Slowly but surely debt free wannabe.

SalemD

I have two major debts:

A shopping account with debt of £1000 (credit limit £2500).
A credit card with debt of £600 (credit limit £3500).

On the face of it, it does not look that bad, but I have constraints:

1. They are high interest accounts (around 30-40% APR).
2. My only income is ESA support group each month.

On the plus side, my only necessary outgoings is grocery at around £90 per month.

I am ploughing most of my spare cash on to my credit card - around £200 per month. Once that is done I will attack my shopping account.

It does mean I restrict my spending a lot - mainly on food. I am doing okay, I listen to my own music, and go for walks. Or spend time at home and follow the sport when the weather is bad.

Any tips welcome!

andyfromotley

Check to see if you can get a card with a lower interest rate and transfer the balances to this. (you may need to pay off the shopping card with your existing CC first) Its unlikely given your income but worth a go. Or your existing caed may offer a BT rate.

Otherwise just crack on the way you are and get ir paid off. Try your local library as a decent source of free activities.

Spoonhead88

I'm in the exact same position as you, i have 2 debts left 1 an overdraft of £1070 and the other a loan of £2003.50. I am also on ESA (still waiting on the face 2 face medical so only getting £146 every 2 weeks.) In January of this year, I went on a DMP and its the best thing i did. After a few months, all my creditors stop charging interest. Its something would really look into. Def go with Step change or another Debt charity as they will do all the work and they don't charge you anything.

SalemD

andyfromotley wrote: »

Check to see if you can get a card with a lower interest rate and transfer the balances to this. (you may need to pay off the shopping card with your existing CC first) Its unlikely given your income but worth a go. Or your existing caed may offer a BT rate.

Otherwise just crack on the way you are and get ir paid off. Try your local library as a decent source of free activities.

I have a poor credit rating that won't improve until 2018. I have tried to apply for cheaper credit but no luck.

Thanks, yes I live near the library, I sometimes go there to have a look around.

SalemD

Spoonhead88 wrote: »

I'm in the exact same position as you, i have 2 debts left 1 an overdraft of £1070 and the other a loan of £2003.50. I am also on ESA (still waiting on the face 2 face medical so only getting £146 every 2 weeks.) In January of this year, I went on a DMP and its the best thing i did. After a few months, all my creditors stop charging interest. Its something would really look into. Def go with Step change or another Debt charity as they will do all the work and they don't charge you anything.

Oh thats a coincidence. Good luck with your debt journey too. I hope you get your ESA through.

I did think about a DMP, but I think I will be okay for the time being. I just need to keep my head down, and complete this challenge until its over.

National_Debtline

Hi SalemD


You'll see that what Andy and Spoonhead have in common is a "debt countdown" in their respective signatures - a lot of folk on these forums find this quite a powerful motivational aid, and you might find it useful too.


Other than that, I would just echo the suggestion of a debt-management plan but if you're determined to grind the debt down without any outside assistance, then more power to you.


Dennis
@natdebtline

BettyBones

Hi SalemD, have you thought about volunteering to pass the time? It's a great way to get free entry to events and can free up a little bit of cash if you find some volunteering roles that give you meals in exchange for your help. I recently volunteered to help run an information stand at a local festival. I had a great day out (even though it rained all day!), met lots of lovely people and got breakfast, lunch and endless cups of tea, coffee and biscuits thrown in. I also got mileage that was over and above what it actually cost me to get there and back.

I particularly like to volunteer with marshalling or manning an information stand at sporting events... events like the Goodwood Festival of Speed, Wimbledon, local Tough Mudders or Marathons... there's loads to choose from both locally and nationally and most will at the very least reimburse your travel. I usually get to watch a lot of the action at these events but even when I don't get to watch, I still love going to them just to be there, be a part of it and soak up the atmosphere. It's a great way to pass the time when you're debt busting!

SalemD

Hi BettyBones:

Thanks you for your reply. Yes that is a great idea. I would like to get involved in volunteering. It does seem worthwhile and a lot of fun!

I will have a look online for vacancies.

Muttipops

Hi,
Just watch out with the ESA as to what work you are allowed to do, as possibly even volunteering would be considered as work and the DWP may want to know if you are involved in any activities like this.
I don't mean to scaremonger, just don't want your benefit affected.
Sounds like a great idea for something to do that is fun and free!

SalemD

Good point. I will be certain to inform the DWP if I begin to do volunteer work.