it, my attitude to spending money has changed so much: I now see that things just aren't worth it. Getting up at 6.00am and spending £100 on the MAC website so that I can get the new lipstick collection before it sells out?! So silly and so not worth it (plus I now get more time in bed)
Of course saving money isn't always this simple and things do have a tendency to crop-up unexpectedly, but don't give up, if one month you haven't saved-up any money, try and save it the next month. It may seem impossible, but if I can do it, anyone can. Don't give-up, you will unbelievably proud of yourself when you can officially declare yourself debt-free.
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