Rocky Road to Debt Free Wedded Bliss!!

Moneytroubles_2

Hi to all that read my diary!

My story is this....

Me and my other half are due to get married in a few weeks! We still have approximately 5000 grand to pay off the wedding, some of which we have got saved up.

We recently looked at borrowing money to help us out and were shocked to be refused!

After looking at our finances we discovered we were over £20,000 in debt!!

A shock to both of us as we had never added up all our debts before, so straight away I said I would be "in charge" of our finances and try and get us out of debt in the next few years! Would like to think in 3 years as we would like to move house then, but it all depends how realistic that really is!

I have joined a couple of challenges from the board to give me some motivation and I have decided that to get me into the swing of things im going to aim to pay off our smallest debt first which is my overdraft on my nationwide account, this currently stands at £450

I am over the moon to have made a payment of £1.06 in the PAD challenge :T and can't wait to make another payment tommorow!!

As for wedding, currently looking at cutbacks to reduce outstanding balance :cheesy:

I will write here regular as its good to "talk" to someone about this, as no one knows about our financial situation other than me and other half!

Thanks for reading!

Moneytroubles_2

I've just got home from a 12 hour shift, I've not been doing my job long but I'm really enjoying it at the moment, I'm also enjoying being at work as I know i'm earning some pennies! (sad I know!)

I've made a payment of £2.00 today in the pad challenge, and i've also achieved my "Make £5 a day challenge, as I have done over time :j
I recently applied for a capital 1 credit card and after being refused by a number of companies I was accepted for one of those "Improve your credit rating cards" well it arrived in the post a couple of days ago and I have decided.............. TO CUT IT UP! (not even registered it!) :T

I had a light bulb moment and thought rather than improve my credit rating by getting into more debt, just pay the debt i've already got off - Simple really?

Hope everyone has had a good Monday, Thanks for reading

Moneytroubles X

Moneytroubles_2

Thanks for the advice Closed. I do plan on going for the higest APR just wanted to get a small one out the way first so I could see progress, and get a sense of achievement, once the overdraft is paid off I'm going for the biggies!!

Lemon_Tree

sometimes, paying off the smallest debt is such a boost that it's well worth bucking the trend which dictates hit the one with the highest interest rate. specially in the early days. Well done for cutting up the card, if you feel you cant be trusted to not use it, then you've done the right thing. I also agree that decreasing your debt is a better way or building your credit rating that spending on a card and clearing it, a lot of what counts is how much credit you have available and it will only improve with being paid off.
it's almost my wedding anniversary and we did the whole thing with cash which was such a great feeling. We had the most wonderful day, i hope you can find things to save money on or cut out.

savingholmes

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

Hi - if you use the snowball calculator at this site it will give you an idea of which debts to prioritise first.

Best of luck

Moneytroubles_2

Thanks for the replies I went to a wedding fayre at my venue yesterday and it was brilliant, I have a meeting on Saturday morning with the Wedding co ordinator and I'm hoping to take some money over with us to pay off the balance!

I've looked at the snowball calculator and really want to do it, just trying to find out all my APR's, i'm very bad for not knowing them!! so far I know that...

Nationwide Overdraft is 18.9%
Very Catalogue - 39.7% :eek:

Will add more once I know more!

edinburgher

Remember that you can call the companies concerned and ask them to send out details of their APRs, charges etc. It's the least of their trouble!

I'm with Lemon Tree re. payment order and don't think that it's necessarily the highest APR debts that you must pay off first. Logically, this is how you should do it, but humans are illogical creatures

Cashwitch

I would deal with the most pressing debts first...which one/who's shouting the loudest? If you're in a position to do it, then it sounds sensible to start with the highest APR, or you'll be paying much more in the long run.
I completely agree with your decision to cut up the card...I don't think they're a great idea full stop, but particularly for those of us who have got into trouble debt-wise! I was issued one when I was a student years ago and cut it straight up...I'm in my 30's and have never had one - I've done enough to get myself into debt without having a CC too!
Good luck and hope you have a lovely day in a few week's time!

Moneytroubles_2

Think you may be right about the APR on the Very catalogue! Im shocked!! dread to think what my other APR's are!!! Think I will set my focus on the Very Catalogue which is currently at £950!! Well at least till I find out my other rates....

ZiggyStardust_2

Hi Moneytroubles,

How have you been?

edinburgher

That makes no sense, logically you should pay off the highest apr, but you recommend ignoring logic? Any other order than highest apr first isn't snowballing, it's increasing debt.

I think that I've already covered this Yes, not paying things off in % APR order might not make strict financial sense, but there are psychological benefits to paying off smaller debts. For example:

If I owed £100 at 10% APR and £1000% at 20% APR and had £100 to spend, I'd probably pay off the £100 debt as it would leave me feeling bouyed and ready to conquer the larger debt. It's what's known as a 'quick win'.

Alternatively, it could be paid towards the larger debt, which is probably going to be hanging around for a few months anyway... I personally think that the motivational benefits of paying off the smaller debt will be worth the small amount of extra interest I'll pay in not doing things in the right order.

I never said this was snowballing.