A debtor's honour

A very useful debt help organisation called the Consumer Credit Counselling Service (CCCS) emailed me to tell me they had selected my blog as one of the top ten thrifty blogs! Now lets remind you all how and why I'm considered thrifty. Well I have endeavoured over a number of years to curb my spending and be less materialistic. I've come a long way on this road. However I added to my debt by undertaking a masters degree. I was very lucky that in the midst of the worst financial crisis, while all the banks were collapsing, I actually put in for a career development loan - there were 3 banks affiliated to this Government scheme and I choose the Cooperative Bank on the basis of years of socialist indoctrination by my parents. How glad was I! They said yes within a week and as Mr MDS was being rushed in as a crack team of accounts to Lehmans as they hit the bottom and all over the place financial misery abounded, I found myself in possession of loan to help fund my studies.

I was hardly flush when I started my MA but with a frugal regime and working when I could I got by. Like any student I exited with a debt. The benefit of a career development loan is that the repayments don't start until a month after you've finished and the interest rate is exceedingly low and you have 24 months to pay it off. I also pay in a bit extra to build up my Co-op bank account. They give you an account and I have never used it save for the mechanics of paying off my loan.

Of course I would have loved to have had enough to support myself but when you have a home to run, childcare and the rest, I'd really never saved a great deal. Then of course I had all the expenditure of travel, books and small things which were extremely useful like membership to the BFI whose library I lived in, as well as London College of Fashion's and Central College St Martin's.

All in all it mounted up and whilst I did a horrendous stint at a shopping centre every weekend for a month doing a style event, it was all to fund my short film. In all I graduated with a £2,800 career development loan, an £1000 overdraft and £3,000 on my credit card which was only £1000 before so I'd dented it quite a bit. The loan covered my fees and the £3,000 I'd accumulated as additional debt was due to attending college and living expenses.

I was very good I'd like to add. I made my own sandwiches for lunch and had extra things like a banana or a bag of nuts in case I got hungry before I got home. I took a flask with green tea in and only occasionally bought a coffee. I also refilled a water bottle every day with my own tap water. I dyed clothes and altered others. If I bought anything it was from Topshop and Dorothy Perkins as I had 10% student discount. I grew vegetables and herbs at home although this is never enough to live off every week. I also made all my own bread by hand. Mr MDS mucked in to and we rarely went out save for really special occasions.

Every month I made a meal planner and stuck to it, this kept the monthly shop down. Of course I did all my own cleaning, washing and ironing and still do!

At one point I think I even cut my own hair and I became a dab hand at diy bikini waxing. My most extravagant purchase was a necklace from Wendy Brandes a Little Woolf because I needed a talisman to help me when I wrote my dissertation.

Now my debt is entirely self inflicted and before my good choice debt, the Masters, I had made bad choice debt with spending too much on clothes in a thoughtless, almost shopaholic way. I honestly feel sick sometimes when I think the money I wasted. Particularly as you never know what is around the corner.

This year I'm going to increase my frugal methods in the home. I can't emphasise enough how important it is to make a meal planner, it saves you over buying and focuses you on what you can make for a specific budget a week. Food has definitely got more expensive but I always make the meals, ultimately it always works out cheaper to make your own food. I would quite happily live off vegetables, lentil and quinoa but I think my family might go to McDonalds if I did that.

When is comes to clothes shopping I have reigned that in ten fold. I went for 3 months well in the end it was 4 months without buying a thing. This really broke my habit. Now I'm on a style challenge and it means I can only buy designer clothes and guess what it is much harder to do that then a cheeky high street shop. I also love the idea of neutral shopping, selling items on ebay to buy one item you really want. The Queen of Thrifting has to be Sharon Rose of My Style, Thrifting, Fashion and Me she cut her debt by buying items only from charity shops and car boots sales.






The most important thing to remember when you do get into debt is what you can do to get out of it. It is no good beating yourself up but it can happen to the best of us for a whole heap of reasons. CCCS offers free debt help and you should never pay for any advice. I'm going to check out all their advice and tips as 2011 is the year to get truly solvent.

To sale or not to sale

Sale purchases are hotly debated amongst stylists and fashion journos. Some are for, some are against and no one agrees on anything. The for camp think you can bag some key pieces by designers at a fraction of the price, all are agreed these pieces have to have some 'classic' appeal or longevity. The against camp think why would you buy things no one wanted and save your money for the new season, buy cruise now.

I'm of the opinion that unless you are solvent, have no debts other than a mortgage, have saved money specifically for the sales - then forget it regardless of bargains and desired items. Why add to your debt, why start the new year with money going the wrong way. The next three months are key to changing habits and stemming any cash flow issues. Clear you debts first start saving second then thirdly if there is anything left over you can do with what you like.

I read the other day that a financial consultant believes you should save a percentage of your earnings based on halving your age! If you are 30 then that's 15% to go into savings, 25 then 12.5% and so on. You can do the math and you can choose to curb your spending and think credit not debit.