First Step of a Long Journey

headachesrus

I am in awe of some of the stories on here. Some people have done so well in becoming debt free, and other people my heart just bleeds for, makes me realise there is always someone worse off.

I'm hoping that by unloading my thoughts and ideas on here will help, none of my friends know our real situation, so it's not something we can chat about with them.

I'm a 40 something married mum of 2, the eldest 19 is currently unemployed, but keenly looking. He is getting temp work as and when it comes up luckily, and hopefully has something to last until Christmas. My baby is 18, currently in 6th form, and looking to go to Uni next September - whole other story!!! Works in a local shop at weekends.

I became ill a few years ago, which has left me with some problems and I can't work. My DH is self employed, in a field which is becoming harder to find work in, and actually has no work lined up at the moment, although we have everything crossed something will crop up soon. He has his own debt issues from a failed business, but I'm trying to sort myself out first, and can then help him.

I have 5 major debts, (1 loan, 3 cc and 1 overdraft). They total around £11,000. I also currently have around £4,500 cash to play with, and want to negotiate with these to get everything paid off as quickly as possible.

I also have a few PPI etc reclaims I want to tackle, but I need to get the debts paid off before I do, as it would be nice to have the cash at the end of it, rather than pay off the outstanding balances.

My biggest problem is motivation. I'm excellent at putting off til the day after tomorrow things that really needed to be done yesterday. Prime example, I have a mobile phone contract which could have been cancelled on 1st October. I did ring on 31 Sep to do it but it was too early - have I got around to it yet - NO!!! It's just a phone call for goodness sake! I WILL do it this week.

We can manage all our payments at the moment, but we need to do more than manage, we need to cut back and start to throw money at things, if DH doesn't get work soon things are going to get tough. My weekly shopping needs to be cut back as well, I'm enjoying reading through the old style boards for money saving tips.

Ooh - one good thing today - I ebayed some old ink cartridges I had around, and sold them for £48!!!

headachesrus

Some figures for me to play with

This is what I currently owe:

C: £3289.00 0% interest paying £60 a month
L: £4050.00 0% interest paying £55 a month
M: £2907.00 0% interest paying £30 a month
L2: £1083.00 0% interest paying £15 a month

I also have (had actually) a £3,500 overdraft, but this is currently in credit. I was paying some £65 a month when I was maxing this out. I still have the facility, when I got my little windfall I put it in this account so that I could save the £65 a month charge whilst I was deciding what to do. I have a little niggling worry that the bank may pull the overdraft now the account is in credit (first time in about 10 years!), although they haven't said anything.

I also have £1000 savings in another account.

My plan is to use the money in the overdraft account to offer to my other debts, hoping they will take a reduced sum in full and final. I had verbally offered to the first one (C) the sum of £822, which is about 1/4 of the debt, giving myself a little leeway and I could up it a bit. They basically laughed at me, and said they couldn't accept less than £2,400 which really took the wind out of my sails. This was a month or so ago, and I haven't really done anything about it since. I did get a call from them about a fortnight ago from another girly, who told me to try upping my offer slightly, and they would look at it again. I gave her the sob story about DH being self employed and no work coming in etc, so after Christmas things may be really really tight, and I wouldn't be able to meet the current agreed payment, although it isn't a sob story, it's true.

So, tonight I'm going to do the two letters to the second and fourth ones, who are the same DCA, but different debts, and see where we go from there.

Oh, and I'm going to phone orange now and cancel that contract - right now!!!

headachesrus

Right, that's Orange phoned, saving me £33 a month, from January really because 30 day notice period, so I'm finished with them on 22 Dec.

Also printed the Full and Final letters for debts 2 and 4, will get DH to check my figures tomorrow as I'm very likely to have got something wrong and I WILL send them off tomorrow.

headachesrus

Hmm ... just had an interesting call from debt no. 1. We have been in negotiations for a couple of weeks, after they laughed at my first offer, then called me back a couple of days after. I owe £3289, I had offered £879 to begin with (ha ha), they came back with £2800 (ha ha). I then offered £1000, no movement on their part, and today offered £1200, they have come down to £2200. I can't do this, it is taking half of my available funds just to clear one debt. She did say though that they would be willing to spread it out over a few months, so if I can get them to agree to say £1600, I could pay the £1200 now, and then £100 over the next 4 months, this will only be an extra £40 a month on top of the £60 I'm already paying ... need to think this through ... if I agree and then default that isn't going to be a good thing. And, I need to make sure we get it in writing properly first.

headachesrus

Bit of a spend this morning.

Bought 4 books on Amazon, one is from me for DH and 3 are for my DD from my dad for Christmas, so spend £38, but will get £30 of that back off him (note to self: put it in the bank when you get it!!!!!)

And, I saw the TSV on QVC today, nail polish is my absolute weakness and there are 4 colours of OPI (one of which I already have, but I'm going to ebay it when it arrives) nail envy, and 5 other products as well, well over £70 worth, for £35 delivered. DD will use it as well, so it certainly won't be wasted, and I joined Quidco last night and bought it through there. Haven't quite worked out how it all works yet, but getting something back is certainly better than nothing.

I have to change electricity/gas suppliers, and sort out house/buildings insurance, and I think you can get cashback from doing those - another note to self - look into it!

I also recently got a paypal debit card, and bought the above on that, from my paypal balance, so not real money coming out of the bank.

Going to have a productive day today, good house tidy, and bake some cakes, I'm thinking 1 Victoria sponge, and 2 lemon cakes as I bought a big bag of lemons in Costco at the weekend, and freeze the 2 lemon cakes.

JustinCredibleGillespie

Well done you

JCG

xx

headachesrus

Stupidly excited!!! Just earned £1.50 on quidco!!!!!!!

JustinCredibleGillespie

headachesrus wrote: »

Stupidly excited!!! Just earned £1.50 on quidco!!!!!!!

Thats great :j:j YAY!

JCG

xx

headachesrus

Another result! My dad just rang and I was telling him about my splurge on QVC this morning, and he said not to open it when it arrives, he'll buy it for my Christmas pressie.

headachesrus

I've been after a little chest freezer for a while and just spotted one on the Currys advert for £99. Now I do have the £99, however, I'm going to do the MSE thing, and scout around for stuff lying around I can try to offload on *bay, and get the money for it that way, DH can't moan then LOL.

headachesrus

Was a good girl and listed 17 things over the weekend, mainly magazines actually, and my bidding total is currently £54 so over half way there atm! Got DH and DS to list some things as well. We had a very windy night here over the weekend, and both of their motorbikes were damaged, so the pennies they earn from their sales will go towards fixing them.