• Introductions
  • Collaborations
  • Linkys
  • Inspirations
  • Legal

Someplace Strange

Family Life, the Universe and Everything with a Latte on the Side

Back to Black. Getting Out of Debt and Staying Out

Monday, 9 June 2014

Boarded up pub


Going back to this post, where I talked about being £6,000 in debt, I thought some people might be interested in the detail of how I paid it off.  "Rev T and some good friends helped me set a repayment plan and stick to it"

This was before the Internet.  It was an article in a paper or magazine about a book.  How to Get Out of Debt, Stay Out of Debt and Live Prosperously by Jerrod Mundis.  The book is based on the principles of Debtors Anonymous (DA).  

The main difference between DA and some other good sources of advice, is DA acknowledges for some people, debt is an addiction.  It's going to take more than a good budget to get them back to black.  Mundis has been there and bought that. He works through every excuse and demolishes them all.  It's not an easy read, but it's a worthwhile one.

The first thing is to acknowledge that debt is you have a problem with debt.  My name is Mrs Tubbs and I am a compulsive debtor. 

Once the problem is acknowledged and owned, it's time for the next step.

Commit to not incurring any new debt today.  Just today.  Yesterday has gone and life doesn't come with an undo button.   Tomorrow isn't here yet so you don't need to worry about it.  

The book sets out a re-education process.  A spending detox, debt repayment plan and a refocusing of priorities from shopping / debt to family, friends, career etc.

 A new person that's more than just the balance on a card.  As no one talks about money ever, let alone debt, it's easy to assume that you are the only person in the world with this problem.  You’re not.

There reason about why some people have this issue and others don't btw.  Rev T was born with the ability to track his money to the penny.  He can rattle off his bank balances and if he doesn't have the money, he stops spending until he has.  

Here’s a brief outline of DA's process: 

  • Work out the cost of monthly essential out-goings.  Housing, utilities, food, transport to work.  What’s left is for debt repayments, savings and non-essential spending.
  • Create a monthly spending plan that reflects outgoings.  £x for housing, £y for food, £x for clothes etc.   Unlike some regimes, the book allows for small items of non-essential spending and saving.  Only within the confines of the monthly spending plan. Identify ways to reduce outgoings and increase income.  
  • Go through the bills and work out how much is owned.  And who too.  Try not to freak out!  
  • Work out a repayment plan based on priority.  Size, interest rate or the lender.  Pay any mortgage / rental debts first.  Then the ones with the highest interest rate or the biggest. 
  • Contact the people you owe money to ask them to accept your payment plan.  Many will accept as some money is better than none.  As each debt is paid, money is freed up to go towards other debts, outgoings and savings. 
  • Track all spending.  However small.  Group spending into categories so you can see how the spending compares to the plan.  This helps you keep on track and adjust if needed.  Each night, add the daily totals to the weekly totals so you know what money is left for the rest of the month.  The commitment to not incurring new debt means this is the only money you have. This keeps you on track with the spending plan.
  • Keep a monthly running total of how much you owe and how much you’re repaid.  Watching the balance decrease motivates you to keep going.  You can see it working!
  • Cut up any credit or store cards so there won't be any new debt.  If they’re still there, they’re a temptation.  If they’re used, then the balance won’t decrease.  This was the hardest part of the process for me.  I hid my credit card in the underwear drawer.  It moved to a plastic bag of water in the freezer.  By the time I’d defrosted it, I’d lost interest in whatever it was.  Rev T had it for a while.  Eventually it got shredded.  I cried. 

Once all the debt is repaid, continue taking it one day at a time.  Keep to the spending plan and tracking.  The book assumes this is done in conjunction with regular DA meetings, a sponsor etc.  There weren't any groups near me.  I did it with the aid of some great friends.  Lisa, Laura and Karen and Rev T.  One day at a time.  

Years later, I'm still doing it, one day at a time.  Some days are better than others, but if one day goes badly, I know I did it yesterday.  That helps me feel able to give it another try tomorrow.

If you think that your issues with your finances are more than just being crap at budgeting, then DA may help you.  If you think you just need a better budget, then DA may help you create a realistic one and stick to it.   


Sharing with all these great Linkys 
Share:
Living Simple
Posted by Tubbs

2 comments

  1. Unknown22 March 2015 at 10:11

    Fabulous post, very informative, thanks for sharing with us and for linking up to #TheList x

    ReplyDelete
    Replies
    1. Tubbs22 March 2015 at 21:13

      Thank you for having me and for the lovely comment

      Delete
      Replies
        Reply
    2. Reply
Add comment
Load more...

Newer Post
Home
Older Post
Subscribe to: Post Comments (Atom)

About Me

Tubbs
View my complete profile

Follow

Search

Subscribe

Featured post

Beside the Seaside, Beside the Sea

Linkys

Instagram

Popular Posts

  • Post Comment Love (#PoCoLo) 27 - 29 July 2018
    Batman @  DC Exhibition: Dawn of the Superheroes Welcome to Post Comment Love (#PoCoLo).  Same linky as usual for all all bloggers ...
  • Being My Own Blogger. 20 Lessons I've Learnt From Blogging
    As Someplace Strange is now one, it seems as good a time as any for the obligatory Lessons Wot I've Learnt From Blogging Post.  And her...
  • Chocolate. Proof that God May be Out There
    Sometimes, particularly when life isn't very wonderful, there are things I use to remind myself that God really does exist. T...
  • Merry Christmas. A Guest Post from Rev T
    Rev T wrote this for me for Christmas 2016.  But it wasn't sent until 23rd December.  Way too late in blogging terms to be useful so I ...
  • The View From the Sky Garden, London
    Some of our US family visited the UK a while ago.  We all met up in Central London for breakfast before going on an epic wander.  (Two ...
  • Things I Love About Christmas
    It's officially Christmas in our house.  The tree is up, the presents are being purchased and the cards written.  Rev T is pl...
  • Post Comment Love (#PoCoLo) 20 - 22 July 2018
    Batman @ DC Exhibition: Dawn of the Superheroes Welcome to Post Comment Love (#PoCoLo).  Same linky as usual for all all bloggers to ...
  • Giving at Christmas
    I won't be doing wish lists and the like as my Christmas posts on Someplace Strange.  Nothing wrong with them if they're you...
  • People Like Us. The Kate Hopkins Rant
    One of the joys of working for a large, multinational company and attending a multicultural church is that you get to meet lots of differen...
  • 50 Things That Make Me Happy ...
    This tag has been floating around for a while.  I'm never quite sure about tags.  Do you hang around, waiting for someone to tag you, w...

Labels

Beauty Blog Brand Favourites Fun God Life Rants Simple Wear

Archive

  • ►  2018 (68)
    • ►  December (1)
    • ►  November (1)
    • ►  August (4)
    • ►  July (10)
    • ►  June (11)
    • ►  May (9)
    • ►  April (9)
    • ►  March (11)
    • ►  February (10)
    • ►  January (2)
  • ►  2017 (58)
    • ►  August (4)
    • ►  July (9)
    • ►  June (8)
    • ►  May (10)
    • ►  April (6)
    • ►  March (10)
    • ►  February (7)
    • ►  January (4)
  • ►  2016 (60)
    • ►  June (9)
    • ►  May (8)
    • ►  April (9)
    • ►  March (11)
    • ►  February (12)
    • ►  January (11)
  • ►  2015 (77)
    • ►  December (6)
    • ►  November (11)
    • ►  October (8)
    • ►  September (11)
    • ►  August (7)
    • ►  July (6)
    • ►  June (7)
    • ►  May (4)
    • ►  April (4)
    • ►  March (3)
    • ►  February (6)
    • ►  January (4)
  • ▼  2014 (18)
    • ►  October (3)
    • ▼  June (8)
      • Watching the Pennies. Money saving hints and tips
      • The F*ckwit's Prayer. The Book of Uncommon Prayer
      • Wanted, the Perfect Vicar
      • Back to Black. Getting Out of Debt and Staying Out
      • How We Ended Up on the Wrong Side of the River
      • The 5 Best Things About Church. May They Live For...
      • Things about Make-Up and Skincare I Wish I Knew W...
      • Still Eighteen in My Head. Makeup When You're 40 ...
    • ►  May (7)
BlogWithIntegrity.com
Next Life, NO Kids
Post-40 Bloggers
BritMums - All the Cool Blogs... and me
mumsnet
© Nicola Anne Wood. All rights reserved. Powered by Blogger.
© Someplace Strange · Template by xomisse.com