AIBU to think we can clear £12k debt in four months?

[Climbingoutofthered]

mumsnetters please help!

DH and I have 12k worth of credit cards debt between us - this is a mixture of doing up our house and then shoving a holiday on cards because we needed a break after the renovations, by this point DS hadn’t been away for 3 years either. So it’s not overspending- I know where it came from.

I now want to clear this debt very fast!! Within 3 to 4 months, we have the income to clear it down at a rate of 3200 a month. With all other bills paid.

this would mean 4 extremely TIGHT months. No coffee out, no takeaways….. nothing.

i have budgeted 600 pounds a month for food and household consumables such as laundry liquids etc. DH doesn’t believe this is possible!! We are two adults and one very hungry boy.

who is BU! Me or him 👍

If I was you I’d stretch it over 6 months, you’ll still be debt free by christmas but without having to have 4 months of no treats etc.

Extremely tight is not driving to see elderly family cos you don’t want the fuel cost.
Or telling your 17 yo he can’t have a fiver to go out with his mates.
Or quietly confiding in friends you can’t buy a round and wlll only have a lime and soda (nb my good friends wouldn’t let that happen but you get the idea). Or freaking out cos someone left the gas ring on for an hour.

This is helpful thanks - would have normally managed our money much better, unfortunately had renovation costs that were unforseen, but that’s another thread!!

have budgeted for DSs extra curriculars so not really taking anything away from him, just a quiet summer.

the cutbacks are more aimed at DH and myself.

Well they must be to some people as the local coffee shops near me are always full. I guess you don't see the people stuck at home but these coffee shops wouldn't still be going if they weren't frequented regularly by at least some people. I can go to a coffee shop daily when I'm out at work - no decent coffee facilities on site and I do enjoy having a bit of a break from the office to go somewhere, have my coffee treat and come back. And I can afford it so why not.

A holiday isn't a need, it's a want. You'd racked up a load of debt and then decided to add to it. You have a spending problem. Of course you can sort it out in 4 months. It doesn't sound like it would be particularly tight. You seem really out of touch with the reality of normal life for the majority of people.

Wishing you all the best with it

What comes under bills?
TV and music subs, sports memberships, music, NT entry, filling the car to go walking for the day? You can still have a joyous life while “just paying the bills”.
Other bills can hammer your monthly income - post 16 school transport, car service…..

I would do it over 6 months, especially if you can move it to 0% card. If you can save more then great but it makes it more of a maintainable lifestyle change. I'd then keep going for another 6 months at least to build up some savings.

Is this income quite recent? Only I find it baffling that you can have such a good income but not have the funds to do up your home and save for a holiday.

Thanks - will discuss with DH as an option.

You need to allow emergency money for those months too. What if your washing machine breaks or your car needs something doing. Give yourself a more realistic target of 6 months and then have a great Christmas, debt-free.

I would do it I think summer is the best time as you can hopefully enjoy outdoor activities which are cheaper if you find free things to do. Maybe push it to 4 months though for a little leeway over the 6 weeks hols. Good luck!

Personally if you are paying 0 interest I would give yourself some breathing space and aim for £2500 a month and if you have spare money at the end of the month put that towards it. If you don’t it will just take you 5 months instead of 4 so paid off by October.

Not baffling at all.

bought a doer uppper that needed gutting, had savings to do the renovation, found structural issue that wasn’t expected. We basically had to put in a kitchen and bathroom on credit cards to be able to live there. Renting was costing a fortune.

we then obviously had no savings bar pensions!

How dare op not be living on a shilling a week. She doesn’t know what it’s like to eat paper.

@Climbingoutofthered it is very doable. To get Dh on board try it and see how it goes. Review monthly.

Unless you NEED to for a deadline I don't think you will achieve it - your DH doesn't sound like he is on board which will undermine your plans and be frustrating when it's his turn to do the shopping and he overspends and you have to try and pull it back. Plus you are obviously used to spending without needing to account for every penny (no judgement) so it will be a massive shift in outlook and you are bound to have slip ups, especially without the wolves at your door, so I can't see you sticking to such a radical budget.

A bit like dieting it's far more sustainable to do it more gradually over a couple more months, a bit less painful and balanced is more likely to get you where you want to be.

He’s an American guy who went bust 30 years ago and then wrote a book called the Baby steps. He basically advocates:

1. get a $1000 dollar emergency fund
2. pay off all debt excluding your home
3. get a 3-6 month emergency fund
4. buy a house and pay it off in 15 years
5. invest 15% of your income into a pension
6. save for kids uni

he’s very American but I quite like some of his ethos. I try to live without debt, I want my kids to live without debt. I like his podcast. Has some great quotes
”unless your in Babystep 4,5 &6 you don’t see the inside of a restaurant unless your working there l”
”there’s a great place to go when your broke, to work”
”stupid tax”

Hes not for everyone but I think he makes a lot of sense in a world that’s rather consumer mad.

I'd look at Martin Lewis debt forum, do a budget and ensure you have accounted for everything. Any insurances, car services, mots etc due? New school uniform and supplies in August, birthdays, family events? You could do it but it might be more sustainable over 5/6 months. Virgin credit card have a 0% balance transfer card for 12months with no fee at the moment

Love this! Might use it!

Ah right. I bet it looks great now.

Dave Ramsey getting out of debt

Step 1 save a £1000 emergency fund
step 2 pay off consumer debt ( all debt except mortgage)
steps 1 and 2 "gazelle intense" ie you pay your rent/ mortgage utilities food childcare and transport to work and insurances and minimum payments on all debts ie only what you need no wants

what the difference between this and income is he calls margin
at this stage it is recommended to throw all margin at the debt using snowball method ( while avalanche is better mathematically snowball works better psychologically)
this is where you hear his catchphrases like eating rice and beans then beans and rice, or you don't see the inside of a restaurant unless you are working there
depending on level of debt may suggest side hustles second jobs selling stuff
it is American so some stuff doesn't apply as student debts are not bankruptable in USA and accrue interest, they have less safety nets
step 3 3-6 months emergency fund in high yield savings account

after this you can ease up on intensity and just be intentional about spending

step 3b house deposit
steps 4-6 are all ongoing at the same time
step 4 15% of gross income to retirement
step5 invest if applicable for childrens college
step 6 pay off mortgage

step 7 compleltely debt free spend give and invest

this is simplified

Finally it's the best option but I think it's worth looking at your long term plan.

What does regular post debt clearance look like?
How much is needed for living comfortably and how much for savings.

For example, if it's another £1k a month, then you are better to lodge £2k to the debt at the start of the month and hold the £1k for just in case and then whayever is left say £500 lodge that too

Minimium committment of £2k for 6 months but try to do more in the months you can.

Then you get use to living on the regulsr ampunt and once debt is clesred the £2k minimium goes on savings.

If you cut it very tight, indiscipline will kick in agsjn and in month 3 or 4, you'll decide you need another holiday!

If you can clear it in 4 months I don’t understand how you accumulated it in the first place? Your salary/ salaries must be big to have an additional £4k a month spare so it’s confusing that you couldn’t wait a few months to pay for things rather than get into debt?

Ohhh I’d love that challenge!!!

I’d start growing stuff now now like strawberries and tomatoes and sorting out stuff to sell and have that as bonus money, ie sell stuff on vinted equals a cinema trip. I’d be brutal with food and splurge on fun stuff like days out.

Oh and ‘gazelle intense’ is also a ‘Rice and beans,beans and rice’ diet. Cheap,no frills nutrition only. Nothing fancy,no extras - and definitely doable on your budget.
should you choose to, obviously