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    • worriedDan
    • By worriedDan 25th Feb 17, 7:12 AM
    • 167Posts
    • 470Thanks
    Dan's desperate dash towards solvency
    • #1
    • 25th Feb 17, 7:12 AM
    Dan's desperate dash towards solvency 25th Feb 17 at 7:12 AM
    Hi everyone,

    After posting on the DFW board, I have decided to start a diary. My earlier posts can be found here -

    In a nutshell, we 55K in debt with not much to show for it. I have reached a point where something HAS to be done to sort out this awful mess. I do all of our finances and whilst my wife always knew that were in lots of debt, it has only been over the last couple of weeks that I have really started to discuss it with her.

    I put together a budget that would realistically allow us to clear the debt in about 3 years. I sat down with m wife and shared it with her. She was fully on board and agrees that we need to clear the debt before we turn 40 ( 3 & 4 years away for us)

    I still haven't said "we owe 55K" but I have shared with her the rough payments that we will make and the timescale. All of the statements are also there for her perusal and I offered to make her a list of what we owed - she declined. This was the worst part for me and I feel so much better having opened up our communication. My plan from this point onwards is to keep a check that we are both following our budget. I am also going to sit down with my wife every few months and do an update on how we are doing. I don't want to keep talking about the total balance though. It makes me feel physically unwell. Noone else knows about our debt and our friends and family probably think that we are doing well!

    The good news....

    We are able to throw about £1750 at our debts each months. Most are 0% so the majority of this comes off the balance. We take home just under 4.5K between us.

    We have 13K saved. This is saved with my wife's family ( complicated situation that I won't go into on here) . In theory I suppose that this makes our 55K debt 43K. We are not going to use the money to pay debts, not right now anyway, however the psychology of knowing that the money is there is a real help to me.

    I have set our budget so that after all bills and debt payments, we have 200 for food, money to cover diesel, kids clubs, emergency savings and £300 for 'fun' I think that this is realistic and doable. I cannot see a reason why this should fail. This new budget starts from next payday - early next week.

    I still can't believe that we owe such a large amount of money. I struggle with the total figure and am desperate for it to go down!!!!
Page 9
    • worriedDan
    • By worriedDan 17th May 17, 7:56 AM
    • 167 Posts
    • 470 Thanks
    Morning everyone,

    Things are moving along quite nicely. It's now been more than 3 months since this journey started for me. I have calmed down since the early days when I was stressing our 24/7 and making myself ill. I am still totally determined and sticking to the plan, but it doesn't drag me down in the way that it did.

    We have made such major changes to our spending habits. I shudder when I think of our old spending habits. For the first time we are actually planning ahead, for example, we really want some new garden furniture- nothing fancy or expensive. Normally I would have just ordered it from a catalogue or put it on our credit cards. Instead we have been discussing it for weeks and mulling over the cheapest option! We still haven't bought any!

    This month we will pay off £1800 as opposed to the 2K target. This is due to having to pay a speeding fine and also an issue with my phone bill where 2 months were taken from my bank! We are ok with this though and we accept that there will be months where we might not quite make the 2K. There should also be other months where we can pay slightly more than 2K so it should all balance out.

    I hope that everyone is doing ok. I am going to make more of an effort to update my diary more regularly.
    • triple choc chip
    • By triple choc chip 17th May 17, 6:17 PM
    • 793 Posts
    • 2,759 Thanks
    triple choc chip
    Fab progress, you seem relaxed and in control. Well done!
    Life's greatest satisfactions: Getting the last laugh, having the last word and paying the last instalment.
    Debt Free since 6.8.13
    Saving for Xmas 2017 #3: £233/£650 35.85%
    Emergency fund £1k - House deposit £26.9k
    • Suffolk lass
    • By Suffolk lass 17th May 17, 7:46 PM
    • 1,210 Posts
    • 15,229 Thanks
    Suffolk lass
    Well done Dan. Your most recent post makes really good reading and your in-control manner is such a contrast. I'm in that really flat period of the month where there's just one payment left from each account and it feels as though it isn't worth posting. Keep going, your progress is awesome.

    Really good news that you did get the CC balance transfer limit increased BTW - it costs nothing to ask and it can save you money!
    MFiT T4 #2 update 25.95% after Q5
    Save £12k in 2017 #64 - £4340.03/£4583.33 (39.45%/41.66%) after May - my annual target is £11,000 (Save £12k in 2016 thread £10,488.04/£10,000)
    OS Grocery Challenge 2017 budget of £3,600 £3000 (reduced from Apr) - 40.12/41.67% including stores after May
    Reading and learning about investing...
    • ada-or-ardor
    • By ada-or-ardor 17th May 17, 7:54 PM
    • 113 Posts
    • 381 Thanks
    Yeah it's so great to hear how much more positive you're feeling :-) well done!!

    • Verbatim
    • By Verbatim 18th May 17, 3:24 PM
    • 4,423 Posts
    • 12,569 Thanks
    I agree;a wonderful positive turnaround. I'm so glad you're not making yourself ill with worry anymore.
    CCs @0% £24k Dec 05 £19,621.41 Au £13400 S 12600 Oct £11,981 £9481 £7500 Nov £7250 D £7100 Jan 6950 F £5800 Mar£5400 May £4830 June £4660 July £4460 Aug £3200, S £900, £0 18/9/07 DFW Nerd 042
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