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  • FIRST POST
    • debtnav
    • By debtnav 17th Oct 16, 9:21 AM
    • 19Posts
    • 45Thanks
    debtnav
    it's now or never
    • #1
    • 17th Oct 16, 9:21 AM
    it's now or never 17th Oct 16 at 9:21 AM
    Hello all you lovely people

    I've been looking at mse for ages gathering great tips along the way and cheering on the successes. I never thought I'd be in this position at my age but the old adage "you never know what is round the corner" is something, in hhindsight, I should have been prepared for financially.

    I have accumulated debts of £37000 (aided and abetted by my partner) and need to clear up the mess ASAP. My plan is to live very frugally over the next months/years and pay off as much as I possibly can as quickly as possible.

    I have managed to get 0% finance spread over several providers but they are mostly short term deals so the first few months are going to be really tight. One old deal comes to an end in 3 months and it has proved impossible to get a new deal to cover the remaining £6k - I'm looking at a jump to almost 20% bu at the same time I have decided not to fall into the same trap again so will be paying off the new 0% short term deals within the set period. I will keep trying to get a new0% deal as I pay off the rest.

    Wish me luck!
Page 1
    • EssexHebridean
    • By EssexHebridean 17th Oct 16, 10:09 AM
    • 6,328 Posts
    • 35,067 Thanks
    EssexHebridean
    • #2
    • 17th Oct 16, 10:09 AM
    • #2
    • 17th Oct 16, 10:09 AM
    Welcome to Diary land Debtnav!

    Take it you've done your SOA and checked all your figures? Do you have plans for where you can scrimp and save to hammer the debt down? Good work on getting the 0% deals - the picture may be different when you get to the point of that shortest one coming to an end and there may be something out there you can shift to at that point - remember to use the Eligibility Calculator on the main site when you come to check to avoid leaving a print on your credit file, though.
    MORTGAGE FREE 30/09/2016
    • debtnav
    • By debtnav 17th Oct 16, 10:22 AM
    • 19 Posts
    • 45 Thanks
    debtnav
    • #3
    • 17th Oct 16, 10:22 AM
    • #3
    • 17th Oct 16, 10:22 AM
    Thank you Essexhebridian.

    I've been number crunching for the past couple of weeks and I know it's going to be really tough but I'm determined this time that I will not be persuaded to just pay minimum payments as has happened before.

    Thanks for your encouragement.
    • debtnav
    • By debtnav 17th Oct 16, 12:13 PM
    • 19 Posts
    • 45 Thanks
    debtnav
    • #4
    • 17th Oct 16, 12:13 PM
    • #4
    • 17th Oct 16, 12:13 PM
    Just had a nice online chat with very helpful assistant who has clarified that when additional sums are added to account at the same rate, the first sum is paid off first. This was one of my worries about hitting the cut off date for the first loan. I'm now going to do a bit more number crunching to make sure I pay enough of to clear them both within the promotional rate times and set up a standing order to cover it.
    • Cailbhinn
    • By Cailbhinn 17th Oct 16, 1:27 PM
    • 88 Posts
    • 260 Thanks
    Cailbhinn
    • #5
    • 17th Oct 16, 1:27 PM
    • #5
    • 17th Oct 16, 1:27 PM
    I think the law changed debt that those amounts which attract the greatest interest are paid off first. Certainly when I had a few zero % deals ending at different times with Virgin they actually broke it down with highest interest (or closest to losing zero % deal) first for pay off.

    All the best with your debt free goals! Frugal doesn't have to mean boring or starving. Just being organised!
    Starting Debt (31 Oct 2016) - £12,956 | Current Debt (31 Oct 2016) - £12,956 (0% paid)
    • debtnav
    • By debtnav 17th Oct 16, 8:20 PM
    • 19 Posts
    • 45 Thanks
    debtnav
    • #6
    • 17th Oct 16, 8:20 PM
    • #6
    • 17th Oct 16, 8:20 PM
    Thanks for your good wishes Cailbhinn. I'm fairly organised as a result of living out of town and it costs time and money to go shopping but should really cut down on how much we eat anyway - I cook from scratch but just enjoy it too much!
    Your company gets me through the day. x
    • Cailbhinn
    • By Cailbhinn 17th Oct 16, 8:38 PM
    • 88 Posts
    • 260 Thanks
    Cailbhinn
    • #7
    • 17th Oct 16, 8:38 PM
    • #7
    • 17th Oct 16, 8:38 PM
    Thanks for your good wishes Cailbhinn. I'm fairly organised as a result of living out of town and it costs time and money to go shopping but should really cut down on how much we eat anyway - I cook from scratch but just enjoy it too much!
    Originally posted by debtnav
    Don't know if you've read my diary but I basically started this after shocking myself at the weekend counting up how much I spent on food in September. £400! For me, myself and I. Disgusting. No wonder I've piled on the weight and not made any dent in my debt!
    Starting Debt (31 Oct 2016) - £12,956 | Current Debt (31 Oct 2016) - £12,956 (0% paid)
    • debtnav
    • By debtnav 17th Oct 16, 8:44 PM
    • 19 Posts
    • 45 Thanks
    debtnav
    • #8
    • 17th Oct 16, 8:44 PM
    • #8
    • 17th Oct 16, 8:44 PM
    My other half laughed at me for returning an unwanted item today - cost £1.99. I told him that will keep us in milk for the week!
    Your company gets me through the day. x
    • EssexHebridean
    • By EssexHebridean 18th Oct 16, 9:31 AM
    • 6,328 Posts
    • 35,067 Thanks
    EssexHebridean
    • #9
    • 18th Oct 16, 9:31 AM
    • #9
    • 18th Oct 16, 9:31 AM
    Morning Debtnav - quite right on the milk thing, good work!

    I got your DM by the way but currently your settings don't allow me to reply. The SOA link is in the "Sticky" post at the top of the main DFW board if you still need it by the way.

    Good news on the order in which payments are taken into account there too - that'll definitely help!
    MORTGAGE FREE 30/09/2016
    • debtnav
    • By debtnav 19th Oct 16, 1:55 PM
    • 19 Posts
    • 45 Thanks
    debtnav
    Thank you EssexHebredian for where to find SOA. While I was there I found other useful stuff too.

    Just completed the "snowball" form on line and got a surprise when it suggested that big overpayments should be made to the oldest debt which will start accruing high interest in January and only pay minimum payments to other debts which will then start accruing interest in a few months. I thought that by paying off 0% debts within the promotional time I was doing the right thing and only have one debt accruing interest. I'm not going to argue with the technology so need to rethink the standing orders already set up. The snowball did not suggest making overpayments on secured debts but they are allowed, so when all unsecured debt is finished I will reassess the situation.
    Your company gets me through the day. x
    • EssexHebridean
    • By EssexHebridean 19th Oct 16, 2:20 PM
    • 6,328 Posts
    • 35,067 Thanks
    EssexHebridean
    Ahh yes, the snowball calculator. Almost makes me wish I had debts to play around with on there, that tool!

    Generally speaking secured loans (and indeed mortgages) are at a lower interest rate than CC's (other than 0% rates) and unsecured loans, this is why as a rule so long as you are able to meet the required payments they get left until last to deal with. There is also sometimes early repayment penalties to be taken into consideration with secured finance.
    MORTGAGE FREE 30/09/2016
    • debtnav
    • By debtnav 19th Oct 16, 3:07 PM
    • 19 Posts
    • 45 Thanks
    debtnav
    Thank you Essex Hebridian . The rates for the ssecuredloans are quite low 4% and I may very well reconsider position after all cards paid off. If they were left to run their course it would allow for a bit of fun money - maybe a long awaited holiday? The snowball forecasts is 24 months to clear unsecured loans so I reckon we should be ready for a little bit of respite by then.
    Your company gets me through the day. x
    • debtnav
    • By debtnav 24th Oct 16, 5:34 PM
    • 19 Posts
    • 45 Thanks
    debtnav
    S0ds Law! Just as I'm starting out on first month - budget done - meals planned - shopping list made - been told that visitors are coming to stay! It will delay the start of my planned debt free journey but will have to be strong and get straight back into it as soon as possible. Just goes to show why I need to be debt free and have a little bit put by for the unexpected.
    Your company gets me through the day. x
    • debtnav
    • By debtnav 24th Oct 16, 9:42 PM
    • 19 Posts
    • 45 Thanks
    debtnav
    I was planning to put £60 aside for expenses that pop up throughout the year, car tax, insurance etc but I was wondering whether anyone could advise me if I would be better off paying an extra £60 a month off the debts and just not pay as much off the debts in that particular month when the expense arises. I would welcome any advice.
    Your company gets me through the day. x
    • Purplemumof2
    • By Purplemumof2 25th Oct 16, 7:04 AM
    • 3,928 Posts
    • 11,536 Thanks
    Purplemumof2
    Hi,

    I'd put it a side in case of emergencies.
    Official DFW Nerd Club - Member no. 791 - Proud to be dealing with my debts
    BC: £8850.00 Overdraft: £2750.00

    15 NSD - 8/15, 10 LSD - 3/10, 15 AFD - 1/15, Lunches to work 9/20

    20p Savers 2016 £2 Savers 2016 50p Savers 2016 SPC 9 2016 #003
    • debtnav
    • By debtnav 25th Oct 16, 8:17 AM
    • 19 Posts
    • 45 Thanks
    debtnav
    Thank you Purplemumof2. I'm reassured that I'm doing the right thing. I was feeling a bit wobbly about it and nearly cancelled my SO.
    Your company gets me through the day. x
    • Penniesinmyjar
    • By Penniesinmyjar 25th Oct 16, 9:50 AM
    • 61 Posts
    • 328 Thanks
    Penniesinmyjar
    Hi Debtnav!

    Just wanted to stop by and say hello and wish you lots of luck on your journey. I had £23,000 of debt created by me, myself and I (£6100 to go!) and this forum has been a life line.

    I would second the opinion of putting money aside for emergencies, have a google on Dave Ramsey and his idea that you should get £1000 for an emergency fund before you debt bust. This was turning point for me as I found emergencies came up and I'd have no option but to use my credit card which perpetuated the problem - and left me feeling blue. Having a buffer is a real life line while you are head down in the zone debt busting!

    Xx
    NOvember Challenge: NSD 7/12 / Food 192.33/215.50
    £1000/£1000 Emergency Fund
    Credit Card 1: £5,671 / £9,500 Credit Card 2: 0/£9,000
    Credit Card 3: £0 / £2,500 OD: £0/ £3,000
    £18,360 gone!
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