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?

poco
Well done on getting a handle on it.
There is nothing inherently wrong with using credit cards
and they are an effective way to spread big spending over a couple of months
but once the minimum payment has become a habit they are lethal.

If you use it consciously and mindfully they you'll be fine.

Is it better to pay 100% of 1 debt off of 50% of 2?
I have Very and Next, both £800 I can afford to pay 1 in full or half off each but I don't know what's more beneficial.

titsalina
It all comes down to interest rates
pay off the most interest as early as you can
and then hit capital

Thank you Ta, very true yes. I'm paying minimum payments on other 0% cards but after this one is paid next month, I'm going to pay extra off the others. It's manageable but I seem to be worrying more than I used to.
Titsalina, which one charges the most interest?

Can I join you? Feel like Ive been floundering about for ages! In fact I think I joined a thread like this last year. I made a positive start last year- woke up to the horrendous interest rates I was paying on my cards and moved to 0% etc.
I owe about 15K altogether with Credit cards and overdrafts. Every time we seem to get back on even keel something happens- husband has been out of work twice in last 3 years. Bank have just announced they are upping rate for overdrafts so thats given me kick up bum to get moving (have lived in overdraft for ever). Determined to focus and get more paid off and try to feel a bit less anxious!

anxious
welcome to the gang
pull up a comfy chair and make yourself at home
are all of the cars on standing orders rather than direct debits
do you have a budget sheets
are you on the frugaleers threads
as there are loads of positive things you can do to convert to
mindful spending
which is where the good places lie

Talk Is there any chance you could link the frugaleers thread? Id like to join it. Something about being frugal scares me though... I know that sounds stupid and it's probably why I'm in debt in the first place but I feel worried that I'll lose myself if I can't have any of the luxury items I currently have. I don't have many luxury items but for instance, I buy a £28 foundation and I use a £20 spf cream daily. I wouldn't want to cut those out but I suppose I can be frugal with everything else? Anyway, I'm waffling a bit. Sorry!

I've had a look for the thread but can't find it so would appreciate if you could point me in the right direction ☺️

Money
Here is the current frugal thread
www.mumsnet.com/Talk/credit_crunch/3478048-Frugaleers-dripping-their-way-through-a-wet-January
Its about shopping mindfully

Out of interest, how many days does each of those VERY expensive creams cover
and are they VFM or just placebo?

I spend a load on my gym membership ~but I cost check it regularly

I'm not entirely sure how long they last but at a guess, I'd say the spf lasts 3 months and the foundation lasts maybe 3-4 months. Although, I've double checked and the spf is actually £15 so cheaper than I thought which is good. Not sure if they'd be classed as VFM but I use them almost every day so I'd guess so.

Thanks for linking the thread... I'll head over and have a look ☺️

Speaking of mindful spending I just had the most gloriously cheap but lovely weekend with my son.

He’s had a rotten 6 months and we had a rare weekend just the two of us (siblings with friends/ had rehearsals). I let him pick what we did and yesterday it was a trip to the library, home to read the new books and then a bracing play in the park.
Today we mooched to a second hand book shop, came home to read more books, then went for a swim (free because they have lessons there). When the other children returned DP wanted to get take away but no one could agree so I made a simple meal then a big bowl of popcorn.
Total cost of the weekend was £2 (second hand books) but it was such a happy chilled weekend. One of my favourites so far this year

£1000 loan paid down to £600 - should reduce to £300 this month if careful

Next is the CC which I’ve transferred to 0% so plan on moving the ‘extra’ payments over next month

This thread is a good focus - keep it up

I've had a quote through for my new remortgage. My old fixed rate had come to an end.
As I thought I am apparently a better prospect now than I was 2 years ago in terms of lending money.
I have been offered a new 5 year fixed deal with a high street lender this time! It includes the debt I wanted, term remains the same for £65 less than I was paying before!
When you add the £65 to the minimum payments I was making it will save me over £500 a month! I can't quite believe it.
I know it is putting my debt over longer really but it will change mine and my kids quality of life beyond measure - I will be able to have a proper saving plan!
I have to keep my fingers crossed for the agreement in principle now!

So I’ve bittrn the bullet tonight and created simple budget spreadsheet. I’ve also created one for my credit cards to look at how balance with reduce with overpayments. It’s not as scary as I thought if I’m careful. Now I just need to actually stick to it but it actually made me feel calmer seeing it in black and white.

Anxiouslady, I've done exactly the same. Glad you're feeling better about it, a least there is a plan in place. How long do you envisage it will take to pay off?
My debts will be halved by the end of the year, then I'm hoping in 2020 will be cleared.

Hi everyone, it's wonderful to hear of your successes!

I have applied for the 0% Barclaycard today and was successful so I'm now not paying horrid interest for 27months. Balance can go down by about 4000 in that time and I'll switch the last couple thousand to another card before the end.

I know I don't post much here but I read and appreciate everyone's advice, it's keeping me with a focussed mind :)

So pleased to see people taking proper control.
On the spreadsheets thread is a budget template spreadsheet that anybody is welcome to download and adapt.

Not sure if I’ve done the right thing but... Halifax have changed overdraft rates so although I’ve been trying to clear £100 per month, new fees mean I’d be paying over £60 in fees on each account. I have 0% on money transfers on CC so moved money and reduced overdraft. Can then pay extra each month to CC instead without overdraft fees. Have added it to my budget and debt spreadsheet. Feel more in control!

Overdraft is often the most expensive
so yes, whumping that first is a good move

just checking in. Bonus next month and hoping to pay off the remainder of one cc in full. I've a way to go, but by Dec my debts will be halved (by just paying minimum) however will pay extra where I can.

It’s good to see people managing to find 0% deals . Makes so much difference when you aren’t being charged big chunks of interest each month.

My debts are now

• £2600 0% credit card (legal fees to deal with abusive ex, were £7k this time last year! Overtime made a big dent but I can’t do any at the moment)
• £1200 child tax credit over payment (paying off at £50 a month so 2 years to go). I gave them all the paperwork and was totally honest so am quite frustrated by this one as theirnsystem is so hard to navigate!

-£1800 student loan (repaying at £150 a month. One year to go! I know it isn’t the same as a “real” debt but once it is paid off that will be an extra chunk of money each month for overpaying debt / mortgage!)

I am so glad I was able to do big chunks of overtime last year (while kids were with their dad) as it all feels a lot more manageable now. I can’t wait to be debt free (well, except for hefty mortgage, but paying that off is a much much longer term goal!)

I pay £135/ mth off credit card debt. Goal is to have it all paid off before then0% period runs out!

Hi all,

Sorry, I've had a slight name change due to the data breach situation whereby I was kicked out and somehow couldn't log back in so have ended up with a completely fresh account 🤷🏻‍♀️

Anyway, I just wanted to check in so I don't lose the tread. Hope you're all doing well! I've got an extremely tight 18 days if I want to clear the debt I've set out to clear this month! Fingers crossed I can make it work.

Hello money will keep fingers crossed you make it through the days till payday!

Hello :) I can't sleep so I'm posting here instead. On Friday I paid off

£500 credit card now closed
£227 credit card now closed
£700 on next account
£500 off big credit card
£600 overdraft now closed
And £330 overdraft now closed

So I got rid of 4 debts and still have 2

My question is; the big credit card and next account are both at 23% interest and I can't balance transfer because my credit rating is shit (hopefully not as shit now) which one do I focus on? One has 3k on it and the other has 5.5k on it. I have 2.5k left in my bank account just for debt and I don't know how to split it .