This week I have been seeking professional advise regarding my spiralling debts and how I can try to make amends for this Christmases frivolous spending.
Millions of people, I am sure, will be in the same position as me this week as January's credit card statements come flooding in through the letter box.
After transferring my balances to 0% interest free cards my minimum payments are now lower than I was paying before, however due to my financial position a couple of the credit card suppliers insisted I take out payment insurance in order to secure the low rate. But this kind of defeats the object of saving money, however I recently found out from Money Saving Expert, Martin Lewis that I can cancel this insurance and thus lower my monthly payments once again by just contacting the credit cards. Result, thanks Martin!
Martin Lewis is a bit of an expert when it comes to saving money, as well as a popular web site the self confessed 'money saving expert' has regular newspaper columns and television slots giving people like me helpful money saving tips and advice on how to beat the system and save money.
He says the biggest danger with credit card debt is that you don't actually know what your debts are from, they are just "willy-nilly overspends" rather than planned, budgeted borrowing for something specific. How true his observations are, I certainly don't have anything to show for my spending over the years- my tan from three holidays a year have faded long ago, my car is paid for (thanks for the help mum!) and on its last legs and my wardrobe is bursting with out-of-fashion designer gear two sizes too small to wear.
I've already worked out that I spend more than I earn, I just wish I discovered this blatant fact years ago, anyway enough of the self-deprecating attitude, according to Martin I have borrowed to fill the gap, as most of my income goes on paying debts I have borrowed more to maintain my lifestyle.
"End result: Nothing left," he says. You said it Martin!
Martin gives his four top tips to sort out this kind of debt, which I aim to follow to the book and will include on my Blog in a few days time....so watch this space!
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Emma Heaton wrote...
Hi sam
sounds like your making good progress. Think every one is in the same boat at the moment, its been nearly six weeks since I was paid last and I still have another eight days to get through! My car is in the garage having it's mot, as I write this, so fingers crossed it passes.
A good tip for both of us would be to sell our ill fitting expensive clothes on ebay instead of them taking up wardrobe space and gathering dust, or giving them to charity. I just need to sit down and work out how to do it.
Have you noticed any difference yet?
Sam's reply-
Hi Emma, thanks for your comment. I have noticed a slight difference from cutting down on my weekly 'silly' spends like fast-food and magazines, unfortunately though like you, due to Christmas spending and different pay dates I'm not feeling the positive affects on my finances at the moment.
Thanks for the tip about selling my designer clothes on ebay, or I might do a car boot sale when the weather brightens up to raise some money.
Keep logging on to my Blog and get some tips on beating credit card debt...update coming soon!
Posted by: Emma Heaton | January 24, 2008 11:19 AM