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?

@nevertwerknaked..lol no reason at alloh my god first job tomorrow I will look for a 0% card..I didn't want to take another card out as I'm not that far off sorting this card out & any other debt(very/Littlewoods is quite low.I feel abit scared having too many cards but if I transfer then I'm just being silly as I will have only one card anyway.Honestly I'm quite a well educated women but when it comes to money I'm a plonker

@castielchace just be aware they could charge either a balance transfer fee or interest during the term, uou’re lookjng to track one down that charges neither. Good luck

I thought all cards charged for balance transfers? That's good to know that some do it for free!

@moneyworries8 I looked on MSE back in the summer and found that Santander had one 0% balance transfer and 0% interest free for 27 months. Think it’s pretty rare but worth hunting for! My goal is to be fully debt free within that time (including student loan and tax credit over payments too!)

Oh goodness nevertwerk I haven’t even included my student debt in my debt calculations on here.
I owe about £21k to student finance. I’m not currently repaying it as I am well below the income threshold for making repayments. I suppose I should include it in my debt calculations but will remain ignorant for now

No, don't include your student loan if you have the standard government kind. They don't act like normal debt, so if you aren't earning enough to repay them don't worry about it.

I’m only including mine in it now as the end is finally in sight for paying it off, otherwise just ignore it!! It is v different from cc debt etc

Yes, it’s a standard student loan. I will remain at my current status of debt then and not add £21k more to my headache
I don’t think I will ever fully repay the student loan.

Student loan does not count as borrowing.
Student loans are a graduate tax of 9% on salaries above £21k
They do not count as borrowing for a mortgage (they count as a 9% reduction in income)

Concentrate on real debts

I agree with that Ta1k, am just excited to see the back of mine as it will mean an extra £150 a month to put away as savings/ overpay mortgage etc. but I agree it is better viewed as a tax.

My £64 a week carers allowance puts me nowhere near the limit for student loan repayments so I will just view it as non existent debt / graduate tax for now

@OldBrownShoe

Have you looked at the possibility of a debt relief order. It's like a bankruptcy lite. You can't be a homeowner, have assets worth more that £1000, a car worth more than £1000, you must have less than £20,000 of debt and less than £50 a month left over after allowable expenses. It costs £90 and you have to go through an approved intermediary ( like citizens advice who I volunteer with). I'm really not sure why step change have talked about bankruptcy with your level of debt. Please check it out. We do lots of dro' s and they can be a really effective way of dealing with your debts and giving yourself a fresh start.

Just been accepted for a Santander CC, transferred my balance, it's interest free with no fee for balance transfers.. meaning all my payments are clearing debt!

Nice one.
Now get the budget sorted so that when those debts are clear it need never happen again

@finks100 that’s brilliant news

@Ta1kinPeace
I have done that, my problem is little unnecessary spends that have added up.
I fully recommend watching The Minimalists on Netflix and downloading their podcast, has made me rethink/stop buying stuff!
It’s well worth a watch and a listen!

finks
my problem is little unnecessary spends that have added up.
And now you can spend mindfully it will be OK

That’s the perfect phrase, Mindful Spending!

Hello !

I'd like to join this thread as I'm determined to start sorting out my debt issues this year. I want to continue clearing debt without getting into any further debt.

My current debt is more than many of you have posted about :-(
I have a loan of 7k, an ODraft of 2k and 11k on cards.

My loan is at a low interest rate as is my O/D. Most of my cards are on 0% apart from £1k on one card which I am prioritising. The other two are on minimum payments.

I am paying £400 per month on debt (before my mortgage) and it's going to take me four years to clear it all.

I am good at keeping track of everything but always overspend. Starting this month I've worked out a strict weekly (and daily) budget after all my main costs.

The amount will vary slightly each month but I am determined to stick to it. I've done one week so far and kept within budget.

It's good to read about everyone else's situation. Good luck to everyone!

@Finks100
Aim to do everything mindfully
Mindful spending leads to no regrets
Mindful eating leads to a healthy size
Mindful work leads to better results

Welcome @Violet19
Well done on setting up a strategy.
re the cards - having them on 0% is fab, but do make sure that they are on fixed payment rather than reducing payment as then they are gone even quicker.

Overdraft has to be the priority as I'll be gobsmacked if the rate is under 10%

Thanks Ta1kin Peace.

My cards are currently on reducing payments but yes, that's brilliant advice. I will switch them over to fixed payments. I'll also try and increase the payment on the card with the high interest rate.

The o/d is a bit confusing. The first £1500 is free. And then after that I pay 1p for every £7 that I go over that amount. Not sure how that works out in terms of an interest rate? I tend to only go over that amount in the last two weeks of the month - before I get paid again. But I suppose I should try and get it down so I never go over £1500.

Violet
£1500 free is COOL
Yup, do everything you can to never go outside it
as half the month you are paying 4.28% on your overdraft

Budgeting update..one week in I've actually come under budget for my food shopping,I put £20 aside for doing something with the kiddies but I've not spent that either as we live in the country so we got wrapped up & went for a long time ride,taking hot chocolate in a flask & some cookies I'd made for them,sothat was no cost.we are doing library visit tomorrow to get new books,we can walk to our library easily,duck feeding in the afternoon.sunday is relaxed with roast dinner & afternoon movie & games😀I actually feel like a lunatic coming out with all this free stuff that we are doing but im not spending & the kiddies are happy..somehow i feel like I'm resetting the balance in our house abit x

Sorry long bike ride😂