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    • worriedDan
    • By worriedDan 25th Feb 17, 7:12 AM
    • 170Posts
    • 491Thanks
    worriedDan
    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 - http://forums.moneysavingexpert.com/showthread.php?t=5601202

    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
    • 170 Posts
    • 491 Thanks
    worriedDan
    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
    • 796 Posts
    • 2,805 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: £369/£650 56.7%
    Emergency fund £1k
    • Suffolk lass
    • By Suffolk lass 17th May 17, 7:46 PM
    • 1,402 Posts
    • 16,429 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 - £5617.21/£5500 (51.64%/50%) after June - my annual target is £11,000
    OS Grocery Challenge 2017 budget of £3,600 £3000 (reduced from Apr) - 58.88/58.33% including stores after July
    My DFD is here
    • ada-or-ardor
    • By ada-or-ardor 17th May 17, 7:54 PM
    • 131 Posts
    • 495 Thanks
    ada-or-ardor
    Yeah it's so great to hear how much more positive you're feeling :-) well done!!

    Ada
    • Verbatim
    • By Verbatim 18th May 17, 3:24 PM
    • 4,475 Posts
    • 12,878 Thanks
    Verbatim
    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
    • worriedDan
    • By worriedDan 16th Jun 17, 3:27 PM
    • 170 Posts
    • 491 Thanks
    worriedDan
    Thought it was time for a much needed update!

    It's been about 4 months now since the start of my journey. We are going really well. We have managed to stick fairly closely to our 'pay off 2K a month' target. This month we will be a bit short the target due ( will pay £1700) but for the first time in years we are not using credit and out balances are going down at a decent rate!

    Some of you will remember that I made myself ill with worry at the start of my journey. I took advice, went to my GP, took the anti depressants and have recently been referred for congitive behaviour therapy. This is the best thing I have ever done. I feel stronger in myself and my mental health has improved 10 fold. I no longer worry about the debt in the way that I used to. When I read back my earlier posts it feels like I am reading someone else's story.

    We are still in lots of debt as we are only in the early stages of our journey BUT we are making progress. We are on track to hit our end of Year target BUT it's fine, even if we are just shy of it.

    I am thinking of ending this diary and starting a new, more positive one! I don't the 'desperate' part of the title!!
    • Suffolk lass
    • By Suffolk lass 16th Jun 17, 5:46 PM
    • 1,402 Posts
    • 16,429 Thanks
    Suffolk lass
    Hi Dan,
    That is a really positive update and makes for excellent reading. Please can I urge you not to change your name or diary - it will sit as an example for others who may be feeling as desperate as you were when you started. Don't feel ashamed of the things that you wrote. They are part of showing where you started and to use a much over-used phrase, they really are part of your journey. You should be really proud. Anyway, if you change your name, I might have to change mine! I am hardly a lass in the sense of a young lady (probably never was tbh) - as a young woman I was no lady (!) and now any lady-like characteristics are no longer associated with youth...

    Anyway, it's good to see you posting and I hope you will do a bit of a status update to show your progress at some point.

    Well done!
    MFiT T4 #2 update 25.95% after Q5
    Save £12k in 2017 #64 - £5617.21/£5500 (51.64%/50%) after June - my annual target is £11,000
    OS Grocery Challenge 2017 budget of £3,600 £3000 (reduced from Apr) - 58.88/58.33% including stores after July
    My DFD is here
    • EssexHebridean
    • By EssexHebridean 19th Jun 17, 12:17 PM
    • 7,556 Posts
    • 39,407 Thanks
    EssexHebridean
    Oh Dan that's just brilliant to read - well done you! Understand where you're coming from on the thread title but definitely be proud of all you've done to turn your situation round.
    MORTGAGE FREE 30/09/2016
    Sainsbugs 0% card: 22/12/16 £1229.00/£450.55 (14/08/17)
    • worriedDan
    • By worriedDan 17th Jul 17, 10:27 PM
    • 170 Posts
    • 491 Thanks
    worriedDan
    Hi Everyone,

    Not posted for a while. It's been about 4 months now since the start of our journey so still fairly early days I guess. this month has been our trickiest yet with loads of things to pay out. This is the first month since we started this that I have felt a little uneasy about money. Not sure if this is the fact that our budget has been strained, or the effect of medication wearing off since I came off my antidepressants. I think that its perhaps due to the fact that we are about to break up for the 6 weeks summer hols and I know that this will be a real test for us.

    We haven't managed to £2000 debt repayment this month as we have had to pay out SO much stuff that was unexpected. I am ok with this as we knew that there would always be times when we had to be flexible, but I am just so determined to never go back to where we were.

    I have just done some number crunching ( I haven't done that for months!!) and I can see that we have made good progress since April. We just need to keep it together over the summer!
    • Verbatim
    • By Verbatim 17th Jul 17, 10:57 PM
    • 4,475 Posts
    • 12,878 Thanks
    Verbatim
    Sounds like you have it all under control. Well done Dan.
    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
    • EssexHebridean
    • By EssexHebridean 18th Jul 17, 4:12 PM
    • 7,556 Posts
    • 39,407 Thanks
    EssexHebridean
    I'm guessing that even if you just "tread water" - make the payments you have to make - but don't throw anything extra at the debt busting, you'll still be a lot better off than you would have been in a "pre LBM" summer holidays?

    Sometimes the stuff of memories is the most important - they'll never be those ages again, and so long as you budget still works and you're going forwards not backwards, you might just want to go with the flow for a few weeks.
    MORTGAGE FREE 30/09/2016
    Sainsbugs 0% card: 22/12/16 £1229.00/£450.55 (14/08/17)
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