No more credit cards!!

Miss_Piggy_2

Myself and my partner have been burying our heads in the sand for a while.

I have been on a DMP for nearly 2 years now and, whilst I find it hard, I have managed.

However, my husband has now admitted he can no longer cope with the rising interest rates and is going to have trouble meeting minimum payments on cards (he has approx 16,000 debt).

I have immediately confiscated his cards and have registered him with CCCS for a DMP. We have a young child and I don't want us to get deeper into debt than we already are.

My question is, how have you all coped with being completely dependent on your monthly incomes with no credit cards to fall back on. Whilst I'm happy to cut them all up, it really scares me if we get big bills in (for say car repairs or dentists!)

sarriep

I'm a bit worried too Miss P but after all it's using them cards that got us into this mess! I think it's a whole new way of thinking about money and making sure you allow enough to save for unforseen circumstances. We're not starting our DMP until November because we have 2 cars to MOT and tax very soon and we wouldn't have enough in the 'car' bit of the fund. We've opened a new account and it's SO NICE to see all of my wages sitting there (as opposed to them just paying off the OD every month!)
I've read that if you have an emergency it is possible to reduce your repayment for one month on your DMP if you have to - talk to CCCS about this. I'm hoping however that we can manage any emergencies. We might change our mortgage to interest free whilst on the DMP and use the difference as an emergency fund/ F&F settlement fund. Not quite sure how it will all pan out yet as we haven't started!
Sx

Miss_Piggy_2

Thanks Sarriep. Its very easy to think we are the only ones in this situation!

You're right about the wages thing....when I started my DMP I used to check my bank account every day just to marvel at it being in credit lol!!!

I've told my husband we HAVE to put money by each month for car expenses and I WILL be taking it off him when he is paid and putting it away where he can't get to it.

Awful way to have to be at our age but thats what we get for all our needless spending when we were younger.

MrsPorridge

Hi Miss Piggy. I've just stopped using my credit cards and you are right, it is scary. I have to be honest though I have kept one just in case. However, this card is kept at the bottom of a cupboard at home. Its quite an awkward place to reach. It takes me a while to get the card so therefore gives me time to think before I use it. When it was in my purse I would just use it. But now no more!!

I now save a little bit each month towards those "unforseen" things which may happen and use that money instead.

Once I have paid off all my outstanding credit cards I will then cut up that "just in case" card - because once all my outstanding cards are paid off I will have loads of money left over each month.!!

Good luck.

Miss_Piggy_2

Mrsporridge I daren't have a standby card. I know we would use it. Because we are useless!!!:rotfl:
So I'm cutting them all up. If we have a major bill then we will have to work round it. Am already persuading OH to change to a smaller car with less tax and insurance etc.
Just scares the hell out of me! Out on a limb so to speak!

doodledo_2

I know exactly how you feel. When I got rid of my credit cards it felt so scary but now several months down the line I love it. Our only issue is it doesn't take much to happen for us to really struggle. Such as an MOT or car tax.

We do it though we just have to decrease the debt payments and have a lean month.

I couldn't keep one for emergencies either as I have run my cards up twice and I WILL not let it happen again.