Can we have a support thread for people who are massively in debt?

[Nerfmother]

Because you can't talk about it in real life? We owe 44k, reduced from 60k in a year. Not including mortgage.
It's so depressing.
Dh is determined to pay it off and so bankruptcy or plans isn't an option. I do think its doable, just hard hard hard.

I also feel quite safe and not having to explain or be all anguished at how this is all my own fault; it's done now, time to sort it out

pixie
first thing to do : convert the payment on your cards from the percentage minimum to a fixed amount.
the company will not want you to - for the reasons that become VERY clear if you put your numbers into my spreadsheets ....

Great attitude Nerf...we are where we are-now let's do something about it!

I've done exactly that TiP, minimum payment is usually in the region of £190, I've set up DD to commence this month for £500. This will allow me to clear and close ac by Dec.

Could someone explain what the envelopes are for? Thanks.

locking money away for certain things rather than letting it be frittered on others ....
personally when I was very tight financially I avoided cash at all times as with a debit card there is proof of where the money went

Hi Kazza,for me I've detailed all my misc spend for past year...totalled it up and divided by 12...I plan to set money aside every month in my 'envelopes' (online acs) and not touch it unless for something on my envelopes spreadsheet...for example haircuts, car insurance (pay annually), dental/medical...

Ah I see.

I only have one main account. Well, one main one for income and outgoings, another one which is nearly completely overdrawn that I plan to pay off soon and another one that was my account where my self employed earnings went into (no longer necessary). I doubt we could open any new accounts with our bad credit rating.

So how many accounts do you have? Does that mean carrying lots of debit cards around all the time?

I tried to do something similar with cash a long time ago, but just don't tend to pay cash anymore, ordering a lot of things online for convenience, incl groceries.

Mum, in misc spending do you include clothes, eating out, cinema trips?

So logging in to check credit rating has thrown up something interesting! On my linked address there is a house number from my old street showing...I was #21 but #37 has popped up alongside it...even curiouser, it's dated March 2013, and we moved from that street in February 2013. Have emailed the agency to ask them to investigate...

Yrs Kazza, everything now has an envelope. I've always been good at tracking household bills, but it was all the musc transactions that were my downfall...

That's weird fergus. Good job you checked. I managed to get a bank to take a default or something off (long time ago) because they hadn't explained the consequences of doing x in terms of credit ratings. Always worth keeping in top.
I'm finding the envelope thing doesn't work for me - too many debit cards and bits of money lying around. I think we are going to go back to one joint account and a credit card each at the end of all this.

I've pared back all acs...now just have main current ac for salary/DDs...2 x online savings acs (one for envelopes money and one with my £500 emergency money), and the 2 credit card acs.

Have you worked out whats going where come payday Nerf?!

Yes, I think so. My new plan is council tax and water (don't pay in feb and march) off the smallest card for the next two months and then leave everything at just over minimum payments/loan repayments and then at the end of the month pay whatever is left to the smallest card. Otherwise I get over ambitious pay off loads and then have to use it again. I think our mindset is such that we won't fritter it and seeing a lump to pay will actually feel better.
I also have the bitter sweet news that my elderly (90) year old grandad has written a will leaving me a large sum. So although obviously not wanting him to get poorly, I suppose it makes it feel more doable. I feel awful writing that. It's not all the debt, and obviously I love him to pieces.

Awe Nerf, bitter sweet indeed...big hugs to you xx

Alas, it's a cruel fact of life with/for all our loved ones. For me,it's one of the reasons for my renewed focus...I don't want to leave DS with anything to have to sort out. Ie by me reigning things in I can pay off the debt, being mortgage free might no longer be a dream...and I can free up money to support him through his journey

Thank you. He's really in poor health which is awful - I don't want to see £ signs! He stepped in when my dad died and has been such a superstar.
You are totally right; I really want the dcs to have something when we go

Sorry to hear your granddad is in poor health, Nerf.

I know what you mean. I love my parents and MIL, but somehow have to also calculate in our financial life that at some point we will inherit something - it means at some point we will be able to pay off a chunk of something. But of course I don't want to lose them ever

I have finally got round to checking my credit score.

Equifax is showing that I wasn't on the electoral roll, but I always have been. Does anyone know how I tell them this (preferably without calling them by phone)? I have accessed my credit score via checkmyfile.com.

Thanks.

So ... my public score is fine, but my score for lenders is low - 2 red stars

Strangely Call Credit have me down as on the electoral roll!

Sorry if I'm being dim and thanks for any help

Tomorrow we'll look at dh's, which will be much, much worse

No surprises on mine though, other than the electoral roll bit.

I'm not sure , I think you can write a note to correct stuff. How long does it show you as being on the roll for?

Just wanted to add that I really appreciate this thread. It is a relief to be able to talk about our debt and no longer have to explain myself .. the damage is done and I want to move on and get rid of this debt as soon as dh has a job. You guys have inspired me to pay off the debt instead of selling the house, I feel a bit more hopeful than I did, knowing that others have managed to do it :)

However, I have done the sums and discovered that on my wage only (which is all we have coming in at the moment) we can pay all bills except the mortgage but only have £260 left over for food, petrol, school dinners, pet food etc per month. That's going to be extremely tight. Plus we will need next month to speak to our mortgage people about what we do when our two months "holiday" are up - not a mortgage holiday as such, as they view it as arrears that we will have to pay off on top of our usual mortgage payment each month.

Thanks for listening to my ramblings. I don't want to drag this incredibly positive thread down with my negative thoughts.

not negative : writing it down clarifies the edges ....

Just thought I'd tell my story of debt to nearly no debt

6 years ago I owed 22K on credit cards from college books + fees, car and keeping up with the jones!

I consolidated some of it to a loan - worse thing I did but I'm sure it works for some.

I defaulted on the loan and was struggling so contacted citizens advice who put me in touch with consumer credit counselling service who went through my finances and contacted my creditors on my behalf they then froze the debt and interest and set up a payment plan which I have 5k left as of today but they will except an early settlement of 3K which I have managed to scrape together and am paying it off as soon as funds have cleared. I will be £300 a month better off from next month

When I first set up the payment plan I wrote in a book everything I spent makes you think about the takeaways, coffee, lunch etc

We have had car boot sales every year because we always seem to be able to find stuff to sell, clothes, unused toiletries, electricals, unwanted Christmas/birthday presents etc all sell really well- we usually make £100 - £150. We don't bother with ebay as postage to expensive.

We shop for what we need and not what we want now and it's a lovely feeling buying something you have saved up for.

The best of luck to you all it's bloody hard to get debt free but so worth it.

Nerf, it has a bit that shows my rating with them as 643 and two red stars, underneath it says I have a default (correct), an arrangement (correct) and not on electoral roll. Further down it gives the dates the separate companies have me down as on the electoral roll and it appears Equifax have no record of me on the roll for 2005 to 2007! The other credit companies do!

I've found an address I can write to, as on their website I have to register with them before I can contact them! Should I just drop them a letter? Should I enclose a copy of that part of my credit report?

Wine, thank you, it's brilliant to her good news stories. I managed to walk out of a shop today without adding 30 quid in work shirts to my debt - managed 5 quid on sports top for ds and parking only. (He needs it, not a random purchase).
Kazza, are you on the roll now? I guess the only thing you can do is write to confirm, but do you have proof? And does it matter in the long run if you are on it now?
As for posting on the thread, please please carry on! While point was to share thoughts and situations, good or bad

Yes I am on the roll now. I don't know if it matters, I guess it does matter if it will affect my credit eating at some point. Otherwise I don't care. But it is showing as a negative point against me.

Thanks for being so understanding everyone.

I use a spreadsheet on excel to keep track of income and outgoings. Does anyone know of a spreadsheet app for the iphone 4s I could use that will do the same? Basically all I want to do is list my incomes and outgoings and calculate what will be left over.

Thanks