Not quite broken

broke_not_broken

Hi all.
I've been lurking for a few days since my lightbulb moment on December 27. I hope you don't mind if I share some details with you regarding my current situation.

I work full time and I'm reasonably well paid. However, I'm expensively divorced and have two children. They seem to counter the salary easily.

So, after renting post-divorce for a while, I took the plunge and bought a house. Well, the bank bought it, I paid a deposit and now I pay the bank a lot of money a month. The deposit, fees etc wiped out my savings. Decorating (much needed) and Christmas and an ill judged brief relationship with someone who liked expensive nights out has put me into debt. Yuck. I don't even like saying that.

The mortgage I can deal with, meet the repayments and I'll look at overpaying further down the line when I'm out of this pit.

For now, I need to repay cc debt of £6630 and a loan of £17850. Gulp.

I've cancelled the regular luxuries (posh food delivery, gym), reduced other dd by switching to cheaper contact lenses etc.

Today I've raided my attic and made £56 (plus postage) on eBay. Several more items will sell. Every little helps.

Today is January 5th. I've had three SFD already this month. I've been through fridge, freezer, kitchen cupboards and toiletry stash, so I know what I have in the house. Planning to use up the stocks and only buy the truly necessary (milk, bread, tea bags...)

I don't smoke. No pets. My wine intake was climbing, so knocking that on the head too.

The loan is being repaid over 3y and I'm managing the repayments. So, my intention is to pay off the cc, get out of my overdraft (I dip in and out every month) and then look to overpay on the loan. Does this sound like the right approach?

You seem like a helpful and friendly bunch, and I'm looking forward to your advice and support.

Thanks for reading
B

[Deleted User]

The order that you repay depends on the interest rate being charged - so if you have managed to get your cc's on 0%, start by tackling the loan first. If the cc's are charging interest (most likely above loan) then repay them first - starting with the highest charging card and working your way through them.

there's a "snowball calculator" here: http://www.whatsthecost.com/snowball.aspx

this will help you decide what order to pay your debts off.

HTH,

D9

The_Green_Lady

Hi BNB - what an inspiring first post, you sound determined and focused. I shall be subscribing and cheering you on X

mum2one

You sound like your getting sorted and have nipped the debt in the bud, it may be worth putting a SOA up (link at the top) which will break down all the figures and see if there are other savings can be made xx

broke_not_broken

Thank you for your comments.
Yes, I will do my SOA as soon as I get a chance. I'm sure you're right and it will help.

Unfortunately my employer doesn't pay overtime and I'm contractually barred from moonlighting for others, so my income is fixed.

Woken up to another £20+pp on eBay though.

Right, I'm going to coordinate dressing, feeding and refereeing my little beloveds!

Have a good day all

broke_not_broken

Hope you've all kept warm and dry today.

My eBay stuff is still going strong. Another £16+pp. I had no idea people would pay for the stuff I'd dumped in my attic! I'm glad they will though. 4 more have bids so will sell, totalling another £46. This eBay lark is new to me, but I'll be selling as much as I can now.

I've started wading through my direct debits and standing orders to produce my SOA. Most of my salary seems to disappear on these almost instantly.

My credit cards were 0%, but not any more, so I think I'll be paying those off first. The APR is higher than that of the loan.

Not an SFD today - bought a roll of brown paper to post eBay stuff as I've run out of used Jiffy bags! Also paid kids school dinner money. Not too bad though.

Still no alcohol yet this year... and I'm not missing it. The reduction in calorie intake and liver poison will do me as many favours as the money I'm saving by not buying wine.

Bnb x