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

Meant to add credit card debt is legal fees, i anticipate 5000 more by the time im done.

Hi there stealthy
So the Credit card debt has a clear purpose and will benefit you.
Main thing is to make sure that all the repayments are standing order not direct debit so you clear the balances down.

Snowball the cards to try to clear each down by the end of the zero interest time

what is the term on the loan ?

Hi there is another 6 years i think left on the loan.

Stealthy
If the loan is at a fixed repayment then just ignore it.
Focus on the cards
and your court case

and from where I sit, 39 is young

Thank you so much @ListeningQuietly yes loan is set at 167 altough over payments can be made.
Im really worried about the debt & no cushion. I'd love to own my own place one day. Houses in the village im in are around £150,000 but id never get a mortgage now. Need it sorting before its too late!
Hoping this thread will help.

Stealthy
Ignore buying houses till your court case is dusted.
Focus on getting that done
and the cards cleared
by which time your credit rating will be excellent
AND house prices might have stabilised

Genuinely
buying a house age 45 with a clear head will be worth the wait

Thank you :-) @ListeningQuietly i shall try to remember that! Weirdly my credit rating is excellent 🤷‍♀️

Hi stealthy
First of all, well done, keep chipping away at the cc.

Something I found useful was to write it down.
So. Cc1 @150 per month you'll have paid off in 2 years
Cc2 @ 50 per month you'll have paid off in 3 years.
But once cc1 is paid off you can transfer the payment to cc2 and it'll be paid off quicker and then you'll have an extra 200 per month for cc3.
I think it's called the Snowball method. Have a read of this thread, there's loads of good advice.

Your divorce might be expensive but will probably be the best money you ever spent!!

And can I say thank you to @ListeningQuietly for always being so kind and helpful

Bugga
Years of experience has old me that the only way people get out of debt is to draw a line and NOT judge the past.
Learn from it but not judge

like the dumb comments on that AIBU thread telling the OP she has too many children : beyond pointless

@Stealthynamechange I agree with @Buggabooboo that writing it all down helps. I have a little book where I take a double page and along the top I write the the debt name (ie vanquis card) the details of anything I need to use if I go online or phone (account number etc. ),phone number, debt total. Then on the page I have a line for date, debt total, amount paid off.

I’ve put them in order of how I am snowballing them and then as I clear each one I’m crossing them out. I have standing orders set up for everything and then I am doing loads of surveys while sat in front of the tv at night and anything that I make goes on the debt I’m working on. Have a look at the Make £10 a day thread on this board for ideas. Also get yourself onto MoneySavingExpert.com and get yourself aquatinted with the boards and all the tips over there.

Good luck on your debt busting journey.

Thank you, really appreciate the advice, & kind words :-)

writing it down like that is a good idea - i shall add it in my journal.

Im throwing every extra bit i have at the credit cards, hope to speed it up a bit.

& yes money for the divorce definitely will be the best ive spent!!!

The Make £10 October thread

www.mumsnet.com/Talk/legal_money_matters/4038769-October-10-a-day-thread?watched=1

A couple of good boards from MSE but do have a tootle round the boards and see if you can find other ways of money saving.

forums.moneysavingexpert.com/categories/debt-free-wannabe-challenges

forums.moneysavingexpert.com/categories/boost-your-income

The Grocery Challenge thread is a good one on this board.
forums.moneysavingexpert.com/categories/old-style-moneysaving

@Annonymiss123

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.

The above was me in April 2019, (so 18 months ago). Now I’m looking at:

CC1 = zero
CC2 = zero

Credit Union Loan= 3,900.

Savings = 9,000.

DH is still paying for his car out of his wages.

Currently at :

Credit union €8710 - paying €105 per fortnight
DM €10,000 no repayment at present
Credit card €450 - currently paying €150 per fortnight
Car loan €16,000 - currently paying just under €400 per month

Cc due to be paid off before year's end
Then I will either divert that payment to

1. credit union loan
2. savings
3. DM loan. To cut into this would ease my guilt at this immensely so might be worth the peace of mind

Good morning all, sad news of another lockdown, hope you're all managing to stay afloat during these horrible times.

1st of the month check in for me -

Loan £580
Electricity £787
Credit card £655
Overdraft £700

Total £2722. Hoping to start paying more off my credit cards this month but with job uncertainty I want to make sure I have a bit in savings too.

Well done Daeneris
And yes, its going to be a tough couple of months for a lot of people.

Can I join, writing it down really helps, we are a family of 4 and 1 income, here goes my debts

Loan 1: 5000
Loan 2: 400
Credit card 1: 3706
Credit card 2: 2736

Total 11842 and I paid 3.3k since Sept. My plan is to be debt free by June/2021, and I can work on savings and deposit for a house.

@Coolhand2 you are doing brilliantly - how are you getting your debts down??

@Stealthynamechange, thank you. I am following Dave Ramsey's baby steps, snowballing from lowest to highest, next week after payday I hope to pay 400 to loan 2, pay it off, 1000 to cc2 and 100 to cc1, a total of 1.5k. I am trying to watch my budget and really spend less so I can throw all the money towards debt. Like you I want to own a house. Currently I am working from home, so less expenses and no childcare, once my work announces when to return to the office, I will have to find childcare and expenses will increase but in the mean time, I will throw everything at the debt.

I went through this thread and congratulations to all those who were able to pay off their debts, and everyone working so hard at it. Really encouraging.

Hi ladies, pay day came early this week so I managed to make some payments, it feels good to chip away at the debts

Original:
Loan

Sorry my son disturbed me and that posted earlier.
Payday came early this week and I made some payments

Original;
Loan 1: 5000
Loan 2: 400
CC 1: 3706
CC 2: 2736
Total : 11842

Today:
Loan 1: 5000
Loan 2: 0
CC 1: 3606
CC 2: 1736
Total : 10342

1.5k less, this is great, can't wait to be done.

Currently at :
Cc €237 so will pay it off over the next two paychecks.

Credit union loan 8620 paying €100 per fortnight. I'll snowball the cc payments to that in the new year so it'll be €250 per fortnight, €500 per month. So a year and a half until it's paid off, all going well.

Car loan I'm not sure of current amount. I pay 400€ per and there's 3 and a half years left.

DM €10,000

@Stealthynamechange I had to work to pay of big debts from legal fees. Don't let it get you down too much. It was for a good reason.

And the bank were happy to give me and DH a mortgage despite the cc debt, partly because we explained the reason for it I think and partly because they could see that we were by then making chunky over payments each month. So don't give up hope, it is worth staying focused.

Hi, hoping I can join you all.

I have £2700 on a credit card which I’m sure is 0% until June.
I also have a few hundred on another card.

Can anyone tell me if I’ll pay interest if I skip paying off the first card for a month or two? Was thinking I could put the payment towards the other card so I just have one to worry about.

@StormoftheCentury, Great job for paying off the cc in the next little while, I hope to pay off 1 my little cc next month too and snowball it to the next one.

Welcome @Bustingitthistime, you could pay the minimum due on the card and snowball the rest to the other card.