At what point....

Newyorkdreams

My payback plan includes interest at the current levels. 2 of our credit cards are 0% which don't go onto SVR until October 2014. How we actually managed to get these cards in April I will never know with the amount of credit we have! For the other 6 the interest rates are 24.5%, 21.9% x2, 18.9%, 9.9%, and 6.8%. Our loan is at 6.3% and the family loans are interest free. The overdraft is at 9.9%. We are aiming to pay off around £20K per year for 2013, 2014 and 2015 all being well.

We are coping at the moment and paying more than the minimum levels using snowball technique but it's tough going and leaves very little breathing space. I've agreed £500 a month repayment on a family loan which is IF so this has reduced my ability to throw money at the other high interest debts but this is fine because it has allowed my family member to retire a little earlier than planned and I don't want my debt to them stopping them from making their own life decisions.

NYD

heatherks

Newyorkdreams wrote: »

Just feels I'm being a bit of a mug trying to pay the whole lot off at 100% (plus interest) when others in a similar sitaution are paying much less.

Any views welcome.

NYD

IT depends wether you want your credit history ruined by going on a DMP just to make lower payments or save paying interest

Suseka

Hi NYD,

Sounds like you have a plan and I respect your desire to pay back a family loan, even though it means you cannot tackle the high interest ones for now.

I don't know much about 'snowballing' - but have read that it is a good way to go, so you're definitely heading in the right direction.

All I would offer in further advice is perhaps to give StepChange or NDL a call - it's just the cost of a phone call, so you could get some impartial advice and then see what your options are.

Sorry if I gave you the impression I was offended - I was not, just setting the record straight that a DMP is not the 'easy out' some folks think.

My hard earned credit rating is trashed - and facing up to the extent of our debt situation has been difficult and rather humbling - but necessary. I don't seek peoples sympathies, nor will I accept any judgements - we all have our own path to walk.

I hope your snowballing works - but it may comfort you to know there are other options if you find yourself in difficulty.

InsertWittyName

I would only ever consider a DMP if you can't cover the minimum payments on debts after you've trimmed all your other outgoings to the bone.

You're not in this situation so I don't think a DMP would be suitable.

Hopelessly_Hopeful

Newyorkdreams wrote: »

My payback plan includes interest at the current levels. 2 of our credit cards are 0% which don't go onto SVR until October 2014. How we actually managed to get these cards in April I will never know with the amount of credit we have! For the other 6 the interest rates are 24.5%, 21.9% x2, 18.9%, 9.9%, and 6.8%. Our loan is at 6.3% and the family loans are interest free. The overdraft is at 9.9%. We are aiming to pay off around £20K per year for 2013, 2014 and 2015 all being well.

We are coping at the moment and paying more than the minimum levels using snowball technique but it's tough going and leaves very little breathing space. I've agreed £500 a month repayment on a family loan which is IF so this has reduced my ability to throw money at the other high interest debts but this is fine because it has allowed my family member to retire a little earlier than planned and I don't want my debt to them stopping them from making their own life decisions.

NYD

Good luck with the snowballing.

Have you plotted out how much debt will be left each month to see if that DFD is realistic?

HHx

Newyorkdreams

Suseka wrote: »

Hi NYD,

Sounds like you have a plan and I respect your desire to pay back a family loan, even though it means you cannot tackle the high interest ones for now.

I don't know much about 'snowballing' - but have read that it is a good way to go, so you're definitely heading in the right direction.

All I would offer in further advice is perhaps to give StepChange or NDL a call - it's just the cost of a phone call, so you could get some impartial advice and then see what your options are.

Sorry if I gave you the impression I was offended - I was not, just setting the record straight that a DMP is not the 'easy out' some folks think.

My hard earned credit rating is trashed - and facing up to the extent of our debt situation has been difficult and rather humbling - but necessary. I don't seek peoples sympathies, nor will I accept any judgements - we all have our own path to walk.

I hope your snowballing works - but it may comfort you to know there are other options if you find yourself in difficulty.

Thank you Suseka for your support. I hope your own situation works out for you too. I liked your statement ' I don't seek peoples sympathies, nor will I accept any judgements - we all have our own path to walk.' This is how I view my own situation too but there is still a lot of judgement out there still.

NYD

Newyorkdreams

Hopelessly_Hopeful wrote: »

Good luck with the snowballing.

Have you plotted out how much debt will be left each month to see if that DFD is realistic?

HHx

Hi HH - I have turned into a spreadsheet queen!!! LOL

I have 6 spreadsheets on the go - 1 with a tab for each of the credit cards with the interest and minimum payments listed and a spreadsheet for each year 2013-2017 broken down into months. I have all the minimum payments and family loan payment listed on the SS for each month and any balance left for that month goes to the highest cost debt, I've been managing it for quite a while now and according to the spreadsheet our DFD will be Sept 2015.

just hope I'm doing it right!

NYD

eyeopener2

I'm jumping in at the end here but I can only back up what most have said.

If you can only make the minimums, and are surviving on what little you have left, or you've even CONSIDERED pay day loans (I know you haven't but you get my drift) then the point of no return has arrived.

A dmp is hard work, I'm skint daily, weekly and monthly but I have nearly paid back what I owed at the start, plus all loan interest and extra added interest thanks to two pain in the backside credit cards company's. No debt has been written off or reduced yet I'm nearly free.

Your making good progress so keep on, keeping on and you will be there in a few years. Time is nothing, it just drifts by, and one day you will be free as well.

Hopelessly_Hopeful

Newyorkdreams wrote: »

Hi HH - I have turned into a spreadsheet queen!!! LOL

I have 6 spreadsheets on the go - 1 with a tab for each of the credit cards with the interest and minimum payments listed and a spreadsheet for each year 2013-2017 broken down into months. I have all the minimum payments and family loan payment listed on the SS for each month and any balance left for that month goes to the highest cost debt, I've been managing it for quite a while now and according to the spreadsheet our DFD will be Sept 2015.

just hope I'm doing it right!

NYD

That's great news then. Well done. September 2015 will be here before you know it.

HHx

Suseka

Newyorkdreams wrote: »

Thank you Suseka for your support. I hope your own situation works out for you too. I liked your statement ' I don't seek peoples sympathies, nor will I accept any judgements - we all have our own path to walk.' This is how I view my own situation too but there is still a lot of judgement out there still.

NYD

Indeed there is NYD - but you can hold your head high in the knowledge that you are dealing with your situation. Best of luck