Our story.... just a niggle that I need help with now?

rubydoiwannabee

Hi everyone,
Well I have been around for a couple of months now and here is the story so far....

At the end of May when we realised the CC and OD were close to there max and we weren't going to get through the month without charges and/or something not being paid (to date this hasn't happened) we decided drastic action was needed.

We spoke to NDL and started considering a DMP, we got as far as our formal budget interview and agreed with NDL that we only had £105 a month to pay towards our debts. £26K when we started. It was a really scary, stressful time as many of you know. Anyway, something stopped us from biting the bullet and filling in the forms and I came to this site to see what the good people on here had to say.

Everyone was sooooo helpful, and one person (Merlot) really got us thinking and examining our monthly SOA. Thanks to this site and this site alone, we made the decision to not go for a DMP but to try and get by with discipline, less spending and the changes. We reworked our SOA to include our debts and this left us £400 a month short, and it was this SOA that I posted on here. With all the suggestions and guidance and the following massive changes:

1. Mortgage converted to repayment only to allow us to concentrate on paying off the debts. Cutting £300 a month off the deficit.
2. Cancel every insurance that wasn't vital, e.g. fridge, mortgage protection, charity donations, etc.
3. Get requotes for everything that was left, Another £70 a month off the deficit
4. Drastically cutting our food budget every week, started menu planning and only buying what we need. We have gone from spending £100 approx a week to £60. This has cut another £100 approx a month.

All the above along with OH cutting down dramatically on smoking, we only withdraw £170 cash a week to cover our (huge petrol costs, we both have 25 mile round trip each day), groceries, parking and we have £10 a week each for emergencies has made the world of difference to us.

We opened a new bank account and transferred our wages (well so far only OH's weekly wage) my monthly due to go in tomorrow and all ddm and so over. This account hasn't got an OD facility and we have DONE IT one whole month in CR with everything paid. I have even budgeted for the OD we left behind to have £70 a month paid to it from the 1st August.

I wouldn't have believed a few months ago that we could get through a month without an overdraft, that we would all survive happily on value goods, that I could sleep better again and that there was a way to continue positively.

I have snowballed and we are looking at 4.5 years before we are debt free, so I know this really is just the beginning.

So (and sorry this is sooo long) here is the downside
We still owe the following:
First Direct OD: £4950
First Direct CC: £6500
Next: £355 (paid off this month onto a 0% CC)
HFC Bank £810
Halifax Loan: £12700

The thing I am most worried about is the OD, we have left this account now and it will only be a matter of time before FD start kicking up, once my salary has successfully gone into the new account tomorrow I intend to write to FD and ask them to put the whole debt for both CC and OD on one account with a lower or now interest rate. What do you think my chances are? Any other suggestions?

Next was the highest INT rate and I am aiming to pay that off before the 0% rate comes to an end in Feb. I am currently exploring whether I can then overpay the HFC amount (this was for an electrical item my OH bought on a whim, extorinate int rate).

I am sorry it is soo long and thank you if you have read this far, I have written it all out for the first time and it has helped to get if off my chest both as a pat on the back for a successful first month but also as a way of actually acknowledging the reality of the position we are in and now the immediate urgency is over how we tackle the long term plan.

Thanks, thanks, thanks, please reply even if just to say STOP WRITING SUCH LONG POSTS.

LOL
xxxxxxxx

bank_of_slate

Long posts are great when they are so positive!

Can you write to the bank that your OD is with and offer to repay the overdraft at a set sum per month? and would they freeze the interest?

You have made MASSIVE changes and a huge well done is in order, feels good doesn't it?
...Linda xx

rubydoiwannabee

Thanks Linda, it does feel great. I almost feel bad saying that though when we still owe what we owe!!
Yes I will do that.

kpwll

Well done you so far. There's no harm in asking, cos if you don't ask you won't know and if the answer is no, you won't be any worse off than you are now. (I hope the answer is YES tho).
Good luck with it, looking forward to the next chapter, lol. x

rubydoiwannabee

:rotfl: :rotfl: :rotfl: :rotfl: :rotfl: Ha ha linda, I have just read your location, really funny.

rubydoiwannabee

Thanks ever so kpwll, I let keep posting albeit shorter next time.

bank_of_slate

Yep, and I ain't moving!
you know what they say...location, location, location!

Have you done a new SOA since you made the changes? that might help you to re-focus
...Linda xx

RAS

Hi

Can you set up a SO to pay something off the OD every month, in addition to paying the minimum for the CC. it is quite possible that the bank will take a while to realise.

I would not recommend that you convert a CC to an OD without proper advice as the CC is fully convered by the Consumer Credit Act and the situation for the OD is different. if nothing else, banks can uysually demand the repayment of an OD in full at any time, whilst they can only expect the minimum payment on the CC.

Also, have you got stuff that could go on e-bay, amazon or to a car boot sale to knock a lump off the OD?

rubydoiwannabee

RAS wrote: »

Hi

Can you set up a SO to pay something off the OD every month, in addition to paying the minimum for the CC. it is quite possible that the bank will take a while to realise.

I would not recommend that you convert a CC to an OD without proper advice as the CC is fully convered by the Consumer Credit Act and the situation for the OD is different. if nothing else, banks can uysually demand the repayment of an OD in full at any time, whilst they can only expect the minimum payment on the CC.

Also, have you got stuff that could go on e-bay, amazon or to a car boot sale to knock a lump off the OD?

Thanks RAS, we have set up a SO to pay £70 a month to the OD and we can only manage £10 a month over the min payment to the CC for the time being but it is something. I think maybe in view of what you have said I will ask that they accept my £70 a month and reduce the interest and refer to the OD only. As you say the CC they will allow to continue as long as it is being paid, and it is.

I have been ebaying and have £38 in my paypal account, was going to add this to my xmas fund...rather than pay off debt, but could move it over to the OD.

Thanks for your response, more food for thought.

rubydoiwannabee

bank_of_slate wrote: »

Yep, and I ain't moving!
you know what they say...location, location, location!

Have you done a new SOA since you made the changes? that might help you to re-focus
...Linda xx

I have linda and I am working on it all the time, moving bits here and there. The hardest part is having enough to move over to the savings account for things like school bus passes and childcare. I have budgeted for this weekly, but in this first month, we have had to use some of it for other things, e.g. pay to get the mortgage transferred over. My car has needed £700 work since the end of May and I have had no choice but to pay it from the amounts allocated to savings and add to our CR. Grrrrrrr....

When we have done a few successful months I will repost and ask for advice and comment again, not feeling up to that scrutiny again yet!!

xx

RAS

Ruby

Please take proper advice froon eof the debt charities. There have been a number of reports here of creditors increasing the rate when a debtor contacts them becuase of the increased risk they are now aware of. I would definately pay the mininum off the CC and concentrate on the OD unless the percentage, risk and charges make paying the CC a better bet. Please talk it throught first.

You may be best off paying possum for a while.