Smash These Debts - The MR2Jay debt busting mission

mr2jay

So, this evening has been spent writing letters to our debtors....

I want to make sure that every person we are paying is crystal clear about how we intend to pay these back. This way there can be no come back on us once our plans are in place and accepted. I am making sure that the amount I am offering each company is a) An amount that will make a difference to the debt and b) a minimum amount that we can afford to pay off.

The intention of this is that these companies are fully aware that I intend to pay more off where possible but are able to expect an amount that is deemed acceptable each week.

So, I have a couple of letters to send tomorrow to these companies. This SHOULD stop the nasty letters (although none of them have gone as far as sending them to debt collection agencies as yet) and set in stone the battle plan.

Also sat down today and worked out that just 3 extra hours a week will make a huge difference to what I can afford. Working things through and taking an interest figure of what is being charged at the moment (although I know that this amount will go down as the balance reduces but it is a safe way to tackle it), on a minimum wage each week, I will have cleared about £5,050 by Christmas which is above my target for the end of the year. This is promising for me as it shows I have set an achievable target for myself. With just an extra 3 hours a week, this boosts my income considerably, meaning I can clear closer to £6,000 by Christmas. IF, and this is a big if, I can reduce our debt by 50% by Christmas, taking the balance down to just over £6,500 then that sets me up for a perfect chance to clear everything by the middle of next year

mr2jay

So that's the letters signed, sealed and sent - one to NPower and one to Anglian Water. Both of these are offering a realistic amount per week to send to them (by bank transfer as that allows me to keep full control of the payments) but also saying that although this is the minimum they will receive, my full intention is to pay more when I can. I have worded the letter so that I am asking them to accept the minimum payment each week on the understanding that I will pay more when I can to settle these early. I have also added a little sentence at the end of the letter stating that regardless of whether they acknowledge my letter or not, I will be making the assumption that it is acceptable and paying this minimum amount from the date set out in the letter. The one thing I will not put in the letter however is an expected date to have the balance clear.

I am a great believer in doing these things by letter and keeping copies of them as well in the file with the bills. The reason for this is that I then have a black and white record of the offer I have made to them and when I have sent it. Call it covering my back (I work in building design) but I find it safer and it puts my mind at ease. It also shows a willingness to any powers that be to pay the debt so that should things go further and they refuse my offer, I have it in writing that the offer has been made off my own back.

So, we will wait and see but I will pay regardless. After all, they won't refuse my money now, will they?

I have also reached the decision that I will be increasing my hours each week by 4. Doesn't sound like much but it will make a huge difference to the amount of free cash for debt busting each week, as well as giving a float for those weeks where something comes up (as it always does). This way I should be able to stick religiously to my spreadsheet (which is based on a minimum amount I get weekly) and hit things harder when I can.

I have been a bit despondant of late, looking at the figures trying to tweak that little bit extra out to clear it off quicker. Call me impatient but now I have the bit between my teeth, I want these gone, simple as that. I have looked, tweaked and fretted about squeezing that extra £10, £20, £30 into the debts to clear them faster but I just can't see any way of doing it. Effectively, I am looking at the moment at clearing about 1% a week - I NEED to make this larger. This is why I am looking at working harder. My motivation for this is that I really feel that we aren't going to be able to move our lives forward until they are gone. I look around our home and look at how we live and see many things that need improving but I am determined. Nothing more until we are clear.

Am I pushing too hard I wonder?

never_too_old

You will get more motivation as the debts go down,I want all mine paid off by the end of the year so i dont have to carry this heavy burden.If you can do the extra hours thats brilliant,every little helps.You can do it,nothing will look as good as being debt free.:D

mr2jay

I know, it just seems like it is going to take forever - I want to REALLY start smashing these down.

Had a bit of a lightbulb moment at lunch. In our dining room, we seriously need a selving unit to store my guitar stuff, the brewing stuff and also somewhere to store all the powders and tools associated with brewing. The shelf it WAS stored on has collapsed and it now all lives on the dining room table

Now, to buy such a piece of furniture would be pricy (circa £250) and we don't want to buy cheap and buy twice so I had an idea. I have been online to a timber supplier and found that solid European oak planks, cut to size are no where near as expensive as I imagined. As a result, I believe that I can get the raw materials needed to build one to my own design for under £40.

As I am a design engineer by trade, I have the technology and the skills to design my own unit, complete with design plans and dimensions to scale that I can build from. This means all I need to do is build the thing.

This has 2 benefits. Firstly, we end up with a quality piece of furniture at a fraction of the cost and secondly, it will give me a project other than trying to squeeze a little more out of the money I earn.

I know this goes against the grain of every penny going to debts but my better half pulled me up on the fact that I am becoming obsessive over this. I NEED an outlet to distract me from it 24/7 and we NEED new furniture (ours is old, flat packed and falling apart). Rather than buying something cheap (again!), I can kill 2 birds with one stone and build something that will hopefully last a long time.

I have always wanted to learn how to build furniture and i have books etc here to train me. Looks like the perfect excuse to get on with it if you ask me.

mr2jay

Friday is here again....

More payments

£100 off the Council Tax - £20 off the Lloyds Credit Card and another £25 off the Virgin Card

Total of £145 paid today

Effectively that means a further 1.09% cleared off the total debt

Next week should see me clear the £1,000 mark

meow5678

It must be very satisying making weekly payments, I have to wait (what feels like) an age for my monthly pay days to feel like I'm making a difference!

mr2jay

I'm not sure if I could do it if I was paid monthly.....a little each week helps with the motivation, although I wish I could hit them harder. £150 a week seems like peanuts when you look at the total debt

mr2jay

I am considering making a second "Biscuit Tin Savings Pot" for 10p and 20p pieces.

The weld broke on the first one so I couldn't help but have a count - over £30 in there in a few weeks!!!!

Resealed the pot (See, I was good and didn't spend anything) properly this time and can't wait to fill it up.

Loadsa Money

mr2jay

Just had some good news, just had a call from Anglian Water.

They are more than happy with my payment plan I asked them for and are writing to confirm that they accept our offer.

Just need to wait to hear from NPower now but I still intend to pay back the amount as set out in my letter regardless of them replying or not.

So, one down, one to go.

slowlyfading

Good news indeed