Rinas debt diary

csarina

I have been reading the various diary entries and I think I need to do the same thing.

We have been dealing with debt for almost 5 years and are coming to the end, but it still seems to be going so ssssllllllooooowww.

At present our debts stand as follows:

O/D Balance at the end of December £1242- 74
Loan finishes 01.07.09 £1100.09
Loan finishes 14.12.2009 £1322.34

Car Loan 3 years still to go £5848.85

Total £9514.02

At one time it was over £30.000 so we have paid off quite a bit. The O/D will be cleared by the end of March, as things stand so every spare penny will be going into getting the O/D paid, its costing us about £20 a month in charges and our bank account also charges £17 a month, so once the O/D is gone I will be down grading the account to an ordinary one.

The payments on the two loans are up to date, we have never defaulted on any payments so when the first one goes I will be putting the money into an account to build up and pay off the car loan as quick as possible. The same with the payment from the second loan which finishes in Dec 2009. Once what I have in the bank equals the balance on the car I will pay it off in a lump sum. I might look at a cash ISA for this.

In the mean time any extra money I get will go into an emergency account, to pay any unexpected bills.

We have an account with Nationwide into which I transfer by DD the money each month for car tax, insurance, MOT, mechanical breakdown cover and servicing. So I have the cash when the bills fall due and do not have to pay extra charges for paying by monthly instalments.

Our contents insurance also goes into a separate account so I can pay the whole premium.

I have a Tesco CC which I pay in full each month, but I am going to put it in the freezer. I draw cash for shopping, OH’s spending money and diesel for the car. Do a big shop once a month with a menu plan, and we have a chap who comes round with fruit and veg. (Tesco’s fruit and veg is rubbish) We grow quite a bit of our fruit and veg needs on our allotment, but just how long we are going to be able to do this I do not know as OH has just been diagnosed with vertingous migraine and they are having a job stabilising him on medication. Right now we are not using the car as much as we would so I am cutting the amount I draw for diesel, a bit more to throw at the O/D.

All our bills are paid by DD from our current account, so that’s not a problem. I realise that we are not in as much debt as some people but for us its something we want to be rid of as soon as possible in view of our advancing years.

RAS

csarina wrote: »

. The O/D will be cleared by the end of March, as things stand so every spare penny will be going into getting the O/D paid, its costing us about £20 a month in charges and our bank account also charges £17 a month, so once the O/D is gone I will be down grading the account to an ordinary one.

welcome and well done for clearing so much debt.

have you looked at
1. reclaiming all your bank charges?
2. Reclaiming any charges on credit cards and loans?
3. if you had PPI on any loans have you reclaimed that if appropriate? You might want to keep it is it covers OH or to take out separate cheaper cover but if it was included in the loan, i would query it.

csarina

I have never incurred any bank charges, we have to pay interest on the outstanding amount, but it is gradually going down as the months go past. The O/D was authourised and I have never gone over the limit. I had it paid off but then we moved into a sheltered housing complex and had to have carpets etc, it cost us £800 to move less than 1/4 mile. We off set quite a bit of expenditure by selling stuff through the paper and ebay, but quite a bit went to Age Concern as well. We down sized from a 2 bedroomed house to a one bed apartment. The £17 is the account charge and gives us AA cover and travel and credit card insurance, but once the O/d is paid I am going to downgrade to a basic account.

No charges on CC's or loans always been paid on time and in full.

No PPI we are retired so that was not a problem for us. OH is 75, so no chance of any sort of cover from him LOL.

csarina

Yesterday was a no spend day, even though I had to go to collect a script from the chemist and spent 20 minutes walking round Wilkinsons, my purse stayed firmly padlocked in my bag. Today will be the same, no plans to go out at all.

I wish I could get a statement out of Black Horse for the car, I think the loan was front loaded with interest, it would give me an idea of how long I would have to put money aside for to pay off the car. When I asked about a statement I was told they do not send statements...........

I can check the two loans on line.........both of them are at reasonable rates as is the car all around 8%. I did ring and ask about paying off one of the loans early and was told there was a penalty of 2 months interest, so I'll leave that alone and jus let it run.

Meantime I have £14 in my HK purse to last to the end of the month, will just need to buy milk OH is having a milk drink each night at the moment. We have veg left at the allotment and as he is poorly OH will get a basket of fruit for Christmas from the Bowls Club he belongs to for Christmas....will need to get apples, pears , bananas, grapes and some salad stuff when the veg man comes this week.

csarina

Today has not been a no spend day, I went to B &Q to get the supports for 4 shelves for the bedroom, cost £57 but I did get a £5 voucher to spend in January..........

I have to go and get screws from Wilkos for the shelves and also to Mr T's need a few bits from there and its veg man day tomorrow..........

I have checked the bank account, all is ok there. I see they are forecasting that the interest rate will go down to 0% how on earth are we expected to continue trying to save money when there is no incentive, you might as well put it under the carpet until the interest rate improves. It is going to hit pensioners living off savings very hard.

4littleone

Hi,

just a quick reply on the run! Black Horse do give statements. You have to push but they will do it. You are entitled to one under the data protection act anyway if you ask.

csarina

Thanks for that 4littleone, I will ring and insist they send me one, it will allow me to see how much I need to save to pay the car off.

whatatwit

Hi Csarina :hello: sorry to hear OH is still not well, although at least if they have managed a diagnosis it's something.

Did you manage to get any money back from cancelling your trip that you had planned?