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  • FIRST POST
    • EmmaMicawber
    • By EmmaMicawber 17th Feb 17, 1:45 AM
    • 79Posts
    • 165Thanks
    EmmaMicawber
    Getting out of this debt sharknado
    • #1
    • 17th Feb 17, 1:45 AM
    Getting out of this debt sharknado 17th Feb 17 at 1:45 AM
    Over Christmas OH gathered together the paperwork for his various chunks of debt and revealed that his total unsecured debt comes to a horrifying figure of £73500.

    We are 6 weeks into an 8.5 year journey, although I'm going to do my best to trim that down where I can. I'm currently struggling to sleep but keep reminding myself that no one has died and we won't starve. I think a diary will help to keep me on track and help me feel I'm not alone. Sharknado is the most ridiculous horror film I've seen, but has a happy ending and it brings a smile to my face to think that OH and I, like Fin' and Nova, will emerge triumphant in the end. Hence my diary title (and I couldn't think of anything Inspirational! )

    Jan 2017- Credit cards- £73,500 Loan £23,900 Total £97,400
    Jan 2018- Credit cards- £58,000 Loan £18,500 Total £76,500
    Jan 2019 Total- target of £46,500 and DFD of October 2020
    Last edited by EmmaMicawber; 18-01-2018 at 1:05 PM.
Page 5
    • EmmaMicawber
    • By EmmaMicawber 7th Jan 18, 7:42 AM
    • 79 Posts
    • 165 Thanks
    EmmaMicawber
    Dave Ramsey's approach is wonderful! Nice and sensible with the benefit that it really works!!
    I have slightly less debt than you guys but I am divorced and flying this debt free plane solo!
    I feel sure you have the right attitude and approach to make 2018 a debt busting year!
    Originally posted by Working Mum
    I find that 10 minutes of Dave Ramsey really helps if I'm wavering - and I could listen to his Southern accent all day. There are so many people who've paid off so much it reassures you that it is achievable for anyone.
    Good luck flying solo in 2018 - I'm sure you'll be successful!
    • EmmaMicawber
    • By EmmaMicawber 7th Jan 18, 8:12 AM
    • 79 Posts
    • 165 Thanks
    EmmaMicawber
    Week 1 Jan 7th
    Paid in week 1 - £562
    Total paid in 2018 - £562
    £ to target - £29,438

    It's been a good first week. I've only spent £22 on food as there is still loads in the freezer to eat up. I paid the extra money saved straight off American Distress no. 1 together with a bit that was sitting in PayPal from my last ebaying attempts. The rest was regular card payments.

    Plans for week 2:
    DD1 is back off to uni today, I'll really miss her, but being on my own in the day for the first time in nearly 4 weeks will mean that job-hunting becomes my full-time job from tomorrow.
    My Clydesdale/B current account switch money should land in my account next week- that will be another £250 extra to pay off the Am Distress.
    I'm tempted to look at starting matched betting, but mustn't let it distract me from job-hunting as getting a job will far and away be my most powerful weapon for attacking the debt. MB will have to be weekends only.
    Last edited by EmmaMicawber; 07-01-2018 at 8:15 AM.
    • enthusiasticsaver
    • By enthusiasticsaver 7th Jan 18, 8:33 AM
    • 5,204 Posts
    • 9,909 Thanks
    enthusiasticsaver
    You did brilliantly in 2017 and have a great plan for this year. Good luck.
    Debt free and mortgage free and early retiree. Living the dream

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • Mags35
    • By Mags35 7th Jan 18, 9:05 AM
    • 10 Posts
    • 27 Thanks
    Mags35
    I’ve just read through your diary so far what an amazing first debt busting year you’ve had, I will be following your progress for 2018
    Good luck!!
    • HairyHandofDartmoor
    • By HairyHandofDartmoor 7th Jan 18, 4:21 PM
    • 2,914 Posts
    • 16,936 Thanks
    HairyHandofDartmoor
    Hello diaryworld - I hope you all had a lovely Christmas!

    Things are returning to normal in the Micawber household - the house guests have gone, leftovers nearly eaten and no more expensive trips out to pay for.
    OH was paid early, a week before Christmas, but for the first time ever, we put it into a different account and only transferred it into our current account on his 'usual' payday which was yesterday. So the current account looks quite healthy, no credit cards were used, and OH is hoping that January will bring his first work bonus in a long time.
    So all is looking relatively good, Well, apart from the tiny little detail of £59000 outstanding on credit cards! (But better than the £73500 we had last January).

    We're going to go "gazelle intense" for 2018 (Dave Ramsey) and set ourselves the ambitious target of paying £30000 off the credit cards by January 2019.
    Initial Plan:
    me- getting a job and putting 100% of my wages to the debt, at least £1000 monthly (12,000)
    OH- pulling out all the stops at work and trying to get 2 decent bonuses next year (6,000 total?- no idea yet)
    OH- putting 100% of his payrise ( extra £250 per month starting January) to the debt (3,000)
    'Standard' monthly cc payments 9,000
    Total: £30,000

    And this assumes our old high mileage cars limp through 2018 unscathed.



    I'm starting the 'clock' on January 1st week one, £0 paid, and will keep track of the total paid off week by week. Week 52 target - £30,000 !!
    Originally posted by EmmaMicawber
    That sounds like a really good plan and eminently doable.
    My Diary http://forums.moneysavingexpert.com/showthread.php?t=5716867
    Debt in July 2017 = £58,766 DEBT FREE 31 OCTOBER 2017
    NEW GOALS - Build an Emergency Fund & Loss of Income Fund. Then save up for repairs to the house.
    Emergency Fund 1 = £818/Emergency Fund 2 = £36.76/Loss of Income Fund £0
    • HairyHandofDartmoor
    • By HairyHandofDartmoor 7th Jan 18, 4:22 PM
    • 2,914 Posts
    • 16,936 Thanks
    HairyHandofDartmoor
    Paid in Week 0 - £0
    Total paid for 2018 - £0
    £ to target - £30,000

    Happy New Year!
    It's Year 2 of our debt paydown and I'm doing a debt snowball for the first time, planning to pay off £30,000 in total this year.
    Year 1 was all about getting my head round our debt and juggling balances to avoid being hit with huge interest charges, but only 1 of our cards has a 0% expiring in 2018 so I'm going for it this year. Our total debt (credit card and loan) reduced from £93,500 to £76,500. Credit cards reduced from £73,500 to £58,000.

    I've listed the cards we have below (using affectionate nicknames ) and will pay minimums on all and throw the surplus at the card with the smallest balance.

    1. American Distress £1250
    2. More Bl**dy Nights Awake card 1 £2500
    3. They're Your Master card £3700
    4. Tox-co £4500
    5. More Bl**dy Nights Awake 2 £4900
    6. Sin-tan-debt card £5000
    7. Martin Lewis card £7100
    8. They're Your Master card 2 £11,500
    9. American Distress 2 £17,500
    10. Loan Wolf £18,500

    CC total- £58,000 Loan -£18,500 Total -£76,500

    My plan is to update the amount paid every Sunday and the individual debts monthly to keep on track.
    Originally posted by EmmaMicawber
    I love the card names it really encapsulates their chatacteristics .
    My Diary http://forums.moneysavingexpert.com/showthread.php?t=5716867
    Debt in July 2017 = £58,766 DEBT FREE 31 OCTOBER 2017
    NEW GOALS - Build an Emergency Fund & Loss of Income Fund. Then save up for repairs to the house.
    Emergency Fund 1 = £818/Emergency Fund 2 = £36.76/Loss of Income Fund £0
    • EmmaMicawber
    • By EmmaMicawber 7th Jan 18, 10:13 PM
    • 79 Posts
    • 165 Thanks
    EmmaMicawber
    You did brilliantly in 2017 and have a great plan for this year. Good luck.
    Originally posted by enthusiasticsaver
    Ah thanks Enthusiastic, I hope you're enjoying your new work-free life
    • EmmaMicawber
    • By EmmaMicawber 7th Jan 18, 10:16 PM
    • 79 Posts
    • 165 Thanks
    EmmaMicawber
    I love the card names it really encapsulates their chatacteristics .
    Originally posted by HairyHandofDartmoor
    Thanks Hairy, I can't wait to be rid of them!
    • EmmaMicawber
    • By EmmaMicawber 14th Jan 18, 9:30 AM
    • 79 Posts
    • 165 Thanks
    EmmaMicawber
    Week 2 January 14th
    Paid in Week 2 - £536
    Total paid in 2018 - £1,098
    £ to target - £28,902

    Positives this week:
    * My £250 Clydesdale/ B switch bonus landed in my account this week so it went straight off American Distress. Free money
    *Got £25 for the fuel switch I did a few months ago.
    * Regular debt payments of £286 went out (the 2nd week of the month has the smallest payments though).
    * I did my first session of volunteering - I really enjoyed it and think it'll be good for my longer term job stuff.

    Negatives:
    -DD developed a hole in the trainers she wears every day for school so needed another pair quickly-they were £40 in the sale instead of £80, though I hadn't budgeted for them so had to move some money from the insurance pot in YNAB as that's not due until next month.
    -Still don't know what OH will be getting for a bonus, or even when it will be paid for certain (was hoping end of Jan). I'm so impatient- I want to pay off American Distress NOW!
    -No real progress on job front this week.

    Other stuff:
    We do have another slight dilemma- OH travels a fair bit with work and has a company credit card which he puts everything on and the company pays off every month. The company is changing its policy in a couple of months so that the "new" company card will need to be paid by him and he will claim the money back from the company.
    Option 2 would be a personal credit card also paying it off himself and claiming it back. If he submits his expense claims very quickly, he should receive the expense money in time to pay off the credit card every month. He says he could collect rewards/ cashback with this option.

    Option 3 would be to have a debit card NOT a credit card, have the expenses come out of our account (or a new current account for expenses) and then claim it back. This would mean not needing a credit card, but needing a "float" of probably around £1000 as he would have to pay money out before getting it back from work.

    This is the first big thing we aren't really in agreement about-
    OH wants to have a "rewards" credit card so he can collect points or whatever. The trouble is that when he used to have this for his previous job, he quietly built up several thousand £ of debt of his own on it by spending on the card for things other than work. The interest he paid must have far outweighed any rewards he got.

    I just hate credit cards now and would rather do option 3, even if it means having to ring-fence £1000 for his expenses. I see spending money on a credit card he will be responsible for paying off himself every month as the slippery slope back to disaster.

    I'm not sure how far to push this, watch this space.
    Last edited by EmmaMicawber; 14-01-2018 at 9:37 AM.
    • motivated
    • By motivated 14th Jan 18, 11:12 AM
    • 2,510 Posts
    • 4,099 Thanks
    motivated
    Hi Emma

    I too now hate CCs and would do all I could not to use them again. You’re mindset has changed and you are making great progress. Keep going Emma
    M
    LBM £82,590 Jan 17/£79,148 Jan 18
    Short term goal £1021/£1796 / PDBX 18 # 31 - £910.43/£5,000
    52 week challenge VSP # 8 - £80.00
    SPC # 91
    / Save a penny a day 2018 # 02 - £15.00
    • EmmaMicawber
    • By EmmaMicawber 14th Jan 18, 9:07 PM
    • 79 Posts
    • 165 Thanks
    EmmaMicawber
    Hi Emma

    I too now hate CCs and would do all I could not to use them again. You’re mindset has changed and you are making great progress. Keep going Emma
    M
    Originally posted by motivated
    Will do! We've reached a compromise about the work expenses - OH will go for option 2, the company credit card that he has to pay off himself. He should be less tempted to add non-work things hopefully.
    • EmmaMicawber
    • By EmmaMicawber 18th Jan 18, 2:02 PM
    • 79 Posts
    • 165 Thanks
    EmmaMicawber
    I shouldn't really be posting, I'm procrastinating- but am finding it really hard to motivate myself on job-hunting today for some reason. I've decided to give myself until the end of the month to get at least another interview otherwise I'm going to bite the bullet and apply for anything rather than jobs with skillsets similar to what I used to do - I noticed that our local pizza place is looking for drivers - I need anything that pays the bills and I quite like driving actually.

    There is frustrating news on OH's bonus- it won't now be paid until March as the company needs to do some sort of accountancy thing which is annoying. Initial results look like it might be really decent though- maybe as much as £10,000 which would be amazing. I'll have to be patient for another couple of months and shouldn't count my chickens, I know. I've joined Prolific Academic but am apparently not eligible for any studies at the moment which is also annoying!

    At least it's sunny here- it looks almost like Spring out of the window.
    • motivated
    • By motivated 18th Jan 18, 6:46 PM
    • 2,510 Posts
    • 4,099 Thanks
    motivated
    Hi Emma

    My prolific account did the exact same thing. But after a short while they were coming thick and fast. I think they come in short bursts.

    Fingers crossed for OHs bonus.
    M
    LBM £82,590 Jan 17/£79,148 Jan 18
    Short term goal £1021/£1796 / PDBX 18 # 31 - £910.43/£5,000
    52 week challenge VSP # 8 - £80.00
    SPC # 91
    / Save a penny a day 2018 # 02 - £15.00
    • EmmaMicawber
    • By EmmaMicawber 18th Jan 18, 7:22 PM
    • 79 Posts
    • 165 Thanks
    EmmaMicawber
    You're right- I've been logging back in periodically (I've been SO easily distracted from job applications today) and now done quite a few!
    It's so much better than swagbucks, which I tried but quickly realised their aim is to extract every detail about you for marketing purposes and pay you a pittance. This seems much more fun, better paid and is real research by real unis (one I did was for my DD's uni- different department though). Mind you, I think the psychologisits designing some of these studies think we are a bit thick and won't see what they're really looking for

    Wow Motivated- I've just noticed your post count- didn't we join around the same time? I'm lagging behind a bit!!
    Last edited by EmmaMicawber; 18-01-2018 at 7:28 PM.
    • DirtyPaws
    • By DirtyPaws 18th Jan 18, 8:13 PM
    • 7 Posts
    • 9 Thanks
    DirtyPaws
    God this is my fave diary. You guys are so inspirational and all the best posters hang out here. Can I stay? I really want to see you succeed!
    My mindfulness mantra before making a decision “Will this take me closer to my goal or further away from it”
    Grocery envelope £50 pw; Fuel envelope £60 pw; Other stuff / emergency envelope £25 pw
    • joeyjimbles
    • By joeyjimbles 18th Jan 18, 9:20 PM
    • 1,468 Posts
    • 7,948 Thanks
    joeyjimbles
    Well done you, you're doing really well.
    If you have Sainsbury's near you then look at doing the e-rewards surveys - they pay in nectar points that you can either use for your shopping there or some other stores like Argos and debenhams. I save mine for Christmas and some presents. If you log in on the nectar.com website it will give you a link to them - they pay between 100 and 300 points per survey, and 1000 points is 1000 nectar points = £5. I'm up to £20 since the start of the year.
    https://www.nectar.com/brands/e-rewards
    • motivated
    • By motivated 18th Jan 18, 9:34 PM
    • 2,510 Posts
    • 4,099 Thanks
    motivated
    I actually joined in 2012 Emma but kept falling of the debt busting wagon I’ve put the wheels firmly back on this time and I intend to chug all the way to debt freedom

    Care to join me
    M
    LBM £82,590 Jan 17/£79,148 Jan 18
    Short term goal £1021/£1796 / PDBX 18 # 31 - £910.43/£5,000
    52 week challenge VSP # 8 - £80.00
    SPC # 91
    / Save a penny a day 2018 # 02 - £15.00
    • EmmaMicawber
    • By EmmaMicawber 19th Jan 18, 9:54 AM
    • 79 Posts
    • 165 Thanks
    EmmaMicawber
    Ah, fair enough M, that explains it!
    Yup, I'm going nowhere until this is all paid off so am definitely with you for the long haul
    Last edited by EmmaMicawber; 19-01-2018 at 10:21 AM.
    • EmmaMicawber
    • By EmmaMicawber 19th Jan 18, 10:12 AM
    • 79 Posts
    • 165 Thanks
    EmmaMicawber
    Well done you, you're doing really well.
    If you have Sainsbury's near you then look at doing the e-rewards surveys - they pay in nectar points that you can either use for your shopping there or some other stores like Argos and debenhams. I save mine for Christmas and some presents. If you log in on the nectar.com website it will give you a link to them - they pay between 100 and 300 points per survey, and 1000 points is 1000 nectar points = £5. I'm up to £20 since the start of the year.
    https://www.nectar.com/brands/e-rewards
    Originally posted by joeyjimbles
    Thanks for the tip Joey- I'll look into it. It all adds up doesn't it!
    • EmmaMicawber
    • By EmmaMicawber 19th Jan 18, 10:20 AM
    • 79 Posts
    • 165 Thanks
    EmmaMicawber
    God this is my fave diary. You guys are so inspirational and all the best posters hang out here. Can I stay? I really want to see you succeed!
    Originally posted by DirtyPaws
    Aw thanks!! - and of course you're welcome to stay! It won't be the fastest debt-free journey to follow but I can guarantee I'll keep plugging away and posting and will get to the end of it eventually
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