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    • GeorgianaCavendish
    • By GeorgianaCavendish 27th Jan 17, 5:30 PM
    • 461Posts
    • 1,971Thanks
    GeorgianaCavendish
    Small Steps Out Of Massive Debt!
    • #1
    • 27th Jan 17, 5:30 PM
    Small Steps Out Of Massive Debt! 27th Jan 17 at 5:30 PM
    Hi Everyone,

    I'm so glad that I've found this website because I really need to get serious and DO SOMETHING about my debts. I thought that keeping a diary on this forum would keep me accountable.

    I have taken stock and I have over £35,000 of personal debt on loans and credit cards, which does not include my Student Loan (around £18,000 but I need to check the last statement). I have no savings at all and am living pay day to pay day. I have a pension, which is probably the only semi-financially responsible thing I've done in my whole life.

    I have always had a problem with spending money. I never knew when it was time to stop spending. The idea of a budget was a foreign concept. I'd spend until everything had gone, whether that was my wages, student loan payments or birthday money. I go through phases of pretending to be responsible and looking at debt consolidation, but what usually happens is that I don't close the old accounts so a few months down the line I end up spending money on the cleared card.

    I know that I need to sort out my spending and to take a brutal look at the state of my finances and what I spend money on. I need to stop seeing credit limits as targets to reach (!!!!) and start seeing them for what they are - invitations to get into debt!

    This is what I have outstanding:

    £13000 on personal loan
    £10500 Barclaycard
    £8000 MBNA
    £2500 HSBC
    £870 on catalog
    £800 left on furniture (this one is interest free, there are 9 repayments left)

    I've been reading the advice for newbies threads so this weekend I am going to go through my last bank & cc statements with a fine tooth comb to work out what I am spending money on, and I'm going to find out the interest rates on all my credit accounts.

    Thanks for reading and wish me luck!


    PS. My forum name is from a Duchess in the 1700s. She was so bad with money that after she died her husband found out she was around 4 million pounds in debt. Sadly I could imagine this happening to me if I had access to that much credit
    Last edited by GeorgianaCavendish; 07-03-2017 at 3:31 PM.
Page 29
    • GeorgianaCavendish
    • By GeorgianaCavendish 24th Jul 17, 10:25 AM
    • 461 Posts
    • 1,971 Thanks
    GeorgianaCavendish
    She sounds lovely You have children when it suits you and OH not extended family. Do your family know the extent of your debt and how hard you are working to reduce/clear it?
    Originally posted by enthusiasticsaver
    Oh wow... what a delight!
    Originally posted by JoJoC
    Yes, she's a real joy! Close family (parents and siblings) know the extent of the debt but not the HA. I think that I will have to get better at telling her that it is none of her business when we have children, I find myself being overly polite and nice to her in order to help smooth over any tension but maybe I should just tell her where to go!
    Georgiana, Duchess of Debt-shire's July 2017 Debt Totals: HSBC Loan £11,362.14 / MBNA £8610.53 / Barclaycard £4,458.69 / Tesco £997.50 / Dreams £259

    And don't forget the Student Loan! £10,765.93 (April 2017)
    • GeorgianaCavendish
    • By GeorgianaCavendish 24th Jul 17, 10:35 AM
    • 461 Posts
    • 1,971 Thanks
    GeorgianaCavendish
    Good morning Georgiana, just trying to catch up on everyone's diaries...

    I can't believe how well you're doing. The big chunk when you got your bonus was just the start, am I reading it right? Have you cleared another £3-4K since then?

    Got to admit, I'm a little jealous. You're pulling way out in front of me!
    Originally posted by boxofpaws
    Hi Paws! Lovely to "see" you again I had a big leap forward in March when I got my bonus and I've been managing to reduce the debt by at least £600 a month in the normal months, with overpayments made as I get my hands on more cash from ebay selling, surveys, focus groups, cash back sites etc. I've also managed to shift the credit card debt around quite a bit so that I've completely got rid of the highest interest rates, the majority is now on rates under 7% (compared to the whopping 27.9% I was paying before!) with £4500 on 0% (never thought I'd see the day!)

    I've got a little bit more restructuring to do. Some of my MBNA debt is on a promo rate that expires in May 2018 (and goes back up to 27.9%!) so I'd like to get this on a longer term rate so I'm not panicking about it in the background. A long way to go but I am pleased with the progress so far
    Georgiana, Duchess of Debt-shire's July 2017 Debt Totals: HSBC Loan £11,362.14 / MBNA £8610.53 / Barclaycard £4,458.69 / Tesco £997.50 / Dreams £259

    And don't forget the Student Loan! £10,765.93 (April 2017)
    • GeorgianaCavendish
    • By GeorgianaCavendish 24th Jul 17, 10:37 AM
    • 461 Posts
    • 1,971 Thanks
    GeorgianaCavendish
    Hi, just read through your whole diary. Very inspirational. I've subscribed

    You've done so well transferring debts etc to get better deals
    Originally posted by Mummy_bear
    Hi Mummy_bear! Thank you for posting and for reading the whole thread I'm glad that you find it inspirational, I feel like I'm learning so much all the time and there are some things that I can't wait to come to my MSE diary to share (clearly I have a very exciting life )
    Georgiana, Duchess of Debt-shire's July 2017 Debt Totals: HSBC Loan £11,362.14 / MBNA £8610.53 / Barclaycard £4,458.69 / Tesco £997.50 / Dreams £259

    And don't forget the Student Loan! £10,765.93 (April 2017)
    • GeorgianaCavendish
    • By GeorgianaCavendish 24th Jul 17, 10:42 AM
    • 461 Posts
    • 1,971 Thanks
    GeorgianaCavendish
    I've been reading a little while and I'm just de lurking to say well done, you're doing brilliantly. Very inspiring actually Wishing you well on slaying the rest of the debt
    Originally posted by Orange Ena
    Hi Ena! Thank you so much for posting, and for reading along on my debt-slaying adventures It's lovely to hear that my diary has been useful for others, I am so glad that I found the DFW boards on MSE because I was at a point when I could see the potential for everything to come crashing down. There are so many lovely people on here that helped me get a grip on things, I hope that I'm able to pay a tiny bit of that forward among all my ramblings
    Georgiana, Duchess of Debt-shire's July 2017 Debt Totals: HSBC Loan £11,362.14 / MBNA £8610.53 / Barclaycard £4,458.69 / Tesco £997.50 / Dreams £259

    And don't forget the Student Loan! £10,765.93 (April 2017)
    • JoJoC
    • By JoJoC 24th Jul 17, 11:25 AM
    • 1,045 Posts
    • 3,228 Thanks
    JoJoC
    Morning GC, just stopping by to say hello! Like the others, I love catching up with your diary - helps to keep the motivation going
    CC1: 3,774.32/4,200 | CC2: 5,077/5,393 | Loan: 7,430/15,000
    Total: 16,292.57/20,032 Paid since Feb17: 3,739 or 18.66%

    Mummy of two boys - Working hard to make better financial choices!
    *My debt busting and savings diary*
    • GeorgianaCavendish
    • By GeorgianaCavendish 24th Jul 17, 4:38 PM
    • 461 Posts
    • 1,971 Thanks
    GeorgianaCavendish
    Thank you JoJo! I really appreciate it
    Georgiana, Duchess of Debt-shire's July 2017 Debt Totals: HSBC Loan £11,362.14 / MBNA £8610.53 / Barclaycard £4,458.69 / Tesco £997.50 / Dreams £259

    And don't forget the Student Loan! £10,765.93 (April 2017)
    • GeorgianaCavendish
    • By GeorgianaCavendish 24th Jul 17, 5:29 PM
    • 461 Posts
    • 1,971 Thanks
    GeorgianaCavendish
    Pension
    I checked the paperwork on my company pension plan today as my birthday is coming up soon as I thought that I might be eligible to increase my matched contributions. The cross over point will actually be the birthday after this one when I'll be able to increase my matched contributions from 3% to 5% of my gross salary.

    I would really like to be able to increase my matched contributions as soon as I become eligible but this would nearly double the amount I currently pay towards pension contributions, at the moment I don't think I would be able to scrounge this from my budget. Just another point to add to my ever-growing list of "Reasons Why I Really Need To Get This Debt Gone"!
    Last edited by GeorgianaCavendish; Yesterday at 5:32 PM.
    Georgiana, Duchess of Debt-shire's July 2017 Debt Totals: HSBC Loan £11,362.14 / MBNA £8610.53 / Barclaycard £4,458.69 / Tesco £997.50 / Dreams £259

    And don't forget the Student Loan! £10,765.93 (April 2017)
    • Hiddenidenity
    • By Hiddenidenity 24th Jul 17, 5:35 PM
    • 3,810 Posts
    • 15,116 Thanks
    Hiddenidenity
    So another 12 months before it would increase?

    A lot can change in 12 months if so Who knows where you'll be

    DFW £733.71/£7348.71
    Rent Arrears £346.28/£3381.28

    June 17 PA £121.25 + £70 Cash + £50 Amazon
    July 17 PA £216.52 + £25 Cash + £45 Amazon
    • enthusiasticsaver
    • By enthusiasticsaver 24th Jul 17, 5:48 PM
    • 3,666 Posts
    • 6,578 Thanks
    enthusiasticsaver
    I checked the paperwork on my company pension plan today as my birthday is coming up soon as I thought that I might be eligible to increase my matched contributions. The cross over point will actually be the birthday after this one when I'll be able to increase my matched contributions from 3% to 5% of my gross salary.

    I would really like to be able to increase my matched contributions as soon as I become eligible but this would nearly double the amount I currently pay towards pension contributions, at the moment I don't think I would be able to scrounge this from my budget. Just another point to add to my ever-growing list of "Reasons Why I Really Need To Get This Debt Gone"!
    Originally posted by GeorgianaCavendish
    Actually when you take the fact that the pension payments are taken before tax is calculated it would not be the full 5% but 5% - the highest tax rate you pay so it may not be as much as you think deducted from your monthly pay. It is well worth doing. We overpaid into OHs pension from age 27ish as his was main wage. Once I went back to work part time I also did AVCs. Starting additional pension payments early is the main reason we have been able to retire at 58 even though our state pension ages are 66.

    I would work the actual difference out before deciding to wait.
    Debt and mortgage free and saving for early retirement
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