Step 1 - Admission! (Or be pushed)

7839matth

Well over the last few years i got my self into small amounts of debt, which snowballed into around 20k in what seems like a blink of an eye.

I realised the huge problem about 6 weeks ago when i was half way through the month, my account was as low as i could go, i couldnt extend an overdraft, i couldnt get a loan because my credit sucked so badly, my cards were maxed out and i dont really have much i can sell.

I phoned up my bank to try to get a small extension to the overdraft So i could live for the rest of the month, Clearly they said No however i was re-directed to Lloyds CSU, a quick chat with her and a bit of a bollocking and she put me straight on the phone to StepChange.

Now by this point i wasnt really bothered what happened, i would have taken Bankruptcy if it was going to fix everything.

I kind of nodded and agreed with what i was told over the phone, filled in a bunch of paperwork and now im on a DMP with the first payment due in 2 days time, safe in the knowledge that i could be DF in a little over 4 years.

I told the woman that i have a Secured Loan against my house (idiot) which soaked up a proportion of my debt, Which looked back on i wish i hadn't done, however paying off my SL before the DMP is my priority.

So we worked out a pretty good budget over the phone. Which will enable me to live pretty comfortably, aswell as cover every debt, and my DMP and my SL and still have around £100 left over each month which will get put away in a jar.

So as things currently stand i have 18k to pay off of a DMP in around 4 years, included in that time is 10k on a SL,

Time to knuckle down and get things sorted,

Not many times ive been able to say this but i think the bank did a good deed for once and shoved me in the right direction.

At current once all my overheads are paid. I am left with:

£150 per week (sat - sat) To include 1 full tank of fuel, £40 shopping bill. £8 per day for dinners/brew etc.

@ £600 per month i would still be left over with £120 at the end of the month which can go away into a savings acc as an emergency fund.

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I prefer to deal in cash rather than card so i will be withdrawing my £600 at the start of each month, split into a pile for each week, whatever is left over at the end of each week can go into a pot.


Any thoughts on improvement?!?

Many thanks

chevalier

Well done on taking the bull by the horns, and getting it sorted. Nice one on the part of your bank to put you onto Step Change.

I would suggest that you make sure you have an emergency fund in place, as now you are on a DMP you are not meant to take out any more credit.

My other thought was that 40 pounds a week for dinners (is that as in evening meal, or lunch at work) might be a lot. Could you take pack ups to work and save this? 40 pounds a week is 2000 pounds a year......
chev