Time to get rid of some debt! :)

fd1972uk

Well been a while since I updated this.

Kinda fell a bit by the wayside here.

We had a trip to Florida that we had planned, and have mentioned here and on other areas of the board. Had a fab trip, yes as I had thought we had to use the Credit Card to pay a balance off, but didn't require it during the trip which was good.

We've came back and maybe it will be frowned upon but we've put a little work into the house, we've had the Living Room redecorated and also did some work in the Dining Room, this has amounted to around £2.5-£3k although we have had around £500 knocked off with furniture sales and we're also selling a few other things that might make a small dent of 2 or 3 hundred £'s.

We have moved all the debt on the card (amount in signature) on 0% until October 2015. Minimum monthly payment is £200 with savings where possible being used also. We're also in the process of a claim that could bring in excess of £1000 but this is no gurantree and we aren't banking on it, that will go towards the debt also. Into the bargain it's hoped that I will achieve a couple of bonuses that amount to £650 per year, but once again no guarantee.

Into the bargain making in-roads with Surveys, these will go towards Xmas and a possible holiday to Disneyland Paris with the MIL next year. We save a little for holidays too, not much but hoping to get that out the way without too much hassle money-wise.

After that a holiday for a year or two maybe missed.

Also on a sidenote regarding our credit card, we were a bit silly and loaned £1500 a few years back using the cash withdrawal to a family member, but they've ran into money issues and we may take a hit of around £500 (included within the credit card total in signature). They have paid the majority back, but the time we've moved stuff over for credit card deals it could amount to this amount. No more help now, so they are on their own although we are behind them from a family perspective, but can't risk our family money as it is of their own doing.

So I'll try and update with some news, as said I know I've been naughty, but feel good about the holiday (which was already underway anyway) and the house refurb. Now to try and get into this.


FD

kelly669

Hi,

I'm not sure what drew me to your thread so much but I became fascinated and have read it all the way through today...

What struck me was how many people were responding to you at the beginning but the responses trailed off as time moved along.

Sorry if this is a bit blunt but I think that it's hard to keep offering help to someone who has no real intention of getting themselves out of debt. I can totally appreciate the situation you are in, I have done it myself too many time - as soon as you free a bit of cash up you want to treat yourself, maybe as a reward for saving.

You are NOT going to get out of debt this way tho, trust me...

I noticed there were a few times that you got literally hundreds of pounds of unexpected money (PPI) and each time you put more and more towards your holiday and your daughters birthday - I'd be interested to know what you got a 7 year old that cost so much...

And correct me if I'm wrong but didn't you renew a loan to pay for the Florida holiday? So why were you still paying that off with extras and even your CC?

I'm not judging and obviously it's up to you what you spend but if you seriously want to get out of debt then you need to focus and make some sacrifices. I didn't want to just breeze past your post and not say anything just in case the fact that you weren't getting responses was spurring you on and justifying it to your self that if no-one said anything on here then it can't be bad...

This is definitely the right place to be if you want help, these guys really know their stuff but you need to want it too and be willing to take the advice.

Everyone needs to have fun and have treats now and then but it's heartbreaking watching this spiral out of control...

I know I didn't have to read it and maybe I should keep my thoughts to myself but I felt obliged to say something...

I truly hope you get to where you need to be!

Take care

bess1234_2

Well said kelly 666

fd1972uk

Hi Kelly,

No, thanks, I do agree some things have to be said.

I think in all honesty the Florida trip grew arms and legs in all honesty.

But as you said, maybe I am not helping matters.

I do try and plan to attack the visa, although admittedly maybe my will isn't as strong as others who will make far more sacrifices than myself.

The Disneyland Paris trip is obviously something that may confuse and wonder what the heck, however the reason in all honesty is whilst putting the majority of our money to paying off debt, we want to try and treat the MIL to Disney, she'll be 65 and fighting fight at the moment and maybe morbidly it's a case of 'if we don't do it now' scenario.

But as you say, yes maybe it can be deemed that I ain't helping myself, and I guess your right, but I am not giving up though and hope people don't think I have.


FD

sistafromanothermista

Hi FD. Unfortunately i agree with Kelly.
I don't think you have truely had your LBM yet. Although we have been on holiday throughout this process we have not got into debt to do so. In fact we will be nearly at the 15k paid off mark next month (in 18 months since our LBM)
We have had to make sacrifices and really cut down on all un-necessary outgoings (that includes buying christmas presents for everyone except our own children)
There will come a time FD that it will hit you in the face (like a wet fish) and you will realise that the ONLY way to pay off the debt is to cut your costs. No holidays. No luxuries. No decorating. No anything except debt repayments.

I believe you have to go through the hardship of cost cutting to truely realise your mistakes.
I wish you all the best as i fear you are going to need it....:(

fd1972uk

Thanks for the feedback.

You are most probably right with the 'wet fish' moment , here's hoping that point never comes but I'm hoping to try and get the debt down at the proposed payment and use any extras to possibly get this holiday.


FD

fd1972uk

Just a quick follow-up, look like proposed visit to DLP will be delayed slightly, the family issue has blown right up and is a right mess.

As previously stated we are not offering any more financial help, we'll support and offer advice although it is a right minefield that they've found themselves in.

We're now concentrating on just tackling the Visa, wipe that and then that will allow a bit more cash to be released for the likes of holidays which won't require any use of 'borrowed' cash.

Still putting money to the side though for emergency fund, it's only started growing so not much, but hoping that will have enough to cover any possible MOT problems (1st Dec) although hoping there are no issues - just need to replace a brake bulb. So if there are no issues with the MOT means that the emergency fund will grow with not much of a hit and be there for use if needed.

Selling a few items on ebay, which should bring in a bit of money, not much but maybe £100-£200, this will go practically all towards the visa, although maybe keep £50 or so from it just to help with Xmas. Xmas has actually seen the purse strings tightened, we have usually anywhere from £10-£20 at times per kid/person in some instances, however we've decided that we cannot justify that on the many children we have in the family and close friends (probably around 20 or so) it is only minimal and will only be spending a few pounds on each, some great little ideas out there that we can get and will be unusual but at a good price and not sounding like Scrooge, but our little girl isn't lavished with gifts from said families anyway, so it's not that a huge guilt trip is going to be done.

Birthdays are also being managed better also, adults are cards only now, kids gifts will also be brought in line a bit too.


FD

fd1972uk

Slight update:-

Xmas and Birthdays out the way, no damage financially, so no debt following on from there.

Also starting to make up an emergency money kit, not much, but it'll hopefully help in an emergency.

Looking at the debt we have, going by workings I'm hoping by aroudn summer of 2017 that we will have no credit card debt, these are not being used (I do use a reward card - applied for a santander one due to better rewards - these are paid off in full every month so not to gain interest). If I get work bonuses and a possible air delay claim our credit card debt could be wiped out a year earlier, so it would be roughly around July of 2017 (or 2016).

Still doing rewards, this money will go towards debts, so I haven't even budgeted for that in payments towards debt. Also I run someone to work who contributes £60 per month to fuel, the majority of this money will also be allocated to credit card, so my dates may well be reduced, but I'm just going on current credit card allocated payments.

2 Debts I won't lose will be the Mortgage and Car Loans, we require both and whilst the car could be looked at and buy an old car, it may not be cost effective to do this due to the possible costs in running even an older car. I am actually in the process of buying a more economical car also, it will mean another tie-in to finance, which will amount to around roughly £15 or thereabouts a month more to pay per month, but the fuel allowance I hope that I'll be saving possibly a free fill-up possibly once per month (I do around 350 miles per week to work) as I fill up around £55-£60 per week in fuel. This saving would go towards credit card bills too that I haven't counted for.

I was contemplating a loan to pay off all the debt over a 3 year plan it would mean coming off a 0% plan, but then again it means I'll pay more over the course of the term with interest from a bank rather than switching (we actually have the 3 different credit card 0% at the mo so bit of a pain paying off the 3, but better than paying interest I guess). That would obviously mean though that we have no credit card debt whatsoever.

The plan would then be to cut up the cards and not use them (which we haven't done so anyway with the exception of the rewards card which is fully paid off each time).

On a sidenote we made a new loan to replace the old one meaning a far better rate of APR (think it went from 11% or such to 5.9%) and kept over the same term. Meant a saving of around £13 or so over the 57 months or so that was left.


FD

fd1972uk

It's been a while, but still thought I'd post a little update.

Quite a bit has changed. Financially there has been no problems, paying off as we go.

Thankfully the likes of birthdays and xmas are going without having to dip into funds or the likes. Bought a new car last year, my work is a bit away so a decent car is needed, it was only roughly around £20 more for the car per month, but the fuel has dropped and I'm saving around £10-£15 per week on fuel now, not to mention obviously no MOT and the likes. Into the bargain saved £13 per month on the insurance alone as well (also comes with recovery free, which I had to pay for before).

Money from work colleague who I pick up and drop-off (£60 per month) goes in a tin for emergency and deals with the car (had a service in January and didn't need to worry about money).

Have re-jigged a loan on a lower rate (4.9 against 5.9%) with the same terms so saving there, have got a Tesco credit card for balance transfers for 34 months, there will be initial transfer fees but catering for that. My calculator that I use says on our current payment of £200 per month, we will be clear by May-Jun'18.

Still doing surveys, although slowed slightly down due to work and family life, but still using them. Also got some money on the cashback. These will be going towards the credit cards as additional payments.

Also going to work a small bank with savings from the week (petrol, food etc) and put that towards it, so these will be little payments will help too.

Moved over to Sky from Virgin around Aug-Sept, paying £43 per month when our Virgin bill was going upto £65. When that ends, not sure what I'll do, might even just have the net and the phone and have freeview, no big deal really, just that the deal was saving and had Movies and Sports. And with Sky we get to keep the box regardless if we stay or not, so in reality a freeview box.

Also our energy bill runs out end of this month and having looked at price comparison we could save almost £400 annually. This will mean more money towards the visa cards.

Technically my main gripe is the credit cards, once these go it allows an extra £200+ per month financially. Good thing is with the exception of the reward card I use (which is paid off in full everytime), we do not use Credit cards with the exception of using for balance transfers, but this should hopefully be the last requirement due to the term. Also into the bargain if that works out as it is, come the beginning of 2019 the loan we have will be saved too. This will be nearly £550 per month we'll be better off.

Only thing will need to watch is the mortgage. Currently on SVR which is like 2.5%, so if that starts rising will need to look at committing to a deal. Also, would intend once we do manage to save a bit more in years to come to maybe bring the term down on our house (roughly 21 years).

Things are ticking along, although granted could be better and yes there could be sacrifices, but believe this will work.


FD

fd1972uk

Update:-


Hi,

Another small update.

Moving along quite well.

There was some mumblings in the work lately of possible redundancy, but it's lead to believe that it was scare mongering, I actually work for a big International company, so I wasn't overly worried. It would have caused quite a few problems, not sure of the whole DMP schemes.

Looking at our current situation if I can hit that 2019 mark (or sooner) and get rid of these outgoings it'd be a colossal achievement for us, and I wouldn't really have a major worry in the world, all we would be really responsible for would be the mortgage. That would even include me possibly losing my job.

The wife is on a very low paying job, so whilst her losing her job would actually work out worse than me losing my job, but don't see that happening and with her low pay it would only require her to find any other sort of work to get a similar pay. Due to it being very local, which is handy for school runs, and she does quite like it, although I have told her not to get too stressed out as I don't believe she is paid enough to worry that much about it. We haven't decided to put them on the spot and ask for more money, but it maybe something to look at.

Will manage to make an additional payment to Visa Cards via topcashback and survey, maybe only around £100 or so, but still something towards it and will continue to use it in this fashion.

I appreciate what has been said before, and yes I do some stuff that some maybe think isn't the proper way to go with clearing debt.

We go out now and again, but do it on what we have available, so it's not added to existing debt.

I think I've already mentioned as well that we intend to go on a summer holiday this year, a last minute deal and we have money set aside for it, as well as a spending money pot, so once again no plastic card hits, nothing.

We've also treated to ourselves to a 10th Anniversary getaway next month, once again from our own money.

We have a possible PPI type claim that may arise, only for a small amount (thinking maybe a couple/few hundred £'s) which if we get will go direct to credit card too. (Wife's Sentinel card protection from yesteryear).

One thing that did occur was the wife's long standing credit card (which we don't actually use, but were keeping it as it maybe a good point for credit scoring) was cancelled, but not sure why, I cancelled my TSB card which I don't require, but not sure how my wife's one was cancelled and have queried that, so will see what happens.


Cheers


FD