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?

In terms of accounts, I have two accounts, the main one and a trickle account. I have worked out how much our bills are and theyre all set to come out as close to the start of the month as possible. I leave the bill amount, plus our average food spend, in the main account. Anything left over goes into the trickle account. I have an alert set up for when my main account goes below £100 and then I log on and move £50 or so From the trickle account to the main one.

That way I have a better idea of how much money we have left to last us the month.

Please can someone explain to me what the SO trick is? How does it differ from a direct debit payment? Thank you!

You can set the standing order at a specific sum and pay that every month. The direct debit often only allows minimum payment so it reduces what you pay back each month and keeps you in debt much much longer.

Yes,

It depends on the card company, but some will only let you pay the minimum payment or the total amount owed on the card by DD each month. Whereas if you have stopped using that card, you can set up a standing order to pay whatever amount you want over the current minimum (which would otherwise reduce every month) and because its a consistent amount you will pay the total amount off more quickly.

On other cards there is a payment option to pay an amount you decide by DD, so you can do that instead.

Checking in. It's been s tough few weeks and I really don't want to look at my bank accounts

You can always pay the card company DD and set up an additional standing order amount too.

I’m with Santander and was able to choose my DD amount so it is set to all be paid off by the time the 0% period ends (in 23 months!)

Hey elvis sorry things are tight / tough. Sometimes when I look at my bank accounts I get a pleasant surprise... Might it be worth just biting the bullet and knowing where you stand instead of thinking the worst?

Hope you're okay Elvis. We are all either in the same situation as you or have been there. This month hasn't gone well for me but all I can do is try to minimise spending as much as I can. Definitely check the bank. Burying your head in the sand will only make matters worse. We are here to support you.

It’s been a bad month for me too. First the window cleaner called and I had to pay for 3 months worth of window cleaning because I had been out when he called on previous months.
Then my youngest needed new shoes and as he has a high instep and foot problems o had to spend £36 on a suitable pair. Then a few little things around the house have needed urgent replacement and I have had to buy a few last minute Christmas bits.
I’m hoping I can get back on track next month. December is a difficult month.

December is a difficult month.

I do think we need to remember this. I'm not using it as an excuse but it is surely the hardest month of the year financially for everyone. If we keep plugging away, hopefully we'll all really see the benefits early next year! I also wonder how much more I would have spent this month if I wasn't being so careful. I'm sure I would be ending the month in a much worse situation than I will be.

That does sound tough Clueless. Those expenses can't be helped. Hopefully January will be a better month.

I agree moneyworries. This Christmas has been better than previous christmases because I have tried to be as careful as possible and spend only what I have instead of reaching for the credit card. It means I haven’t paid back much towards any debts but I haven’t added to them either.

@totallycluelessoverhere if money is really tight could you just cancel the window cleaners for a bit? I didn’t have window cleaners for several years while I was a single mum and my windows survived.

We only have them do the upstairs windows because we can manage the downstairs windows ourselves. We live in an area where they get dirty really quickly as they have been building new houses for a couple of years and the dirt levels are horrendous so they do need cleaning regularly. We tried one of the extendable pole cleaners but the windows looked worse than before we had cleaned them

Haha that is what would happen if I tried

December is a difficult month
THIS with bells on
The pressure to buy presents for everybody well over and above what people can afford / need / want
is horrific.

All i can recommend to any and all is NO "STUFF"
If what you are buying will not still be in use next June, why are you wasting money on it other than food and drink of course

I have no money issues.
My kids are each getting three things - one of which is essential clothing.
DH has bought me a couple of essentials
I have bought him a bag he chose that replaces a current one
its about spending mindfully.

For those in debt,
spend what needs spending but do so with awareness
and with conscious thought that it will be different next year

and fizzy wine has no calories in my world

Thanks. I checked them and really not as bad as I thought. Just do fed up of two steps forward one step back. It's exhausting

That's great elvis that it's not as bad as you thought. I know what you mean about the one step forward two steps back.
I've been trying to have conversations with my dh about changing our way of living next year. He mentioned a card for shopping for groceries and I tried to explain my ideas about separate accounts for various expenses. But he just picked up the baby and played with him. Sometimes I feel like I'm the mother and he's the teenager it's like he thinks it doesn't really have much to do with him

Yes my DH does that. Comes up with "helpful" advice (though I do have a separate account for food and petroleum it's really helpful) the distances himself from it. He suggested he was in charge of the money then didn't check the accounts or do anything for two weeks!

Elvis
Aim for a five minute daily finances chat.
Long enough to cover the key points
Short enough not to get bogged down
Boys (even adult ones) play to distract themselves from things that scare them - like debt

Right, finally managed to tot it up. We owe just over 10k and 1.5k mess than last year.

Aiming to start paying it off more quickly this year. I'd like to pay 4.5k off the total by the end of next year.

First to go has to be our overdrafts as we dip back into those and the interest is money that could go on repayment!

1.5k less than last year.

Well done Whirlwind
Yup, overdrafts first and then snowball that money to clear the others.

I’ve done pretty well this Christmas- have only bought for my children and husband and even then it’s not excessive.

We received some John Lewis and amazon vouchers for our wedding which we would never use on ourselves so used those to buy the bulk of the presents.