Huge credit card debt

hypno06

Perhaps it was meant along the lines of something that I used to do......

I had worked out, that if I could find an extra £200 on top of my debt repayments, I would be debt free by a particular date - I think it was by the time my Daughter takes her GCSEs.......

So, I threw absolutely everything I could at the debt - every penny.......but that then left me short by the middle of the month, so I would then run out of money, because I had paid too much off the debt. Not only had I run out of money, but I had also then incurred bank charges as a result, so I was starting the next month even worse off.

Yet I STILL wanted to pay that extra £200 off my debt each month in order to get debt free quicker.

Of course, my focus of paying a certain amount off extra, in order to be debt free by a certain date, was becoming counter productive......I was actually creating just as much debt as I was paying off.......

It was only 18 months ago that I was given the kick up the backside by another poster on here, (Seaxwyn - thank you!) that I took a step back, stopped being so intent on paying back that extra money etc. As a result, I no longer get bank charges (have had two in 18 months whereas I was getting several a week before) and because I am not incurring bank charges, I actually have money left at which to throw at the debt, and so I am "properly" on track to clear the debt before my daughter does her GCSEs in May.

Maybe it is that sort of thing that was meant - focus too much on one element, and you block out the rest, meaning that you are being counter productive, and can end up not achieving the one thing you really thought you were doing well at!

clarab_3

Just wanted to add that using the "Debt reduction" calculator on

www.whatsthecost.co.uk

can be very inspiring. You can see how you can expect your debts to come down. and your debt free date come closer.

however to get the most out of that you need to be able to cover your minimum payments at least. I'm not an expert but some of the experts on here might be able to help you meet those by making suggestions on your SOA, you might be able to make a lup sum payment by claiming your charges that left you within that reachable figure, or theres always selling stuff, just to bring you within the magic number where you can start to reduce.

kingston_2730

Thanks Clarab. Am scouring the attic tonight actually. There is a lot up there that I could sell

hypno06

I soooooo love my snowball calculator!!! It has to be one of the best things ever on the internet, and has certainly been a huge motivator in clearing my debt

I would advise anyone to have a play with it.......

I put in my "minimums" then worked out what I thought could be an achievable addition - the figure I eventually came up with was £50. £50 was an amount I could raise at a car boot sale.......or OH could get net of tax on an overtime shift, or was a realistic amount for a bit of ebay effort......

If I could "make" that £50 each and every month, I could see from whatsthecost.com just how much difference that made to my debt! Motivating or what!!

Since then, I have joined the "make £10 a day challenge" and I regularly make my full £300 a month - how fab it was to put THAT in the snowball calculator!

We'll soon have you hooked, kingston, one way or another!! Spend time mooching about the boards, look at the various challenges, chat to the people on the DMP supporters thread, or on one of the diaries, and you will soon find bits that help you along.

And once you start.......paaaaaarty

kingston_2730

I think I'm hooked already :j. I have a feeling I'm going to be here a lonnnnnnnggggg time Hypno but that might not be so bad Still not ready to post SOA but hopefully soon.xx

hypno06

Nah, it's not so bad around here........:D There is also a "long haul supporters" thread if you want to see others who are likely to be here for a while........just so that you can reassure yourself that you are not on your own!

looby-loo_2

I'm lucky enough to be in secure employment bu his thread caught my eye. I'd just like to say what a lovely helpful lot you seem to be. I admire you all for working so hard to pay off your debts without resorting to bankruptcy.

My mum owned a small busines employing two people and more than once someone she thought was a safe customer suddenly went bankrupt soon after placing a large order but after she has ordered materiels/stock. She was nearly put out of business herself which would have had a knock on effect on her two employee's and suppliers.

I would like to say well done to everyone here who is trying to pay their debts and get back on track. Good luck OP.

DVardysShadow

kingston_2730 wrote: »

Thanks Hypno, I can just tell that you really do know how I feel right now. I am sorry to DVardysShadow if I jumped the gun. I do know it is easy to misinterpret the tone when in cyberspace so I apologise if I took your comments in a manner that they were not intended. I still don't know why I am more likely to lose my house because I want to keep it though. In my opinion my desire to not lose my home is what is motivating me to deal with this terrible situation I am in.

The reason that you should not make keeping the house your priority is that Debt is the biggest enemy of your house, but it can come along and seduce you into thinking it is your friend - you could get tempted to fend off a risk of losing your home by taking on more debt - which will let you keep your home for a while longer, but increase the certainty of you losing it at a later stage. But if your focus is to become debt free, then you won't go there and your house will be safer.

hypno06

If debt is unsecured, then it won't (except in very exceptional circumstances) risk your home......so even when you default, or miss payments etc, your home is secure, as long as you keep up your mortgage payments.

As soon as you shift some of that unsecured debt onto the mortgage or some other secured loan, you also shift the risk - NOW, when you can't make a payment, it is your home that is on the line, not just your credit rating.

I think that is what DVS was meaning?

Poosmate

Good luck Kingston, I'm routing for you! You can do it!

I guess you are still feeling pretty raw at the moment, that's allowed but please don't take anything personal on here. Most of the time posts are made with all the best intentions and as has been mentioned you cannot detect tone from a posted note.

I think, without exception, all of the posts on here have been positive and supportive. If you feel a post may be a little harsh or accusatory (if that's not a word then I claim rights to have made it up!), please leave comment on it for a little while, especially if you are feeling a little down and re-read it when you are feeling better, it will probably come across much different.

The size of your debt is not important on this forum really, I mean, most of us don't have our lightbulb moment till we are about the same stage as you and whether it's £10k or £100k it's all proportionate to our incomes, so someone with £10k debt and very low income could be much worse off than you.

Sorry I do waffle a lot but hope some of that makes sense.

All the best

Poo