A thread for people trying to pay off debt?

[moneyworries8]

Would there be any interest in this?

I'll start us off. I'm 30, a SAHM with 2DC.
Our debts are:

£4,000 loan that we've been paying off for 6 months.
£2,300 on a credit card

The debt is manageable but I've had the realisation that if something doesn't change, these figures are going to get bigger and bigger. I know it's a hard time of year to start but I don't believe in "waiting until the new year!"

We could post on here for advice/support as well as sharing our successes (and failures, but hopefully there won't be many of those) with each other. I feel like I need some people to help keep me on track.

So, is anyone interested?

Hi there ale and mama
Chances are that Next will not let you transfer
SO
Put everything you can on the 0% card
and set up a standing order for £5 over the minimum and then ignore it.
Now throw every penny you can at the Next debt as the interest is crippling.
As soon as it is cleared, throw that money at the 0% card as well
and you'll be debt free sooner than you thing

MamadoGood
Days out and trips with kids are not a fault
if they are affordable days
What sort of things do you do ?

If its theme parks not on an annual pass then, yup, its an utter waste.
If its things like a walk on a hill fort, some den building and a picnic
then its great and will give good memories

When my kids were little we had annual passes for Paultons
some days we just went to the trampolines
but we used that pass over 25 times in a year
so it was a bargain (long before Peppa pig by the way)

Thanks Talkin, that's what I thought.
I cannot put Very or Next into the new card. When that comes I will check the minimum and do as you say.
The Very account will be my first enemy! Checked the apr this morning - 44%!!!! The balance in it is around £2000 and I want it gone as a matter of urgency.
All extra money will be thrown at that.

The Very account will be my first enemy! Checked the apr this morning - 44%!!!!
Jesus wept. That is robbery.

How underhand that you can't transfer the next/very accounts.

Re: days out.

This has been a bit of a weakness of ours - we've been trying to think ahead more and plan the best way to have days out without spending lots of money.

One thing we've done is swap some of our clubcard vouchers for English heritage membership, cinema vouchers and sometimes restaurant ones. That way we get the best value out of any day out!

Thank you for your replies.

Ta1kinpeace. In regards to the standing order. I have set up a DD for fixed amount of £200 a month to pay off the new 0% which of course is way over the minimum payment asked. Should I change this to a Standing order anyway?
Please excuse me if I'm being thick - I know you must repeat yourself so often on here.

I wouldn't have thrown everything at the next account so thank you for that advice. I am spending today selling some things on FB (which i never do!) So will put proceeds to extra payments!

We have merlin annual passes (generous gift from MIL) but I spend alot on food and treats whilst at the places. Which I know has to change. I am in the mindset that because I haven't paid for entry I should treat us. Sometimes I will spend £50/60/70!
More packed lunches and less treats.

I absolutely need to change my mind set in regards to treating the children. They never ask for a thing and are very happy with a trip to the park/bike ride so it is completely ME.

Going to look at your budget spreadsheet now but I know where I overspend - food. Desperate to get on the property ladder, 2019 I need to knuckle down!

Less fun more frugal.

Glad its not just me (just found this thread). We looked at our finances a few months ago and shuffled some things around. Combined two of DH's credit card and my credit card onto a 0% card and are chipping away at that each month. We also have a bank loan that is paid off in 18 months so that will free up some cash each month. Just our overdraft to clear after that
I have found having several accounts helpful. Both our wages go into our joint account and all our bills come out of this. I transfer money into a separate account for our shopping each week, and whatever money is left over after this is transferred into another account to chip away at debt, pay for days out/necessary outgoing not already budgeted for etc and occasional treat. We only go to cinema for example on Monday's as our local cinema do tickets for £4.99 and even then its only a film I/DH/DS really want to see
I'm aiming for a no spend January (I'm skint anyway so this should be fairly easy)

MamadoGood
The fixed amount is the key - be it by standing order or direct debit.
If the bank let you fix a DD amount (and check that they really are) then you'll get the same result.

More packed lunches and less treats.
Less fun more frugal.
There is a mindset issue here that mindfulness will help with.

Treats need to be earned.
What excellent thing has been done to earn the treat ?

Frugal can be fun.
The cool thing with a picnic is that each person can plan EXACTLY what they want in advance
if one child wants peanut butter and honey sandwiches on brown
and the other wants cheese and branston on white
it can be done
and you can have a moreish salad bowl, knowing exactly what is in it.

Eating less and eating well is a really cool way to save money

Ta1kinPeace I know What was I ever thinking?
It's done now though so I can't change it. I just need to get rid of it.
I think my biggest overspend is 'bits and bobs' if that's a thing?
My weekly shop is not bad although I could probably knock a bit off if I plan more carefully. But I am terrible for picking up odd things here and there, that will stop.
I don't spend anything on myself other than having my nails done every three weeks.
I have recently taken up running with some friends and we meet three times a week - all free except for £1 for a cup of tea after parkrun!
I am going to have to say to the kids there is no new stuff unless it is absolutely essential. They both had a lot of clothes for Christmas so are in need of nothing there.
Dd needs new trainers as hers really are too small so we will shop around for them. Unfortunately neither of them can get away with kids sizes any more.

aleC4
I ran up my storecard debt in one drunken afternoon.
It took me 4 years to clear it
THAT was dumb

STUFF
Stuff, decorative items, objets, decor
its all future landfill
Stop buying stuff and life gets better
(and you have more money left over for school shoes)

Ta1kinpeace - in regards to my Next account would you recommend me clearing it with my 0% card and then obviously paying the card as planned?

Would this be a sensible thing to do?
The credit limit is 3k.

Mama
If Next will let you, go for it
as then you are freezing the amount and every penny paid from now on is capital rather than ever added interest

Can I join in?

I've got 2.5k on a Barclaycard, and another 1k split between two other credit cards. I've also got 1k left to pay on my car.

I'm mortgage-free (yay).

I've heard that in order to build and maintain a decent credit score, it's worthwhile to keep a credit card going. Is that right?

Hi there buggerthebotox
Why are you worrying about your credit score?
I have a credit card but I never pay interests as I clear it in full every month.

Borrowing on cards is a crazy way to live.
If you can avoid it, do so.

Thanks talkin.

I'm not particularly worried about my score-just wondering if it's true that having a card can help build a good score.

I started to use my card (s) to pay for home repairs and got a bit carried away. It's so easy....

Back working ft now-hoping to get the pesky things cleared by end March. .

Alec4

If your 0% credit card allows purchases at 0% you could use it to pay off the next and very accounts and then throw the resume at you would have been making at the credit card to clear it quickly with no interest payments.
THe other option is a 0% money transfer card so you can transfer anough cash to your bank accounts to pay off the next and veg accounts and then repay the card during the interest free period ( I used this option to clear my expensive overdraft).

Sorry for typos up there. Trying to type with a toddler bouncing around

Thanks @talkinpeace for the great advice you've put on this thread,set up two standing orders for Barclaycard & aqua this morning,going to pay £200 for each card until they finish,I've been able to cancel aqua this morning even though I owe them money,which I had no idea I could do.im going to pay very & Littlewoods as much as I can each month as they are both buy now pay in 6 months !!! Feel better that im going in the right direction X

Castiel
What a positive note to finish the year

I'm loving the fact that people I advised several years ago are now popping up to say they are debt free
the biggest I can remember was £44k
and it gives me a real buzz to know that debt control can be achieved by anybody

life is good
let it be good

Anyone know how long a balance transfer generally takes?
I opened the new card on New Year's Eve and inputted the details of the cards to transfer from.
I got an email almost immediately saying thanks for setting it up and they would email me shortly with details of how to set up my online account.
Obviously then it was New Year's Day so a bank holiday. In the meantime I went a bit crazy cancelling DDs and now I'm panicking!
My DD for one if my old cards was due on Monday 7th. Do you think the balance transfer will have happened by then?

Call them ?

Today is Wednesday and today and the next two days are working days
so I'd be surprised if its not done by Friday lunch
as a backstop, be ready to log into your bank on Monday morning and send everything urgent by Faster Payments (2 hours)
as then it will still be cool

Thanks for advice, have just looked at mine- I owe £2818 on cc.
I have started by taking back stuff I bought in sales, didn’t need it and it was £260 of clothes. Am now transferring debt to interest free, it’s £63 a month interest so that can go to repayment.
I am not buying anything frivolous until this is paid back, it’s all lit bits that have added up!!!!

I've had about of a break through with my credit card this morningit's my aqua card,I'm paying £200 a month to get it paid off quicker by standing order & the balance is £2,700 so I'm thinking that shouldn't take to long..anyway I phone them this morning asking if they can do anything about my interest each month..seems as I've always paid over the minimum they are willing to knock off three months interest & lower the interest after the said three months,not by a great deal but enough to smile about..I'm now thinking why didn't I know this sooner XX

that’s good castiel

Just thinking though, is there any reason you couldn’t transfer to a 0% card? I looked on MSE and found one with a 0% fee and 0% interest for balance transfers when my previous one was coming to the end of its interest feee.

But if that isn’t possible then at least you are in an improved position now