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  • FIRST POST
    • Historybuff
    • By Historybuff 9th Feb 14, 4:24 PM
    • 640Posts
    • 4,607Thanks
    Historybuff
    Reeling from the Reality Check
    • #1
    • 9th Feb 14, 4:24 PM
    Reeling from the Reality Check 9th Feb 14 at 4:24 PM
    Well, I have finally faced up to the huge debt mountain I have to climb after years of denial when I was spending without thinking of the consequences.
    Paid for three children to go through university, supported them with living expenses etc. Husband took early retirement and a small part time job which paid him his spending money and I took on all the bills etc thinking I could keep our living standards up to what they had been before.
    Five years down the line after using credit to keep us going and helping youngest daughter start her own business, the shaky credit pile has started to fall down.
    Minimum payments can't be met and I know something has to be done about it.
    Foolishly I kept all the spiralling debt from my husband in an attempt to fool myself that it wasn't happening. It was the classic ignore the letters, hide them and don't open them and it will go away scenario.
    Well now my husband is taking his pension and I have to come clean about the debt situation. I have spent many many sleepless nights worrying about how to tell him and what will happen. I can't even tell him what all the money has been spent on because it has trickled away over at least ten years, escalating in the last five. Robbing Peter to pay Paul thinking it was under control, but it was not.
    He knows about the overdraft because he found out about it when he went to sort out about banking his pensions...it did not go down at all well. He has no idea of the scale of the other debts. I owe nearly double the amount of our first mortgage...it's really bad.
    I have today taken my first steps in trying to address the debt. I've worked out the actual amounts owing to every creditor and taken the decision to work with Step Change to move forward. Their straightforward advice means I have a plan to at least get started on. I've made moves to open a new basic bank account, cancelled the direct debits and cut up the cards. Tomorrow I will send in the DMP forms and talk to some of the creditors. A bit more thinking tonight about how and when to break it to my husband.
    I've had a massive wake up call, I know, but I do feel that taking positive action to address what is a huge problem and being able to accept it is a big step forward for me. My head is out of the sand and it's time to take control...hope it's not too late!


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    Last edited by Former MSE Zorica; 03-06-2014 at 3:53 PM.
Page 57
    • Eager_Elephant
    • By Eager_Elephant 27th Apr 17, 7:00 PM
    • 4,116 Posts
    • 22,837 Thanks
    Eager_Elephant
    So roughly you have earned interest of 1.5% each year - you would get more in certain savings accounts but of course then you have no chance to win the million!!

    Apart from getting ill and being unable to work the other things are foreseeable so could you start saving money towards each of those things ready for when it is needed?

    I also don't think £25k is too much money to have in savings and if it gives you peace of mind that is all that matters.

    You are doing really well HB - such a change from when you first joined.
    Ninja Saving Turtle No. 15 for November
    NSD - 1/15
    (up to 01/11/17)
    My Diary is here - http://forums.moneysavingexpert.com/showthread.php?t=2175629 (Eager Elephants Effective Everyday Excursion)
    • Historybuff
    • By Historybuff 28th Apr 17, 8:27 AM
    • 640 Posts
    • 4,607 Thanks
    Historybuff
    Thanks, Eager. I'm really pleased with how the finances are going.
    Feb 2014 to now
    Unsecured debt at highest £56,511/now £9,328 83% paid.
    Mortgage £85,342/now £42,382 50.3% paid

    Mortgage and debt free by August 2020
    • Historybuff
    • By Historybuff 11th May 17, 5:43 PM
    • 640 Posts
    • 4,607 Thanks
    Historybuff
    So, I came home today to a letter from PRA offering me a 50% discount on the amount owing if I pay up by a certain date. I was actually considering sending them a CCA request, so now am in a quandary as to whether just to pay the amount and be done with it rather than pushing my luck with the CCA.
    I'm tempted because then ALL the debts would be gone and I could just concentrate on the mortgage.
    I might give them a ring and offer a lower amount and see what they say. I'll sleep on it.
    Feb 2014 to now
    Unsecured debt at highest £56,511/now £9,328 83% paid.
    Mortgage £85,342/now £42,382 50.3% paid

    Mortgage and debt free by August 2020
    • sweetpea26
    • By sweetpea26 12th May 17, 11:42 PM
    • 700 Posts
    • 4,629 Thanks
    sweetpea26
    Hi HB

    I would give them a call and see if they would accept a lower amount, if they don't then pay the 50%.
    • Historybuff
    • By Historybuff 14th May 17, 3:30 PM
    • 640 Posts
    • 4,607 Thanks
    Historybuff
    Thanks, Sweetpea. That's what I'm going to do.
    Feb 2014 to now
    Unsecured debt at highest £56,511/now £9,328 83% paid.
    Mortgage £85,342/now £42,382 50.3% paid

    Mortgage and debt free by August 2020
    • Historybuff
    • By Historybuff 27th Nov 17, 12:41 PM
    • 640 Posts
    • 4,607 Thanks
    Historybuff
    So, didn't take the PRA offer, but I'm hoping they will reoffer soon. Things going OK with mortgage reduction. Will be below £40,000 owing by the end of January 2018.
    Feb 2014 to now
    Unsecured debt at highest £56,511/now £9,328 83% paid.
    Mortgage £85,342/now £42,382 50.3% paid

    Mortgage and debt free by August 2020
    • sweetpea26
    • By sweetpea26 27th Nov 17, 8:16 PM
    • 700 Posts
    • 4,629 Thanks
    sweetpea26
    Great to see your post HB

    You are doing very well.

    Keep on going !!!
    • Seasidegal58
    • By Seasidegal58 2nd Dec 17, 4:32 PM
    • 1,173 Posts
    • 6,560 Thanks
    Seasidegal58
    Hello Historybuff. Itís very good to see you posting again. You have made a tremendous dent in your debt and you must feel like you are finally seeing the light at the end of the tunnel. Mortgage is also going gang busters as well.

    Well done!
    Finally Debt Free! - July 2016
    Finished Emergency Fund- £10,000 April 2017

    Next Scrimpy Goal - Save for New Kitchen!
    My debt free diary - " Paid off the £31,000 - BUT still scrimping!"
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