This week I completely ran out of money. I hate been in debt and behind with the bills. It’s an awful feeling stuck with a lack of cash flow and trying to live payday to payday. Juggling my money feels like robbing Peter to pay Paul where I’m just bouncing my debt and credit around.
Last month I missed two payments. One on my credit card, one on the water bill and my council tax is already two months behind. The council sent me a lovely red letter to remind me.
Debt can become a vicious cycle and you end up in a debt trap where money is bouncing around from creditor to creditor. As the interest builds up the debt never goes down and eventually the bubble bursts and you don’t have enough cash to cover all the repayments and living expenses.
My outgoings and expenses have exceeded my pay. I have worked my way into a corner, a debt rut and I can’t climb out. I have to admit that I am not in a very good place at the moment. Money is taking its toll out on me and my debt is stressing me out.
It’s turned in to an embarrassing financial juggling act every month. I need every penny just to live. It’s sad, I hate the situation. The worst thing is I’ve done this to myself, admitting that isn’t easy.
If I had no debt there would be a chance to save a little, but that’s not the case. I want to be in a position to put some money into savings instead of towards debt every month.
If you have no idea where your money is going you’ll end up living in a constant financial mess. Debt will catch you out and hold you back from living the good life.
You can balance transfer credit cards to a lower interest rate, take out more loans to cover other loans, borrow £20 here and there from friends and family but the bottom line is if your debt and bad habits are not managed and controlled it will get out of hand.
I could move back in with my parents which would save lots of cash and knock around £900 from my outgoings. I would take advantage of the free rent, food, water and internet in exchange for cleaning duties. Having to move back home isn’t what I really want. I doubt I could cope with that. In fact I don’t think Dad could too.
While the financial savings are extremely good and it would help me get my money in order I doubt it would work out.
So from here I’m going to produce a spending report and created a monthly budget. It’s not going to be pretty reading. I’m seeing a whole lot of red and cut backs to move forward.
