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  • FIRST POST
    • lonelyrat
    • By lonelyrat 5th Aug 17, 4:01 PM
    • 23Posts
    • 62Thanks
    lonelyrat
    It's time!
    • #1
    • 5th Aug 17, 4:01 PM
    It's time! 5th Aug 17 at 4:01 PM
    Hey guys, I think I've hit my breaking point. I've sunk further and further into credit card and overdraft debt and it's gotten out of control. I've made myself a plan (like I have done numerous times before) but I'm hoping by posting on here I have some accountability and actually stick to it.

    My debts are as follows:
    Santander 123 Credit Card £2770.90 Interest free up until 11.09.18
    Barclaycard £390 Costs £6.35 a month (26.18%)
    Capital One £404.25 AND £179 Costs £9 and £4 a month (29.84% and 34.4%)
    Overdraft 1 £1950 which costs £7.62 a month as its a graduate account... however this changes in December and it would start to cost £29
    Overdraft 2 £450 which costs £7.32 a month.
    I stupidly took out a loan to try and consolidate some of my debts last year... which seemed like a great idea but didnt work, so now I've got that to pay back too. It was £1500 but is currently sitting at £770 with a monthly repayment of £102.
    I've also got a Very account which has a balance of £288.98 which is BNPL until 04/05/18.

    My total debt is: £7203.13
    I'm close to all my credit limits on my cards and almost maxed out the overdrafts

    My income is £1100 a month but I've started doing overtime so this should increase by another £85 this month and I recieve a bonus payment which should be just over £500 in September. My wonderful Dad has also been nice enough to agree to give me £100 a month to help with rent etc.
    Things were pretty good this time last year but me and my other half foolishly moved into a flat we couldn't really afford. He's a student and used to work part time but he gave up his job in January so the only money coming in is mine. He did get student loan payments but that ended in May so since then it's just been my wages supporting us. Our rent at the moment is £650 a month but that will come to an end this month (one more payment!) then we're going to move in with his parents while I try and bust this debt so wont have the usual utilites as well. We did try and reach an agreement with our landlord to leave early as we couldn't afford the flat and they said if we paid £300 'admin' fee they would find new tennants... obviously we paid that and they didn't find new tennants

    I'm going to complete a SOA and add it here as well. Any advice anyone has would be absolutely wonderful. I feel like I'm drowning constantly... I'm trying to take steps to sort things out and have started paying more than the minimum on the credit cards but it feels overwhelming.

    I've made a spreadsheet with all my incomings/ outgoings and my plan of action is:
    Next month reduce the overdrafts both by £50 then pay off Overdraft 2 in September using some of the bonus money (I want to do this one first as I got a letter from the bank telling me to contact them if I'm in financial difficulty, which makes me think they may pull the overdraft soon, if they did I'd be pretty screwed!)

    I'd then try and have both Capital One cards paid off in October and the Barclaycard in November. After these smaller cards have been paid I'lll focus everything on Overdaft 1 to have that cleared by February. I should be able to do it, but there's no wiggle room and I'm going to be pretty skint for the forseable future

    I was considering asking the Bank for a payment holiday from my loan for a few months, that would free up £102 a month to pay off other debt but I don't know if this is a bad idea or not. Also I'm kind of embarrassed to do this.
    I also have another Bank account with an overdraft of £1000 which I've never been in. If I were to use it it would cost £1 a day so I don't think it's worth using it to pay off the credit cards as I feel I'd end up paying more in OD fees than in credit card interest.

    Anyway, sorry for the ramble... it does feel good getting it all down. I have no one to talk to about all this as the other half doesn't care about our finances so much.
    Again, any advice would be greatly appreciate. If you think I should go about this another way please do say... I tried to do this myself before and its all just gone horrbily wrong so I'm open to anything!

    J X
Page 1
    • sourcrates
    • By sourcrates 5th Aug 17, 4:19 PM
    • 12,477 Posts
    • 11,869 Thanks
    sourcrates
    • #2
    • 5th Aug 17, 4:19 PM
    • #2
    • 5th Aug 17, 4:19 PM
    Hi,

    Have you considered a debt relief order at all ?

    Info here :

    https://www.stepchange.org/Howwecanhelpyou/DRODebtrelieforder.aspx
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
    • lonelyrat
    • By lonelyrat 5th Aug 17, 4:27 PM
    • 23 Posts
    • 62 Thanks
    lonelyrat
    • #3
    • 5th Aug 17, 4:27 PM
    • #3
    • 5th Aug 17, 4:27 PM
    Hey,

    Thanks for the reply I've just had a wee look, but I live in Scotland so it wouldn't be available... it says that in Scotland the equivalent would be "Minimal asset process (MAP) bankruptcy". If possible I'd want to avoid bankruptcy, purely just because I feel I can do this, if I'm strict with myself (and my other half)! While I have no assets just now I do want to try and own a flat in the future and 6 years is quite a while.

    I just completed the SOA and currently I have a shortfall of £370.40 a month, so I guess that explains how I got in this state. I'm not sure if I should post it here or not as this month is my last month with such high rent and council tax/ utilities etc. Maybe I should do one for how things will be? I don't know :S
    • MatthewAinsworth
    • By MatthewAinsworth 5th Aug 17, 4:38 PM
    • 2,866 Posts
    • 1,144 Thanks
    MatthewAinsworth
    • #4
    • 5th Aug 17, 4:38 PM
    • #4
    • 5th Aug 17, 4:38 PM
    I'm impressed you were able to get that much credit on the income, but your credit rating is probably more developed than mine (I'm in the early days of stoozing)
    • sourcrates
    • By sourcrates 5th Aug 17, 4:40 PM
    • 12,477 Posts
    • 11,869 Thanks
    sourcrates
    • #5
    • 5th Aug 17, 4:40 PM
    • #5
    • 5th Aug 17, 4:40 PM
    Hey,

    Thanks for the reply I've just had a wee look, but I live in Scotland so it wouldn't be available... it says that in Scotland the equivalent would be "Minimal asset process (MAP) bankruptcy". If possible I'd want to avoid bankruptcy, purely just because I feel I can do this, if I'm strict with myself (and my other half)! While I have no assets just now I do want to try and own a flat in the future and 6 years is quite a while.

    I just completed the SOA and currently I have a shortfall of £370.40 a month, so I guess that explains how I got in this state. I'm not sure if I should post it here or not as this month is my last month with such high rent and council tax/ utilities etc. Maybe I should do one for how things will be? I don't know :S
    Originally posted by lonelyrat
    Ah bonny Scotland, right, well its not actually full blown bankruptcy, despite the name, its no where near as severe as that, its a lighter form of insolvency.

    Its good you want to clear the debts, but if at any time its all too much, you can re-concider your options.

    It would be helpful to post your SOA on here yes.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
    • FatVonD
    • By FatVonD 5th Aug 17, 5:23 PM
    • 4,953 Posts
    • 19,649 Thanks
    FatVonD
    • #6
    • 5th Aug 17, 5:23 PM
    • #6
    • 5th Aug 17, 5:23 PM
    I have no one to talk to about all this as the other half doesn't care about our finances so much.


    J X
    Originally posted by lonelyrat
    I'm sure he doesn't all the time he has you paying his rent and taking on all the debt in your name. Tell him to get a frikkin job, any job, and start pulling his weight!

    (Please take the above in the 'tough love' spirit it was intended from some wearing the T-shirt)
    Make £5 a day in November £36.28/£150 (October £288.52, September £374.30, August £223.95, July £71.45, June £251.22, May£119.33, April £236.24, March £106.74, Feb £40.99, Jan £98.54)
    • Toonsy
    • By Toonsy 5th Aug 17, 6:17 PM
    • 64 Posts
    • 35 Thanks
    Toonsy
    • #7
    • 5th Aug 17, 6:17 PM
    • #7
    • 5th Aug 17, 6:17 PM
    Good on you for having a plan and hopefully you can stick to it.

    Next work on a plan to get your OH off his backside and bringing something to the table rather than doing nothing and not caring about the consequences for you.
    • Geoff1963
    • By Geoff1963 5th Aug 17, 9:19 PM
    • 1,056 Posts
    • 677 Thanks
    Geoff1963
    • #8
    • 5th Aug 17, 9:19 PM
    • #8
    • 5th Aug 17, 9:19 PM
    we're going to move in with his parents while "I" try and bust this debt
    Sounds like it should be more of a joint effort. If your OH has no paid employment, he should have plenty of time to do all the household chores.
    • zippygeorgeandben
    • By zippygeorgeandben 6th Aug 17, 12:00 AM
    • 709 Posts
    • 888 Thanks
    zippygeorgeandben
    • #9
    • 6th Aug 17, 12:00 AM
    • #9
    • 6th Aug 17, 12:00 AM
    Your OH sounds totally irresponsible and quite frankly you'd be better off without him.
    End Sep 2016 End Oct 2017
    £8236.57 £0
    (Tesco 4.8%) £0pcm
    £6185.75 £0(Zopa 4.0%) £0pcm

    £5344.50
    £2610.04 (Sainsburys 0% until 06/19) £140pcm
    £2000.00 £1066.69 (Sister 0%) £133.33pcm

    Total debt
    £19.766.82 £3676.73 Original DFD May 2019.
    • Tarambor
    • By Tarambor 6th Aug 17, 12:55 PM
    • 1,615 Posts
    • 1,108 Thanks
    Tarambor
    I'm impressed you were able to get that much credit on the income, but your credit rating is probably more developed than mine (I'm in the early days of stoozing)
    Originally posted by MatthewAinsworth
    My take home isn't much more than the OPs and due to several years of almost annual upgrades of credit limits I've got around £30,000 available to me on credit cards.

    The saving grace for me is I see them as tools and have them purely to take advantage, i.e one for cashback, one for spending abroad, one for a large purchase at 0% I used so I could leave the money in the bank instead earning interest. It is a cold day in hell if I ever pay interest on a credit card as with the exception of the 0% they're all set with DDs to repay in full and the DD is set on the 0% to ensure that it is clear by the end of the free interest period.
    • lonelyrat
    • By lonelyrat 10th Aug 17, 8:17 PM
    • 23 Posts
    • 62 Thanks
    lonelyrat
    Hey guys... Thanks for all the replies and sorry for the radio silence, works been a bit mental. I did a SOA again but feel i'm being too optimistic with regards to what I spend on a food shop and bits and bobs. It's payday next Thursday so I'm going to write down everything I spend so I can complete a proper one that actually reflects my spending. I've got a Monzo top up card so I'm thinking I'm going to put what I think I should be spending per month on that and ideally not go over it.

    I do feel like I've maybe made my other half out to be a lot worse than he is! He has applied for loads of summer jobs but keeps not hearing back from interviews. If he had any money then he would contribute and he feels pretty crappy that he can't at the minute. He starts university again in September so will have his own money coming in as of then. That'll take the pressure off my income a lot and free some more up for clearing the debt. He does care about our finances as well, but takes a sort of "well theres nothing I can do" attitude and buries his head in the sand.
    Last edited by lonelyrat; 10-08-2017 at 8:22 PM.
    • bargainbetty
    • By bargainbetty 11th Aug 17, 1:11 PM
    • 3,101 Posts
    • 7,142 Thanks
    bargainbetty
    Rather than just applying for jobs, he should be registering with agencies. They will have spot work (bars, events, office hours, everything) and he will need to be available and ready on a daily basis.

    I am aware that finding part time work can be hard in a student area, but he can and should be doing more to bring in a share of the bills.

    As soon as you have cleared enough on the 0% Santander card to transfer one of the others over to it, do that. Once it is cleared you could call the provider and ask for a balance transfer deal from them. So, if you cleared Barclays, you might get a lower rate to transfer the Capital One over. Keep the payments the same, but bust down the debt faster.
    Some days, it's just not worth chewing through the leather straps....
    LB moment - March 2006. DFD - 1 June 2012!!! DEBT FREE!
    MFW - Joined May 2012, aiming to cut the mortgage by an extra two months every year. (Overpaid £3000 so far)
    , only 11 years to go.

    • MallyGirl
    • By MallyGirl 11th Aug 17, 1:51 PM
    • 2,035 Posts
    • 6,868 Thanks
    MallyGirl

    I've also got a Very account which has a balance of £288.98 which is BNPL until 04/05/18.
    Originally posted by lonelyrat
    I would keep this date in your mind. If you haven't paid this off in full by the end of the BNPL it is not that you will start to pay 39.9% interest on the remaining balance, instead you will be charged interest on the full amount from the order date. It effectively cancels out the 0% deal. Beware. This board is full of Very customers who have been hit by this. Once you have cleared it close the account and never open another one.
    • lonelyrat
    • By lonelyrat 8th Sep 17, 3:36 PM
    • 23 Posts
    • 62 Thanks
    lonelyrat
    Hey everyone!

    Updates for last month


    Capital One (1) 329.51/ 404.25
    Capital One (2) 166.66/ 179
    Barclaycard 387.89/ 390
    Overdraft 1 1800/ 1950
    Overdraft 2 400/ 450
    Santander CC 2769.33/ 2770.90
    Loan 664.54/ 770
    Very BNPL 288.98/288.98

    Total Debt 6806.91 / 7203.13

    Things are going somewhat to plan... my idea was to have the Capital One (2) and Barclaycard down a wee bit more but unfortunately I overcommitted myself with the other payments and ended up having to put stuff on the Capital One. Rookie error.

    I also have my Barclaycard set up as my only card for Apple Pay which I use at the vending machines at my work. I think I will remove this though as I didnít think the odd coffee or diet coke here and there made as much of a difference as it did Ė but clearly it does! I paid £25 off it and then a dd still came out for it for £10.08 so thatís about £35 Iíve spent just on coffees and diet cokes and itís still a week and a half to payday! Thatís shocking I canít make it through the day without my diet cokes so Iíve just got a cool bag and some freezy packs off amazon and Iím going to bulk buy and take into work. Fingers crossed this saves some money :/

    Thanks for the advice with the BNPL Mallygirl. I double checked it and itís definitely not up until May but from my spreadsheet and planning I will have it cleared by December. Iím focusing more of my attention on the other debts at the moment as the Very one doesnít cost me anything *just now*. I had no idea that they took interest on the full amount though Ė thatís pretty scary! As soon as it's paid it will be getting closed. I only purchased one thing on it which was a gift, because I just couldn't afford it otherwise. I haven't used it for anything since then and don't plan to.

    I did consider busting the Santander card and then balance transferring my debt to there but it didn't seem to work out any cheaper. The smaller credit cards will be paid off as of October anyway (if nothing goes horribly wrong).


    Got some good news yesterday! Getting a pay rise of just over £2000 a year so that should help make a bit of a dent in this debt Looking at what my new monthly take home is going to be it looks like itíll be what I make when I do overtime so that takes a bit of the stress off. I probably will continue to do overtime when itís available though (even though it destroys my soul a wee bit!)

    Pay day in a week and a bit and this month Iíve got a bank holidays worth of overtime (roughly £200) plus a bonus of £650 coming my way so this is the month that I can really make an impact.

    We also just heard from the letting agent that theyíve found someone for our flat Ė so weíre going to get a bit of this months rent back. Also just need to wait to hear back about the deposit as that was £750. That is all going to my partner as he had originally paid it but I think he will give me some of it as well.

    My tentative plan for after payday is as follows:

    Capital One (1) £329.51
    Capital One (2) I will pay £100 off this when we get rent/deposit back then pay £66.66 with my next wage
    Barclaycard £250
    Overdraft 1 £400
    Overdraft 2 £200
    Santander CC £114.50 (This is my monthly rail ticket (£89.50) plus a £25 payment. I get cashback if I use this card for the rail ticket so thatís why Iím using it)
    Loan £102.81
    Very BNPL £25

    Total Debt next month should be 5318.43/ 7203.13

    Feeling optimistic as this will mean I have paid off my two Capital One cards (my highest interest cards). After this is done the focus is on getting Barclaycard down, clearing Overdraft 2 and flinging everything spare at Overdraft 1.

    I usually keep all my money (apart from ddís which I get cashback on in another account) in Overdraft 1 to reduce interest payments but it is too easy to think of it as my money and not a debt payment so I have just opened a Monzo current account and I will just fire my monthly spending in there. That way I can treat the overdraft the same way as the credit cards and it should make things a bit easier.

    This month is the month my OH starts back at uni and gets some SAAS so things are looking up on that front as well

    Jx

    • lonelyrat
    • By lonelyrat 8th Sep 17, 3:37 PM
    • 23 Posts
    • 62 Thanks
    lonelyrat
    Sorry for yet another ramble! Writing it all down helps me stay focused a bit better

    Just removed my Barclaycard from my Apple Pay. You will not beat me vending machines!!
    • MiMi66
    • By MiMi66 9th Sep 17, 12:35 AM
    • 174 Posts
    • 531 Thanks
    MiMi66
    You've made a great start!! Very inspiring!! Keep going ������
    MiMi66 01/10/17 NWCC: £4840/£4974; NW loan: £9400 /£10097 - 3.4%; M&S:£5902 /£6502; VIRGIN: £6885 / £7096; Halifax: £9125 /£9485;
    =
    £36152 / £38154 Amount pd off cc £2005
    DFD 01/04/2022 53/55 payments to go!
    Mtgage1 - £75102/ £107K
    Mtgage2 - £12900/ £19K Overall M'gage £88002
    Overall Mortgage and debt - £124154/(£127451 30/08/17)
    • lonelyrat
    • By lonelyrat 9th Sep 17, 1:20 PM
    • 23 Posts
    • 62 Thanks
    lonelyrat
    Hi MiMi! Thanks for the encouragement... it still feels overwhelming and each little setback feels bigger than it is

    I've just had a browse through your thread and am sorry to hear about your ill health! I can't imagine trying to deal with this ON TOP of that so kudos to you! If I can figure out how to subscribe I will do and I'll be cheering you along

    Today was supposed to be a cheap day for me as I'm skint (£4.53 left in my (non overdrawn) account) but a friend from work has been having a hard time recently and she wants to go for lunch. I can't say no so will just need to order the cheapest possible thing on the menu.

    I'm feeling so impatient for payday... 9 days to go. Need to try and make my £4.53 stretch as I don't want to use one of the credit cards!
    • lonelyrat
    • By lonelyrat 19th Sep 17, 9:38 PM
    • 23 Posts
    • 62 Thanks
    lonelyrat
    PAYDAY!!! (has been and gone)

    Ok! Itís felt like an eternity coming but I made itĖ my take home this month was £1777.54 thanks to the bonus and (the dreaded) overtime so things are looking pretty rosy for once.

    The majority of this is going to my debt but Iím going to give myself £400 that isnít allocated to debt or other committed monthly expenditure to spend on good food and drink and maybe some work clothes. I also need to get some work out clothes as Iíve decided its time to diet and get myself in shape as well. One challenge isnít enough clearly!

    Itís been a wee while since Iíve treated myself but I still feel a bit guilty spending money. I feel like every penny should be going to my debt and I shouldnít spend anything as Iím in such a mess. BUT everything I own is tatty and I feel a bit of a fraud at work Ė I feel like I donít look successful and therefore will never be successful. Iím also thinking of getting a haircut! Something I havenít paid someone else for since 2015. Iím hoping this will help improve my mood which has been increasingly low.

    Anyway Ė New balances!
    Capital One (1) 0/404.25
    Capital One (2) 0/ 179
    Barclaycard 276.38/ 390
    Overdraft 1 1200/ 1950
    Overdraft 2 300/ 450
    Santander CC 2737.69/ 2770.90
    Loan 561.37/ 770
    Very BNPL 263.98/288.98

    Total Debt 5339.42 / 7203.13

    It does feel so good to be paying this off and I feel so lucky about the situation I am now in. Weíve come to the end of our tenancy and have skelped it back to my partnerís parents (Iím 26 and living in a spare bedroom sigh) ...itís taking some adjusting to but I will be able to throw a lot of my wage at the debt I have. His parents are being wonderful and only want us to pay utilities and no rent. This is obviously amazing but I do feel guilty. My OHís sister, her boyfriend and their child moved in as well so itís been a bit of a madhouse. The reason they moved in was to save for a deposit. Theyíve been successful in doing this and have just got the keys to their first house! Itís so exciting for them but makes me feel a bit useless... theyíve moved here with a clear purpose whereas weíve moved here to get out of a mess entirely of our own making.

    Anyway Ė again Iím rambling. My next steps are as follows:
    1. £400 per month to Overdraft 1 Ė this will mean it is paid off in December which is when a normal rate of interest will start on it.
    2. £100 per month to Overdraft 2 Ė this will mean itís paid off in December.
    3. £150 to Barclaycard in October then the remaining balance in November.
    4. £25 to Very Ė I do know this is a bad debt (and if anyone is reading this I'm sure they will be calling me a numpty) but at the moment is interest free whereas some of my other debts arenít. The plan is £25 till November when I will increase to £50 then in December I will pay the whole of the rest of it off.

    One thing I am concerned about is burning out. Right now Iím so focused Ė I read MSE every day and I have a comprehensive spreadsheet I update daily and I import to my phone to update on the go. Iím just worried I canít sustain what I plan. This month I have given myself some Ďfreeí money in the sense it isnít tied to a specific budget. But I wont have that luxury any other month (apart from March next year when I may receive another bonus). My plan is to be mostly debt free by December with just my loan and the Santander CC still to go. I am just fearful I lose track of what I am doing or something unexpected happens and I canít stick to what I plan
    • Rachel24
    • By Rachel24 19th Sep 17, 10:00 PM
    • 96 Posts
    • 342 Thanks
    Rachel24
    You're doing amazing lonelyrat.
    If your partner gets the deposit back of £750 could he not give you the money so you can clear overdraft 2, very and most of barclaycard. I know he paid it but he's not working and all the money is down to you plus I'm assuming your at his parents to save and move out again at some point together in the future.
    The £750 would make things a lot easier for you.
    Also have you thought about survey sites? Prolific academic is great. I work full time and I've had the survey site for less than 2 months and got over £80 from it. It helps having some extra cash that way.
    • HairyHandofDartmoor
    • By HairyHandofDartmoor 19th Sep 17, 10:04 PM
    • 1,930 Posts
    • 8,497 Thanks
    HairyHandofDartmoor
    You're doing very well so keep up the good work. Once the debts are paid continue to live with your boyfriend's parents if you can, until you have some savings as a buffer.

    I understand the temptation to buy clothes to boost your confidence at work (I've been there and done that) but don't go overboard as the debts should take priority.

    Remember once your boyfriend graduates and finds work you will be better off financially, so you won't have to live so frugally for ever. Although if you want to save up for a house deposit then frugal living is a good habit to learn.
    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
    Emergency Fund 1 = £678/Emergency Fund 2 = £140
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