Looking forward - Debt Free in 4 years

mizmir

Ellidee wrote: »

No Miz I have never had a diary. I used to post on the old dfw daily chat thread and am really just a serial lurker !

Well very glad you have found mine too

mizmir

Karmacat wrote: »

Found you! All I've read is the first post, I got onto my diary and found you - oh mizmir! That was a really big deal to come back - I'm glad you have, and that you have a snowball and a plan ... going to read through now ...

Take care :kisses3:

:beer: It is embarrassing really! We are in a worse state than when I was last here. I think we have coasted for a long time as we had two very good salaries and could easily service the debts. That changed when we moved down here - it was the right move for all sorts of reasons but financially we have taken a big hit - and now we HAVE to sort it out or we are in serious trouble.

So I'm back taking things in hand while we still can. No payments missed, credit all good - just day to day skint and needing to clear this debt so that our money is ours again! The difference this time is that it really has to happen.

mizmir

StressedSteph wrote: »

:j:j:j:beer::beer::j:j:j

Yay for YNAB......I have spent hours and hours on that website :rotfl:

I think it is genius. I can really see this working because it will be there at my fingertips on my phone.

mizmir

Well the loan has come through. :T

Just paying off the final high interest cards - then they will be put away and only brought out if we need them for a card shuffle at a later date for the remaining 0% balances. Absolutely will not use them for spending. Will also be reducing the overdraft limit to a more sensible level to cover emergencies only while we build up an emergency fund.

Karmacat

mizmir wrote: »

:beer: It is embarrassing really! We are in a worse state than when I was last here. I think we have coasted for a long time as we had two very good salaries and could easily service the debts. That changed when we moved down here - it was the right move for all sorts of reasons but financially we have taken a big hit - and now we HAVE to sort it out or we are in serious trouble.

You moved, you started a new business (went full time from part time, anyway, and thats just as big) - there were other priorities. Your diary right now is showing how powerful you can be when you start pushing.

<waves at Ellidee>

So I'm back taking things in hand while we still can. No payments missed, credit all good - just day to day skint and needing to clear this debt so that our money is ours again! The difference this time is that it really has to happen.

Its a relief it hasn't impacted your payments yet - and now, with the loan and the new BTs sorted, it sounds like it never will :T

You know, you've crystallised something for me - I need to put a figure on what I consider is do-able for a pension, and what would be ideal. No good aiming to scrape by the way I do now ... just off to look at a few documents, and maybe put a sig in ....

<subscribed>

mizmir

Karmacat wrote: »

You moved, you started a new business (went full time from part time, anyway, and thats just as big) - there were other priorities. Your diary right now is showing how powerful you can be when you start pushing.

Thank you KC - you are very good for me! :grinheart I know we have had a lot of change and we have at least managed to keep on top of things. I'm going to keep looking firmly forwards!

Its a relief it hasn't impacted your payments yet - and now, with the loan and the new BTs sorted, it sounds like it never will :T

That is the plan. The way things are now set up we can pay a manageable amount and clear the debts in 4 years. Before we were paying that and it was mostly going in interest. Feels like real progress. I know getting a loan for this is frowned on but it allows us to get rid of high interest debt and clear the overdraft. Starting off in the black is psychologically important - we are spending what we have rather dipping further and further into a pot of debt.

You know, you've crystallised something for me - I need to put a figure on what I consider is do-able for a pension, and what would be ideal. No good aiming to scrape by the way I do now ... just off to look at a few documents, and maybe put a sig in ....

<subscribed>

Excellent! Sounds like a plan in the making! :T

Karmacat

You're very welcome

Excellent plans! I don't think getting a loan is frowned on, mizmir - consolidating onto the mortgage, yes, I think thats universally put down as a Bad Plan - loans are different, you can't get chucked out of your house if something terrible happens to it ... And you've done it so you can get the lower interest rate, so that more of your repayment goes to debt, not interest - thats got to be an acceptable reason to take a loan, surely?

mizmir

Karmacat wrote: »

You're very welcome

Excellent plans! I don't think getting a loan is frowned on, mizmir - consolidating onto the mortgage, yes, I think thats universally put down as a Bad Plan - loans are different, you can't get chucked out of your house if something terrible happens to it ... And you've done it so you can get the lower interest rate, so that more of your repayment goes to debt, not interest - thats got to be an acceptable reason to take a loan, surely?

I agree - but I think the concern is that the spending racks up again on the cards if you get a loan. I am taking steps to make sure that doesn't happen - they are all being wrapped up and put in the freezer! There for shuffling 0% and if we need them to deal with queries - but not in purses! And I have just knocked £2.5K off our overdraft facility so that we just have enough to cover a dire emergency (like paying an emergency vet bill before insurance came through!).

The other advantage of the loan actually is that it is finite - it will tick through and be paid off. If we can pay it off early great - but it will be gone in 4 years whatever. So we can more or less forget about that chunk and focus on snowballing the remaining cards.

mizmir

:eek: I did a balance transfer this afternoon to clear OH's high interest card onto my MBNA 0%. Didn't realise that the card I used had been cancelled as she lost her purse a month or so ago and didn't know if it was in it. It obviously wasn't as I had the old card but it is no longer valid. Will the BT just be rejected or will it go through do you think?

Presuming it can only do one of those things and not go into someone else's account! Will have to ring MBNA tomorrow and tell them. Just when I thought it was all sorted. I know just a minor hiccup but it is :mad:

Ali-OK

Definitely phone them. Was the card replaced or did the account get cancelled with the 'lost' card? That might be the crux of it.

If there's a replacement card, fingers crossed they'll do the same deal on that and you get the desired outcome.

Good luck.