Another bulb has just flickered on...

rubydoiwannabee

As you will see I am not a newcomer instead have been on this forum since June 2008 when I have to say I joined because I was worried sick about the state we were in. About to go over a massive OD limit for the first time ever and a cc maxed out. :eek: Not to mention a host of other debts and only min payments being made. It hadn't even occured to me to try and reduce the OD!!

Well this weekend has been one of reflection and realisation for me. Reflection upon the fact that already 20 months have passed and that in that time we have stuck at it and are now starting to see some results.

The snowball calculator tells me we have paid off £7000, now I know that isn't as much as many on here and only £350 per month net but it is going down!! It also says if I can continue to pay the same we will be debt free in 2 and a bit years. Again, it isn't tomorrow but when I started I remember it clearly reading 4 + years. So my realisation is how quickly the 20 months has gone really, when at the start the prospect of four plus years seemed such an uphill challenge with no end light shining at the end of the tunnel.... because it was too far away to see. Two plus years doesn't feel too bad and I still intend to do all I can to bring that date forward. Which brings me nicely to my second realisation....

The snowball calculator - I get it now!! Drrr! :o

I sort of always did get it, but have been so obsessed with ensuring everyone gets paid a little over the min payment I hadn't really appreciated that I was extending the debt free date!! God what a muppet! :mad:I can see now that actually by focusing the money in the right places, I will pay less interest!

Maybe also it has taken me this long to have the confidence to only pay the minimum on the lower int rate debts, so that I can focus on seeing the higher rate ones come down!! But whatever the reason.... I get it and will from April (not March because all the DDMS are set to come out on Monday) pay big chunks of the higher int rate debts and I am sure get huge joy from seeing them drop more rapidly!!

It is almost like from today I feel like I am the one back in control of this and not the other way around!! I can choose where to pay my money to every month, I can make decisions differently each month if I want to!!

I have been and am still a little scared of this debt, it has paralysed me and my family in so many ways. But slowly and surely I am taking back the reins and starting to move things forward the way I would like.

Sorry for rambling and thanks for reading!!

:):):)

DarkConvict

Its amazing what a difference it can make, doing min payments to everything but the one at the highest APR. The savings in interest then snowball, as you have that little but more more the following month as you have less interest incurred, and so on.

The feeling of been in control is good, less stress means you can be more focused, with this in mind you can make further cuts.

Not going over past posts of yours have you posted up an SOA, maybe we can suggest some further cuts and bring you a few months closer to the debt free date by snowballing a bit more. (In the completely non sexual meaning)

miss_missy

hi ruby

i just wanted to say well done on everything youve done so far and hey 7000 is alot of money to pay off just because others may pay off more they may well earn alot more and may have less commitments than you i think youve done great

im glad you feel your in control again, its a great feeling taking the control and saying im paying this cc x amount and the other x amount instead of just thinking i have to manage to pay all the cc something with the money i have available today (hope that makes sense its getting late)

good luck with the rest of your debt free journey

DVardysShadow

rubydoiwannabee wrote: »

The snowball calculator - I get it now!! Drrr! :o

I sort of always did get it, but have been so obsessed with ensuring everyone gets paid a little over the min payment I hadn't really appreciated that I was extending the debt free date!! God what a muppet! :mad:I can see now that actually by focusing the money in the right places, I will pay less interest!

Maybe also it has taken me this long to have the confidence to only pay the minimum on the lower int rate debts, so that I can focus on seeing the higher rate ones come down!! But whatever the reason.... I get it and will from April (not March because all the DDMS are set to come out on Monday) pay big chunks of the higher int rate debts and I am sure get huge joy from seeing them drop more rapidly!!

Great post!

The only thing I would add [which runs slightly counter] is that it is not always one size fits all. Sometimes you find someone with a very tight SoA and it makes sense for them to knock off a smaller debt earlier or to pay off one which will soon be finished. This generates a bit more slack to then turn to knocking them off in order of highest APR.

As ever, the SoA is all important - to make these kinds of decisions, the SoA needs to include the amount borrowed, the APR, the minimum payment and if there is one, the end date on agreed payments [more for loans than CC's]

rubydoiwannabee

DarkConvict wrote: »

Its amazing what a difference it can make, doing min payments to everything but the one at the highest APR. The savings in interest then snowball, as you have that little but more more the following month as you have less interest incurred, and so on.

The feeling of been in control is good, less stress means you can be more focused, with this in mind you can make further cuts.

Not going over past posts of yours have you posted up an SOA, maybe we can suggest some further cuts and bring you a few months closer to the debt free date by snowballing a bit more. (In the completely non sexual meaning)

Thanks for your comments, yes SOA done originally and scrutinised by me weekly many more times than is actually healthy!! (a tad of OCD on this front...)

Please do tell.... I have no idea what 'snowballing' in a sexual way would mean?!!**:rotfl::rotfl: baffled!!

rubydoiwannabee

DVardysShadow wrote: »

Great post!

The only thing I would add [which runs slightly counter] is that it is not always one size fits all. Sometimes you find someone with a very tight SoA and it makes sense for them to knock off a smaller debt earlier or to pay off one which will soon be finished. This generates a bit more slack to then turn to knocking them off in order of highest APR.

As ever, the SoA is all important - to make these kinds of decisions, the SoA needs to include the amount borrowed, the APR, the minimum payment and if there is one, the end date on agreed payments [more for loans than CC's]

Hi, thanks for your comments and I couldn't agree more. I think the fact that things were (and are...but a little less so now thank goodness) so tight made me very intent on ensuring I could pay everything as much as possible, where as now I am able to see the benefit and understand that the world isn't going to fall in, if I pay min payments whilst focusing the bulk of the money on the debt with the highest APR.

Thanks again.

rubydoiwannabee

miss_missy wrote: »

hi ruby

i just wanted to say well done on everything youve done so far and hey 7000 is alot of money to pay off just because others may pay off more they may well earn alot more and may have less commitments than you i think youve done great

im glad you feel your in control again, its a great feeling taking the control and saying im paying this cc x amount and the other x amount instead of just thinking i have to manage to pay all the cc something with the money i have available today (hope that makes sense its getting late)

good luck with the rest of your debt free journey

Thanks MissM, it all made complete sense and I appreciate your encouragement very much.

:)