will be able to fix this?

24

Comments

  • enthusiasticsaver
    enthusiasticsaver Posts: 15,446
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    You have a huge surplus so this should be easily fixable. There are a few gaps in your soa though. Entertainment, emergency fund and I think you need more than £20 in car maintenance if you have 2 cars. My suggestion would be you initially aim for £2000 to go to your debts monthly.

    Tackle the creation card first. It is eminently fixable to sort out your situation and I don't think a DMP at all appropriate.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
  • Happier_Me
    Happier_Me Posts: 563 Forumite
    Yes this is very fixable on your income so please try not to panic too much. Here are my thoughts:
    • Like others have said, I think your SOA is too tight, to the point of unrealistic. You need to be able to live a little on this journey.
    • Aim to pay off the highest bearing interest cards first. But also check to see if there are any more 0% deals available to reduce the interest you are paying.
    • Find all the end dates on the 0% deals and the new interest rates. This will give you an idea of the order in which to pay off your other cards.
    • Once you have amended you SOA, you need to make sure that surplus exists every month. Some use a spending diary, others go through previous month's spends to account for every penny. You need to consciously live within budget. If there is no budget for a coffee out or a takeaway, then you don't have these things.

    You can do this!
  • emmamc77
    emmamc77 Posts: 22 Forumite
    Thanks for the posts. I am somewhat reassured I must say! We are so determined to tackle this. I know it wont be plain sailing but we would like to clear it within 4 years. which means that we need to be clearing £1400 from the balance.

    it might take a few more months if we are not able to secure new 0% deals later on this year. Even in this scenario, I think I would prefer to snowball rather than consolidate. What do others think?
  • January2015
    January2015 Posts: 2,369
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    emmamc77 wrote: »
    Thanks for the posts. I am somewhat reassured I must say! We are so determined to tackle this. I know it wont be plain sailing but we would like to clear it within 4 years. which means that we need to be clearing £1400 from the balance.

    it might take a few more months if we are not able to secure new 0% deals later on this year. Even in this scenario, I think I would prefer to snowball rather than consolidate. What do others think?

    I think you have your thinking head firmly in place :T

    Snowballing is far more preferable than consolidation. You will almost never see anyone on this forum recommending consolidation.

    Stay strong and positive and committed to your goal and you will be debt free before you know it. It is so lovely to read your posts and see you are feeling more positive about your debt already.

    Good luck - you won't need luck though because you are clearly determined to sort this.:beer:
    DFW Nerd No. 1484 LBM 07/01/15 Debt was £95k :eek: Now debt free and happy :j
  • emmamc77
    emmamc77 Posts: 22 Forumite
    Thanks. I think it's just the totally amount that freaks me out. I don't think I've ever met anyone with as much debt as us��
  • bearcat16
    bearcat16 Posts: 339
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    Might be worth speaking to your creditors to see if you can agree on a set amount each month ( smallest amount they will accept) and then concentrate on one debt at a time

    If you did this, creditors would consider this a DMP and you'd be marked as in default.

    The creditors have already specified the minimum they will accept within the terms of the agreement; for credit cards it's the minimum monthly payment, for loans it's the standard monthly payment.

    Anything outside of this will be defaulting.
  • January2015
    January2015 Posts: 2,369
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    emmamc77 wrote: »
    Thanks. I think it's just the totally amount that freaks me out. I don't think I've ever met anyone with as much debt as us��

    You just don't realise you have met anyone with as much debt as you ....people don't talk about it;)

    Not everyone you know will have debt, or even large debts, but I am betting some will. Just look at some of the signatures on this forum (mine included). There are many, many people with debts far exceeding what you owe. The important thing is you have acknowledged there is an issue and you are taking advice and steps to deal with it.

    The best advice I can give is to enjoy the journey to becoming debt free and learn from it. Don't look on making so debt payments as a burden; turn that thought around and see it payment as lightening the load. During the journey learn to save for upcoming expenses such as car insurance, breakdowns, household appliances etc. etc. and learn not to reach for a credit card or loan to pay for such things. There is a strange enjoyment to knowing you've paid for such things with your own money rather than resorting to credit.

    The other piece of advice is to keep visiting this forum - it really helps with staying motivated. Perhaps start a diary to track your journey (ups and downs). You will find others who will become virtual friends who will gee you along the journey.

    :beer:
    DFW Nerd No. 1484 LBM 07/01/15 Debt was £95k :eek: Now debt free and happy :j
  • angelpye
    angelpye Posts: 995
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    edited 16 March 2017 at 10:38AM
    Two types of snowballing to consider - Dave Ramsey I believe advocates paying off the smallest debt first and then onto the next smallest debt whereas the other one is about tackling highest interest first. I prefer the second as I want to pay as little interest as possible but the first can give people a psychological boost more often as they are closing the accounts possibly more often depending on whether the lower amounts have the lower APR. Some people focus on paying the smallest off first and then move to the highest interest. It really is up to you and what you think is most beneficial to you.

    Comparing yourself to others doesn't work and isn't helpful. You have a massive surplus compared to a lot of people so its all swings and roundabouts - my current DFD is 5 years away and I have less than £2500 of debt but then my disposable cash is very low at the moment. I am working on it though and determined to be debt free much much sooner.

    Glad you are feeling more positive. The first leg of this journey can be a bit of an emotional roller coaster. Once you have a plan in place that is workable (and that does sometimes mean adjusting it in the first couple of months) you will feel in control :D
    Happiness is wanting what you have...
    Debt Jan 2017: £2589.22 DFD: [STRIKE]Sept 2022[/STRIKE] April 2022 but this Marching Minimalist can beat that!
    Use it or Loose it gym target: Feb'17 5/6 Mar 4/6 :j
    EF £0/£4200
  • emmamc77
    emmamc77 Posts: 22 Forumite
    Thanks for posts. I know it's all relative and there's no joint comparing, but I'm just at a low ebb at the moment. I know we can do this, it just feels like such a mountain is debt
  • angelpye
    angelpye Posts: 995
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    You can do this. Honestly once you have a plan that suits your situation you will feel so much better. The low feeling will pass :)
    Happiness is wanting what you have...
    Debt Jan 2017: £2589.22 DFD: [STRIKE]Sept 2022[/STRIKE] April 2022 but this Marching Minimalist can beat that!
    Use it or Loose it gym target: Feb'17 5/6 Mar 4/6 :j
    EF £0/£4200
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