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  • FIRST POST
    • motivated
    • By motivated 28th Jan 17, 4:51 PM
    • 2,289Posts
    • 3,443Thanks
    motivated
    Debt Demolisher
    • #1
    • 28th Jan 17, 4:51 PM
    Debt Demolisher 28th Jan 17 at 4:51 PM
    Hi MSE ers

    Have plucked up the courage to admit that I cannot cope financially.

    Long story short. We are £82,590 in Credit card and Loan debt basically spent on nothing but shopping, holidays, clothes and household things.

    We are not in arrears or any CCJs at present but fear this will not last.

    I completed the step change debt remedy tool thing today and it advised me to ring them on Monday Petrified at the thought of phone calls, bailiffs at my door and threatening letters etc. I don't even know what to expect about the process etc.

    What do I have to show for it all NOTHING

    So angry with myself but I do feel a little easier as it seems I have woken up and am willing to face it all, pay it all off and remove a lot of the stress I have every month.

    Myself and My OH both work and are both willing to pull together to sort this sorry mess out. I am hoping that keeping a diary and soaking up some excellent tips and advice will see us through to the end.

    I have seen some excellent advice and encouragement given on here and have thoroughly enjoyed reading all of the advice and diaries.

    One day I will be advising others (I hope)

    Please be gentle with me
    M
    Last edited by motivated; 30-05-2017 at 10:33 AM.
Page 10
    • motivated
    • By motivated 18th Apr 17, 10:22 AM
    • 2,289 Posts
    • 3,443 Thanks
    motivated
    Update on Halifax

    Spent an hour on the phone this morning as they have added over £500 interest on the 2 loans I have with them

    The lady I spoke to was quite friendly but very adamant that the payments on my payment plan were missed and they would restart the plan in May. I promptly reminded them of the letters they had sent me dated the 12th April thanking me for my payments in line with our payment plan etc.

    I then had the courage to ask it to be escalated to a manager. Go me.

    The manager eventually agreed to refund ALL interest and assured me it will be stopped from now on

    Feeling very proud of myself this morning as I don't know where this new me has come from
    M
    Last edited by motivated; 18-04-2017 at 12:05 PM.

    LBM £82,590 Jan 17/£80,059 Dec 17
    Short term goal £790/£1796

    SPC # 91
    PDBX 18 # £0/£2,000
    52 week challenge £7.28
    • motivated
    • By motivated 18th Apr 17, 12:06 PM
    • 2,289 Posts
    • 3,443 Thanks
    motivated
    Having also added up all of my up to date debt balances it all actually adds up to a little less than it was originally. Only by about £40 but that's a lot when you're in the boat I'm in lol
    M
    Last edited by motivated; 19-04-2017 at 2:07 PM.

    LBM £82,590 Jan 17/£80,059 Dec 17
    Short term goal £790/£1796

    SPC # 91
    PDBX 18 # £0/£2,000
    52 week challenge £7.28
    • Cherryfudge
    • By Cherryfudge 19th Apr 17, 11:57 PM
    • 941 Posts
    • 4,183 Thanks
    Cherryfudge
    The manager eventually agreed to refund ALL interest and assured me it will be stopped from now on
    Originally posted by motivated
    That's great, well done!

    • motivated
    • By motivated 20th Apr 17, 8:06 AM
    • 2,289 Posts
    • 3,443 Thanks
    motivated
    That's great, well done!

    Originally posted by Cherryfudge
    Thanks cherryfudge

    I've just checked my loan balances and the refunds are already showing, making my balances look a little better again. Not much but still less than they were yesterday
    M

    LBM £82,590 Jan 17/£80,059 Dec 17
    Short term goal £790/£1796

    SPC # 91
    PDBX 18 # £0/£2,000
    52 week challenge £7.28
    • Bobarella
    • By Bobarella 20th Apr 17, 8:09 AM
    • 10,454 Posts
    • 69,680 Thanks
    Bobarella
    Update on Halifax

    Spent an hour on the phone this morning as they have added over £500 interest on the 2 loans I have with them

    The lady I spoke to was quite friendly but very adamant that the payments on my payment plan were missed and they would restart the plan in May. I promptly reminded them of the letters they had sent me dated the 12th April thanking me for my payments in line with our payment plan etc.

    I then had the courage to ask it to be escalated to a manager. Go me.

    The manager eventually agreed to refund ALL interest and assured me it will be stopped from now on

    Feeling very proud of myself this morning as I don't know where this new me has come from
    M
    Originally posted by motivated
    Well done on a great result
    " Your vibe attracts your tribe"

    Debt neutral 27/03/17 from £40k in the hole 2012.
    Roadkill 17 £56.58 2016-£62.28 2015- £84.20)
    RYSAW17 £1900 2016 £2,535.16 2015 £1027.20
    • motivated
    • By motivated 20th Apr 17, 8:59 AM
    • 2,289 Posts
    • 3,443 Thanks
    motivated
    Well done on a great result
    Originally posted by Bobarella
    Hi Bobarella and thankyou

    It's tough going this debtbusting but already I can see my balances reducing.

    I noticed you were 40k in debt I think and now debt neutral. Sorry for the dumbness but what does debt neutral mean
    M

    LBM £82,590 Jan 17/£80,059 Dec 17
    Short term goal £790/£1796

    SPC # 91
    PDBX 18 # £0/£2,000
    52 week challenge £7.28
    • motivated
    • By motivated 20th Apr 17, 11:10 AM
    • 2,289 Posts
    • 3,443 Thanks
    motivated
    Hi all

    I feel a ramble coming on

    Just sat here working out figures etc and have decided that I need to REALLY start building up some extra funds. As our DMP journey progresses I aim to be able to offer full and final settlements on maybe 1 or 2 of our CCs. We are still managing to waste money by adding extras to the groceries or just by popping to the shops and buying unnecessary items. I went in for a newspaper and also bought treats for the dog that he didn't need and chocolate that was on special that I definitely didn't need After working it out I would guess we have spent/wasted an extra £25 this week alone. If we do that every month that's approx. £100 wasted without realising I suppose when you've been in the mind set of 'oh well I've spent it now' attitude its hard to break.

    Its so easy to veer away from the budget and we must stop doing it if we want to become DF sooner than planned. I did start rounding down accounts on a regular basis and need to get this back in check.

    We have our EF but want to also build up our other accounts quicker than we are doing. This money wasting is not good and a good kick up the back side given to myself

    I just find it easier to write my thoughts down and then I can remind myself the purpose of this journey and keep my eye on the end goal.

    Goals:
    Car Tax, Insurance, Vet Bills account - 0.00 /£750 ish
    Christmas Fund - 0.00 /£500
    F&F Savings Account - £0.00
    General Savings - £0.00
    will update figures once I've checked online banking.
    M
    Last edited by motivated; 20-04-2017 at 11:39 AM.

    LBM £82,590 Jan 17/£80,059 Dec 17
    Short term goal £790/£1796

    SPC # 91
    PDBX 18 # £0/£2,000
    52 week challenge £7.28
    • motivated
    • By motivated 20th Apr 17, 9:44 PM
    • 2,289 Posts
    • 3,443 Thanks
    motivated
    Well I have now checked balances on my accounts and so far they are building slowly but surely.

    Goals
    • Car Tax, Insurance, Vet Bills account - £96.48 /£750 ish. Needed for around March 2018
    • Christmas Fund - £50/£500
    • F&F Savings Account - £70
    • Emergency Fund - £1,500

    Will keep adding to them as and when possible. I know it seems terrible having a little money put aside when I am on a DMP but now we have no access to credit we need to be organised and ready for any bills and emergencies that may arise. Plus this organisation is what is keeping me positive on the long road to freedom

    Once the balances grow I plan to be able to up the monthly payments to our DMP.
    M

    LBM £82,590 Jan 17/£80,059 Dec 17
    Short term goal £790/£1796

    SPC # 91
    PDBX 18 # £0/£2,000
    52 week challenge £7.28
    • Bobarella
    • By Bobarella 21st Apr 17, 11:11 AM
    • 10,454 Posts
    • 69,680 Thanks
    Bobarella
    Hi Bobarella and thankyou

    It's tough going this debtbusting but already I can see my balances reducing.

    I noticed you were 40k in debt I think and now debt neutral. Sorry for the dumbness but what does debt neutral mean
    M
    Originally posted by motivated
    I have around £350 left to pay off. My business has such choppy cash flow it makes more sense to me to keep it in an account just in case. So I technically am debt free but I wouldn't feel comfortable claiming that if I hadn't actually made the final payment.

    I made the decision to amend my signature as it has been haunting me every time I log in and then I go on the same spiral of thought, should I clear the balance, no it doesn't make sense, keep the cash, rinse and repeat.
    " Your vibe attracts your tribe"

    Debt neutral 27/03/17 from £40k in the hole 2012.
    Roadkill 17 £56.58 2016-£62.28 2015- £84.20)
    RYSAW17 £1900 2016 £2,535.16 2015 £1027.20
    • Bobarella
    • By Bobarella 21st Apr 17, 11:13 AM
    • 10,454 Posts
    • 69,680 Thanks
    Bobarella
    Well I have now checked balances on my accounts and so far they are building slowly but surely.

    Goals
    • Car Tax, Insurance, Vet Bills account - £96.48 /£750 ish. Needed for around March 2018
    • Christmas Fund - £50/£500
    • F&F Savings Account - £70
    • Emergency Fund - £1,500

    Will keep adding to them as and when possible. I know it seems terrible having a little money put aside when I am on a DMP but now we have no access to credit we need to be organised and ready for any bills and emergencies that may arise. Plus this organisation is what is keeping me positive on the long road to freedom

    Once the balances grow I plan to be able to up the monthly payments to our DMP.
    M
    Originally posted by motivated
    Doesn't sound silly, sounds very sensible. I am sure that's what all the advice says.
    " Your vibe attracts your tribe"

    Debt neutral 27/03/17 from £40k in the hole 2012.
    Roadkill 17 £56.58 2016-£62.28 2015- £84.20)
    RYSAW17 £1900 2016 £2,535.16 2015 £1027.20
    • motivated
    • By motivated 21st Apr 17, 11:35 AM
    • 2,289 Posts
    • 3,443 Thanks
    motivated
    Doesn't sound silly, sounds very sensible. I am sure that's what all the advice says.
    Originally posted by Bobarella
    Thanks Bob, and very well done for coming as far as you have. When I see things like this it proves to me that it is doable and I can achieve my goal of being debt free one day.

    The excellent advice I've had so far is what has given me the strength to deal with my mess and I can honestly say I have never been this organised financially.

    DH has been paid today so we will be able to adjust our budget and accounts and hopefully will have some more to add to savings.
    M

    LBM £82,590 Jan 17/£80,059 Dec 17
    Short term goal £790/£1796

    SPC # 91
    PDBX 18 # £0/£2,000
    52 week challenge £7.28
    • DancingUnicorn
    • By DancingUnicorn 21st Apr 17, 5:54 PM
    • 115 Posts
    • 375 Thanks
    DancingUnicorn
    Hi,
    Just caught up on your diary. I like the idea of rounding down accounts. Now I have an online savings account I'm going to give this a go (I overestimate all my bills then end up wasting the difference between what I overestimated and what they were. Even if this is only 50p in some cases, it will soon add up!).
    I love your savings goals - the idea of having them separate makes total sense. I was also worried about having savings while in a DMP but everyone on here told me it was essential and that no one else can see it (I was worried DC's would come knocking and know I have some money stashed for when the proverbial hits the fan!).

    I think I'm going to save up for F&F's too. Do you have any info about how you go about this?

    Keep up the good work and stay positive!
    DU
    LBM: October 2016: £20,130 / Current: November 2017: £17,545 12.8%
    DFD: February 2024
    SPC#577 (2017: £60.58)
    • Bobarella
    • By Bobarella 21st Apr 17, 6:25 PM
    • 10,454 Posts
    • 69,680 Thanks
    Bobarella
    Thanks Bob, and very well done for coming as far as you have. When I see things like this it proves to me that it is doable and I can achieve my goal of being debt free one day.

    The excellent advice I've had so far is what has given me the strength to deal with my mess and I can honestly say I have never been this organised financially.

    DH has been paid today so we will be able to adjust our budget and accounts and hopefully will have some more to add to savings.
    M
    Originally posted by motivated
    You totally can do it! There is no reason why you can't.
    " Your vibe attracts your tribe"

    Debt neutral 27/03/17 from £40k in the hole 2012.
    Roadkill 17 £56.58 2016-£62.28 2015- £84.20)
    RYSAW17 £1900 2016 £2,535.16 2015 £1027.20
    • motivated
    • By motivated 21st Apr 17, 7:03 PM
    • 2,289 Posts
    • 3,443 Thanks
    motivated
    Hi,
    Just caught up on your diary. I like the idea of rounding down accounts. Now I have an online savings account I'm going to give this a go (I overestimate all my bills then end up wasting the difference between what I overestimated and what they were. Even if this is only 50p in some cases, it will soon add up!).
    I love your savings goals - the idea of having them separate makes total sense. I was also worried about having savings while in a DMP but everyone on here told me it was essential and that no one else can see it (I was worried DC's would come knocking and know I have some money stashed for when the proverbial hits the fan!).

    I think I'm going to save up for F&F's too. Do you have any info about how you go about this?

    Keep up the good work and stay positive!
    DU
    Originally posted by DancingUnicorn

    Hi Dancingunicorrn and thanks for popping in.

    The rounding down accounts works quite well, even if it's 16p I send it to one of the savings accounts. It soon builds up and it keeps the main account at even numbers.

    I actually have 4 online savings accounts now I thinks that's plenty don't you.
    I have the main account where wages go into and DDs go out from. I have a top up debit card. This is the only card we have for spending online or in shops. I only load it with what we can afford to spend. It actually works quite well. All these with the same bank so it's easy to transfer money etc and all easily accessible from my phone app.

    As for the F&Fs I have absolutely no idea what you do or how you do it. From what I've read on the DMP thread if a debt is sold on to a debt collection agency that puts you in a good position to offer a % of what you owe to clear the debt and close it. January2015 is the DMP queen I think . She is the one that showed me the way and convinced me to bite the bullet and ring SC. So glad I did.

    I've only just asked DH how much money he will need this week as I am about shift money around accounts again. Whatever he says I will offer him a lower % and try to undercut him
    M

    LBM £82,590 Jan 17/£80,059 Dec 17
    Short term goal £790/£1796

    SPC # 91
    PDBX 18 # £0/£2,000
    52 week challenge £7.28
    • motivated
    • By motivated 21st Apr 17, 8:35 PM
    • 2,289 Posts
    • 3,443 Thanks
    motivated
    Have managed to shift some funds around the accounts and add some to different savings. Every little helps.

    We have done the grocery shop and have topped up Gas/Electric, paid the weekly bits that we do like the TV Licence. virgin package. I find doing it this way easier as DH gets paid weekly. Then when the Virgin bill comes in its more or less paid. The TV licence I have been doing it this way for a while now and when my new TV licence came I'd already paid for this year and have started on next years already . Just by paying £5 per week.

    Goals
    • Car Tax, Insurance, Vet Bills account - £101 /£750 ish. Needed for around March 2018
    • Christmas Fund - £70/£500
    • F&F Savings Account - £74.08
    • Emergency Fund - £1,500

    I also have my DMP payment in one of the accounts but I haven't added this as it's due to go out on the 1st. Then I can see my overall total come down a little more. It will actually go down in to the next thousand
    M

    LBM £82,590 Jan 17/£80,059 Dec 17
    Short term goal £790/£1796

    SPC # 91
    PDBX 18 # £0/£2,000
    52 week challenge £7.28
    • motivated
    • By motivated 22nd Apr 17, 8:25 AM
    • 2,289 Posts
    • 3,443 Thanks
    motivated
    just stepped on weighing scales

    OMG Im 2 stone overweight That's it I'm never eating again. It's no wonder most of my clothes don't fit me anymore. I convinced myself thought I'd shrunk them in the wash

    Also for the past couple of days I've been thinking I need some new work clothes and have been looking online. NO WAY AM I BUYING ANY !!!!! I've just dragged out my wardrobe which consists of a mixture of styles and sizes. I have recycled my wardrobe and moved the fatter sizes to the front until I lose weight (again). Don't actually need any new clothes for work, it's a good job I just checked before spending a load of money that I didn't need to . Very A few months ago I would have grabbed the CC and headed of to the shops and not given it a second thought about how much I spent either. Hence the reason I have clothes in all different sizes. This is what I have done on a few occasions. Not any more.

    Definitely the wake up call I needed. I was following Slimming World and lost 13lb without even struggling but gradually I slipped back into old habits and put it all back on and more besides
    Have a good weekend all
    A big fat M over and out
    Last edited by motivated; 22-04-2017 at 8:56 AM.

    LBM £82,590 Jan 17/£80,059 Dec 17
    Short term goal £790/£1796

    SPC # 91
    PDBX 18 # £0/£2,000
    52 week challenge £7.28
    • Cherryfudge
    • By Cherryfudge 22nd Apr 17, 11:16 AM
    • 941 Posts
    • 4,183 Thanks
    Cherryfudge
    I've only just asked DH how much money he will need this week as I am about shift money around accounts again. Whatever he says I will offer him a lower % and try to undercut him
    M
    Originally posted by motivated
    I love it! Think you may have a top budgeting tool right there (not referring to your DH in particular, but to all discretionary spending).
    • Cherryfudge
    • By Cherryfudge 22nd Apr 17, 11:29 AM
    • 941 Posts
    • 4,183 Thanks
    Cherryfudge
    just stepped on weighing scales

    OMG Im 2 stone overweight That's it I'm never eating again. It's no wonder most of my clothes don't fit me anymore. I convinced myself thought I'd shrunk them in the wash
    Originally posted by motivated
    Commiserations. An all-too-familiar story.

    Also for the past couple of days I've been thinking I need some new work clothes and have been looking online. NO WAY AM I BUYING ANY !!!!! I've just dragged out my wardrobe which consists of a mixture of styles and sizes. I have recycled my wardrobe and moved the fatter sizes to the front until I lose weight (again).
    Originally posted by motivated
    Did you see the recent episode of Shop Well for Less, where the woman had very successfully lost weight and now couldn't stop clothes shopping? They then made her a capsule wardrobe on a little rail and didn't let her have her rooms full of clothes for a week. By midweek she was getting desperate for something new to wear, then she got inventive with what she had and by the end of the week she was completely converted to having a minimal but versatile wardrobe. I think the point of it is we tend to buy variations on the same things (I know I do, in a big way) and really we could do with doing just what you're doing - pulling everything out and finding what we can do with it. Mind you I did the Kon Marie method for some parts of my wardrobe and that was amazing too.

    Hopefully you will soon be going down a size and then you can play clothes shopping in your wardrobe again.
    • motivated
    • By motivated 22nd Apr 17, 11:44 AM
    • 2,289 Posts
    • 3,443 Thanks
    motivated
    Thanks Cherryfudge

    To be honest I found stuff I'd forgotten I even had. I must have found 8 pairs of the old faithful black work trousers maybe quite a bit of mixing and matching is needed. I tend to wear the same things together rather than being inventive.

    I aim to lose some weight and then recycle my sizes again lol. I need to check out this shop well for less show too. Thanks for the tip.

    Am currently sat here playing around with YNAB and learning new things. I like the fact that I can see all of my accounts and their balances on there. Still have a lot to learn though.
    M

    LBM £82,590 Jan 17/£80,059 Dec 17
    Short term goal £790/£1796

    SPC # 91
    PDBX 18 # £0/£2,000
    52 week challenge £7.28
    • Bobarella
    • By Bobarella 22nd Apr 17, 8:04 PM
    • 10,454 Posts
    • 69,680 Thanks
    Bobarella
    I have to say it's something I've read quite a lot on here though that people find they put on weight whilst debt busting. It could be the stress. Or feeling bored of not going out etc so eating more to cope with those feelings. I don't know. But you are definitely not the only one.
    " Your vibe attracts your tribe"

    Debt neutral 27/03/17 from £40k in the hole 2012.
    Roadkill 17 £56.58 2016-£62.28 2015- £84.20)
    RYSAW17 £1900 2016 £2,535.16 2015 £1027.20
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