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?

Thanks! Gosh, tumble drying is expensive 😮. I'm going to start hanging washing up outside again, but I'll need to use softener.

Yes tumble driers are expensive. I hang our clothes on an airer and it's fine. Clothes don't smell musty. It is annoying having the airer out as it's in the hall but would rather save the money.
So, I'm still waiting to hear from the underwriters and hoping I only need to pay the excess for the repair from the storm damage. It's 2 weeks now.
I'm still sticking to budget and feeling better about not sending. It's definitely gone the other way, where I'd prefer the numbers to come down. Have made very good progress. But still a long way to go. I'm trying to focus on his far I've come rather than how far to go. I have paid a 3rd of my debt off. Looking forward to getting to paying half of it.
How is everyone getting along budgeting?

I have never owned a tumble drier and never plan to.
I have a zigzag airer for winter and a line in the garden for summer.
I do not use softener as it rots clothes how do you think it makes them softer
Towels are washed without detergent to keep them soft
Clothes are washed when they are dirty, not just because they have been worn for an hour.
Money saving is about walking lightly on the planet.

I am always amazed that in the poorest streets the bins are the fullest - what are they buying that produces so much waste ?
Careful spending reduces waste.

Yes, I don't love fabric softener, and haven't bought any for ages. I've got heaps (litres and litres 😬) of white vinegar, I might use that instead.

And you're right - all of the things that I've been doing to save £ are also more environmentally friendly (and vice versa).

Hi all, sorry I've been absent. DH is just back from a deployment so we've been enjoying some much needed family time

Loving this sunshine and getting the washing out on the line. I too don't have a tumble dryer, mainly because I've never had the spare cash to buy one but I'm quite pleased I don't have to factor in the running costs.

Yesterday I had a bit of an overhaul. I moved our broadband from sky to BT. I called sky and removed box sets from our package and they also gave us HD channels for free. DH's phone contract has come to an end so we got him on an amazing deal with BT. 12 month sim only with 15GB data & unlimited calls and texts for £15 per month but it also comes with a £80 reward card (MasterCard). It should have been £20 per month but broadband customers get a £5 deduction on phone contracts. I'm already with BT mobile which I pay £52 per month for so I also got a fiver off bringing my contract down to £47. I go to sim only in June though and will be able to get a deal for £10 with BT for that. I also called British Gas and was able to reduce our direct debit by £10 and our contract ends in August so I'm waiting it out and then going to a cheaper provider.

I'm feeling disheartened because we have a few expensive months coming up so I feel as though all this work will not bring much reward but I know it will in the long run.

How is everyone else doing?

Sorry DH's phone contract is actually 20GB of data.

He needs a lot because being in the army, he spends a lot of time away and without WiFi.

moneyworries
Sounds to me like you are doing brilliantly.
Its about thinking about spending and getting the most benefit from every £1 spent

and YYY do data on deployment.
I once accidentally phoned my brother on a NATO live fire exercise !

Thanks Talk. I think I just want a quick fix for our debt but the reality is, we will only be able to chip away at it. But any progress is progress at the end of the day. I always focus on our credit card debt and seem to forget about the loan we have and the fact we're paying £115 off that each month. We'll get there eventually 😅 I hope!

I once accidentally phoned my brother on a NATO live fire exercise !

Oh no!! 😆 that made me laugh! 😂

moneyworries
There are no quick fixes with debt.
Its like weight loss - it involves a total mindset change - and that takes time.

My brother was unamused as I forgot he was on exercises and was calling to ask if he wanted me to bring wine when I went for supper a few days later

I know you are right Talk. Slow & steady wins the race with this sort of thing I think.

Hahaha!!! If you ask me, that was an urgent matter. The wine was definitely more important than the exercise 😂😂

money enjoy your family time! Your morning of phone calls sounds very productive, you must have freed up £20 a month minimum, which is £250 (ish!) in a year. Not to be sniffed at!

I ordered my duvet online, put a sheet into the basket (it was just €20 and on sale) then I firmly rapped myself on the knuckles and took it out again. Duvet only please!

I've talked to dh about putting our petrol on his company card as he uses the car for work so that should save some money. I'd also like to run our Internet bill through his company as he's the one who uses the huge majority for work. But it's in my name so I'll have to phone them. I hate phoning utility companies. And the tax man. Ugh.

I am weirdly excited about my finances coming together.

For the last few years I’ve earned around £1000 per month self employed part time. December, jan and Feb were disastrous making about 50% of that and one client 3 months in arrears with settling their invoice.

I got a good contract which means I’ll be making nearly triple that every month; it’s been stepped so this month I did part time with them and next month I’ll be on my ‘proper’ hours. But even this month I’ll have made around £1,500 and with £900 from the client in arrears that will be settled in April. On top of that CMS have finally sorted my maintenance properly and my first proper maintenance payment will be in mid April; it’s also 1.5 times what was being paid previous and I had my maintenance in March (so have £2k of arrears due to massive underpayment being paid over 18 months from June!).

As soon as the payments from clients and maintenance start coming in, I’m going to settle CC1 and my next account immediately (£155 combined). Meaning only CC2 is remaining (£1,335)

I’ve been going through family court but have kept on top of the payments so am up to date with my legal team with £2k savings left for the final hearing (will obviously need a loan for the balance which I don’t know how much will be yet!)

I’m undecided whether or not to get the loan to be more than the legal fees balance and use it to settle CC2 so everything is in one place. I’m not sure when the interest free period runs out but thinking it must be soon.

I honestly can’t even tell you how much more energy I have knowing that things are finally starting to look up!

Turquoise
Are you not his company secretary? - then you are part of the company
I am DHs CoSec and he is mine .... simplifies LOADS

Bishalisha
I am weirdly excited about my finances coming together.
Empowering isn't it !!!

I've got a client who I know will take me many months to pay
but it will be

Bishalisha well done. Sounds like you've got a grip on everything and I'm sure it won't be long until you're debt is all cleared

Turquoise thank you and well done for not buying the sheet!

Well done turquoise for staying on track!!

i’ve been insanely busy at work and racking up a decent chunk of overtime. I’m utterly broken but it will make a tidy dent in my cc hopefully! Plus I definitely haven’t had time to spend any money .

It’s amazing how easy it is to get in debt isn’t it?

For us it was the combination of having 2 children in the space of 18 months and my unpredictable income that slowly created my own credit card debts.

I personally find that when I have no money in more of the ‘fuck it’ attitude. When I have money, I’m more prudent! What’s that all about?!

It's so true about spending more money when you've got more debt. For a while it seemed like I'd be paying it off forever so what's one more month? Might as well stick about £200 on the card. Now I'm nearly debt-free I curse paying £5 more for something when I could have got it cheaper!

That's it Micheal, I just think f it, it makes no difference to add on more to the massive credit card!

I've just about freed up €400 from my cc, once the money I transferred over that I didn't spend on the sheet goes through. I think that's the most I've had free in ages!

Just a quick update. So the underwriters have given the go ahead for the insurance to get someone out to assess the roof damage. So that means, I'd just need to pay the excess, phew. Now I'm worried they will go ahead and carry out the work so they assess whethervitbis storm damage or not. It clearly was, there was 60 mile hour winds. As I just had the roof done in 2012 they now say it could be how the roof was fitted. I'm so fed up of it. It's already been over 2 weeks and the roof isn't water tight.
On a positive note, if the work goes ahead it means it'll cost me the excess of £250, rather than over £1000.

Happy MD to you all. Hope you are all enjoying some time doing what makes you happy, whatever that is.

Still chipping away at the CC here. Got a couple of little top cashback payouts on their way to help.

Also am super happy that I have managed to get my car insurance down from £170 to £69 a month, which is a big help! I am going to try really hard to make sure that the extra doesn't get swallowed up every month and instead I am going to pay it off the CC. I also got £32 cashback with the insurance which will also go off the CC. I would love to see it gone by this time next year, but we will see!

Glad to hear that you are getting somewhere with the insurance coffechoc. What a nightmare for you.

Just read this and dont understand what difference a standing order or direct debit makes ?

Right, I’m now in the last month of horrible money stress hopefully.

Currently £1200 in a £1500 overdraft to get all my bills out, haven’t even paid nursery yet... however

Around the tenth and twelfth of this month I have child benefit and pip coming in (£426ish combined)

Around the 19th of the month I have around £672 of maintenance coming in (2 months worth due to 1st DOE on ex) and going forward a consistent payment mid month of £350ish, not even taking into account £2k of arrears that they will start collection of.

I’ve invoiced out £2185 this month, have done my payroll (though not paid myself yet) and my pensions schedule (1st ever pension payment at the grand age of 30!) and will pay my salary as soon as I have enough funds to, will also be transferred 20% of net profit to the savings account for a tax provision. From next month I plan to pay myself my salary on the last day of every month, transfer 20% of net profit to corporate tax provision savings account and mid month, declare a dividend of 50% of the net profit after tax to tide myself through until pay day.

Not to mention the £900 owed by a client for some work done months ago, however I know how their sales works so they’ll have a spike and settle it all (hopefully soon)

Just withdrawn £6000 from an investment account to replenish the joint savings I used to pay my legal fees (£5,000) and £1000 to get my current account looking decent again. This will come in 7 days.

Still leaves me with £1k in savings and I still need to take out roughly a £10k loan for my final hearing which should settle the balance

Still have £82 on CC1, £58 on next (£140 combined I plan on settling in full this month), and £1,210 on CC2, still undecided on whether to borrow an extra £1210 on loan and pay that off so there’s one payment every month

BUT THERES A PLAN IN PLACE AND LIGHT AT THE END OF THE TUNNEL

And most importantly, my boy is safe, so even though the courts have been costing a fortune, it’s not an expense- it’s an investment in my son

Bishalisha sounds great, you have things under control and moving in the right direction, well done!

Mamabear my understanding is that when you yourself fix an amount eg £100 a month and pay that back consistently your debt will reduce. If you allow the bank to pick an amount it will differ over time (min payment £100, then £95, then £90 etc ) and the total owed will not reduce. Somebody might explain better than me!

Our new duvet is fabulous. A great example of spending money wisely!