Time and debt reduction

enthusiasticsaver

changeforbetter wrote: »

I'm 46 (though sometimes feel about 10 years older than that) :undecided

It was thinking about being so much closer to official retirement kind of ages that partly stopped me in my tracks in terms of the DFD predictions!

I agree with your suggestions you posted, about strategies to reduce this time for sure, many thanks.

Certainly yes I can see that this could affect retirement plans. Do you have a company pension? Presumably pension payments can be built into budgets and you can direct DMP payment once finished into pension instead.

HEROWHENZERO

Hi Changeforbetter,

I started my DMP with SC in June, I'm started paying £230 a month, and the length was nearly 21 years. I've since made an additional £500 payment through overtime and ebay selling. I've also readjusted the budget to make an additional £40 per month. So £270 pcm has amazingly reduced the timeframe from 21 years to 16 years. Whilst the length of time is pretty depressing, the fact that £40 a month can make a huge difference, I'm lifted such that I plan to reduce the DFD to an optimistic 2020, and realistic max 2022. So with the current date Feb 2033, I have a lot of work to do.

I've looked at both IVA and BR options and due to work arrangements etc, neither of these would work for me.

My budget is based on base salary and thankfully my job involves on call and overtime, which when my mental state is a little less consumed on finances and more on working then I will be able to start making serious headway. I've already got another £150 put aside for additional payment, so I'm just going to knuckle down and concentrate on work from now on, as obsessing over the finances aren't going to make them better, but working hard and earning extra money WILL make a difference.

andyfromotley

Could it be that a second job may be the answer (I realise that i dont know anything about your personal circumstances!!) Two nights of barwork a week will bring in about £215 after deductions which in theory could reduce your DMP to around 5 years. Throw in a saturday or sunday job and you will be well under 36 months. add to that an upturn in your main work and you may be able to smash this debt in super quick time!!

I know that isnt possible for everyone but in those circumstances i would rather have 3 years of flat out than the grind of 11 years.

HEROWHENZERO

Hi Andy,

Any additional income is going to bring the time down. For me, overtime in my main job pays much better than a bar job, so I will be seeking as much overtime as possible. When I was gambling I managed stupid hours to feed my addiction, so I can do it again to clear my debt.

changeforbetter

HEROWHENZERO wrote: »

Hi Changeforbetter,

I started my DMP with SC in June, I'm started paying £230 a month, and the length was nearly 21 years. I've since made an additional £500 payment through overtime and ebay selling. I've also readjusted the budget to make an additional £40 per month. So £270 pcm has amazingly reduced the timeframe from 21 years to 16 years. Whilst the length of time is pretty depressing, the fact that £40 a month can make a huge difference, I'm lifted such that I plan to reduce the DFD to an optimistic 2020, and realistic max 2022. So with the current date Feb 2033, I have a lot of work to do.

I've looked at both IVA and BR options and due to work arrangements etc, neither of these would work for me.

My budget is based on base salary and thankfully my job involves on call and overtime, which when my mental state is a little less consumed on finances and more on working then I will be able to start making serious headway. I've already got another £150 put aside for additional payment, so I'm just going to knuckle down and concentrate on work from now on, as obsessing over the finances aren't going to make them better, but working hard and earning extra money WILL make a difference.

Hi Herowhenzero,

Great to here your thoughts on this, as yours was initially even a lot longer than my plan. Totally agree about the working and earning being the key thing - read somewhere about that really being the key difference when you're in debt.

Out of interest, you mention adding payments at some times - I suppose these were just one-off payments that you added (as well as increasing your base payments as you say). Were there any problems in adding one-off additional payments (e.g. creditors thinking you had more money and asking for it!?).