Facing up to reality!

 I hit another milestone today. One of my ‘snowballed’ payments, passed the half way mark today and I only have 3K left of another credit card to pay off. It was Dearly Beloved’s MBNA credit card at almost 18%, which we moved to Virgin and are paying it off at 0%. It has five months left to pay off. I then pay off the biggest and oldest loan we have. We borrowed 25K against our old home, to renovate it, to improve it and make it the wonderful place it is. It didn’t stop there, we would pay off, and then borrow again, so when we sold, we still owed 25K! The irony is, that the house I used to live in, is now a rental and it has been allowed to deteriorate…………no one even cares about the sensitive renovations, new roof, Victorian features or the fact that the door knocker is an antique! I will never, ever bother again!

There is a positive! I am five months away from moving my ‘snowball’ to my Lloyds home loan, by the time I do that, the loan will remain at £9750. My snowball payment will be £900 a month by then as I will be paying off only one loan. That will be paid off in ten payments and I will meet the London Olympics without any debts.

Every single penny counts! Every thing I don’t need; I don’t have! Dearly Beloved used to love to buy a newspaper every day and a coffee at the station. That amounts to £3 a day, to £15 a week, to £720 a year! By halving our grocery bill to £45 a week, we save £2430 a year. By not having a holiday, we save £2500 a year. If we did not go without the things we ‘like’ we could no longer afford to pay for the things we ‘need’. By taking the train to work and not the car, I save £15 a week, so another £720 a year. There are so many of us, who have to face up to reality. We can’t afford debt, we can’t afford to spend money we don’t have and we just have to grit our teeth and deal with it.

Someone said to me yesterday “I couldn’t do the job I do without a holiday to look forward to.” Oh, I think we’ll manage without! We never had holidays, or day trips, or theme parks, or museums, or theatres or any such treats like that when we were young and no one we knew did either. We survived just fine and we will again.


16 thoughts on “Facing up to reality!

  1. You have certainly got a grip on reality..sadly not everyone has…i will be personally debt free in 4 months..then both of us totally free in july..i am so looking forward to having extra money..never ever having a credit card again and no loans…we use our local area for days out costs nothing and we take a picnic..my girls certainly dont miss out on anything..in fact i would say they are better for it..

    Well done frugal you are to be commended for your determination..


  2. you are so right, alot ofd my friends, go on about their children needing this and that, and I sit and think I never h them growing up and I did just fine, i think too many people have bought into what big business and industry want us to beleive that we “need” a holiday or the kids “need” a Nintendo Wii etc.

    COngrats on reaching another mile stone it feels so liberating, I know for me it spurs me on to clear my debt quicker


  3. “By not having a holiday, we save £2500 a year.”

    £2500 on a holiday!! Do people really spend that much each year?!

    We don't go on holiday every year but when we do, it's rarely more than £200 all in – a pretty self-catered cottage somewhere different/remote in the UK.

    We had a “holiday of a lifetime” a few years ago which cost about £2000 and it was wonderful – but I couldn't imagine spending that much each year. It wasn't 10 times as good as a relaxing week in a cottage.


  4. When I was working for the bank in the UK, we used to use my annual bonus to pay for our holidays, we used to go away three times in the year, then when we moved to France all that stopped and for the last 10 years we have never been abroad for a holiday. I could not justify the expense and also there are always too many things to be done at home when we are not working.


  5. I admire you so much and I am trying so hard to follow in your footsteps, trouble is life keeps getting in the way……

    My dyson is playing up, I cannot get the damn thing to dtand up properly, at one time I would have been on the phone and get them out to it, now, I just prop it up against the wall, the £70 it would cost me can go towards one of our debts!!


  6. I went out yesterday with friends for lunch and shopping in Seattle. I so enjoyed the hunt, but didn't buy a single thing! I was tempted, but just put the things down and moved on! I'm not as good as you but I am getting there.


  7. You are amazing! The mentality of ” I would just die without…..(fill in the blank)” makes me think that no one will survive if there is ever another “great war”. Imagine what the outcome may have been if people had thought that way during WWI or WWII. I think of Jews who lost everything possible, yet survived. It is a disturbing mindset, and it is sooooo very common. I stopped watching a popular show here in Canada, as I could no longer take listening to whiney women make statements like ” I could NOT LIVE without my lipstick!!!” Really, it is so very sad. It is refreshing to read your blog, keep up the great work!!


  8. Reminds me of my sister but at least she was fortunate to learn early on! The first house my sister and brother in law bought when the got married 30 years ago was a wreck. They restored it lovingly replacing many original features and repairing them where possible. When they sold it within weeks the beautifully restored and working sash windows had been ripped out and replaced with upvc. She was gutted that all their hard work (they did the work themselves as well as working full time) was wasted. The lesson wasn't wasted though and they have never invested so much of themselves in a house since.


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