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 👍

I believe the Dave Ramsey school of thought is to deliberately make it hard tbh.
So that the feeling of freedom hits home and you end with a ‘let’s never have to do that again’ mindset

I'd give it a go.

I can't believe how quick this years gone so far, so I think for me doing this in the lighter coming month's would make it easier as I'd be happy to just go off for a stroll with a homemade coffee and pack up rather than if it was gloomy days where I'd probably comfort spend more and it gets dark by 5 o'clock type thing, if that makes sense.

For unknown reasons I read this as Gordon Ramsay and my imagination went wild for a few seconds.

Where you struggle to pay some bills and worry about the food bill.

Love this idea!

I'd go at it hard for 4 months. Get it cleared- with some left over! I'd find that easier than a more prolonged 'tightening the belt' scenario. The short term approach would feel (for me) like a creative achievement whereas a longer term approach would feel a bit dismal.

If you take the 4 month approach, then every month you have £3k paid towards the debt and £200 'saved'. At the end of 4 months you'll have paid off the debt ANDyou will have £800 that you can decide, as a family, how to spend (or save).

Thereafter, I'd save a clear £2k per month (it looks like you can afford that) and decide as a family how you spend or save the other £1.2k

Good luck. It will be such a great feeling to have that debt gone and also to be on strong saving track for the future.

Is this really feasible? Haircuts, clothes, uniform, prescriptions etc, I’d be tempted to spread it over 8 months and struggle less day to day. But I’m not known for my frugality.

I’ve budgeted for clothing for my DS and barbers for DS and DH. None of us are on any medication. I’m planning on going without hair cut for 3 months!
I’ve tried to be very detailed with my list of outgoings before deducting it from our monthly income.

Ooh fancy a share? We can help strip it back so you can afford the sunnies

We invested in clippers and I cut Dh and ds’s hair for many years. I even did the MN self-haircut on myself - unsuccessful - ended up just growing mine. It did mean that almost the first thing I did with spare money was book into a salon. But for three months I think you could manage!

So I’m a good wage but I waste a lot of money

over the last couple of months I’ve started being mean with myself around If I actually need the things I’m spending money on. Thinking like this has made a huge difference to what I’ve got left at the end of the month

i think 4 months would be a miserable experience but if you are mean with yourselves over 6 that could really work

Why would you do it over summer?. Can you not transfer to a zero % cc. To spread it out a bit. I get you dont want to have debt hanging over you, but it seems extreme. Do you have a financial advisor? My DH has just thrown some money at a new product crypto related which pays tax free income every year, perhaps more often. I leave money up to him. He ran it by the accountant first (I insisted as it is tens of thousands & US based) his response I'm ready. DH moved the £ today. I resent the high taxes in this country & will always look to find a loop hole. You sound like high earners so maybe you need to look at hm tax you are paying. £150 a week on food is what we normally spend, sometimes £100 what are you buying?

No idea why response was hidden as soon as I posted it am going to ask for it to be deleted if it is so controversial @MNHQ

Your DH presumably knows the ins and out of your financial circumstances and spending…. Why does he think this is so unrealistic?

I have to say… I’m a bit confused by your financial circumstances. You would appear to have a good family income BUT zero savings and a pretty mild £12k incorporating a family holiday AND renovations…. Tips you into interest accruing debt that you can’t clear for months without a substantial change in life style. Something, somewhere - doesn’t add up

It would be very tight, if you can clear it in a few months then why rack it up so high.
I would extend the time, repay 80% of the monthly amount you’d planned as you’ll need extra cash in the summer, it doesn’t sound like an are used to living this way either.
I live tight enough, something always crops up, birthday, invitation, etc.,

I agree with others. Split it over 6 months so you have more for summer. Or maybe pay 3k a month not 3200 leaving you an extra 200 for treats. You could even save some of that 200 the first month to give you a bit more for summer hols starting at the end of the following month.

If you can get a 0% card do that too. Not so you dont pay it off at the same rate but just because it is pointless paying even a penny of interest if you dont have to.

And once this is done, as others have said, sit and think about your budgeting and how to save more. On your size of income it really is madness that you didn't have the money set aside for the renovations and holiday already due to healthy savings. Clearly you could save 3k a month or even just 2k a month and have a comfortable life

To be fair I know people who have a high income but spend it all. It could be that rather than things not adding up

Me too.

but they don’t need to bung a rare family holiday (first it would seem for their DS) and very moderate renovation costs on a credit card that they can’t pay back for months and without major changes in lifestyle!

The thing with Dave Ramsey is he is geared towards the American Market. The shows are a little addictive but take take what he says with a pinch of salt since the Americans don't use the same finanfial instruments in the same way we do here. 0% balance xfer cards in particular.

I don't really like him as a person and have read some shocking detail about how he treats employees but his shows are kind of addictive, there is nothing like it UK-wise, because we are so regulated on giving financial advice.

Possible and probably sensible. However have you taken into account we are heading into summertime. I presume your son will be off school for 5 or 6 weeks depending on which part of the country. Is this the time of year when you would like to be pop out for a drink at the pub, or go to a fete and spend some money? In your position and this time of year I would maybe do the not so sensible thing and scale it back to maybe pay it off over 4 or 5 months. Just knocking a massive chunk of will make you feel quite positive and be motivation to clear the rest.

Yes - poor babies. It will be utterly miserable if you can't have takeaways for 4 months 🙄

If not having takeaways or coffees is reining it in then you’re really not going to struggle . Yes you can do it- probably quicker judging by what you’ve written . Give it a go, you can always extend by a month , you’d still be debt free by autumn

Do it. You’ll feel great once the debt is cleared.

Yep. Do it. Once in the habit you might get it done in 3...and subsequently you will probably improve your normal expenditure.

Sounds as though you’re not quite aligned with DH which gives potential for some conflict. Better to allocate some personal spends each and extend the pay off period by a month. Then don’t moan if he spends his on stuff you don’t agree with. And get some sunnies from Primark and a cheap lipstick and enjoy allocating your personal money to what you value or need.
I’d probably spend my personal money on DC or the house but that would be my choice.
Plus there are regular things that crop up that always seem to cost £450! Appliances, repairs. You’d be lucky to avoid one of them in several months.