Debt free by 40 -- 19 Months and counting

Morning Diary and anyone that looks in.


Having a mixed morning so far. I had a look at the MSE website last night and got to thinking whether I could try to claim back my bank charges (Of which there are MANY). Apparently you can still claim if you can claim Financial Hardship. Which I am sure we can.


What interests me the most, if it seems that sometimes even if the bank refuses to pay out, as a goodwill gesture they freeze any future bank charges. Just having that scenario would be amazing.


So this morning I rang B#rclays to enquire about them sending out a "Summary of Charges". Apparently it IS free (I thought they would charge) but their computer was playing up so will have to ring back later.


While I was on the phone to her she mentioned about my Personal Reserve, which as you probably know is £500 over my overdraft which is there for emergencies. BUT if you go into it they charge you £22!!. Well I go into it ALOT and apparently they can cancel it for me any time if I ring them up. So will leave it a couple of weeks until we are out of it again and then I will cancel it. I could cancel it now but as soon as £440 goes in, the bank will take it and use it to pay off my Reserve and I can't afford to pay that out right now :-(


I think I have been abit foolish again though as the woman at B#rclays mentions an affiliated company they are with. Fr##dom F#nance.


I agreed for her to put me through to them, where a curt man fired financial questions at me and is now getting someone from their loans team to call me back with offers. Eeeeeek.


I know I nearly did this before Christmas, but I was wondering about an Un-secured loan over a short period. I am sure that would still lower our out-goings and then as long as I cancelled overdraft and all cards etc. Would that not be a good idea??.


Oh well, I am not committing to anything just yet. I will wait to hear what they say when they ring back. I promise I won't sign anything until I run it past my lovely MSE'rs.


Right well, need to go any get some more straw for the piggies as some rain has gotten into their barn and its all wet.


Speak soon
LV SS

debtfreewannabe321 wrote: »

Hi Steph, I've taken out consolidation loans before so i certainly am one that cannot tell you off if you decide to do it . It worked for me at the time but I didn't cut up my CC's nor cancel my o/d's nor start any sort of emergency fund of any sort and that was my downfall! I got rid of one lot of debt to go and get another lot :eek: If it will reduce your outgoings, reduce the amount of charges & apr you're paying I think it could be a good idea. You seem to have had a much brighter LBM than I did when I took this route and if you think you can cancel everything and start up some funds I'd say go for it (am waiting to get told off by someone now ) xx

Hi DFW321


Thanks for replying. I have figured my main problem with the general chipping away of the debt like I am now.


On PAPER I can afford to pay all the minimums and then prioritise one debt at a time (snowballing), by paying abit extra of one debt.


BUT.....That is not taking into account, that life throws clangers at you all the time. My car has lots of issues that will soon raise their ugly head, if not the next few months, but definitely July when the MOT is due and then there is saving for Birthdays and Christmas. There is NO spare money to do this. So I constantly get knocked back and never feel like I am achieving anything.


Whereas I feel that if I could consolidate into 1 (Unsecured) payment per money, that is a few hundred lower than what I pay out now. I won't feel much better off, but at least I won't be incurring charges and I will have that spare money to set aside for emergencies and Christmas.


It feels like quick sand at the moment and that I am never going to get anywhere.


I have made mistakes in the past with failed consolidation, but at the ripe old age of 38, I really feel I am Lightbulbed out and definitely would cancel cards and Overdraft.


Just got to find a decent offer from someone, as we are very nearly in the un-loanable position, which is pretty grim.


I feel that if I could borrow the 17k split over 4-5 years unsecured. It will probably be around £500 per month. Which is nearly £300 less than we are paying out, and that's before we look at the £250 I got in bank charges last month..


Definitely food for thought....

maddiemay wrote: »

Morning Steph

Pleased that you sound chipper and pro-active. I can't offer any advice regarding consolidation, except to say I understand that some people have got in way deeper after using one. I would say:- give it lots of thought, perhaps ask for advice on one of the other boards, and definately don't sign up for anything unless you can manage the worst case scenario x about 4. Long term illness or worse of OH, car bills, structural problems on house and farm etc. We all think that these things will never happen to us, but they do and worst still don't seem to come singly.

Perhaps look at one or two of the diaries of people who have managed to clear the debt by chipping away at it to give you some hope and encouragement that it can be done and how to gain the discipline needed.

Good luck and don't let the smooth talking bod from the loan company talk you into anything, this probably needs a lot of sleeps first, remember he/she is there to earn commission not help you or me.:eek::eek:

DFW321 - I am not de-valuing your comments in any way, just suggesting caution, you have lots of wise words to offer and more experience than me in these matters:)

Hi Maddiemay


Hmmm Just done a few searchs on FF, and it seems it may be one of those companies that pile on lots of Setting up charges and high interests, so doubt very much that it will happen.


Believe me unless they can offer me an unsecured loan for 4-5 years on a decent rate without huge charges then I will NOT be taking it. Let see what they come up with.


Still quite optimistic about re-claiming with B#rclays, like I said even if they just end up freezing future charges would be fab.


I have also cancelled a few of my non essential Direct Debits. I have obviously left my insurances and my mortgage DD's set up. But credit card and catalogue Direct debits have been cancelled. I am fed up of the DD coming out but iither encurring me costs when it bounces or going into my Reserve and costing me £22.. Grrrr. I will still be paying them, but when I decide.


See how we go. xxx