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

Talk sorry to hear about the fridge needing replaced! I hope you managed to get a good price for the new one 👍🏻

Sorry, my post should say:

We have our standing order set to pay £200 per month on the credit card between July and December so the credit card will be gone in December

I really should proof read before I post 🙈

I'm feeling grumpy today! I did a balance transfer to a Santander cc last summer. 0% fee and 0% interest for 27 months. You could choose the amount they took as a direct debit so I set it at £125 /month knowing this would pay the card off within 27 months.

Anyway, I have been making overpayments whenever I can in the hope that I can pay if off a fair bit sooner. And now have just found that this month Santander reduced the amount they are taking to £115. I have obviously increased my standing order to cancel out the DD reduction but I am pretty cross with Santander for just reducing the amount like that and wanted to warn others to keep an eye out for it happening to them!

Another NC for me
At the moment our debt is
£850 paid off CC since the start of the year.
Which leaves £2150 to go.
Car loan £19,000
Credit union loan £12,000
Loan from DM £9,000

Each month paying off
£250 to cc
£400 to car loan
£200 to credit union loan
DM loan is long term, no interest so we'll clear the rest first

That's a lot of money going to debt each month

Depending on repayments we should be free from debt by Jan 2024. I hope it'll be sooner.

My wages are erratic right now. I'm hoping for steady work from September this year which should help

@talkinpeece I have to apply for my loan this week. I’ve looked on experien

Pre approved for a loan where I’m paying over £2k interest over the term

95% likely to be accepted for a loan where interest is £500ish

What one shall I go for???

Bollocks. Panicked. Went for the lower interest loan and got stung after the hard search- interest is £3,500 but have applied regardless.

I can hammer down these repayments at a rate quicker than they’re proposing so I won’t ultimately pay that much back. Money is needed for family court final hearing this week so I’m not too bitter- it’s an investment in my eldest.

New plan.

1. Reduce repayment on CC with £1035 outstanding to £75. It’s 0% interest so I’ll redirect the £50 I was paying off that to the loan

2. cancel amazon prime and redirect the £7.99 back to the loan

3. keep on at the CMS about this ridiculous incompetence at the DOE order on my ex. He needs to pay a standard of £420 a month toward eldest. Currently £3k in arrears and I haven’t received a penny in months. They usually try to recoup arrears over 18 months so that’s an additional £160 in the mean time. A total of £460 (after taking into account rough charges) a month in maintenance will be coming in for 18 months. I’ll direct £260 of that at the loan.

4. will withdraw my final £1,200 in savings from my investment account and pay £1000 straight off the loan (£200 can contribute toward my overdraft that is slowly building due to no maintenance)

5. clients who owe me money are finally, after endless production problems about to drop a new line. They’ll settle up as soon as the money comes in. Will pay £500 of that towards the loan and keep the rest for overdraft and living

So that will be £1000 off the loan by the end of June as a bulk repayment

An additional £500 bulk by the end of July hopefully (pending clients)

With all that juggling around I’ll try to pay £500 per month towards the loan. Am working more so finances are improving, about to hit a busy few months from June-Nov where I anticipate I can invoice clients £3k per month over that period.

Will have a play with the spreadsheet and see how much I’m ultimately paying when I get on my laptop

Hey chums, latest position with me. Redundancy money hit my account yesterday so gradually working my way through all things money (I follow Dave Ramsey hence the steps). Plan on taking Summer off with ma boy then look to start back a job of some description come mid August.

Step 0 (4 walls) - all current, no overdraft - complete
Step 1 (£1k Emergency Fund) - complete
Step 2 (Debt Snowball) - in progress
- CC1 £9,118 - complete
- Car Loan £12.4k - complete

• DH tax bill £3k - in process of calculating this but will have repaid by tomorrow
• CC2 £12.2k - fixed SO - I have enough set aside to repay this in full but will continue with fixed SO (it’s currently 0%) until I’m back in gainful employment Step 3 (3-6 month emergency fund) - not started, based on current income this needs to be around £20k Step 4 (invest/pension) - not started although I have a good pension accrued with current employer which is final salary and was non contributory Step 5 (DS education fund) - not started Step 6 (Mortgage) - currently £60.9k (sub ac 1) not started, have had a staff rate since taking out which will be valid for 12 months (May 2020) then it moves to normal punter rate. Home Improvement Loan £23.2k (sub ac 2) - fixed SO Step 7 (give) - not started

200 off credit card. 7k to go was 8 at start of year and all overtime starts to pay in june.

Update. Sold a lot of items never used for months or years and paid off a lot. down to one credit card now and a total of £3650

This will be the hard one to work on but i have made a massive start.

forgot to chage my username back.

Update. Sold a lot of items never used for months or years and paid off a lot. down to one credit card now and a total of £3650

This will be the hard one to work on but i have made a massive start.

just a quick update. Reduced my debt from £11913 to currently £6394. Feeling really happy with the progress although still a way to go!
How is everyone getting along?

Pink that's great that you managed to clear some debts by selling stuff you don't need ☺️

Coffee You are doing brilliantly and are really inspiring to a lot of us on this thread.

Things are going well here at the moment. Although we handed back our lease car last week. The guy who collected it said we wouldn't be charged for the 2 chips to the paintwork and that it would fall under wear & tear. DH was very naive and just signed the paperwork... only realising later that the guy assessing the damage had listed loads of chips/scratches that don't exist. I'm just praying we don't get hit with a huge bill as DH has signed the paperwork so it'll be harder for us to contest it. So frustrating. I also have no idea how long it'll take to find out if they are going to charge us so it's just rubbish waiting around not knowing if or when a big bill could appear.

Other than that, things are ticking over nicely. I'll do an update on where we are at after pay day

Final payments made today

Just over 12k cleared in around a year

Now to maintain!

Wow @Delurkingnamechange ! That's great work!! Just remember the debt you were previously in and the sacrifices you had to make ! Glad you've reached the end of the very dark tunnel !

Just over 12k cleared in around a year
Wow that's amazing @Delurkingnamechange - well done!

I've just been looking through the thread but I think we're so far gone it's less about paying debt off per se and more about "let's try to make it through the next 12 months without going bankrupt".

Debts excluding mortgage:

c£40k - car finance (1) - paying £400 pcm
c.£40k - car finance (2) - paying £500 pcm
c. £30k - HMRC personal tax payment plan - paying £2,500 pcm
c. £4K credit card - paying £150 pcm
c. £2k credit card - paying £100 pcm
£3k overdraft - just paying interest

Hi all, I dipped in and out of previous thread but back on a mission now.

We got our debt to under 25k which is brill, still being serviced at £500 a month. Started putting into savings as we had discovered I was pregnant in March, however at 12 week scan baby was very poorly and only had 3% chance of surviving to birth - shit time of it, so DH went into the 'emergency savings' and we went on holiday after having the TFMR. We will rebuild the savings in time, our mental health needed the break away from life for a week.

Have created a SS showing the debt will be halved within 1.5 years and so hopefully cleared within 3, this gives me so much motivation to get it cleared off - also been told I'm getting a 4k a year wage rise in 3 months time, 6 months earlier than it was supposed to be (I'm in a managerial role, came in with no experience and so my target was to be fully up to scratch in 2 years, I've got there in 1.5)

hoping to keep active here if you'll have me

Update: Still not heard about my job but things are looking positive.
Cc now at 1290 which is down from 1500 on the 16th May so that's exciting. Looks likely to be below £1k by September when we'll need to find a new 0% deal. My new aim is to have it gone by Xmas.
Really we need to up our incomes, that'd have the most impact.

Q that's so tough. Sorry

mojo any chance you could downsize on the cars? I don't understand the tax thing but that seems like a massive chunk of cash.
In 2 years though your 2 cc will be paid off and then by throwing that money at the overdraft you'd have it gone in less than a year. That might not be very helpful right now though.

My update :
I have managed to drop my cc below £2,000 for the first time since I don't know when. It was at the £3,000 max at Christmas and I've just kept chipping away every pay day. I've also put the money against the cc if I had been thinking about getting a coffee or a bar of chocolate and said no. It's only a small amount but helps to change my mindset and give me the little buzz I'd have gotten from the twix or whatever. And I pay for groceries with a card that has a savings vault. It rounds change up to the nearest £1 and doubles it. So every time I reach £10 I pay it off the cc.

Other debts
£12,000 to credit union paying £210 a month
£19,000 for car paying £400 a month
£9,000 to my DM. Not paying anything to that atm.

Hey guys. Thought I would join in if you don’t mind. Use are all so inspiring!

My debt is as follows:
CC1: £121.49- interest baring but will be paid in full in July.

CC2: £1666.65 - 0%, paying off £40pm at the moment

CC3: £3090- 0%, paying off £40pm at the moment.

This month I wiped out my overdraft of £500 so that was a win!

I know at the moment my payments are very small but that is what I pay on them as soon as I get paid. Then at the end of the month I look at what’s left over and allocate it to them as well.

We can't downsize the cars until the current agreeement is up in three years....at that point I will pay my car off in full and we will downsize DH's car.

The tax thing can't be changed either sadly - it has to be paid off by January come what may.

We've cancelled all non-essential direct debits, etc. I think all we can do is batten down the hatches and try to make it through to next January without going bankrupt.

Then the tax will be paid and we can use that money to start paying off the credit cards and overdraft.

Think the universe knows we are skint, Over the weekend the hoover and the fridge freezer died ffs.

Thankfully can repair the hoover for £60 instead of replacing, the FF needs a replacement which we've ordered (using a 12 month bnpl thing as the we can use Xmas and bday moneys to pay it off before the 0% ends)

Feel like everything just falling apart at the moment and we are struggling to hold any of it together at all.

Q that sucks might be useful to you. Terrible timing for them both to go at once

Please may I join in? I don't have exact figures to hand but I'm approximately £25k in debt, one loan and 2 CC. The CC are slightly unusual in that my mum asked to borrow one and ran it almost completely to the credit limit. She's paying me back but she's in her 70s now and I worry that she'll die before it's covered (apologies for being morbid). I'm not completely blameless though-I'm a terrible impulsive spender.

I work part time and am a single mum. I've been losing sleep over how I'll get debt free. I tried a loan with the bank but they refused me.

Sorry, I'm waffling a bit-panic is beginning to settle in.