£77,366.35 reasons to be debt free!

In_my_dreams

Deep breath.........the title says it all! That is the amount of unsecured debt we have. After years of switching cards so that's it's "ok" debt, time to face the hard cold facts and jump aboard the debt train!

Bit about me, me and OH are both in good jobs, good salaries and two fab children! Spiral of debt started when I bought my first house, couldn't afford much so turned to CC's and so the story begins. We have lived beyond our means and kept borrowing money, taking advantage of lender's eagerness to help us. Credit crunch has made me realise just how vulnerable we are and how if one of our salary's lost then we are up the creek without a paddle. Things seem ok in our industires but it has certainly made me think ahead.

The debt is comprised of two loans and credit cards, the cards are all 0% but this has just been luck and this may run out soon.

Have visited the site many times, streamlined our outgoings and had a complete overhaul. In my plan we have budgeted for food, petrol and general spends. We are also putting away a certain amount to cover the more hefty expenses, insurance, car etc. I'm ashamed to admit I've not always been honest with OH about the state of finances, said yes to things when we couldn't afford them but he is now aware of the size (huge size!!) And accepts he knew deep down it wasn't good but said nothing.

We are now in it together, throwing £1200 per month as a minimum at the debt with our DFD as Feb 2015, which sounds horrendous and unachievable but surely it is? We both get bonuses and will use these to pay off debts instead of going on holiday and ignoring the problem. We have budgeted to allow ourselves and the kids some degree of enjoyment so that we don't become too despondent during the next five year struggle.

All I really want is to make my kids appreciate and respect money and be able to support them in their education later, to get our wage slips and not see most of it go to debts and the mortgage, oh what we could do with £1200 a month!!

So if anyone could support me on the ride jump aboard, I certainly need some company and a kick up the bum!

Diana_Prince

Congratulations on taking the first step!! It's quite an enjoyable ride once you get used to it and there's some fab people on here ready and willing to give valuable advice!!

Good luck! I look forward to sharing your journey with you!

epsilondraconis

Yes, well done taking the first steps. It may be worth reading the following article by Martin as this will give you a heads up on how the credit scoring works. This could be important in seeking new credit card deals etc. The article also describes how you can check your credit file for free.

http://www.moneysavingexpert.com/loans/credit-rating-credit-score

The other thing it may be worth doing is posting your statement of affairs. This is essentially your income and outgoings. Although you have indicated that you have streamlined this as much as possible, people may be able to provide further advice.

http://www.makesenseofcards.com/soacalc.html

It may also be worth checking out the old style board for ways of cutting food bills etc. e.g. By making bulk meals and freezing...

http://forums.moneysavingexpert.com/forumdisplay.html?f=33

Good luck and keep posting.


Edit: The snowball calculator is also worth checking out.

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

Catzpaws

Hey there,

Just wanted to send a note of support. I've recently started a diary too as have come to the realisation that our £27k debt is a bad starting place to be for thinking of starting a family. We on supposed decent enough incomes, but seem to have little money at the end of the month.

Well done on taking control of finances... and good luck.

CP x

NAEFAGS

Hi
welcome i ve just start a diary too its a bad day when you work out all the debt as you can see ive clocked up a big slice of debt too. i had 7 cc one for each day lol.
the good bit is calling it a day and fighting back to get you cash back to being yours again

ta naefags

Lemon_Tree

it's definitely do able and there's many on here who are good examples of how it can be achieved. Often you can squeek a little be extra from the smallest of places, look at the challenges such as making a payment a day, or rounding your account down each day to a straight £1 figure. these all help and can be used either for extra payments or a few luxuries.

In_my_dreams

Thank you for all your lovely messages. I will post a SOA, as I have it all written down but think I'm scared of just putting it out there. I have tried to address the debt before but I think I cut back too much, so that it became a huge, horrible journey and by depriving ourselves it became too difficult.

I've tried to approach it differently this time, we've kept the gym and golf membership as we both have hobbies that we feel are important to us. I have budgeted £75 a week for general spends which we are taking out of the bank and putting in a tin and once it's gone it's gone. We are going to try so hard not to use this much at all and any left will go off the debt, but I don't want to under budget and be disappointed. I should add that sometimes we have to fork out £50 on childcare and then we can go without using childcare for months. If I set aside money incase we need childcare it prevents the spanner in the works and it all falling apart, so we're not being too frivolous in setting £75 a week aside. I've also allowed £300 for food, £150 for petrol (most is covered by OH's work so we think we can do better on this). I suppose I am trying not to over promise and under deliver kind of thing!?

Eps - I looked at that article re Credit Cards and it did worry me a little but TBH we haven't applied for a new card for at least 12 months and have been offered repeat 0% or LOB deals. I will just have to see what happens and if they continue.

Lemontree - rounding off is a good idea as it makes such a neater figure! I have the whatsthecost all set up. We are waiting for a tax rebate of about £1500 and I can't wait to pay it off something and see the figure go down.

If we pay £1200 a month then we should reduce the debt by £14,400 in a year, but I would like to aim for £20,000. Also had an informal chat with my boss today and he accepts I am due for a pay increase so maybe more good news to help deal with it.

I AM determined to do it this time, but I know it will be difficult. I have my spending diary and keeping receipts for everything and showing OH so that we are supporting each other through it all.

Enough of my rambling now, thank you for welcoming me, it means a lot

[Deleted User]

Hi In my Dreams

Just a little message to say good luck with your DFW journey. You seem to have the right attitude towards it, I'm sure you will succeed.

Have a look on the DFW board for different challenges to join PostingalwaysPosting is about to start a "One debt V 100 days" Challenge from 1st September. The challenges can help keep you focused and you are able to set yourself mini goals which are achievable. Also the No Spend Day threads are good for keep focus.

Good Luck
P
X

In_my_dreams

Palema wrote: »

Have a look on the DFW board for different challenges to join PostingalwaysPosting is about to start a "One debt V 100 days" Challenge from 1st September. The challenges can help keep you focused and you are able to set yourself mini goals which are achievable. Also the No Spend Day threads are good for keep focus.

Good Luck
P
X

I will have a look at the other challenges, quite fancy the one debt v 100 days as I have a card which expires around then and it would be good to reduce it.

Just filled the car up with petrol today and so far no spend.............

40somethingmum

Hi In My Dreams,

Good luck on the debtbusting! I will tag along if thats ok as I too have a massive debt to clear and aim to clear it by my 50th birthday in March 2015.

You will get there

40SM

worried_jim

Wishing you both all the best ! Jim.