Drowning In Debt

rockm87

Hi!

do you really have over £200 a month left? or are you unsure where you money goes?

If it is correct, I would be paying more off the payday loans just to get rid of them, and then using the snowball calculator to pay off the rest!

Craig32

rockm87 wrote: »

Hi!

do you really have over £200 a month left? or are you unsure where you money goes?

If it is correct, I would be paying more off the payday loans just to get rid of them, and then using the snowball calculator to pay off the rest!

I should, but because I was a gambling addict I wasn't seeing this each month. From here on in I should though.

My problem right now is that I am now behind. My July pay was used to pay all my monthly debts apart from my 3 credit card. I had 2 additional pay day loans paid off. So now I am about to default on 3 credit cards in the middle of August.. Then my next 2 pays I will require £250 from each to pay for flights, accomodation & day to day costs for the Berlin Marathon. It wouldn't be until October's pay that I could really make a go of starting to clear things.

Craig32

I have done the snowball calculation again, and I have a couple of questions.

1) Snowballing calculator has my credit card payments down as being lower than the minimum payment I normally have to make. Is that correct? Or have I inputted a figure incorrectly?
2) Is Snowballing better than going on a DMP? For example, the snowball calculator has me down for paying off my debts in 36 months time, while a DMP has me down for doing so in 2 1/2 years.
3) Being an ex gambling addict, I think I would be more comfortable with a charity taking a payment from me of £1000 the day I am paid, and distributing accordingly, rather than the responsibility being on me, as a relapse is always a possibility.

rockm87

You really need to focus on paying off this debt, travelling for a marathon is probably not the best way to use your money right now.

If youre worried about paying off the debt on time, why dont you set up standing orders with your bank to pay your cards on your payday? no different to stepchange.

It's up to you, but I dont see why you wouldnt try this yourself, giving you a focus may help your addiction, get addicted to paying off your debt and saving money perhaps? Rather than handing over the reigns to someone else?

I think you can do this.....I really do :-)

Craig32

rockm87 wrote: »

You really need to focus on paying off this debt, travelling for a marathon is probably not the best way to use your money right now.

If youre worried about paying off the debt on time, why dont you set up standing orders with your bank to pay your cards on your payday? no different to stepchange.

It's up to you, but I dont see why you wouldnt try this yourself, giving you a focus may help your addiction, get addicted to paying off your debt and saving money perhaps? Rather than handing over the reigns to someone else?

I think you can do this.....I really do :-)

Thanks for your positive words, it means a lot!

As I have mentioned in another post, it would cost me more money to cancel this marathon than it would to run it being that I am committed to value of £1000 now so I have to go through with it.

What about time to pay off my debts? I would be looking at an additional 6 months doing it on my own minimum, in comparison to going on to a plan.

This is good though, with everyone offering different types of advice, as it is giving me plenty to think of. I have been compiling a list of pros and cons to everything.

I was planning on calling StepChange last night, but have chosen to give it a few more days so I can really weigh up all my options.

Dobbibill

Craig32 wrote: »

I have done the snowball calculation again, and I have a couple of questions.

1) Snowballing calculator has my credit card payments down as being lower than the minimum payment I normally have to make. Is that correct? Or have I inputted a figure incorrectly?

At the top did you put in the total amount you would like to use to pay off the debts?

At the bottom 'minimum monthly payments' - did you put a figure or a % as calculated by your provider?

2) Is Snowballing better than going on a DMP? For example, the snowball calculator has me down for paying off my debts in 36 months time, while a DMP has me down for doing so in 2 1/2 years.

I suggested the snowball calculator because you said you had enough to make all the payments (except for August due to the marathon) - this means that you are paying over what is expected as the minimum. A DMP would be suitable for someone who is struggling to meet their minimum payments each month.
That said - there is no right or wrong answer, this is just how I perceive it. You have to do what you feel is best for you, your debt, your life and your future.

3) Being an ex gambling addict, I think I would be more comfortable with a charity taking a payment from me of £1000 the day I am paid, and distributing accordingly, rather than the responsibility being on me, as a relapse is always a possibility

I agree with rockm87, this could be the distraction you need from gambling. If you start & complete this challenge, the pride, satisfaction and achievement you will feel will give you inner strength.

Here is another thought for you though.....why not try it yourself and if you feel things are not going as well as expected or you feel you need additional support, then change your mind and contact Stepchange. There's no rule that says you cannot change your mind!

Have a read of some of the 'DFW Diaries', maybe even start one of your own. You will get plenty of support.

DB

rockm87

Dont be worrying about 6 months! once you get started you may get so enthused you end up being debt free sooner!

thegreenone

You have found strength to stop gambling so I believe you can do this!




If you can stick to snowballing seriously, you can get shot of this debt in 2 years or so. My personal opinion: go it alone.

[Deleted User]

Craig32 wrote: »

3) Being an ex gambling addict, I think I would be more comfortable with a charity taking a payment from me of £1000 the day I am paid, and distributing accordingly, rather than the responsibility being on me, as a relapse is always a possibility.

Can you not arrange for the payments, to the various creditors, to go out of your account on, or immediately after, payday?

Craig32

Thanks for the replies folks, you's are really educating me well here.

I think I am going to go this myself, and follow the snowballing way as suggested, but I would love if someone could answer the following question.

Why should I go myself, snowballing, when I will be paying interest, when I could go on a plan and have interest frozen?

That is the one question holding me back from making the big jump in.

If I go myself, can anyone advise how I should approach my 3 credit cards also? I need £300 ish to make the minimum payments on the 3. Now I don't have the money for this pure & simple, and I am going to miss these minimum payments. What is my best way of approaching this? Do I contact them for advice? Or do I make a token gesture payment of what I could to each to show I do intend to pay these back.