A support thread for people paying off debt #2

[moneyworries9]

Hi all... hope you manage to find the thread?

The last one seemed to be such a success 😃 I will be honest and say that I haven't cleared as much as I would have liked but I know if I hadn't been on here, the debts would most likely have increased rather than decreased. I currently owe

£3,355 - loan
£1,600 - credit card

We do have some cash in our bank accounts. I'm in the process of paying for driving lessons so have about £1,000 in our current account, most of which is to cover that.

On the plus side, when I started the other thread, I had around £2,500 on my credit card and £3900 loan so I'm taking baby steps in the right direction.

The other thread was a huge source of support and motivation for me and I hope that this one will be for many others.

Feel free to give a quick summary to introduce yourself

www.mumsnet.com/Talk/legal_money_matters/3564254-a-support-thread-for-people-paying-off-debt-2

Hope this works ☝🏻

Yes!

Thanks for starting the new thread

Hi all. Thanks money

Ooops had just posted in the other thread when I spotted the new link. Here goes again...

Hi All. This is a great thread. I’m jumping in because writing it down here will help I think.

CC1 = 1,773.68 (min payment this month 43.34)
CC2 = 2,573.43 (min payment this month 56.58)

I usually try to pay the interest amount plus 100.

I have a CU loan that is currently approx 10,000 - can’t check it right now. The repayments are 400pm. My DD is set at 410pm so I’m slightly ahead with my repayments.

DH car is costing 411pm but it’s brand new. He was driving an older car and his tax and insurance has reduced by around 1,000 per year.

Finally (!) I’m paying 400pm for DS college fees.

Marking my place for later x

Hi
Room for a small one?

Credit Card: £4,900 (£50pm)
Car Finance: £3,575.04 (£116.76pm)

Debt Free Date: 07/09/2021

Currently making as many overpayments as I can.

Hi didn't join the last one but need this one.

I have other debts that I've already made a dent in (gone from 5 debts to 2 this year woo). The one I'm focusing on is
Credit card £1731
0% offer runs out Sept and I'd love to have paid it off by then. I've worked out a plan to have it at £1300 ish by the end of May but after that I'm struggling.

hi all!
Just marking my place on new thread.
The thread is definitely helping me too, so thanks. I've definitely taken control of my spending, sticking to budget and have paid off £5000 since Christmas. This is going to slow up due to reduced overtime. I have £6944 to go. No-one knows this. I'm feel quite ashamed Hoping I will be debt free in around 18 months.
My main challenge is to avoid feel low about it and to be patient.

Thanks for new thread. 7400 here. Can only do minimum this month but then all overtime kicks in May to December so hoping to see it start coming down dramatically. 😀

About 2400 here. Down from 6500.

Hi everyone ☺️ great to hear that a few of you managed to reduce your debts so much on the last thread. It will be interesting to see where we get to by the end of this one 😃

It will be interesting #money.
I'm sticking with the thread all the way!

Joining...sorting the debt is bloody deoressing. Im sick of working overtime but it is what it is.

I think it’s keeping people focused!! So easy to let dept slide.

I wonder how much we will have collectively paid off by the end of the year?

I've "only" paid off €600. My cc is now at €2,400. I'm concentrating on that for the moment. But in addition to paying off the 600 I now have a budget in place, two accounts- for monthly bills and other bills. So I'm much better organised

Hello! These threads are definitely helping me stay focussed on the end goal. And helping me feel less alone the in battle!

Please can I join?

I'm a little overwhelmed and quite ashamed but here goes:

£4900 0% credit card. Paying £175pm which clears it before interest kicks in.
£7,400 loan. Paying £375pm (£100 overpayment)
£4000 overdrafts. Cost about £100pm.
We overpay our mortgage by £100pm which is £1200pm overall.

Our old banger died over Easter and I'm so tired of having unreliable cars, which end up do codtly. We've found a 3 year old car that comes with a warranty over the period of finance. £224pm. We will only be able to afford this by stopping our overpayments on the debt we have.

No wonder we are completely skint although we earn well.
I applied to increase our borrowing on the mortgage over Easter which was rejected because I don't have 3 years of accounts (self employed) but in a way I think it might be a good thing. We can't keep remortgaging when debt builds. We need to face up to it and grow up.

Welcome. Don’t feel ashamed- you are here to tackle it.
Is there a cheaper newish car you could get? I went for a tiny Picanto which meant I could get a newish car with a long warranty without spending much.

I’d stop paying the £100 mortgage overpayment and use it to clear your overdraft faster. I find it much easier to keep my finances clear when there isn’t an overdraft confusing the picture.

It seems pointless overpaying the mortgage to the same time as the overdraft is costing

Ring the bank for an agreed overdraft and see if you can reduce the charges

Use any overpayments to clear the highest interest load first

One debt at a time

Can I play please?!

Credit card with a balance of £2911- limit is £3500

It was being paid off in full every month as i'd got it in order to build my credit score. Now have excellent credit score but due to ill health, lost a few weeks of income as was on SSP whilst being signed off hence why the balance on the card is so high.

I think - provided that nothing else crops up- we can get it paid off completely by the end of July BUT we've no savings and rent (have a property that's tied up with family and cannot sell/live in right now and remortgaging or selling this place would give us a sizeable deposit) so I'm aware how risky a position we're in especially as my health condition could see me having to go part time.

The card isn't accruing any interest but this deal runs out in November so I want it paid off then it doesn't get used unless it's for a sofa or a holiday down the line when we're in a position to buy such things,

Any moral support going, I'll take it!

Hi

Thanks for new thread moneyworries

Recap - CCard £9300 (down from £11300), small amount of savings (£2000) built up. I have reduced my outgoings so not actually adding to debt at the moment, but each month is a struggle. Currently paying just above min repayment on ccard each month (£250 instead of £200/month)

2 questions - is it ok to part transfer a balance onto 0% ccard deal (back story - I have been refused one previously, but am going to try again and thought about applying for £5000 rather than full £9300, in the hopes of it being more favourable).

Also, I'm thinking about opting out of my stakeholder pension (£150/month) for this year to help reduce my debt. Is this really short sighted!? I'm late 40s and have only a small pension pot.

Sadly we need a big car and we have a large family. We did lots of shopping around and this was best value with warranty.

Totally right about overpaying mortgage. I've been trying to get in the mindset of overpaying everything but it isn't rational.

Agree with 1 debt at a time approach too. Use the snowball theory and it will all soon come under control.

@Putyourbackintoit I get the wish to overpay the mortgage. My plan is that once the debts are paid off I will immediately divert the repayment money into overpaying the mortgage instead