My Get-Out-Of Debt Beginnings!

Legacy_user

I'm a bit excited -- I have been reading these message boards a lot over the past 2 months and it has given me the courage to get off my bottom and do something!
8)
We are about to start the long process of getting out of debt.... Between us, my fiance and I owe about 50K. His is being managed by Gregory Pennington (which I have written about in another post) but we plan to stop that and do it ourselves. Meanwhile I am trying to stop my credit cards from escalating and begin to actually clear some debt.

I have just got a 8K Flexible loan from cahoot (0% til March of course) which I am going to use as a "Holding" Account -- 2 of my CCs are opffering 0% on BTs -- Liverpool Victoria for 6 months and Egg in the anniversary month thing?! I also have Barclaycard on a 3.9% for life balance too. So I plan to clear Egg and LV and then max out LV with a balance transfer. Then when my anniversary comes, transfer any remaining balance from Cahoot to them. When the 0% are up, I'll go through it all again, with Barclaycard this time if I can get them to agree the same low balance for life. This way I can continue paying the same amount as I am now, but I might actually pay off some of the balance!

I know we have a LOT of work to do, still, but it is SO good to have made a step in the right direction, rather than hoping it'll all just go away! ;D

Wish me luck?

Kat

Robert_Sterling_3

Good luck Kat.

Cullumpster

Good luck Kat

Hope it all goes ok for you

System

Thanks guys

System

Hello again

So I have just cleared both my egg card (£2800) and Liverpool Victoria (£4500) with the cahoot Loan. Now to wait a few days for everything toclear and then balance transfer it all back to Liverpool Victoria with a 0% cheque! ;D
By the way, by doing this and paying the same amount off every month I will effectively be repaying double what I have been doing as most of my payments have been swallowed up in interest!

I love reading this site and am always reading other posts to look for more advice!

Thanks to everyone!

Kat

Edinburghlass_2

Hi Kat

I haven't read your other post so you may have dealt with this in that post but have you looked at why/how you got into debt in the first place?

I guess Christmas isn't the best time to start cutting back on food, going out, treats etc but perhaps you could look to that in the New Year. Have you look into reducing your utilities and food bills? Loads of great threads on MSE about doing this and of course buy yourself Martin's book and work out your plan of action. Now you have started there will be no stopping you, one small step and all that

System

Hi EdinburghGlass

Most of my debt came to me courtesy of my divorce 5 years ago in which I was royally stuffed!
Then my current partner lost his job and the debt started increasing rather than decreasing. I believe the technical term for this is spending more than you are earning THis was our own stupid fault really but we have but the brakes on that now!

I then stuck my head in the sand for quite a while ???
Now we have managed at least to stabalise the debt and we are starting to pay it off slowly -- We have changed energy providers.. I got a car park pass rather than paying for parking daily (saving us £80 a month) and we are shopping in costco and asda etc to bring down the cost of food bills. I have also cancelled my dvd rental membership (what's the point in sopending money when youhave lots of friends who will LEND you stuf!)

i am also checking my credit card statement religiously and ringing them up if Isee any problem and whinging a LOT too!

It is a slow and painful process but I am starting to use all the ideas given on these boards where I can!

Thanks for your comments though -- It IS scary how easy it was to get so far into debt (we owe somewhere in the region of 50K all in) I feel that I'm doing something constructive about it now though

Kat

robnye

what a good way to start, with the bt to liverpool vic 0% deal

well done

good luck with the next step....

Milky_Mocha

That's excellent, Kat. Good luck. With that much determination you deserve to be debt-free much quicker than otherwise.

You could also buy Martin's book. I haven't read it myself but plan to get one soon. Apparently it has several practical steps to cutting cost, etc.

Have you set up a spreadsheet? I did that and it is amazing how much you will learn. Unfortunately by doing this you could find out for instance that you are actually in more debt than you thought!

You would also be able to see realistically your "expected debt-free date" and that would be the light at the end of the tunnel.

Keep it up.

Martinslovechild

I totally agree. Well Done and Keep Up the Good Work

You could also buy Martin's book. I haven't read it myself but plan to get one soon. Apparently it has several practical steps to cutting cost, etc.

It's excellent - by far, the best financial book i've ever read. You can find the cheapest price here

Have you set up a spreadsheet? I did that and it is amazing how much you will learn. Unfortunately by doing this you could find out for instance that you are actually in more debt than you thought!

You would also be able to see realistically your "expected debt-free date" and that would be the light at the end of the tunnel.

Download Martin's budgeting spreadsheet here. You really need to use it in conjunction with the book, but it should make sense. There's a downloadable excel spreadsheet version and an online web version too.

Good Luck.

MSE_Martin

Can I just say good luck too. I do hope it works for you.

Do feel free to use this discussion as your personal debt diary. Obviously keep any too personal info out so no one can recognise you but if you put updates of where you are - people can suggest solutions and be supportive. It worked for Rochdale guy and i hope it works for you.

When we re-do the boards I want to start a Debt Free Diary board for exactly this purpose

martin