Has anyone ever manage to do this?

flumpkin

Thanks Cyclura

I will look at doing my SOA over the next couple of days. I hear what you are saying about the budget and shopping and paying cash. I think that will definitely be the way to go for me. Not sure how I would get it down that low though! Need to look at some meal plans.

My big problem which I know people won't understand is the dentist. I have a lot of dental probs and am back for emergency appt on Monday. I am hugely phobic but have a great private dentist (who has done some foc work for me). I am 40 and desperately trying to hang on to my teeth if I can.... not sure if this is possible for current issue Almost in tears again now - this is a very real issue for me. If works needs doing and teeth can be saved I will have to include this in my budget - he will let me pay in installments to avoid interest.

Travel wise I need the car for work (20 miles a day). I will endeavour to walk more locally though.

I have already been thinking about envelope for stuff like car tax to put the monthly amount in so don't need to use cards at all.

I really want to do this.

Can I ask how long your snowballing took you? Well done btw

love flump x

milky1991

Can you get the cards transferred to a life of balance card. I have one which is 5.7% for as long as I have the card and as long as I don't spend on it it does what it says on the tin.

Get what you can on it then try and concentrate on what's left.

Good luck

[Deleted User]

flumpkin wrote: »

It has been growing over the past 13 years or so.

I know the feeling.

I spent about 30 years, getting steadily deeper into debt.

It started with a couple of Credit Cards, and a Store Card.

When they got out of hand, I paid them off with a bank loan, then cancelled them.

I refinanced the loan twice (to take advantage of a lower monthly payment), but it pretty much doubled the life of the debt, hence I would definitely not recommend it.

Trouble was, although I didn't run up any more card debt, I continued to spend all my wages, without saving anything.

As a result, when a bill came in (road tax, MOT, car repairs, tyres, etc.), I'd take out a loan to cover it.

For car insurance, I'd put it on monthly payments.

About 5 years ago, I had my LBM, cut right back on non-essential spending, and got stuck into paying off my loans.

Over the last 12 months, I've paid for 2 lots of road tax, a motor insurance policy, and 8 tyres, all with cash.

I even, for the first time in my life, have some savings. :j

flumpkin wrote: »

Just started Jan with £150 car repair and paid cash and it felt good.

It does feel great, doesn't it?

Stick with it. You will get there, and trust me, being finally DF is an incredible feeling.

flumpkin

Thanks Bob

I think part of problem is we never really acknowleged the debt - just saw the cc limits and od as our available money. When I am £100 from my od limit I see it as £100 left when it isn't really. Any 'big' or unexpected bill has always gone on the card rather than impact the money I have for the month. No savings and no cutting back to cover the expense (or treat), just stick on cc without really considering paying it back. I know how dreadfully naive / pathetic / immature and irresponsible that sounds but trying to be honest (to myself mainly!)

I think paying it all cash will open my eyes. I will see that 'if I spend this I will have no money for food etc' and hopefully that will get me to start planning, and making proper responsible choices.

I am daunted by the journey ahead but also hopeful and a little excited at the prospect of being in control.

So encouraging to hear from people who have done it!

thank you

love flump x

Monkeyballs

Hi Flump,

I think your last post is most telling and (for me at least) does look like you're open to opening your eyes!

Realistically, you at least need to get an SOA up and be ready to make a few big changes.

I would still recommend speaking to the CAB or a debt charity, if nothing else it is good to get impartial advice and have immediate replies to any questions you might have (as good as folk are at posting here may be).

I know that it feels like the world is caving in at the moment but it's not, it's not something that can't be fixed

MB

[Deleted User]

flumpkin wrote: »

So encouraging to hear from people who have done it!

thank you

You are very welcome.

Now go for it.

foxgloves

Hi Flump,
I think your last post hit the nail on the head. We also earned 'good money' but accrued over 30k of debts at our worst. We could always pay them so didn' t see it as a problem. In the weeks leading up to my LBM, I realised that if we were talking about money & my partner said, "Well, I've got 5k", he didn't mean that he had the money, he meant that he had 5k of available credit on one of his cards. Not the same thing at allI There will almost certainly be outgoings you can cut back on, & if there are uunessentials like Sky TV, big mobile contracts, gym, etc, they will almost certainly be going if you are serious about making an inroad into your debt. If there are just the 2 of you, grocery shopping should be possible on £50 pw. Do weekly meal plans religiously, then write shopping list & buy only what you need. Cook from scratch, batch cook for the freezer, take packed lunches & ban takeaways. Cancel all nonessential outgoings. Make do & mend with the stuff you have......there are loads of things you can do to cut back. The most important thing is realising that the money you have coming in each month is your money. There isn't any more. You may yet need to talk to a debt charity, but in the meantime, an SOA & a look at a possible viable budget would be a useful next move. Best of luck with it all x

flumpkin

Thanks everyone.

Love your signature tag line Foxglove ... going to borrow that one as my new mantra.

Off now to do my SOA.

We are going to do this!

Love flump xx

flumpkin

OMG. First stab at SOA and things are tighter than I thought!

Hope I have done this ok?

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1900
Partners monthly income after tax....... 1650
Benefits................................ 80
Other income............................ 0
Total monthly income.................... 3630

Monthly Expense Details
Mortgage................................ 511
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 92
Electricity............................. 50
Gas..................................... 50
Oil..................................... 0
Water rates............................. 52
Telephone (land line)................... 0
Mobile phone............................ 84
TV Licence.............................. 12.12
Satellite/Cable TV...................... 58
Internet Services....................... 0
Groceries etc. ......................... 350
Clothing................................ 15
Petrol/diesel........................... 100
Road tax................................ 13
Car Insurance........................... 38
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 180
Childcare/nursery....................... 0
Other child related expenses............ 60
Medical (prescriptions, dentist etc).... 40
Pet insurance/vet bills................. 5
Buildings insurance..................... 54
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 30
Haircuts................................ 10
Entertainment........................... 10
Holiday................................. 40
Emergency fund.......................... 25
Total monthly expenses.................. 1899.12


Assets
Cash.................................... 0
House value (Gross)..................... 100000
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................ 0
Total Assets............................ 101000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 65000....(511)......2.5
Total secured & HP debts...... 65000.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
mbna...........................7416.96...260.......34.9
cap1 H.........................2980.05...89........20.9
cap 1 R........................11936.9...355.......22.75
HSBC...........................4965.22...126.......21.9
Littlewoods....................309.94....55........0
Very...........................224.29....16........20.9
TSB............................7251.07...190.......24.5
Sainsbury......................5846.52...130.......22.9
Creation.......................1941.11...52........22.9
Marriott.......................7484.19...190.......21.9
B/C HH.........................5879.66...118.......20.9
Egg BC.........................1647.51...45........19.9
smile R........................2491......75........12.9
smile H........................362.2.....20........13.9
Total unsecured debts..........60736.62..1721......-


Monthly Budget Summary
Total monthly income.................... 3,630
Expenses (including HP & secured debts). 1,899.12
Available for debt repayments........... 1,730.88
Monthly UNsecured debt repayments....... 1,721
Amount left after debt repayments....... 9.88

Personal Balance Sheet Summary
Total assets (things you own)........... 101,000
Total HP & Secured debt................. -65,000
Total Unsecured debt.................... -60,736.62
Net Assets.............................. -24,736.62

Created using the SOA calculator at www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using Firefox browser.

OOPs - forgot Od too

mum2one

I dont know if this is any help but theres a link for the SOA. Really sounds like you habve had your lightbulb moment ans caught it in time xx

http://www.stoozing.com/calculator/soa.php