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Monthly Archives: May 2012

…I haven’t got one!  I forgot to do this when the PPI cheque became available.  Or really ‘damn, I will be spending that tempting money in my account for stupid emergencies, so best if I just put it towards debt now before I buy a pair of fancy shoes, or a designer bag or go to HMV and buy DVDs which I do not even open the packaging for’ etc, etc…

Houston, we really do have a problem – with temptation!

I better sort this shit out…

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OMG – a lot can happen in the space of two weeks!  I have been working overtime to give myself a ‘kick’ in the butt with regards to my debt.   Here’s an update…

– Shares: £3,165.32 was transferred into my bank account on May 10.  I had to do the right thing and… a) pay off my main current account overdraft of £500, b) pay of my secondary current account overdraft of £850.00, c) pay my best friend a loan amount of £500, and d) pay an outstanding £15.00 to a dear friend, who told me to forget about it in February, but that’s besides the point!

I felt liberated!  I am ‘NOT’ going to use my overdraft again.  I cannot.  I’ve lived on my secondary account overdraft for too many years, and then started using my main account overdraft during the past year (and living in it too).  It was actually sickening to pay that amount of money in the first place, when really, it should of gone straight to credit card number 3!!!  The remaining amount of money I put straight into my credit card number 3, which was £1,300.  Now THAT was good to do….

I have stumbled a little, however, during the last few days, as well, but picked myself up again within 24 hours!  I had a wedding to go to, and I had budgeted £100 for taxis, hairdressers and any extras.  Well, the extra’s ended up consisting of a £219 Mulberry evening bag – why? – because I couldn’t find my existing one at home!  I bought the ‘beautiful’ Mulberry bag at TK Maxx.  The bastards only took around £70+ off the original price of £295.00.  I loved it, for all of 24 hours and then took it right back the following day after the wedding to get a refund.  Man, they DON’T want to give refunds back – especially if it’s of a high value like the bag.  However, after around 20 minutes of ‘waiting’ for the manager and then another manager, and then another manager to ‘authorise’ it, they gave me my money back 🙂  That was a close shave!  I did feel sick actually ‘giving’ the bag back, however now I know it was the best thing to do.  I also bought a strapless bra for my strapless dress which was £16.20 from Ann Summers.  However, when I took it home, I noticed a big fuck-off security tag still left on it – bastards.  I was taking that bra back but not before wearing it the shit out!  The security tag didn’t show at the back of the dress (thank god) and didn’t stick out so I wore that sucker and then took the bra back the next day complaining that ‘I couldn’t wear my strapless dress because of your incompetence in leaving the security tag on a bra I couldn’t even wear’.  I got away with that too :))  Bad girl, very bad girl!  I did, however, spend £35.00 on gold pearl stud earrings.  I stupidly left my other silver stud Tiffany’s at home like a mug, and I didn’t have enough time to get back home to get it (as I was getting ready at my mothers’ house).  I couldn’t get a refund for that so that was bad!  However, I had to have earrings to ‘fit in’ with the whole outfit.  I know it was bad of me, especially as I could of bought replicas from Primark for £1.00 and then throw them away, but I didn’t.  I’ve still got the spending habit in me.  I mean come on, what do you expect?  But I’m working darn hard on flushing it out of my system.  This one got away (on the Sunday when I returned the other goods, I did go to the jewellers to see if I could get a refund, but they told me no returns on studs – fair enough, I knew that. At least I asked!).

I was waiting for that ‘cheque’ from Nationwide – the PPI refund.  I got home on that Sunday (after I took everything back to the mall for a refund, that is!), and what was in front of me but an envelope.  Could this be it, I wondered?  I opened it up and there, in front of me, was a letter with a cheque tucked within it – it was the cheque – all £4,679.10 of it – RESULT!  The next day I cashed it, and had to wait until yesterday (May 18) before the funds were available!  During the afternoon it gave me great pleasure to: a) completely clear credit card no.3 in full (minus an extra interest charge which I will be charged next month, apparently around £45.00 – bastards), and also 3 thirds off credit card no. 2!  £3,241.35 transfer to the 2nd card, which leaves around £1,5k+ on that card, or maybe a little less.  IT FEELS GREAT!  Please note that £900+ of that cheque I received, I have to declare as tax – darn, I’ll declare that… soon.

I have a confession, though…. Thursday just gone I did buy two items at Selfridges:- a) clothes brush which my mum has been bugging me to buy for her for the past 2 months.  It cost £8.99, and, b) forgive me when I say this, a cute purse-size bottle of Daisy eau so fresh by Marc Jacobs, plus refill for £29.50.  I’ve been eyeing this up for the past month since my best friend introduced me to it.  I know, I know, I shouldn’t of done this, and I know that the perfume will still be there when I’m debt-free one day.  However, i just had to.  I wanted it to be a ‘well done’ gift.  It’s not easy taking your money from your shares and putting it down to debt.  I know it’s the right thing, but it damn-well hurt when I did it, I can tell you!  And yes, the PPI money was ‘extra’, but damn – out of that money just a little ‘well done’ pat on the back had to go to me for applying for the PPI in the first place – right?  OK, it was my niece who told me to find out about PPI as ‘you never know’ so the credit has to really go to her, but I’ll let her know that one day – just not now – I’m on a mission!

I looked at my debt manager app after doing my transactions and updating my info on the app.  WOW, Credit Card no. 3 = CLEARED / Credit Card no. 2 = £1.5k+ outstanding.  I can bazuca that verruca in 2-3 months, according to my app!  Then I’ll deal with the big Credit Card no. 1 which is over £7k and last the loan for the kitchen which is over £4k and that’ll be it – I’LL BE DEBT-FREE (with a mortgage still outstanding over £60k, of course!).

I’m  33% into my debt within a matter of weeks and I haven’t even properly snowballed / snowflaked with my salary yet – that starts as of Friday when I get paid!  It’s the fact that I’ve made a massive sacrifice and took my shares out, and was very fortunate to have nearly £5k given to me by way of compensation by the banks!  Way to go….

£19,603.23 now reduced to £13,001.58.  Now the hard work begins.  I want to be debt-free within 12 months – or maximum 15 months.  Here I come.

Let’s work at it people, let’s bazuca that verruca – and clear our debts.  We need a revolution, and I’m working on it – on my own!  If I DO get any extra money, I just have to put it towards my debt from now on!

CHA-CHING!

So, yesterday just before I was making my way to the bank to check on my balance, I get a phone call. I recognised that code – it was my bank whom I applied for a loan with – and they declined me!

‘We have now approved your loan’.  Well I never!  One minute they say it’s declined, and the next…. well.  Much that it was tempting to say ‘yes’ I thought about it last night and came up with the conclusion this morning that it just isn’t worth it.

Having a consolidation loan – you ‘forget’ about your real debt.  Even if I can over-pay – it’s not the same like snowballing.  You’re not ‘seeing’ your progress.  You forget about it and not as ‘eager’ to get rid of the debt.

Nope, I’ll stick to what I’ve got – the snowball / snowflakes method.  I’ll see the progress straight away, and will be more determined to clear that debt quicker.  

Today, my app called Debt Manager showed its first signs of life!  It made x2 automatic transactions and has slightly reduced my debt.  I felt excited seeing a bit of ‘colour’, a percentage confirming how much I’ve taken off my debt.  OK, it was only 2 and 3%, but hey, that’s something, right?

When that loan ‘acceptance’ form arrives, I won’t even bother signing it.  I’m on a mission…

So, I’ve come to the conclusion that I need to sort myself out.

I’m £20k in debt, and I’m determined to clear it all as fast as possible.  I’ve now realised that I have a problem.  Initially, I tried to deny that I had any issue, or at least hoped that the problem would just ‘go away’ as if by magic.  I refused to open my mail when it arrived for at least a year.  I paid the minimum of my debts.  I didn’t calculate exactly how much money I was in debt.  And then the obvious happened.  My partner opened up my post by mistake and freaked out that I had a credit card.  I came clean – not with all the debt, but with the majority.  I then realised that I had a problem and that I needed to change my way of thinking and handling money.  I was beginning to have sleepless nights and felt ill just thinking about it.

I read on the net recently that it’s no good thinking about ‘getting more money to clear your debt’, as you’re not really dealing with the problem – which is YOU, and you know what?  It’s true, think about it!  If your mindset is just about getting money to clear what you’ve got then you’ll get back down a spiral trap – like I have done countless times.  I thought that it was all about getting money and defusing the flames.  However, I wasn’t changing the way in which I see money and how I have to take control of this crazy roller-coaster.  I would consolidate a loan and then within a few months or years be back in debt again because I was able to ‘control’ the previous debt and had surplus money left.  I cannot afford it.  It’s not my fucking money!  Regardless if the banks and organisations was telling me that I ‘qualify’ for this piece of shit, I shouldn’t of taken the temptation.  I’ve got no-one to blame for this debt crisis but myself.  I cannot blame it on ‘society’ or ‘circumstances’ when I was the one spending a fortune on Mulberry bags, and Tiffany ear-rings and bracelets. Business class tickets to god knows where, and dancing with Mickey Mouse at Disneyland! I know it’s my fault and I’m facing and dealing with it.

Even up to 2 weeks ago, I was like ‘let’s get a personal loan from my bank and consolidate all of my debt to them, and then have 1 payment going through instead of 4 each month’.  My 2007 loan had just finished, and I wanted to just ‘hide‘ my credit cards and my other loan under the carpet, so to speak.  I got offered the loan, which was a surprise. However, due to certain circumstances I turned it down for a number of reasons:-

a) I was doing some research on the net and every major website was talking about ‘snow balling’ as the only real viable way you’ll be able to get out of debt as quickly as possible:

b) if I had a loan, I would be ‘stuck’ with a fixed amount which, to be honest, scared me.  I got offered 13.4% APR which was terrifying.  I was expecting an APR of around 7 or 8%, but because of my ‘defults’ during the last 12 months that had affected my credit rating. I knew that there maybe a situation that I might default on my ‘loan’ as it was fixed at this high amount

c) I want to start the snow balling option, yet also have the flexibility that if, just if I cannot afford one month to put snowflakes or do the snow balling, I can just pay the minimum so that it gives me time to get back into control, yet not be in a default situation

d) I can work hard at clearing my debt, and within 12 months apply for a 0% APR balance transfer credit card, once my credit rating has had time to improve

e) I’ve come into a windfall!  I applied for PPI insurance with my last large loan, and have been informed that I was mis-sold on the insurance!  That’s over £3.5k coming my way, thank you very much.  I’d rather clear 1 of my credit cards, friends loan and my overdraft with that – in which case I wouldn’t need to have the big expensive loan which the bank was going to offer me.  (btw: I re-tried for another loan this week, at the lesser amount and I was quoted an APR of 16.9% APR for the privilege AND got rejected ta boot).

f), I looked at the small print of the loan, and they never mentioned whether it was a secured or unsecured loan, yet I saw a line which said ‘if I defaulted, my house could be at risk’.  It was a no-brainer – sod the fucking loan and just deal with the shit which I have now and clear, clear, clear it!  There is no way on this planet in which I’m going to put any loan secured on my mortgage.  So, in a way, I’m kind of glad that I got refused, and that my credit rating has gone a bit Pete Tong.  It made me realise that I have to deal with this issue myself, and not ‘hide’ the problem.

At the beginning of April, I decided to get copies of my credit rating.  It’s scary to know that they know ‘everything’ about your credit history.  How many loans and credit cards you’ve taken out.  Whether you’ve ever defaulted.  How much you currently owe the companies you’re in debt to.  It’s an eye-opener, I can tell you!

When I got paid end of April, I decided that this would be the month in which I was going to tackle my debts.  I’ve paid just over the minimum for all of my debts, and have set up direct debits for all of my bills to a separate bank account.  This account will be my ‘debt’ account where I will make all my debt repayments and snowflakes/snow ball payments to 🙂 The real action will actually start with my May pay-packet.  I’m keeping my spending to the minimum, as much as I possibly can.  However, I will also be doing x2 things:-

– I’ll be getting the PPI money soon, and once I do, I will keep £1k in another separate account for any emergencies.  This, I think is important.  moneysavingexpert.com recommend this, as well as other websites and this Ramsey geezer from the States.  You never know when an emergency may pop up and the one thing you don’t want to do is to get into your ‘normal salary/debt money’ to dig you out of a hole.  I’m really going to try for the £1k target, but if it’s £500 or £750 initially, then so be it

– I’ve also got shares.  Not a lot as I’ve dipped into them 3 times in the last 6+ years, to clear debt with, and the last time was in September last year.  However, it’s something and I’m waiting for that payment of around £2k to come out too.   Hey, why have shares when you’re drowning in debt – right?   If it can help me get out of debt quicker then why not?  So, I’ll be at least £5.7k ahead of myself by the end of this month.  Money I wasn’t even thinking of 3 weeks ago!  So the £20k has now gone down to £16k+, which is not bad going!  I’ll clear my x2 overdrafts, which total £1,300+, plus a credit card which is 21.4% APR, plus pay back a loan from a friend, and finally start my ’emergency’ money put away.

I’ll keep you posted at the end of the month, and on a monthly basis on how I’m doing.  I would also love to hear your stories too.  Let’s start this. Let’s do this together.  Let’s change our lifestyle!

We need a revolution, people – we don’t need no more mickey-mouse-debt!

I’ve always been bad with money.  Well, I call it binges really.  At times I can be the most organised person – full of financial control.  I can put my mind to things and save, save, save.  And then something happens in my life and – BAM – I go back down the spiral road of debt.

Here’s my story: It started when I was a teenager.  I used credit cards and loans to ‘keep up with everybody’.  I come from a working class background, no airs and graces.  My parents worked hard and saved hard for whatever they needed.

I banged a good job in advertising.  A marvellous achievement for my age of 19 years old!  Soon I got into the self-belief that I could keep up with everyone on the social scene.  The trouble was, these people were middle-class and HAVE money, I didn’t!  Anyhow, the credit cards started to pile up, and the loans.  It took 10 years to get rid of the lot.  If you asked me what I spent it all on, for the life of me I really don’t know!

Fast forward to 12 years ago.  I bought a house with my partner. He was already £5k in debt as he wanted to help with the ‘deposit’.  Within a year we (and I say we as it was my decision as well as he’s when he suggested it to me) wanted to get rid of his £5k debt, and I wanted to help him out.  So we added £10k onto the mortgage (don’t ask why the extra £5k, we just did!)  Within 2 years we did it again!  We changed mortgage providers and added another £10k.  Now, all of this time muggins here was paying for he mortgage with the partner as and when he could!  Fair?  Well, again I put up with it, so I’m not going to grumble – it was my fault in letting him get away with it in the first place.

The decade of 2000 was a very strange one.  Everyone thought they were RICH.  I had been in negative equity in the early 1990’s and so put my foot down in not putting anymore money onto the mortgage.  I always believed in your mortgage being 3 times your salary and capital/repayment.  I’m glad I stuck to that guideline.  However, I bought a 2nd hand car, and 3 years into my car loan debt I then took on the partner’s debt because ‘he couldn’t cope with it’ (yes, he got himself into more debt of about £15k). What a mug I was, but hey, I could handle it because my salary was growing while his was, well, going nowhere. And that’s also my problem.  I always look to help out others who are more in need than me, and always put them first.

Roll on 2008 and 3 more years until I would be debt-free.  I had a serious knock-back.  There was an unexpected bereavement in the family.  It hit me HARD.  I’m still not over it.  And my relationship was beginning to show serious cracks. He couldn’t understand the pain I was going through, and the support I was giving to my family at this emotional time.  And I couldn’t understand why he wasn’t ‘supporting’ me.  We slowly stated to become distant from each other.  I needed things around me to feel happy.  I decided to get another loan out, but this time to revamp the kitchen.  To cheer me up.  And then the credit cards (just as a back-up in case the loan didn’t get approved – which it did).  And then I started to spend on my cards… and spend… and spend.  I had to get the best of everything.  I had to ‘keep up with everyone’ and spend a fortune on flights to far off places, to experience business class like my work colleagues do.  I was buying bracelets, and fancy bags.  I was doing things I had never done before – starting to live – starting to ‘spend’ like I was middle class and not working class!  It was the beginning of the recession / credit crunch, and instead of keeping in control of my 1 loan debt, I added an extra loan and x3 credit cards!  I was depressed and these ‘materialistic things’ were making me feel happy, at least immediately.  It took away the pain of feeling sad, lost, lonely and losing my family member.

Then the defaults started kicking in last July.  I was not making the minimum payments on everything.  I was getting phone calls from the credit card providers.  I was not getting regular money from the partner (which wasn’t anything new, but now it was really affecting my cash flow).  This has been going on and off until now.  2012 and I need to sort out this shit – and fast.

So, that’s my story.  Here’s where I am in my life.  Fortunately I do not have any children, so it makes it that bit easier to concentrate on me, and me alone!  No more bailing out other people’s debts.  No more helping out people because they ‘want’something but haven’t got the means to pay for it themselves.  The buck stops HERE and I’m determined to be debt-free within 2-3 years, top.  Hence mickeymousedebt was created.  It’s all mickey mouse money which we as consumer owe.  It’s all bullshit, and we all have to start taking control of our lives and get out of this debt issue we’re all in.   Please continue to read my thread and following my journey of aiming to be debt-free, and most importantly, having FREEDOM !  I don’t want to be rich, but just be free of all of the stress and financial strain which millions of us are going through.  We need a revolution, people.

Hello everybody!  This is mickeymousedebt, and my mission is to get out of debt as QUICKLY AS POSSIBLE!

I’m a credit card and spendaholic junkie.  However, all I want now in life is to be debt free and, most importantly, FREE from all the stresses in life.  Come join me in my journey to accomplish this, and I hope that you’ll also be accomplishing your dreams of living your life as well.  Let’s all get out of this bullshit.

We need a revolution, people, and this shit starts right here, right now 🙂