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

Each borrowing account that is closed is a leap in the right direction.

PCP is indeed the next PPI
hopefully your case will be handled in a way to settle quickly and quietly

First time posting here, would appreciate a bit of hand holding and guidance. Now we've finally faced up to the debt it feels like we have a long hard slog ahead of us, although finally accepting it and starting to make a plan does make me feel stronger and more positive.

Currently have £9k on CC1 and about £3k on an overdraft.

On CC we've upped what we are paying to £400 a month so hopefully can pay off in 2 years. I've looked and we have £1500 left after total essentials (sticking to the food budget, travel, bills, mortgage). Should I up what we are paying off to £800? I was then thinking £200 for family spending (weekend activities) and the rest for emergencies?

Hi there panda
What are the interest rates on the two of them.
I suspect the overdraft is the scarier so throw extra at that as fast as you can.
On the card, whatever the minimum was last month, round it up to the nearest tenner and set it as a standing order and ignore it.

Look back through the threads to see whether your weekend activities could be replaced MUCH more cheaply.

Is it just me or has this thread disappeared from the 'I'm on' section?! Anyhoo... a quandary on my part.

I've mentioned previously that I was made redundant with a decent lump sum. While I'm currently seeking a new job I'm not being as active about it as I could be (knowing my lump sum could potentially see me through to early retirement).

A close family member has asked for financial support to help them down size (retired, recently widowed). I'd be contributing approximately a quarter of what is needed, the rest she has saved. I'd be repaid on sale of the house and also receive early inheritance in excess of £250k at same time.

Recipient happy, in fact insisting, that we have a legal document drawn up to confirm all arrangements.

What are people's thoughts?

So long as you have a legal document, sounds reasonable

MLM is NOT a way to get out of debt

Reported

I can't find this thread in my "I'm on" either.

Mum4Fergus if you trust this relative and there's a legal document in place then it could be a good idea to help out ?

So I rang the finance company today. The complaint hasn't been allocated to a complaints handler as yet but the person I spoke to said unless I can evidence what was said to me at the point of sale I.e that the salesman said nobody buys cars on hp anymore in writing that my complaint won't be up held and I'll have 3 choices

1. trade car in by selling it to raise funds to pay PCP off
2. voluntary termination with £4000 liability to pay
3. speak to stepchange to support with debts.

I explained I've already done number 3.

Anyway I rang the Financial Ombudsman Service and they said if the complaint isn't upheld it's definitely something that they could look at. They were particularly interested in the fact that there was no proof of affordability.

But I could cry today. It just feels like the odds are stacked against me.

Mum4Fergus, I would think long and hard about this. What if your relative were to meet someone else, are there any tax implications for you, what if you can't find a job soon, is there a will? I'd post separately to see if there are any specialists or others who have been in this situation . My wise mum always used to say 'don't lend what you can't afford to lose'.

Thanks Lightsabre...meeting someone else unlikely (77 very recently widowed), no tax implications that I am aware of, and I've just been offered a new job. Regardless though, I'll run it past my own Solicitor.

How is everyone doing? I'm still waiting on a final response from the finance company about the car. I'm really hoping that they allow me to hand it back but not voluntarily terminate agreement as there will still be a liability of around £4000 if done that way which I don't have to repay.

I've not been able to pay anything extra on debts due to an expensive month with DD's school uniform and holiday spends.

I have managed to increase CC1 repayment to £70 and paid £50 towards CC2. Slowly but surely getting there.

Help to Save account is £325
standard savings account £27
App Savings account £110

I'm thinking about opening a credit union account as I've discovered that one has been opened in my area recently.

Hi all, after a hard few months (TFMR, Broken Fridge, just all round being broken) I've got my head screwed back on and we are back to saving not spending. We have 25k debt - aiming to have this down to 15k by this time next year.

We have found a house, but don't meet affordability criteria for the mortgage which is really annoying as we currently overpay our mortgage at the amount the new one would be - have been advised to stop overpaying and throw the money at 0% cards instead of our 2.9% mortgage.

Frustrating.

Do people make much on ebay etc these days? Could do with a good sort out but don't know if it's really worth the hassle.

Proper update soon, just wanted to say...I got a job!!

Top line less than I was on before but bottom line I will be better off. I paid off 2 big debts with my redundancy money and will no longer need wraparound childcare...all things considered I'm about £1k better off a month so can take the hit if salary drop.

Still on BS2 (a la Dave Ramsey) but things are looking up!

Button
THe waiting on debt resolutions is almost the hardest part.
But make it VERY clear to the lender that you are in active conversation with the Ombudsman about the affordability and KYC (know your customer) checks they made
that will make them much warier of pushing you around.

Cucumber
Ebay is not what it was.
For selling chattels and tat, local Facebay is much easier
Mortgage rules are barking. I know of no easy ways around them

Fergus
yippee, dance round the room that its all coming together

@ListeningQuietly thank you for the advice. I've spoken to the ombudsman and they seemed interested in the fact that the finance company don't do an actual affordability check. They asked the name of the company and responded as if this was not a new issue with the company. But yes I will stand my ground and am willing to make a formal complaint to the ombudsman if need be. Just want to get it sorted so I can get a car that's more affordable. I dong have a deposit for a new car though as used it to get the current one which is a bummer.

Congratulations @Mum4Fergus and that must feel wonderful having an extra 1k a month.

@ListeningQuietly Thanks for the ebay advice, won't bother - got some unworn clothes I know once upon a time I'd have got a few quid for but know with the fees and Paypal fees now its hardly worth the effort of going to the post office.

Mortgage rule has baffled us - but nothing we can do about it, just pay down the debts and try again in 12 months I guess, really annoyed as DS will be starting School September next year and don't really fancy having all of the upheaval of moving and starting school at the same time (especially as we want another baby) feel like it all might be too much change for him all at once.

Just re-joined specifically for this thread. Currently have 24,000 debt consolidated in one loan. A result of house improvements and major purchases over the last three years. I’m being optimistic but am hoping to pay this off in two years with a LOT of overtime, cutting back on impulse/thoughtless spending, and budgeting. I’ve been inspired by some of your updates...wish me luck!

Hi all...all quiet here. Everything still on minimum payments until I get back to work. DH and I both start our new jobs first week of September...Im moving from a set date monthly pay to last business day of the month, and DH will move from monthly to fortnightly. Need to rework budget and amend almost all DDs and SOs.

Slightly concerned that if I miss the September pay run that I won't get any salary until end of October

It's been so long since I have been on this thread it took me a while to find it!

It's helpful to feel the obligation to report steadily reducing figures though. Current debt now stands at just over £10,000 (down from £13,000 when I started, but slightly behind target as I wanted it to be down to about £8,800 by now in order to be paid off by September 2020). Need to try to up the repayments a bit to catch up.

How's everyone else doing?

I've had a response from the finance company and they've completely refuted my complaint. I've contacted the financial ombudsman service and they are going to investigate further. So I've still got the fucking car which I was late paying this month.

Hi all,

Wanted to join in for accountability reasons but also to ask for advice.

Currently have a £4500 overdraft with Natwest which I’m about £4000 in at the end of every month. I just found out they’re charging me roughly £50 per month in interest which I wasn’t aware of before (naive I know). I’ve also got roughly £400 on a Natwest credit card which I’m paying off at £20 a month, it’s not the minimum but not much I know.

I can’t see my financial situation changing drastically anytime soon so am just wondering what to do about the overdraft. I’m considering putting it all on an interest-free credit card, ideally a 24 month one or similar - does anyone know any good ones I could try? I reckon I could pay £100 per month off that way, which obviously wouldn’t clear it all but guess I could then move it to another one to continue paying it off? I have no idea about this stuff so am aware how clueless I sound any help would be much appreciated.

Hi all,

First time poster and after a bit of advice. Disclaimer I know you guys aren't financial advisers and to get 'proper' advice I need to speak to one of those, this is more a WWYD...

I'm finally facing facts and owning up to the horrible debt I've got myself into. Amount wise it isn't so bad... the issue is more the fact that I've just left accounts to default left right and centre. Stupid I know, but I can't change the past.

We're currently on one salary, while husband takes the last 3 months of parental leave to look after the baby. But from January, we'll be back on two full wages. I've recently (last few days) been contacting my creditors to set up payment arrangements with them. They've all been happy to accept token payments for the next few months, with a view to review in the new year.

Finally to my question! Come the end of Jan, I'll have about £700 'spare' after bills and the current agreed payments. I want to start saving a small amount (currently have no emergency savings etc) but want to use most of it to get my debts sorted. Would I be better off increasing all of my payments by a small amount (still then taking months/years to pay off everything) or would it make more sense to keep the minimum payments going and each month, pay a large chunk to one particular debt - quite a few of my debts are under the £500 mark so could potentially settle one in full each month.

Sorry if this is the wrong place to post it, and thanks in advance if you've got this far.