Problem Faced - Clear £30k Debt - Time for Action

TheLostSheep

Sep 2010: £27,645 (£29,578 July 10)
Lloyds TSB Loan 1 £7343 (£7,721) 12.70%
Lloyds TSB Loan 2 £762 (£917) 21%
Barclaycard £2680 (£2,862) 14.90%
Lloyds TSB Credit Card £14,630 (£15,478) 18%
Lloyds TSB Bank Account £2230 (£2,600) 18%

Total Paid to Debt = £1933 or 6.5%



On the plus side, in two months I have paid nearly £2000 to what I owe. This amounts to 6.5% of total debt. Not bad going if I can shift up to £1000 per month at debts.

TheLostSheep

Here's an update for October. Not a huge amount of progress.

One good thing is that I have eventually managed to make lloyds come to an agreement about that big credit card where the interest has been significantly reduced for 6 months which is great.

Other than that, Loan 2 is now 1/3rd paid off and under £700 and I am getting quite close to under £2000 of that overdraft. The 1st Lloyds Loan will be into the £6000s next month and getting close to 1/2 the original opening amount.

October 2010: £27,042 (£29,578 July 10)
Lloyds TSB Loan 1 £7148 (£7,721 July 10) 12.70%
Lloyds TSB Loan 2 £682 (£917 July 10) 21%
Barclaycard £2610 (£2,862 July 10) 14.90%
Lloyds TSB Credit Card £14,502 (£15,478 July 10) 18%
Lloyds TSB Bank Account £2100 (£2,600) 18%

Total Paid to Debt Since July = £2536 or 8.6%

TheLostSheep

Here's my monthly update for November.

That’s me 4 months into this and managed to pay 10% off the debt off. I guess that is some sort of encouragement for me! It seems like longer I’ve been doing it and with 90% still to clear it’s going to be a long haul. It’s meant a complete change to lifestyle with sacrificing things like as many nights out, trips away, monitoring general spending and even selling my car – with me taking up cycling. To counter this _ I’m generally looking for things I don’t need that I can flog – and also having a look to see if there’s anything I can buy be it online or on high street that will sell at a higher price!

I’m determined to stick at it. At times you think – this is really bad – but at others its helping with discipline and budgeting - which is fantastic for me. Bit worried about Christmas, but I have started to buy a few small things already as gits rather than having my usual December panic – it would potentially really mess up my budgeting if not.

I might need to update this once my actual credit card payment comes off due to some negotiations I’ve had with Lloyds. As I posted previously I have been able to negotiate a lower payment of £200 to the Big Lloyds Credit Card. This brings the APR down to around 9-10%% for a temporary (6 month) period which is good as it means interest of only around £70 rather than £200 odd.

I will likely pay another £100 to something at the end of the month too if there is any surplus from my day to day spending account.

Only around £450 actually cleared this month once interest is added to everything, but at least this way, every two months, I take £1000 off what I owe if I can overpay at end of a month.

November 2010: £26,595 (£29,578 July 10)
Lloyds TSB Loan 1 £6954 (£7,721 July 10) 12.70%
Lloyds TSB Loan 2 £601 (£917 July 10) 21%
Barclaycard £2550 (£2,862 July 10) 14.9%
Lloyds TSB Credit Card £14,390 (£15,478 July 10) 9% (for 6 months at least)
Lloyds TSB Bank Account £2100 (£2,600) 18%

Total Paid to Debt Since July (After Interest) = £2983 or 10.1%

Choc-addict

Hi,

Just wanted to pop in and say I think you are doing amazingly well :T

Have subscribed and look forward to some more updates

Choc x

TheLostSheep

Sorry for not updating in December and the delayed update for January. Busy Christmas period and other things going on.

This is where I am currently at for January

January 2011: £25,671 (£29,578 July 10)
Lloyds TSB Loan 1 £6557 (£7,721 July 10)
Lloyds TSB Loan 2 £434 (£917 July 10)
Barclaycard £2550 (£2,862 July 10)
Lloyds TSB Credit Card £13,780 (£15,478 July 10)
Lloyds TSB Bank Account £2350 (£2,600)

Total Paid to Debt Since July (After Interest) = £3907 or 13.2%

TheLostSheep

Some thoughts...

It's faily slow progress with this 6 months on. I've not noted the full amounts I've paid towards the debt, only really focusing on what the net amount is after interest is applied. Thats me very close to paying £4000 towards my overall debt in a 6 month period which accounts for 13% overall. I'm edging ever closer to paying off 1/6th of what I owe and quite close to at least one loan being paid off with it sitting at £434. I should look at these as two major positives.

I'm having real problems with the Credit Card and Lloyds TSB Collections - they are just so difficult to deal with and I'm doing my nut in phoning their Indian Call Centre in reaction to conflicting letters in the mail. The only comfort I can take is that they have more than halved my interest charges which has been a huge benefit to me in terms of what I pay to the actual debt and not just interest. I think the change to their T&Cs have also helped in terms of the order I pay off the debt. There's still problems though in that they send me letters saying that I am in arrears with my payment plan to them when I quite clearly am not. Since I set up my arrangement with them back in October, I've had three letters confirming it's been set up with differing conditions. The latest was a letter today saying I owe them £50 which is rubbish as I've been paying £350 each month and we agreed £200!! They've not even adjusted the direct debit which the letter claimed would happen automatically, nor informed me that the payment date was moved to the 1st of month from the 16th of month. I'm finding this frustrating constantly having to phone them - but as i say, at least the interest on this major debt is way less.

With my Barclaycard I'm just making small token minimum payments of around £60 and you'll see I used a bit of my OD on current account for Christmas which wasn't wise but was needed. It's also not helped me constantly budgeting since October for Llyoyds to take £200 and then they take £150 more.

Progress being made though I guess and I still have around £200 in my day to day account with the Co-op bank that I use for my wages and day to day costs.

Keep your eyes peeled for some interesting developments on this possibling involving Full and Final settlement offers depending on circumstances.

TheLostSheep

Only other thing worth adding is that I tried a couple of applications for 0% balalcne transfer deals but both were rejected.

Id say I have mad 95% payments over the years but my credit record is to pot due to the amount of debt I have against me, so I best wait for any other applications.

TheLostSheep

Two other threads I've set up...

https://forums.moneysavingexpert.com/discussion/2982332

https://forums.moneysavingexpert.com/discussion/2982208

TheLostSheep

And this is where I am at with things as at February 2011. 7 months or so into things.

It's still a real struggle I guess. The small loan gets closer to being cleared which would save me around £90 p/m. I was really silly taking it out. Elsewhere i'm just servicing interest with Barclaycard. At long last the Lloyds TSB Credit Card is starting to clear a bit. Although they have confiemd that the DD is cancelled and I paid money early this month, I'm worried they'll try and take a payment in error come middle of the month!

Getting there though i guess with 15% cleared. I'll be under £25k next month. Got the chance of some F&F settlements too. Also potentially some inheritance coming my way to help shift some of this. Some lower APR balance transfers might be good but I got rejected for anything like that before and don't think credit is something I really want in future.

February 2011: £25,156 (£29,578 July 10)
Lloyds TSB Loan 1 £6357 (£7,721 July 10)
Lloyds TSB Loan 2 £349 (£917 July 10)
Barclaycard £2520 (£2,862 July 10)
Lloyds TSB Credit Card £13,580 (£15,478 July 10)
Lloyds TSB Bank Account £2350 (£2,600)

Total Paid to Debt Since July (After Interest) = £4422 or 15%

TheLostSheep

March 2011 Update.....

MAR 2011: £24,690 (£29,578 Jul 10)
Lloyds TSB Loan 1 £6148 (£7,721)
Lloyds TSB Loan 2 £262 (£917 )
Barclaycard £2490 (£2,862)
Lloyds TSB Credit Card £13,440 (£15,478)
Lloyds TSB Bank Account £2350 (£2,600)
Total Paid to Debt Since July (After Interest) = £4888 or 16.5%