A DFW newbie!

scattydove

Hi all

So i'm new to the boards and, quite honestly, fairly new to this business of wanting to be debt free. To cut a fairly long, debt-ridden story short, I owe approximately £11k. I recently took out a 6% apr loan with my bank to consolidate a cc and overdraft debt. I was actually very surprised I managed to a) find a loan with such a low rate and b) be accepted for it. On top of that i've moved a second cc balance to a 22 month interest free card (with future intentions of "tarting" as Martin calls it). I've also already paid a store card off (granted, with only around £300 balance)

The thought of actually getting more credit to begin with terrified me, but then something clicked and I saw the bigger picture. By being able to get the lowest interest rates available to me, and closing the overdraft/cc, I should be able to get the balances paid off much sooner.

I know it's the start of a pretty long journey, but i'm already feeling quite virtuous :T

Tebheag

Just want to wish you Good Luck on your DF journey x

Queenie2012

Hi Scattydove

It's such a great feeling being in control of our money Well done on making the decision to pay off the debt.

Saving money starts to get addictive, lol but it is worth it.

Good luck on your journey xx :)

scattydove

Thanks guys :-) I think that the hardest bit has been facing up to it and being more realistic about things. Seems like it has eased things a bit in some ways now though. I am tightening my belt, but the mental stress has actually been released a bit!

Moneymash

It's great to pay off a debt no matter how small. :j

Start as you mean to go on. You'll soon be debt free.

Good luck.

scattydove

Thanks moneymash. It definitely feels good

wants.to.be.debt.free

Hello Scatty Dove,
I am in a similar situation to you, i have had my Light Bulb Moment (LBM) recently and decided enough is enough - Iam paying off one CC at a time, apart from the minimum payment on the rest.
My debts are similar to yours and i have just paid off the balance on a £300 CC Whoop Whoop! Now iam cancelling it.

All the best in your Journey to become Debt free

scattydove

Hi wants.to.be

Great feeling isn't it It makes me feel a little sick whenever I see the big red balance on the loan, but I know that i'm in control and am in a position to be able to pay it back (and overpay when possible). It's fab that you are taking it one step at a time and getting each cc paid off in turn. Also that you're closing accounts rather than just cutting cards up. I made that mistake once before, and just fell back into the debt which somebody else had so kindly bailed me out of. Won't be makinng the same mistake again.

Good luck with your journey too. Hopefully see you around on the boards

SD

[Deleted User]

scattydove wrote: »

Hi wants.to.be

Great feeling isn't it It makes me feel a little sick whenever I see the big red balance on the loan, but I know that i'm in control and am in a position to be able to pay it back (and overpay when possible). It's fab that you are taking it one step at a time and getting each cc paid off in turn. Also that you're closing accounts rather than just cutting cards up. I made that mistake once before, and just fell back into the debt which somebody else had so kindly bailed me out of. Won't be makinng the same mistake again.

Good luck with your journey too. Hopefully see you around on the boards

SD

Welcome and good luck on your debt free journey.

My two tips are:

*Make sure that you no longer spending on the CC - if you do you will be in a much worse position than you are already in, with the original CC debt with the additional consolidation loan (this is one of the major pitfalls of consolidation loans, so just be aware)

*Check whether you can make penalty free over payments on your loan, so you don't get struck with added fees for over paying

BW

D9

wants.to.be.debt.free

Hi Scattydove,

I have just read on the other thread about your mum taking a loan, and you cutting the cards up and then getting another sent in the post -- That could be my life that i was reading - i have said i will keep the account open but not spend, but when times get tough i have just asked for another one to be sent and before i know it i'm back to square one!!

I am so trying not to do that (but its hard)

Good luck in your journey too and speak to you soon

scattydove

Domino9 wrote: »

Welcome and good luck on your debt free journey.

My two tips are:

*Make sure that you no longer spending on the CC - if you do you will be in a much worse position than you are already in, with the original CC debt with the additional consolidation loan (this is one of the major pitfalls of consolidation loans, so just be aware)

*Check whether you can make penalty free over payments on your loan, so you don't get struck with added fees for over paying

BW

D9

Hi D9

No worries with the first point. The bank gave me the loan on the condition that I close the cc account and get rid of the overdraft anyway (both were with the same bank) so i'm good And i'm not even missing them! Proof right there that I didn't *need* them

Very good second point though! I will look at my loan agreement carefully to make sure i'm not stung if I want to overpay. It's ridiculous that they should want to penalise people for wanting to get out of debt quicker, though I suppose that's how they make their money..

Thanks for the comment

SD x