1 year challenge to clear debts

(103 Posts)
IwanabeDebtFREE Thu 08-Nov-12 12:02:33

I owe 25K on a mixture of credit cards and an overdaft. I want to clear this in one year.

I have started some changes, food shopping/packed lunches which will save me at least 4000 alone.

I have listed out the debts with highest interest rate ones to be tackled first and am going to use snowball technique.

I am owed some PPI which I will repay debt with.

I have surrendered an insurance policy this morning which is uneccesary which I can get 4000 for

Going to Ebay and sell gold.

wish me luck the challenge begins and anyone else wish to join me welcome

Good luck! Have you found the MSE forums? There are people on there doing the same thing and coming up with ingenious ways to do it.

noisytoys Thu 08-Nov-12 12:29:32

I think I might join you. I have £23k debts it would be great to clear them in a year. That will be my resolution grin

Hope it goes well for you

ClareMarriott Thu 08-Nov-12 18:14:54

Get hold of a book by Kath Kelly called " How to live on a pound a day " basically her story about how she saved for a wedding present but loads of tips about how she went about it and things she did for free. Also with food shopping, could you ask any of your friends when they shop to buy the BOGOF things so there are two lots, one for you and one for her ? Look at all the usual insurances/ subscriptions/ tv and phone packages etc to see where you can make savings...... Good Luck !

harrietspy Thu 08-Nov-12 18:41:08

I was thinking about starting a thread like this! Not sure I can start paying off debts yet as we're not even covering our costs (2 x self employed + 1 x major health problems + 1 x house that won't sell = black hole of indebted doom + trying to avoid repossession/bankruptcy) but I am up for maximising my earnings, selling my crap, minimising expenditure. Kath Kelly book sounds good! Have you looked at manvsdebt.com? Clare, great idea re BOGOFs.

Thanks!

RarelyUnreasonable Thu 08-Nov-12 19:26:35

I'm in! Won't post exact details as CBA to name change, but this is what we're doing:

Snowballing debt. Getting rid of the biggest first and paying minimum payments on the others.

Menu planning. I used to do this based on cookbooks, now it's based on what's in the cupboard! Eating from the freezer this week [joy].

Withdrawing the weekly shop budget in cash. Withdrawing my money for the week in cash. Any leftovers go straight into savings (or they will - they're going on Christmas this month and next).

RarelyUnreasonable Thu 08-Nov-12 19:27:26

Love manvsdebt - thanks for pointing me there harriet.
Frugal Queen is alsi good - although much more hardcore than I am!

Mum2Fergus Thu 08-Nov-12 22:16:29

Im in! Have approx £16k to repay...while endeavouring to pull together the last of my mortgage deposit. Current any money left over is split half to debt overpayment and half to savings.

IwanabeDebtFREE Fri 09-Nov-12 09:44:34

Good, I have company.

Yesterday I fished out the paperwork on a life assurance policy which I can surrender for almost 4k. I have an old account with a 2k overdraft on up to its limit which I top up each month to pay the fees on it. will surrender policy, clear and close this account and use balance for a lump sum to credit card with highest rate of interest. Then I wont have to pay fees on account or cost of policy, saving nearly 1000 in the next year to repay more of the debt. In the event I died, the policy would only pay out the equivalent of the debts, so not worth keeping anyway.

Because i'm self employed I have to earn £250 to pay out £100, the interest alone on one of the credit cards is £200 per month, so I have to generate £500 just to pay it - its insane, and the reason I seem to be treading water rather than being able to save!

Any really boring paperwork jobs I have to do to save money I look upon this way; if someone told me to sit in a chair for an hour and I'd be given £200, I'd do it - this is highly motivating.

Right, who knows the best place/way to sell gold?

IwanabeDebtFREE Fri 09-Nov-12 09:47:00

Two other things, I'm putting cash in my purse each week and making it last and we are also eating contents of cupboards/freezer until they are bare - should be some interesting dinners grin

Nomoredebt Fri 09-Nov-12 22:49:41

Good luck! Have name changed but in a very similar situation. Will sit down tomorrow and do a meal plan. I think I could meal plan to the end of the month out of the freezer and cupboards with minimal spending on fresh stuff. I'm sick of seeing our wages coming in and so much going out in debt repayments and a lot of it in interest! This has inspired me to sit down and do a proper plan. I'm not sure a year is realistic for us but I definitely need to take control and hopefully it won't be much longer.

Mum2Fergus Sat 10-Nov-12 12:46:47

Im starting something I read on another thread which I thought was a fab idea. For one week a month the OPs budget is equivalent to what it would be if she was on income support. My thinking is that the things do the budget/save during that week will filter through to the other weeks too. Will bring my household budget of £100pw down to just over £45. Also favour having weekly budget in cash, and when its gone, its gone, no top ups.

aroomofherown Sat 10-Nov-12 18:21:14

Hey I'm in. I spend far too much and I don't know what on, need to pay off my debts and save a few grand in the next 9 months.

Any tips people have please keep sharing them! My big tip is meal planning, and not going back for seconds just because I'm bored

Loveweekends10 Sat 10-Nov-12 20:23:07

Me too. Going to do an aldi shop tomorrow instead of tesco. Trying to save up for a wood burning stove.
Also keeping a spending diary. Should help me keep tabs on buying random crap.

ChicMama25 Sun 11-Nov-12 15:52:25

Good luck! I have 7k of credit card debt that I am aiming to clear by September 2013... Means not buying lunch, not using the tube, no non essentials at all and living on a v tight food budget. We can do it! Looking forward to the day I will have disposable income again and the feeling of buying something because you have saved for it not on credit and feel guilty!

DorsetKnob Sun 11-Nov-12 15:54:03

The cash thing is a great idea which we are doing. I don't have as much as you but hoping to be debt free by this time next year as well.

ChicMama25 Sun 11-Nov-12 15:55:10

My tip is that I keep a spreadsheet with my bank balance that I update every day and it has list of everything that needs to come out then how much cash I am allowed for the month, then the next row is next months salary etcetera so I can see the effect of overspending even a tiny bit has on the months ahead. I also keep a repayment by month one and cross one off each month so I can see I am achieving something

Lane81 Sun 11-Nov-12 16:00:35

I'm going to join you, I also want to be debt-free by this time next year. Have got a spreadsheet and done a meal plan for the next month, going to be hard on maternity pay, but am determined to do it!

ChicMama25 Mon 12-Nov-12 10:03:58

Today I am going to the post office to send my eBay stuff, made 50 quid, also made sandwiches for lunch today, DP Nd I have also almost finished Xmas shopping most of it from t k maxx! How is everyone doing? X

RarelyUnreasonable Mon 12-Nov-12 10:13:32

Gah, my bank doesn't update online statements for a couple of days, so am unsure how we stand after the weekend. Should be on track for this month though - won't know for sure until my maternity allowance is paid/end of the month.
Friends came to stay but as there were two one year olds, one ill person, one 38 weeks pg person it made for a cheap weekend grin.

Mum2Fergus Mon 12-Nov-12 12:28:01

I was updating our family calendar for next year and have added in a column to write in what I have spent and how much I have saved on a daily basis. Might sound a bit anal but think I'll benefit from seeing it written down as constant reminder.

Mum2Fergus Mon 12-Nov-12 12:51:07

So, I wanted to add in a bit more about my situation to help me track on the post a bit better. I currently have £17,281 debt (11,554 loan, 4,271 on a cc interest free until Sep 2013, and 1,456 on same cc but incurring interest). No overdraft, and paid off my only store card last month.

Im currently repaying debt while trying to put together a mortgage deposit. Why have savings while I have debt? Well, I'm currently renting and for the 2nd time in 3 years the landlord has decided to put the property on the market. I really want to be settled in a place of our own and not risk any upheaval once he is in school.

Ive set up a standing order of £250 every pay day towards a high interest ac and want to top that up with as much extra as I can every month. The only real variable cost I have is housekeeping so have been menu planning - first using up all my fresh stuff then moving on to use up the freezer/cupboards.

So...my commitment to the thread is a weekly update on how I've done with my £100pw household budget, and a monthly update on what I save and/or pay off.

A question for you guys now - what would you do in my situation with any surplus cash at the end of the month? Half to savings, half to debt? Repay all the cc balance thats incurring interest, then move to half and half? Forget about savings for timebeing and look to rent again?

ChicMama25 Mon 12-Nov-12 13:26:43

Hi Mum2Fergus I would definitely try to get rid of the interest paying bit ASAP before saving, otherwise you are just burning money and you will save more in the long run. Try to get another 0% balance transfer if you need to delay paying it off. Understand about renting - we borrowed our deposit from DP's dad so we could buy and have stability as we were kicked out of our rented place for no reason other than "landlord wants to decorate" (put the rent up).

ChicMama25 Mon 12-Nov-12 13:28:23

If I may ask what is the 100 pw for? Just food? Or petrol / train as well? How many people in your household? We spend under 50 a week on food for the 3 of us

Mum2Fergus Mon 12-Nov-12 13:32:23

Hi ChicMama, £100pw is for everything except household bills and car expenses (including petrol). 3 of us DP, DS who is 3 and myself.

ChicMama25 Mon 12-Nov-12 13:36:40

What we do is make up loads of shepherds pies, pasta bakes etc at the weekend (about once a month or two months) and freeze them. Then we supplement with salad for dinners. We shop at Lidl (honestly it is so much cheaper) and cycle everywhere.

Mum2Fergus Mon 12-Nov-12 13:44:56

Ive done a meal plan to use up whats fresh (and cant be frozen) in the fridge now, that will do us through til Wed, then have 4 rammed freezer drawers to get through...doing that bit of planning this afternoon. I have started to freeze what leftovers I can. I did a lot of batch cooking while pregnant/on matleave that I'll get back into once Ive a free drawer in freezer. Ive switched to a lot of value brand things too. We run 2 vehicles, mine was a rash purchase that I still kick myself about sad but I currently have it advertised for sale. Sadly, we do need 2 cars at the moment.

Fluffycloudland77 Mon 12-Nov-12 16:34:03

I still have all the letters from cc companies telling me they debt was paid and the account closed.

RarelyUnreasonable Mon 12-Nov-12 16:50:38

fergus I would try to pay off savings first and would pay the minimum on the loan and 0% CC. Snowball all your free money at the other CC.

Can you overpay on your loan? I'd attack that next until the 0% CC runs out. When the 0% runs out, apply for another one. If rejected, maybe you could add the balance onto a low interest loan that you can overpay on.

I would continue renting. Or look at buying on a new build development as they often offer gifted deposits (so you need less to put down) and will pay legal fees and stamp duty if you get a good deal.

Mum2Fergus Mon 12-Nov-12 16:57:54

It must be very fulfilling to browse through those Fluffy! My two successes to date are only evidenced online so nothing physical to show for it...other than the extra £60+ per month of course grin Ive also cut SKY back to back to package (much to DPs annoyance, but that was shortlived as he's now found a site a can stream matches via t'internet) saving almost £30 per month!

Fluffycloudland77 Mon 12-Nov-12 17:41:33

Not as much as you'd think.

Usually I think "what an idiot getting all that debt". Seeing how DH's ex has played the bankruptcy system I wish I'd maxed out a few cards in cash withdraws and gone bankrupt.

smile

<NB this isnt a sensible plan>

Mum2Fergus Mon 12-Nov-12 18:52:43

Lol fair point! Have decided that anything over and above the £250 I squirrelled away on pay day will go towards the interest attracting part of my credit card grin

Fluffycloudland77 Mon 12-Nov-12 18:56:55

I worked with a girl who had a cc that was charging a lot of interest, 35%.

She missed or was late with a few payments and by doing this was able to claim hardship as she had a child. They reduced in % massively. I think her monthly bill was £200 but £190 was the %!.

I dont know if you can still do this but it might be worth looking into. Moneysaving expert would know the answer.

Mum2Fergus Mon 12-Nov-12 18:57:34

Funnily enough, the area Im looking at has 2 new developments onsite with a view to sales commencing early 2013 so will suss out their launch details. Just need to hang on to rental as long as I can meantime. It was just valued today and landlord had offered me first refusal on it. In all honesty I want to move but will try to eek out the process with landlord as long as I can blush

Mum2Fergus Mon 12-Nov-12 19:00:30

I doubt Id qualify for any hardship...we actually have a fair residual income, just havent been very wise with it in the past blush

aceupmysleeve Fri 16-Nov-12 15:21:48

I'm determined to clear my debts in the next 12 months too. I'd urge you all to contact one of the debt charities (Stepchange (used to be CCCS) or National Debtline or CAB), especially if you're paying high rates of interest. My debt is mostly on unsecured credit and over the years has reached £40k. I've been recommended for bankruptcy by Stepchange, but until I get that sorted I've arranged to pay token amounts of £1/month and got the interest frozen.

Bankruptcy might not be the best option for you (I rent so am not concerned about losing my home, but if you have a mortgage you would) but you could still consider other options, like an IVA. Generally you'd pay less overall if you used an IVA or Bankruptcy than if you just tried to pay off your debts without an arrangement. You could also negotiate a final settlement for less than the cost of your debts - some creditors will accept that.

If you have health problems or are vulnerable in other ways (I am disabled), the credit card companies have to take this into account if you're having problems repaying.

There should be no need to scrimp and save just to repay debt - I have just done a statement of affairs and they allow costs for a reasonable style of living - normal food bills, haircuts, a small holiday and cost of running a car. Sometimes they expect you to pay any surplus income for three years, but due to my low income I won't have to. They don't take any of your personal items or things in your household, only things they can realistically sell for a decent price.

Mum2Fergus Fri 16-Nov-12 18:05:06

Hi Ace, and welcome! Pay day for me next week and hope to have in the region of £500 left from last month. Will put half to savings and half as extra payment to cc.

Mum2Fergus Sun 18-Nov-12 20:49:07

So pay day on 20th and I will be able to put away £500, half to savings and half overpayment to CC...happy with that! Have just put 5 listings in Gumtree too. Freezer looking healthy so only withdrawing £50 cash for housekeeping this week instead of usual £100. How is everyone else doing?!

oohlaalaa Sun 18-Nov-12 21:14:19

I'm joining too. I have 9k of debts. I'm joining on 18th November, and going to try and give you all updates on 18th each month. It's already in outlook.

AbbyLou Sun 18-Nov-12 21:35:00

I would so love to be part of this thread. We have a lot of debt and started paying it all off about 2 years ago with a debt management company. With hindsight this was a bad decision as we have to pay them a monthly fee and seem to be getting nowhere fast. At the time we just wanted help quickly and they provided a solution.

Mum2Fergus Sun 18-Nov-12 21:48:14

Welcome Oohlaalaa, look forward to your updates...what are your plans for clearing the debt?

Mum2Fergus Sun 18-Nov-12 21:49:33

Abbylou, welcomw...have you sought advice to see if there is anyway to get out of your current plan?

AbbyLou Sun 18-Nov-12 21:58:47

I have looked tonight at the Stepchange website and like the look of it. I am sure we are not tied into our current plan and it seems you can transfer plans you already have - I thought you couldn't. Dh and I have made a pact to sit down on Friday night and go through all the paperwork to do their Debt Tool and see if we can move our DMP to them. That would save £65 a month in fees. We have also decided tonight to make a £50 a month overpayment onto the biggest debt still charging interest. It's not a lot but at least it will be cut into the actual debt rather than the interest. Hopefully once that £50 becomes the norm and we don't notice it we could increase it. We earn good money between us but because of bad decisions in the past we are so skint.

Mum2Fergus Sun 18-Nov-12 22:52:45

That sounds promising Abbylou, and well done commiting an extea £50 to the pot toio. Like you, I/we have good incomes however could have made better choices in the past sad

One of my Gumtree items getting picked up tomorrow smile

AbbyLou Mon 19-Nov-12 07:00:01

It's awful isn't it? I'm sure people look at us and think 'wow they must be pretty well off, both on good money etc etc'. The truth is we don't have any luxuries, only essentials. We work hard to make sure the kids don't ever feel it but never get nice new things for us. We are more determined than ever that we have to stop it though. This time next year dh will be about £100 better off salary wise and will finish off paying a debt to his dad for a new boiler which will save us £200 a month. We are just about coping now without that money so it will be great to put at least £200 of that into the debt a month.

oohlaalaa Mon 19-Nov-12 07:26:46

Mum2Fergus - I am already very very frugal. I'm fed up of it, I want to be able to afford a hair cut, and need to get my car serviced.

I'm not going down the how can I save even more pennies, but how I can earn more. I will continue to be frugal, but will need to earn an additional 9k in next twelve months too.

AbbyLou Mon 19-Nov-12 17:11:07

First step done. Dh has redone his car insurance through a comparison site and saved himself £30 a month - he has much better cover too.

Paintyourbox Mon 19-Nov-12 18:31:29

Iwannabe I recently made £400 for my parents by selling their old gold items.

Whatever you do DON'T sell it to any of those tv cash-for-gold places as they rip you off. Here is what I did:

1. Look at the hallmarks to find what carat the gold it (plenty of guides on google)

2. Weigh all of the gold (split it into the different carats)

3. Look at Hatton Garden Metals for their daily gold prices (they pay the actual value daily) and then work out what your gold is worth.

4. Go to a local jeweller (pref an independent one as they tend to pay better) and offer them the gold. As you know what it's worth you will know what price you are prepared to accept.

5. You can send it off by post but that does mean you have to pay special delivery so need to weigh up if its worthwhile for the few extra pennies you may get.

HTH

Mum2Fergus Mon 19-Nov-12 21:42:31

Thats great news Abbielou, well done! Are you going to look at the rest of your providers?

1 Gumtree item away tonight, only £10 but means I'll only withdraw £40 cash for housekeeping this week (instead of usual £100 Im going for £50 this week). Big one on Fri, have someone coming to view/test drive my car...its on for £7.5k grin

Mum2Fergus Mon 19-Nov-12 21:45:15

Oohlaalaa, what have you in mind to increase income? Know what you mean, it would be great to just use my money for something nice for a change. Ive no transferable skills that I could take from workplace and use at home to bring in more, so frugality is my only option at the moment!

Mum2Fergus Mon 19-Nov-12 22:08:17

Forgot to say...landlord has confirmed in writing to me today that he will give me a minimum of 2 months notice from the day the sale concludes. Happy with that...doubt there will be much progress this side of Christmas; no moving costs to eat into my savings; and extra time to save more deposit. Fingers crossed car goes Friday, I'll use 1-1.5k for a replacement (unfortunately 2 cars is a must gor us), the remainder goes in the pot. I said before it would be half to savings/half to debt, but as the time gets closer Im inclined to continue building the deposit. When we buy we will effectively be downsizing in terms of mortgage v rent, and rates too. A move to the area I have in mind will save me approx £150pm, that could then go towards debt. Or does that not seem reasonable?

Hattie11 Tue 20-Nov-12 07:33:38

Can u surrender all life assurance policies? I thought it was only on death of one of us? Or do they all have different terms?

TiredofZombies Tue 20-Nov-12 08:28:29

Fergus I totally see your reasonin but I think I'd still recommend saving less to pay off more debt. You interest on your savings will be never be as much as what you pay on your borrowings. £100 in savings may earn you £5 where £100 of debt id costing you £7. Totally made up figures but you see what I mean.

In addition, once you own a house there can be all sorts of unexpected expenses that, if renting, would be LL's responsibility. Say for example the boiler goes, you'd have approx £2000 to pay out.

AbbyLou Tue 20-Nov-12 20:17:55

Yes Mum2Fergus, we are going to get all the paperwork out at the weekend and see what we can do with the house/contents insurance. We haven't changed them for ages so we may be able to make some savings. I have put the figures in for car insurance and could also make some savings but does it need to be up for renewal for me to change? I'm not sure how it works!

Mum2Fergus Tue 20-Nov-12 20:24:39

Abbylou, check your existing policy for any fees. It may be as simple as an admin fee to cancel, or they might try to charge you the remainder of you policy term.

Managed to have £581.20 left from last months wage so thats in the pot. Attempting £50 housekeeping this week...freezer still relatively full so fingers crossed it goes ok!

Had a bonus memory today too! Im due a bonus from work in Dec!! grin

IwanabeDebtFREE Tue 20-Nov-12 20:36:25

Evening everyone, glad to be in company.

One of my credit card statements came in today and £2000 has been credited by them as a 'CR Goodwill CS'. Not quite sure what this is but may have something to do with PPI I have been claiming back.

so I am now down to £22,245 from my original 25,000 at start of thread.

Mum2Fergus Tue 20-Nov-12 20:40:06

Hi Wanabe, thats a bit of a result! Well done smile how did you get on with surrendering the insurance policy?

I have just under £3k debt and had worked out to be debt free by sept 2014 (on 0% credit cards) but this thread has got me thinking I can do it a lot sooner I just need to be more frugal and determined.

Great result for you already op!

Will sit down tomorrow and sort my paperwork out. I am also determined Christmas is going to be more budget friendly not panick buying like most years.

Mum2Fergus Wed 21-Nov-12 17:35:56

Hi Change, and welcome! How did you get on with your paperwork today?

Mum2Fergus Wed 21-Nov-12 20:03:08

3 days into my £50 budget, and Ive spent £13.07!! If I seriously knuckle down, this approach will save me just over £200 a month!

AbbyLou Wed 21-Nov-12 20:43:06

I'm determined to spend less on shopping this month. We usually budget £300 a month and always run out. However I know I can do it for less, I just have to be imaginative. If I can save a bit it's all the more to go into the pot to pay off. We have a holiday booked for February half term to DLP which is the dc Christmas present and we have £220 left to pay on that by 10th December so that's a priority.

DorsetKnob Wed 21-Nov-12 20:48:51

we have been to court again this week at the instigation of the defendents who didn't turn up, so fingers crossed we will get the money that they owe us and that will wipe out one credit card and give us the money to do DC's bathroom, by DD a matress and the chickens a shed. Any left over will go on the other CC and then it is just waiting for the loans to finish and clearing of an O/D on an old bank account.

ON the plus side, all christmas shopping is now done, bar a couple of stocking fillers. I can highly recommend putting money aside in an account monthly to cover this.

oohlaalaa Wed 21-Nov-12 21:48:14

mum3Fergus I work freelance so my plans are to spend less time on internet and procrastinating, and more time fee earning.

We already only buy what we need, and have cheapest insurance, electricity, meal plans etc.

Mum2Fergus Wed 21-Nov-12 22:35:26

Procrastination. I hear ya oohlaalaa! Fair to say Ive a new found determination at the moment. For Sale sign will go up outside the house we rent on Friday, and Im determined next move will be to our house and not another renral. Of course Im relying in a lack of buyers over the festive season!

Aniother wee bonus tonight...having a clearout to a) have less to pack when the time comes and b) to find anything worth going on Ebay. Mid tidy I found travel wallet with €75 in! Will exchange that fir sterling tomorrow!

cerealqueen Wed 21-Nov-12 23:18:35

Good thread, thanks OP.
We are trying to rein in debt too and told family no xmas presents this year, it was getting silly, Big families both sides. We will make some shortbread in festive shapes and send that instead.
The only money I spend is on Ebay for DDs and my clothes (for me very little) and I only buy when I have sold other stuff so the money to pay always comes from my paypal balance.

IwanabeDebtFREE Thu 22-Nov-12 20:17:54

Mum2, I am still waiting on the surrender of the insurance policy. Thankyou to the person regarding the gold, I have had a little weigh in and value is approx £8,000!

Mum2Fergus Thu 22-Nov-12 20:36:08

Jeesy peeps Wanabe...£8k! Thats amazing!! No such luck on my front, couple who were due to view my car have cancelled on me sad

Fluffycloudland77 Thu 22-Nov-12 21:06:19

That's a shame, we sold a car privately once, another buyer will be along soon.

Mum2Fergus Thu 22-Nov-12 21:29:54

Hmm I live in hope...its not your everyday car so enthusiasts can be few and far between.

Mum2Fergus Fri 23-Nov-12 13:37:38

So house gutted this morning to make it presentable for estate agent photographing...suddenly thought 'why bother'! Dont want it to sell too quickly lol hopefully we can continue to rent here into first half of next year...by which time I'll have done more saving and the development Im interested in buying in should be ready!

Have relisted the car, listed 6 things on Gumtree, forgot to exchange currency to sterling, sticking well to my £50 household budget for the week. Once estate agent gone Im going to tackle another cupboard to declutter and see if anything for selling!

How has everyone else done this week?!

Mum2Fergus Fri 23-Nov-12 18:57:15

Found an old MP3 player complete with remote controlled soundock...was set to charity box til checked on Ebay...they go for about £40! Happy days, will get that listed tonight smile

Mum2Fergus Tue 27-Nov-12 19:49:44

Where is everyone?! Ok, Im in a quandery (if thats how to spell it) ... Ive my car advertised for sale-I say car, its an 8 seater MPV that has been imported from Japan and they are commonly converted to mini campervans-Ive been asking £6.5k but have been made an offer of £4k by a specialist. Im scared no other offers come in with it being in a niche market...do I take the money and run? I'll make a loss of £2k but will save in long run - petrol tax ins all more expensive than run of mill car.

QuinnFabray Fri 28-Dec-12 12:36:47

Bumping this thread. I have £17,000 of debt. I'm aiming to clear at least £10,000 of it in 2013. Anyone care to join me?

Mum2Fergus Fri 28-Dec-12 17:07:27

Hi Quinn, Im still around! Welcome...things moved on a bit since my last post. Sold MPV for full asking price...and had offer accepted on house! So more debt instead of less for me...but at least Im now on property ladder. Ive approx £6k on CC and a £11k loan too...short term goal is to clear CC during 2013 smile

Carriemoo Mon 31-Dec-12 11:48:49

I'm going to join - I have a £750 credit card and a £350 store card to wipe. I also want to make a start on our £10500 loan we took out last year.

Lets see how it is in a few months.

My main aim this month is to stop eating out at work - I've planned I can have lunch out on the 31st January only if I have paid off £200 on either of my debts.

QuinnFabray Tue 01-Jan-13 19:44:58

Hi, sorry I disappeared again. I'm basically on a no spend year. Not as some kind of personal challenge, but because I absolutely have to get myself out of debt. I'm snowballing, starting with my smallest £275 store card debt. Then I have £3000 on on CC, £5000 on another and £9000 on another, all maxed out. Today was a no spend day, good start.

InVeryveryBadTaste Tue 01-Jan-13 23:28:47

I'd love to join too - will be back to post figures once i add them up blush

wonderstuff Tue 01-Jan-13 23:36:15

Marking my place - want to clear ccards by end of this year - not sure exact amounts, have been chipping away at it for last couple of years, not added in a long time - is costing around £400 a month to pay min payments. Have just got nice pay rise - start new job on 7th, going from 3 days a week to 4 + promotion - going to be so tempting to blow extra money, but really need to plough it into the debts.

wonderstuff Wed 02-Jan-13 23:05:03

So have just reviewed the credit cards, and have around 8K to clear. On two cards, going to consolidate onto one and get 0% for part of that. I will have to start paying off student loans in June, so going to throw as much money as I can at it before then. Not sure if I can get it cleared this year, but definitely aiming to get down by at least 6K by this time next year. It has taken the last 5 years to reduce that from 15k, but no more mat leave or nursery fees now - no excuses, got to pay it back. Will be a huge relief.

Nomoredebt Fri 04-Jan-13 14:20:03

Haven' t been on this thread recently but have been focused since Xmas and have managed to get the majority of our debt onto interest free credit cards. Approximately half is just for six months and the remainder is for a year. There will also be a few bits and bobs of interest to pay on the cards I have moved from but I hope to pay them off in full on payday. So now I need to focus on clearing as much as possible from the cards before the interest free period runs out.
I'm going to try not to buy anything but essentials for the next 6 months to try to clear as much as possible. I still have a freezer full of food as I took advantage of some of the reduced food in the shops after Xmas. with some careful planning I should be able to manage on £25 a week for fresh stuff for a while.
I' m also going to try to do the ' payment a day' I have seen on MSE to chip away a bit more.
Good luck everyone!

whyno Fri 04-Jan-13 14:24:26

I'm so in! Need to get ready for number 2 arriving in the summer!

I'm in! We have 60k between us, and are interest only on the mortgage with zero savings. Couldn't get much worse! Lost the CB from next month. Decided to snowball but to do the smallest debt first because the psychological benefit is in seeing them go, rather than knowing i'm reducing the highest interest rate iyswim? Getting a bonus next month so should be able to make an impact.

PeppaPrig Sat 05-Jan-13 12:48:58

I'm in.

We made a spreadsheet last night for easier budgeting, and resolved to sort debt out this year. We owe about 18K, and want to owe less than 5K by the end of the year. When debt-free, we want to overpay on the mortgage. I'm on mat leave so it's a frugal year anyway - lots of NSDs required!

We have a loan (for house deposit from a friend, interest free) of 7K. Priority is to pay this back by snowballing.
I owe SLC about 3K. Am in monthly repayments.
2K on my credit card (furniture,wedding, 0%. Currently pay minimum each month.
6K on DH's card (failed business set up costs, 0%).Currently pay minimum each month.

EricNorthmansFangBanger Thu 10-Jan-13 19:55:09

This is such a good idea. I've wandered over to the MSE forums but haven't taken the plunge yet so to speak. I'm currently a student, in final year and DC3 on the way. DH is due to start a job at the beginning of feb, it depends on credit checks and stuff so keeping fingers and toes crossed that he passes those.

I'd love to wipe a big chunk of debt off if we can. Apart from the mortgage we have around £12,000 worth of debt. Adding all up is scary but needs to be done. At the moment we have just been trying to keep up with minimum payments, hoping that from March we will be able to pay off a little extra. Also hoping to pay double what we pay now for the mortgage, as we are currently paying interest only. My plan is to at least half this debt by the end of this year and take no more debt on.

Mum2Fergus Thu 10-Jan-13 21:31:33

I feel like Ive finally got my plan together smile mortgage approved and move to new house next month! All things considered a year wont cover my plan so started another thread in Money Matters - Mortgage/Debt Free Wannabe. Im aiming to achieve it by Marcg 2023! Long way off, but it feels good grin

I am doing very badly at this....i keep leaking money/credit on things - just bought the dcs all pajamas for example.

Mum2Fergus Sat 12-Jan-13 12:16:11

Dont beat yourself up notactuallyme...we all have necessities at some point. Have you done a proper budget yet? Make sure you put in a line for times such as those when kids need clothes/shoes/etc ... a little each month will soon build up. Good luck!

That's a good idea - I don't have a column for that. I really hope to do this! I need to!

williaminajetfighter Sun 13-Jan-13 20:45:57

Count me in as well. I moved south and took a pay drop at the same time and it has killed me. I owe about 10k in credit cards so if I can get them paid off this year it would be a dream.

I'm on a good salary and don't live excessively and track all my spending, but find that I really have nothing left at the end of the month. It's depressing as heck that this year is going to be all about frugality. Drats.

I am doing really badly. I can't seem to get out of the mindset that we earn money, work hard, so are allowed to buy stuff. Instead of buying cr*p i'm finding excusues to buy things for the kids - gloves, a coat etc.
Otoh, i am really down which doesn't help - ill kids, very poorly hospitalised granddad etc.

Mum2Fergus Sat 19-Jan-13 17:23:29

Hi notactuallyme...I find its a mindset thing. Id spend spend spend at every opportunity but have learned to think think think instead...do we really need it? If the answer is yes, can you get it any cheaper? Why dont you pop over to the Judicious January thread on credit crunch...we do our best to post daily there to keep track of what we're spending ...

I think that might help; part of it is resentment we have ended up like this. Dh came back with 2 shirts, paper and that's all for today. (He wears one everyday) I do need to start caring about the future!

FiveGoMadInDorset Sat 19-Jan-13 21:15:55

A bit of a set back in the fact the money owed by HMRC to me as I am on the wrogn tax code will not be paid until April/May at the earliest but by then will be over £2k, which will pay of one CC and then the other one will be paid of easily when a loan is up in July, so still on course for debt free by Christmas.

trinitybleu Thu 24-Jan-13 12:13:28

Hello all - we're trying to clear our £14k cc and then start on the mortgage (£197k).

OH started a fab new job this week and we want to use the increased salary to make a real impact on that.

But I am being made redundant next week.

What's snowballing??

Mum2Fergus Thu 24-Jan-13 21:00:43

Hi Trinity, and welcome! Snowballing is when you make a minimum payment only to all debts except the one with the highest interest rate which should be paid with as much as you can put to it. Once thats repaid start on the debt with next highest interest rate. Continue like that til all is repaid.

Hi all, waiting for payday so I can start the whole paying stuff off thing again - really keen to get to a point where we see some of the huge salary dp earns. Snowballing here, but smallest debt rather than highest interets rate, just for the 'achievment' factor.

Mum2Fergus Thu 24-Jan-13 21:42:40

Hi Notactuallyme smile how are rhings? Did you get your spreadsheet updated ready for a fresh start? Have you checked out the Credit Crunch threads for some tips?

Hi - yes to both of those! Counting dowm to payday now and feeling quite inspired!

Mum2Fergus Fri 25-Jan-13 15:17:47

Great stuff, well done you!!

trinitybleu Sat 26-Jan-13 18:25:16

Thanks for clarifying. Our little debts are only a couple of hundred quid on store cards so they'll be gone this month.

CC is on 0%, money borrowed from family is interest free and doesn't feel right to target the mortgage first...?

Forgot to list the family loan... 12k to repay from the last time I was redundant.

Mum2Fergus Sat 26-Jan-13 18:58:37

Hi Trinity...Id definitely target anything interest bearing first...and maybe then the CC, you want rid of that before interest kicks in...

Ikeameatballs Sat 26-Jan-13 19:20:01

How can I work out what to do about my car finance? I have worked out that approx £60/month of the repayment is interest. Will I be better off trying to pay it off with a credit card on a 0% deal and then hoping that each time I need to switch I can do so onto another 0%? How will I work out costs on that if I assume I need to pay 3% each time I switch card deals ???? [head explodes confused

createacard Fri 01-Feb-13 18:44:32

Hi everyone, I am new to mumsnet so just take a browse around the site. What a great thread this one is. I too have some debts I would like to clear. I use my bike when ever I can, although I'm limited a bit as I live out in a village. I use my woodburner as much as possible in place of my heating and I also have one of those monitors that tells you how much electricity you use and I make sure everything is switched off before I go to bed. I have three ventures up and running, one is with an online greetings card company called SendOutCards which I have enjoyed doing for a year now and recently with Fm perfumes and cosmetics. I also had a friend of mine show me last summer an opportunity with Banners Broker. If my spread sheet is correct I will be debt free by the summer, after that I intend to overpay on my mortgate. In the meantime I will stay fit using my bike.

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