Max's Debt Free Diary.........

burntfingers_2

Go Max !!! Go Maaaax !!! :j

Well done on the ebay listings and subsequent sales. Its all a learning curve but we will get there eventually.

10 whole days of bliss.....is jealous

MoneyMax

Thank BF.

My/Our next big task is to create a Debt Spreadsheet of our joint debts, I owe about £15k and my OH owes about double that, maybe more as he borrowed alot (interest free) from his brother for a custody battle over his son (he won). As most of his debt is interest free, im guessing about 80% of it, then we will concentrate on the highest interest 1st and work from there.

Phew its so tough but we will get there!:eek:

burntfingers_2

Its always best to clear off the debt with the highest rate of interest first and then as that is cleared use that money to tackle the next highest

MoneyMax

Do you mean use what we were paying monthly to start on the next debt? I never though of it like that, thank you :beer:

Si if we paid off his Barclaycard £5k we could then save the £100 a month were currently paying to get chunks paid off my Halifax loan, the next more expensive debt.....just getting that 1st one under our belts that will be the killer :eek:

As for long term and the HUGE wad of cash OH owes his brother (£30k i think) we are going to plan to take that as equity from both of our properties to get him paid back. At least it's interest free, if it was a bank loan at the going rate of approx 10% we would be at least £3k down already! Not even including PPI.

Getting anxious for this trip away, not packed a thing for us or the kids!!! :rotfl:

MoneyMax

Ok, well we've just sat down to get our debts out and onto a spreadsheet! Aaaaggghhhhhhhh!!!!

I feel like i'm having a panick attack!!! Feel sick, heart pounding.....

We owe a whole £64'887.98

Now that was really hard to do (especially as I think one of my friends uses this forum) and very hard to type, I deleted it a few times...please be nice

Im off to change my Signature to one figure so I can strike it out every time we get it lower!!!!!!

MoneyMax

Slept well last night and woke up more determined than ever to reach our debt free goal! I worked out that we will be £650 better off per month when all debts are gone, this is a huge ammount and we could do so much with it, we could get a buy to let mortgage and invest in ours and our childrens future, have a better quality of life for us as a family etc... and best of all not worry about where the next payment is coming from. I see people on here worrying about £5k and £6k debts and thing god if only, we have a huge mountain to climb but so so determined!

The thing that really p***es me off is that the majority of these debts are the doing of our ex partners who have no morals and couldn't give a damn about the fact that their children are now missing out on things, because of them ......:mad:

clearmydebts

Wishing you the best of luck on your debt free journey. You sound so determined!

I suppose debt is relative. Someone with 5 or 6k debt might take the same amount of time to pay off their debt as you will yours, due to income, outgoings etc.

MoneyMax

clearmydebts wrote: »

Wishing you the best of luck on your debt free journey. You sound so determined!

Thank you xx I am very determined, never been so determined about anything in my life and I think my OH is very impressed!! Im even managing to convert one of my friends!!

I suppose debt is relative. Someone with 5 or 6k debt might take the same amount of time to pay off their debt as you will yours, due to income, outgoings etc.

Yes that is true. x

TotallyInzane

Good Luck & keep up the positive attutidued - half of the battle is won by facing the debt head on! :T

burntfingers_2

MoneyMax wrote: »

Do you mean use what we were paying monthly to start on the next debt? I never though of it like that, thank you :beer:
Your welcome

So if your paying say £100.00 to a credit card with a high rate of interest then once that is cleared, because you are used to paying that amount you then transfer that payment onto another debt plus the original payment that you were paying so £100 + £5.00 = £105.00 and work your way through the list. :T

Hope this makes sense.