debt free - starting out

Peterm

Hi All,

I have been looking on the forum after months of sleepless nights and have found some great help and guidance. I have taken the plunge and decided to post A) for future support and encouragement and I may be able to help / support / encourage others....

Our story (my wife and I) is that me and my other half have debts totalling 27k on credit cards, and 3k on overdrafts. In recent months I have taken to using the credit card for cash withdrawls and paying off credit card bills. What started with a few purchases on credit cards has led to the credit card bills being paid with credit cards!

We are both in our early 30s and have one child 18 months, and another on the way. basically our take home wage (combined) equates to around £2700 per calendar month. Out of this we manage to pay all mortgage and bill demands comfortably (no missed payments or bills apart from late cc bills). Motoring costs are not an issue as I have a company vehicle. In short it is the CC bills totalling £700 PCM, that are crippling us.

After seeking advice from the CAB and by looking on this forum I decided to set the wheels in motion for a Debt management plan. We chose 'stepchange'. I called them yesterday and had an 'informal chat' with them and described my / our personal circumstances. I found them very understanding and very helpful. I then completed their online debt management tool / spreadsheet detailing who we owed and our outgoings, commitments etc.
I was expecting it to take some time for the ball to get moving, but thismorning I checked my emails and found they had sent me a full DMP. It basically involves us sticking to paying £310 per month. I'm more than happy with the speed of the response and help we have recived and already feel some relief. :T It will allow us to pay off what we owe and have some money left over every month for emergencies (after food childcare bills etc)
I realise this is a long haul job and part of me is pleased with being rid of credit cards. I also realise the effect on our credit rating, but the main thing is that we keep our house. The paperwork part of the agreement will arrive shortly so I'll be filling it out over the next few days.

I cant explain how bad I have felt over the last few months, but I'm glad Ive taken the first step towards getting things back on track. I've never been the greatest person for finacial discipline and indeed the main culprit for the debt is me, but I do feel that I am turning things around and starting to enjoy seeing where I can save money.

Looking forward to getting things sorted and on track.:)

Weird_Nev

Well done. Wishing you and the family all the best.

CurlyTop

Here's to the start of your debt free journey. I'm two payments away from finishing mine. Its been a long 11 years (had to reduce payments due to ill health) but I'm nearly done.

Would suggest you pop over to the Old Style Money Saving board. Look at the first post for the September Challenge, it gives you tons of tips for saving money when shopping and then as you scroll down, tons of reasonably priced recipes:

http://forums.moneysavingexpert.com/forumdisplay.php?f=33

Luckily you have a reasonable income and so it shouldn't take you too long to bring this down. I'll be honest there may be days when you things get on top of you but hang on in there. If you really want inspiration, look at https://www.frugalqueen.com She's paid off a ton of debt within a short space of time.

Best of luck

wegle

Well done for taking the plunge. Bet it feels like a massive weight off your shoulders. Do make sure you address the reasons you got into debt so that you don't find yourself in the same position or worse in a few years time.

Best of luck on your DFW journey!

Learning2Budget

Good luck on your journey, we are hopefully approx 3 years from the end of our stepchange journey. Amazing how much easier life becomes when someone else sets your budget for you. L2B.x

geeka

well done for doing it, I started with CCCS (Stepchange) in 2007 and paid mine off in June. They have been brilliant, my amount I paid has gone up and down dependent on my situtation but they have helped me. It just ticks away in the background. it's been tough sometimes and family have helped me out when my car has needed MOT but ive managed. The whole process has taught me to budget, the cost and value of food, how to bargain shop. I am now an encylopedia to friends and family as i've learnt so much (mainly from this forum and site). People on here have been brilliant as well.
Stick with it and when you reach the end you will feel very liberated, best of british!

Peterm

Thanks to all for the inspiration. Filled out the last of the forms yesterday so approval of the DMP is the next step

EchoDelta

Well done on taking the first step. All the best to you and your family.

Puzzcat

Hi,

Just to let you know there is a dmp mutual support thread that offers fantastic advice and knowledge if you need any help on the way.. I'm just starting out on my dmp journey too. I wish you well with yours.

Puzz. x