Tackling our debt....at last

themaccas

Hi all
I'm sooooo glad to have found this website, I've been lurking for a few weeks and the support you guys give to everyone is amazing and has been a real inspiration to me. We have been in big debt now for some time due to several factors - I took 3 years out to retrain in a new career but mostly it has been through stupid spending which is something both I and hubby love to do! I got our bank account sorted last year and the bouncing DD's and SO's and awful letters from the bank stopped. However our debts were still mounting and I had no idea how much we owed or the apr's. About 3 weeks ago I took a deep breath and sat down and had a cup of tea with our debt, it was 50% higher than I thought! I though it would be around 22k instead it was 34k :eek:
We both earn good salaries and the 3 years study really paid off literally and I have set up a master debtbusting plan to rid ourselves or debt as soon as we can. This month we will be able to pay approx 2k off our debt leaving us around £760 for food/petrol/spending money which will be doable I think for a family of 5. I'll let you know how we get on! :j :j :j :j :j

JAMIEDODGER

hi the maccas, well done for posting!!! its a very brave thing to do. you might like to post a list of all your regular outgoings so that the brilliant people on here can have a look and see if there are any ways to reduce your bills, giving you more income to pay those debts off...bringing your debtfree day closer!!

themaccas

This is what we currently owe:

CREDIT CARDS monthly amount / o/s balance / APR
MBNA 100/ 4755.01/ 0%
Co-op 140/ 6794.62/ 14%
Sainsburys Bank 250/ 7545.9/ 5.9% (lifetime bal)
John Lewis 100/ 901.42/ (pay off each month)
Next 39/ 328.88/ 29%
EGG 100/ 2670 / 0%
Other storecard 20/ 294.18 / 29%

LOANS
Northern Rock car loan 174/ 3372.22/ 20 months left
Halifax Car loan 313/ 4655.71 /17 months left
Black Horse 74/ 449.46/ 6 months 0%
First National 54/ 1396.39 /26 months left 0%

Morgan Stanley 0/ 673.73/ just paid off!

TOTAL DEBT 1364 / 33837.52

We are just changing over the co op to a amex lifetime balance card, our priorities next month are - paying for our car insurance in a lump sum - £480, (we had 2 accidents last year in the space of 6 weeks and this is the cheapest quote), thereby saving nearly £50 in interest charges and paying off the storcard. I have been able to do extra shifts at work and have booked to do 3 next weekend as I am on holiday the following week.
:j

JAMIEDODGER

sounds like you are really well organised! dont forget to write to those companies you have paid off and close those accounts. its great that you are hammering those at the highest interest first!

themaccas

Thanks jamiedodger
When we were looking at the many credit cards we had, we discovered we had another 4 that we never used and had nothing on them so we cut them up and wrote to the cc companys. Last week hubby got a call from Barclaycard wanting him to keep the account, he said no and they offered to keep it dormant - just in case he wanted to use it in the future. From what I have read on here that will still keep it open? He didn't know any better - bless :mad: and said yes. I have told him when their confirmation letter comes to phone them back and to CANCEL the account. We have cut up all the cc's except one and have only kept that because hubby sometimes has to go overseas for work at very short notice and needs one for expenses. It's a great feeling paying off a debt isn't it?
:T :T :T to all on MSE

pineapple_beach

You are doing a great job in facing up to your debt, which I think is the hardest part initially. If you keep plugging away at it though, you will get there. My debt is now a third that it was 18 months ago, now £8000, which seems more manageable, and the end seems to be more in sight. In the meantime I am training myself about spending less each month, so that I will not get myself into this mess again!
Best of luck.
p_b

themaccas

Wow, well done it's great to hear success stories like yours how did you do it? You're right about educating ourselves though, I never want to be in this situation again. I think crunch time came at Xmas when we were looking at booking flights to Vancouver in the summer for a 2 weeks holiday. WE had our whole holiday planned. Last year we spent nearly 8k on a family holiday to Florida, not on cc's we had saved up for it. Although I have no regrets about going last year we are no longer going on holiday this year, our debts are the priority, holidays are a luxury and there will be no more until the debt has gone.

Although we have a family tent and I expect we'll go camping in the summer

Actually because we were saving for Florida, we probably spent more on the cc's so I guess the holiday did contribute to our debt :rolleyes:

JAMIEDODGER

http://www.whatsthecost.com/snowball.aspx

this is a good site for finding out your debt free date, i worked mine out and now im gonna try and beat it!!!

bank_of_slate

Hi the maccas!

It's fantastic how you have taken control and sorted things before they get too out of hand.
Clear the high APR's first as they snowball the most.
Perhaps as a goal you should start planning a really fantastic family holiday for '07 or '08 This will give you a goal at the end of the tunnel.
Welcome to MSE and keep posting, we're not here to judge, just to help.
...Linda xx

Penny-Pincher!!

Well done for posting! You will receive loads of help and support from this site. Any questions-just ask away..LOL

Good Luck

PP
xx

Bokken_2

Quick check out Virgin car Insurance had a flyer through the door yesterday saying they would beat any quote.
sorry no further details as I have shredded it now.