on average I am getting into approximately £70 debt per month but cant seem to make it any less!

212

SoftwareBear posted

don't use credit or debit cards ... take money out of the cash machines and spend real money.

calculate how much you have to spend each day after paying for everything you need to and try to stick to it

don't impulse buy ... always ask yourself if you really need it ... walk away and see if you still need it in five minutes time.

putting together a statement of affairs is a good step ... it'll show you where you money is going and allow you to make your own decisions about what to cut back on.

Posted on 29 April 2010 | Love

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MikeGG1 posted

Write down every penny that you spend for a couple of months. Then analyse it. You should see a number of inessential items. They all add up.

Also total up how much you spend on your car and compare that with how much you would spend on bus, train or taxi fares instead. Also, cut out those journeys you would not do if you didn't have a car. See which journeys you can combine to save petrol.

Anything that you don't have the money for, you should defer for 3 months at least. At the end of 3 months, you probably will not still want half of those items, saving quite a lot.

It is the wrong time of year for the next comment but have you tried turning down the heating by 1 degree? You can compensate for that by wearing an extra thin layer of clothing. By the way, 2 thin layers are warmer than the same weight of clothing in one layer.

Check you property for draughts and seal/insulate if necessary.

Showers rather than baths - less hot water.

I don't know your lifestyle, so can't make any other suggestions but I am sure you can think of something.

£70 is not a lot these days. Good luck.

Mike

Posted on 29 April 2010 | Love

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SmudgeButt posted

The little things could help a lot with a monthly excess of this amount. You many be already doing some of these but this is where I would start.

Buy a cheap flask and take your coffee to work, Resist Starbucks. (£2 a day for 20 working days is an easy £80 to save per month)

Take your lunch too.

Shop sensibly - buy in bulk if it will really save and shop at the discount spots. i.e. don't buy a single loo roll at the corner shop, buy the big pack at Asda/Aldi/Lidl.

Use a shopping list & stickto it!! Don't be too tempted by specials as they are rarely that special.

Review what's going through your bank account & credit cards. Cancel the unnecessary subscriptions for magazines/Sky/donations etc. Look for anything that isn't your transaction - some fraud is done in small regular amounts so it isn't noticed for some time.

You might be able to think about getting a 0% balance transfer on a credit card and move any interest generating debt there - there have been lots of discussions about the ins and outs of making this work main ones being, do the transfer and then put the card in the freezer (really) so it's only available to be used in extreme emergencies and ensure you pay the entire transfer off before the end of the transfer period - come back and ask if you need more details.

And check out the dealing with debt board for really specific advice - http://boards.fool.co.uk/dealing-with-debt-50079.aspx?mid=11905770

Posted on 30 April 2010 | Love

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Ruthless Investor posted

Cut your consumption on take-aways and alcohol, no matter how cheap or attractive the offer is. Buy fresh fruit and vegetables from £1 a bowl stalls instead of buying from supermarkets. They are not cheap even after the offers.

Sell all of your unwanted items and all those surplus to your requirement, in a car boot sale to generate extra cash to pay some of your debt. You can also buy some of your NEEDED items at the boot sale instead of buying from stores. So what if they are second hand or need cleaning, they will serve the purpose. Good Luck

Posted on 30 April 2010 | Love

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clare3176 posted

Thanks everyone there are a great deal of good 'small' spending tips here. I work about half a mile from home and most days dont need to take my car so I have borrowed a bike cos I worked out these 4 journeys a day cost me just under 6 quid a week! I did the online banking thing and found out that most of my spending is done in asda/tesco etc so I think I need to redress my grocery spending- I am vegetarian and I think most of my veggie stuff can be made from frozen unless it is salad so that should save as veggie meals are expensive, I think a bit of cooking and freezing is the best way forward!

I have also signed up for freecycle and am planning a car boot in a few weeks. I paint and am going to sell paintings on ebay - I did this a few years ago and found that I was making at least a tenner on each painting and it is something I can do even when watching the telly.

I have turned off the heating and as i live in a new build it is not too cold.

Thanks I think the main problem here is that I know that a small sum like this in debt is enough to snowball into larger figures if I dont address them and your ideas are enough to make me realise that I need to make some changes to my spending habits.

Posted on 30 April 2010 | Love

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K6pilot posted

Claire, the advice above is excellent. Remember that if you are overspending by £70, then you need to reduce your spending not only by that £70, but also by another (say) £70 to start paying off the debt. I have been exactly where you are and you have made an excellent start by realising the situation you are in.

Have a really good clearout via e-bay and use all that money to pay of debt. Things like cameras etc you can always buy back when you have some savings. Pay off the debts with the highest interest first.

Think about big changes...could you sell your car?? For most people the savings in insurance, tax, petrol and depreciation would fund a huge amount of public transport.

Cut up all your credit cards to avoid temptation. You don't have to cancel the agreement, just kill the cards.

Totally agree with the comments on buying cheaper food...spend a day looking at green grocers / markets in your area and ask them what they can do to provide you with veg and fruit at the lowest price (bulk buy spuds etc)

Finally make a big chart and mark of your progress. I cannot tell you how good it feels to be out of debt ;o)

Good luck!!

Posted on 01 May 2010 | Love

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clare3176 posted

So I need to find 170 quid per month. Ok I like that challenge. Bit difficult with the car as I do alot for my parents who are not very well and live 6 miles away - also my sister is learning to drive and I would like to take her out which will eventually help with all the driving I have to do at the mo! I have 450 quid of disposable income (though has to pay for petrol, food, and everything else). So it is not beyond the reach to save £170. Thankfully I do not have a balance on my credit card and have always avoided the temptation to spend on it.

Decided I can sew so I can use dylon and my sewing talents to make new clothes - I have loads some that dont fit so shouldnt need to buy more in the next year or so apart from special occasions. I decided to shop in poundland for all my toiletries, cleaning stuff that usually costs more than a quid. I will use my 'unused' savings account to transfer £65 pounds a week and use this card to spend on. I figured I can get my food shopping down to £10 a week as i have dinner at parents twice a week and cook in bulk. Petrol £10. That will leave me £40 to play with so sub consciously I wont feel like I am restricting myself as that is a new top and a night out if I go easy on the drinks. Luckily my friends are willing to go to less expensive places or have a night in if anyone is skint and we ARE edging into barbeque season! When I was last in debt the spending on my savings account really helped me to pay off £2500 debt in two years as often I wouldnt spend the £50 quid I used to transfer. I didnt find that I 'felt' skint because I used the money I had wisely and often had some left over to transfer into the next week. Can believe I forgot about this little nugget. I will dig out my whiteboard and make a chart.

Thank you!

Posted on 01 May 2010 | Love

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clare3176 posted

I am on an open university course in design so all my equipment - camera, computer , scanner are all needed :-(

I make cushions from silk and paint designs on them - costs me about £1.50 for each cushion cover and about 2 hours to make. I will try selling them on ebay after I have sold my other bits and bobs on ebay and car boot sale and also sell my other art too.

So the monthly challenge starts - what fun!

Posted on 01 May 2010 | Love

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busyhels posted

dont forget to check any bank charges or unnesessary direct debits i have more control by checking bank accounts and payments several times per week pc has helped a lot. i changed my job to a less stressful one more stable hours and now have more time for my hobbies. took to weekly payments with some cash which helped a lot with cash flow. which i know i can handle better than monthly.

i still only spend what i realy need, worked out my weekly to monthly needs to keep out of red this saved charges. managed to save some for emergency if i am off work and paying as much as pos off my credit card. with all this sress for the first time in years i have managed to have my hair done by a friend who has retrained. dont fully deny yourself any treats just be more selective. and get value for money.

what i have learnt is the banks and others are there to make profit out of you, we ARE a commodity. its only if you have money that it goes to money. mum taught me to be very frugal with every thing, food, heat, clothes i do all sorts of needle work.you can however try your best to be a top model to every thing and try to please every one. living on a tight budget can get very stressful and lonely. ive tried to do everything right (i was a single mother too) i am now into pleasing what i want out of life and taken the bull by the horns. if you havnt the cash flow coming in regular theres no amount of frugality will keep you afloat so i tackled it from all sides.

i trickle things in here and there try to spread the load .i feel in control and gradually getting in shallower water. i am swimming with direction rather than drowning.

good luck to everyone we all learn the hard way.

Posted on 02 May 2010 | Love

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emz posted

You say alot of your spending is in the supermarket?

I use www.mysupermarket.com

Our food bill works out about £60-80 a week (for 2 adults) on this shopping at ocado. If I go in the supermarket I normally spend about £100-125!

Posted on 04 May 2010 | Love

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Yorkstyke posted

Do like we older generation had to do and save for things instead of the "I want it and I want it now culture" of the younger generation.

Posted on 04 May 2010 | Love

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ginge39 posted

Hi Clare

I used to shop fortnightly and spend £160 on online grocery shopping and another £20-30 on top up shops, I now shop at Aldi and spend £70-80 a fortnight and about £15-20 at our local freezer shop and market. This feeds myself and 2 teenage sons and also weekday lunches for my fiance. Before I go shopping I write a menu for the 2 weeks and take that, and my shopping list, with me - I find it easier to stick to the list, also shop during the week when its quieter (if you can) and try to get to the market early when there's more choice.

As well as pound shops for toiletries/cleaning products I use shops own brand tampax etc as they work out about 1/3 of the price of named brands.

Posted on 04 May 2010 | Love

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Mike10613 posted

Hi Clare,

One of my friends bought an item of jewelery on sale at Argos for 9.99 and sold it in an auction on EBay for about £16.00 the other day and so selling your pictures is a good idea. I have a friend who sells pictures in the States on Ebay and she sold all hers for $500 each! She did make the frames by hand though.

The freezing stuff idea is good. I buy fresh vegetables and living alone i throw half away. I would be better cooking them and freezing them. I do buy a lot of bargains though and keep my freezer stocked.

Sky tried to sell me their TV and broadband the other day for £35.00 a month. I pay around £21.00 and can make free calls to Landlines 24/7 even in the EU, North America etc. I'm writing this in bed on my laptop and intend to watch Freeview on my laptop using a cheap USB tuner I got for £25.00. If contracts like Broadband are up check you're on the best deal. I have a pay as you go mobile and use it for emergencies only. I put petrol in the car every few months; I'm an advanced driver and usually don't waste it.

Take a look at the Modern Met too, it's free to join and oyu may get some help; this is my page - it for creative people generally:

http://www.mymodernmet.com/profile/Mike10613

Posted on 04 May 2010 | Love

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charles125 posted

Seems to be a HUGE problem for very many people nowadays, given the massive hikes in food, insurance, fuel, holiday costs, road tax, energy costs, council tax, to name but a few!!!!

Cut out luxuries like Sky movies/ Sport, get out of a contract phone as soon as you can and use pay'ngo instead, use phone for essential calls only. Shop around for the cheapest broadband. EACH renewal shop around for cheapest insurance. Drop contents insurance if you really can't afford it.

I use Lidl's a lot for vegetable/ fruit especially when it's half-price. ONLY buy products that are reduced in price! Cut down on any foods that get thrown out unused. Avoid expensive pre-prepared foods. Cheapest pop is about 17p - 20p a bottle in Lidls. AVOID expensive brands like Heinz, Cadbury's etc like the plague. Buy cheap cereals and add sugar to taste. Buy the cheapest with all shopping eg shampoo, liquid soap, washing up liquid, washing powder. Unless you are very susceptible to skin allergies, you probably won't notice the difference.

There is much (expensive!) marketing hype that is just fancy words to try to get you to buy EXPENSIVE products!

Do check that 'bargain' reduced prices are actually value for money. The Asda and Tesco economy ranges are good products priced reasonably. Don't be embarrassed by the cheap packaging. We get Jag owners using Lidl's! AVOID Sainsbury's for most products, they are VERY expensive on average.

Good luck with making some sensible savings on spending! Cut a daily newspaper, with TV and the Internet it can save about £4 a week.

Posted on 05 May 2010 | Love

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tomP posted

A couple of tips I found on a blog recently:

1. Record your spending. If a spreadsheet fills you with dread, a notebook and pencil will do.

2. List all your spending priorities. Start with mortgage payments, car costs and savings and go all the way down to takeaway coffees. If you can’t cross anything off lower down the list, at least cut down the amount you spend on some of them.

3. Look at your lifestyle. Cut back on clothes buying and eating out and watch your cash flow steadily come back to life. Make getting out of debt a priority.

4. Set goals for repaying debts. Decide a budget and stick to your payments.

5. Seek independent financial advice. A third party can give you an objective view, help you regain control and help you plan for debt consolidation.

Source: http://ashleyparkdebtsolutions.wordpress.com/2010/07/14/five-tips-for-debt-consolidation/

Posted on 16 July 2010 | Love

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coolman posted

The key to all budgets is to live within one's means. So start with basics. Food and shelter.

What is your housing cost? If it is too high this is the first place to look. Can cheaper accommodation be found?

What is your food budget? Set a balanced diet and then shop to fill it as cheaply as possible. Look for cheap sources outside the supermarket. Look for offers at the supermarket. Look for bulk/multibuys of non-perishables. When you visit the supermarket, be sure you know the total cost of the goods in your basket as you add each item. Never let the cost grow without good reason. Supernmarkets display the unit costs. Select the product with the cheapest unit cost. These vary greatly, especially because of deceptive packaging (good marketing). Buy basics brands for basics. Only buy ingedients to cook yourself - buy nothing ready made - it's healthier and you can control salt/sugar/additives. You will be surprised how low you can get this over a few weeks.

Clothing can be bought from jumble sales. look for one run by an organisation in a posh area, they often have rich donors who give good quality clothes with little wear. Use charity shopss. OK this is dull- but if you have to live within your means and your means are low you have to do it. You probably won't do it for ever.

Remember your grandma lived her whole life without a mobile phone.

Read your own gas and electric meters regularly. Work out how much you spent since last time. Ask if you need to spend the same amount next week.

A car is very expensive. 6 miles is a long way to cycle both ways. But if you can ride a bike you can ride a moped. Not fun (actually - it is) but if you can't afford a car don't have one. Wait until you can.

Start at rock bottom and work gently up, adding each desired expenditure gradually and in priority order.

Stop before you spend all the income. Set a budget that not only pays your debt but gives you savings. When that savings money reaches a certain level, you can spend it on something you've been depriving yourself of. But do leave a float for emergencies.

Posted on 23 July 2010 | Love

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on average I am getting into approximately £70 debt per month but cant seem to make it any less!

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