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Anyone reduced their debt a lot ?(6 Posts)
We owe 12 k on unsecured personal finance . Earn 40k between us not to many massive out goings want to really pay this off .
Iv changed energy suppliers
Refused food bills Etc but really I just need to watch the ££ anyone want to join me
I remortgaged my house to pay off circa £32k debt. Technically I still have the debt in the form of a higher mortgage but it is more manageable now.
Over the last couple of years I have slowly reduced mine debt from c.20k across credit cards, overdrafta and loans to under 10k. A combo of bouncing the credit cards between 0% deals but cutting up the cards so they couldn't be used (but keeping the accounts to bounce the debt around on deals), and then eventually I was able to take out a large loan of c.13k with HSBC. I pay 267 a month at 3.9% and it will all be gone in June 2018.
The key for me was consolidating everything into 1 single debt with a fixed monthly payout. Even though the 0% was obv no interest, it just wasn't going down at all.
Also resisting the urge to take out more credit. I stupidly drew down 2k cash from a credit card at 0% so I am also having to pay that off at £60 pcm, but will need to bounce that around once the deal ends. I am so cross at myself for doing it again!
But in answer to your question, it can be done. I never thought I would manage ito, but the end is in sight!
Thankyou for the positive story's . We have really cut back and I'm wanting to have it to under 10 k by September - that's my aim !
It can be done.
Put it all on a 0% cc -lots of really good long deals out there ATM - check money saving expert website
Then work out how much you need to pay per month to have it gone by end of 0% deal - so for example...£300 for 24 months
The big thing is 0% so you are now longer paying to service the debt
It can be done - we did quite a bit more. It took 6 years on a lower than average household income to reduce our debt by 37K
DMP - no consolidation loans, no 0% CC.
You have to be really brutal with your spending. If it doesn't pay for your housing costs including utilities, essential food or transport to get to work then don't spend it. Everything else is an extravagance.
In those 6 years we had no new clothes, groceries £60pw, utilities £140 pm. all lunches were pack ups, going out excursions were free, luxury foods all home made ( bread, fakeaways, bacon, alcohol, cake, biscuits, pickles, chutneys, jams, crackers, cheese, salami, hams, ...they may not be cheaper but they taste so much better than the cost comparitor shop bought version), home grown herbs/ expensive vege - there is no point grwng onions or carrots / fruit.