only ONE credit card left + mortgage. current mood: content

fru-girl

Me: I've just turned 40, single mother of 1, high levels of debt, living way above my means. A walking cliche... and up until a couple of months ago I was also trying to lose weight, but luckily I managed to get that one down to decent levels. I can now make use of my full wardrobe. Almost

Let's not talk much about my love life in this first post, enough to say I've been mostly single for the past 4 years or so and there's no indication that's going to change anytime soon. Funnily enough, I'm seeing someone at the moment, we've been going out for 2 months. Current situation: I'm waiting for him to end it, as I can't get myself to do it. Lame, I know...

Let's not talk much about my mortgage either... I'm a greater London mortgage slave. The less than 60% LTV and the low-ish mortgage rate alleviate the pain a bit, but monthly payments are almost £1000... so that's that.

What I need to tackle is credit card debt, which is where the excruciating pain is. Grand total £13,837. There, I've said it. Or shall I say... there, I've totaled it, such an eyesore.

Bank of Scotland: £11,385 at 0% until June 2018
Tesco clubcard £950 at 0% until Dec 2017
Barclaycard: £1470 at 7.4%
MBNA: £32 @ 18% (I pay this one in full each month)

I did try (and failed) to pay off my debt before - that's when it was half the current amount. Tracked spending on an Excel spreadsheet, budgeted things for a while, brought it close to £4K, then stopped and fell off the wagon.

Access to 0% transfer offers didn't help at all, if anything it made things worse. So the only way forward for me is to stop using credit cards (and overdraft) completely. As in - cancel ALL of them, one by one, once paid, of course. I'm due to get a year-end bonus from work in Dec, which should help me get the total debt just under £10K - so that's hopefully both the Barclaycard and the Tesco card cancelled. I'll be cancelling MBNA shortly.

To conclude, 2017 will be a frugal year and I need a plan for it, which is why I'm here. I need this.

Thanks for reading and any posting... please wish me luck - and good luck to all of you!

EssexHebridean

Well done for totalling it all up - that's the hardest bit over with then! (Yes, I'm serious!)

You need a plan is right - and that's where you'll find posting on here will really help. First step is to get yourself a Statement of Affairs (SOA) drawn up - you'll find the link on the sticky post at the top of the main DFW board. Format for MSE as it directs and post it up in here and there will be lots of help, suggestions and input going your way. If nobody finds anywhere that you can make a saving or alter things it would be VERY unusual!

I'm quite envious of you for managing to live in London - as one of many Londoners who was forced out due to rising property prices!

A liitle "dare" to start you off - close that MBNA card. Go on, I dare you...

[Deleted User]

Good luck on your journey.


I too reached the big 40 this year and have a similar level of debt to you.


I have subscribed and will be following with interest.


Pmo2
x

-taff

I had debts of about that much at your age, but nothing to show for it. I also had a mortgage then....I'm not dwelling on my love life at that time either
I just paid mine off by doing one card at a time, switching them to smaller APRs etc, and never using them again. I also got rid of all my store cards and loyalty cards [the latter because I'm no ones free database of info - stupid but still...]
It was only a couple of years after paying everything off I got another two credit cards, one for abroad, one for covering large expenses here. I'm happy to say I owe nothing on either, and rarely use them....
Not using the credit cards at all was difficult to start with, I was so used to using them for stupid things, like the weeks shopping, or cinema tickets, or rubbish expeditures...After I realised how much I was paying for the privilege, it soon stopped...
So...take heart, it can be done.....I think it took me about 3 years in total, because I had a hefty loan in amongst the bills.

fru-girl

Thanks everyone for the replies!

@Essex: I'm definitely canceling MBNA. Will pay off the £32 tomorrow and make the call. I don't see any reason to keep it... thx.

I've done a SOA (sort of) in Excel and have already combed all my bills with a very fine tooth. Have changed electricity/gas supplier, cut my TV bill in half, planning to get a sim-only plan when current mobile contract runs out next April, and switched some insurance suppliers. Also signed up for childcare vouchers, as I don't qualify for tax credits. Bought annual travelcard which saved about £20 per month.

Roughly this is my budget, and the bills part won't be changing soon:
£2000 bills (rounded up) - housing, utilities, insurances, phone/TV/net, childcare, extra curricular activities, school lunches, gym, and travelcard
£600 spending money - groceries, toiletries, clothes, shoes, pampering, fun, eating out, gifts. This is where I need to be careful and track spending. I got a spending app on my phone for that!

This leaves me with about £500 for credit card payments each month, as my net income is £3115.

Holidays and big household purchases aren't included in all of this. 2017 will be the year of no holidaying :sad face:, apart from visiting family overseas in August, plane tickets already paid for. And, there won't be any big household purchases. I have home emergency cover, all appliances are less than 5 years old, laptops and tablets all functional, furniture is... well, it is what it is... no need to buy anything

I don't really have emergency fund/savings, that's a bit worrying and need to start saving for that. I do contribute monthly to a uni savings fund for my child, but that's not to be touched...

@taff and purple: thanks for the encouragement! I'm really hoping we can do this. Debt puts me in a really bad mood, I'm feeling miserable a lot of the time....

fru-girl

Dear diary, it's been a good day so far, went to yoga and a 30-min spinning session in the morning. I'm off for half term and my ex has our DD today. Had a light lunch and now enjoying my coffee... and paying bills, then laundry and other domestic stuff. It feels so good to be able to do this in the middle of the week

MBNA paid off today, only £32 but I called to cancel and they took the cancellation request, although it won't be processed until balance is £0.. it takes a while for payment to be processed. First credit card to go, I must edit the thread title, it's 3 credit cards now

Also made a payment to the Barclaycard. New total across all cards is £13,635. Phew!

Bank of Scotland: £11,385 at 0% until June 2018
Tesco clubcard £950 at 0% until Dec 2017
Barclaycard: £1300 ([STRIKE]£1470[/STRIKE]) at 7.4%
[STRIKE]MBNA: £32 @ 18% (I pay this one in full each month)[/STRIKE]

Current mood: feeling healthy and determined.

EssexHebridean

Woop! Well done! :T:T

I love being able to get housework and life-admin stuff done away from the weekend - it's a great feeling!

With your travelcard - is this done through the company you work for out of your wages or did you pay up front? If up front, I take it you are setting money aside ready to renew it when it finishes? Sorry if idiot-question but that sort of thing is easy to let slip by. We looked at doing an annual railcard for MrEH but by the time the periods he's not using it due to regular holiday entitlement, christmas etc are taken into account it worked out no cheaper. As it is we have reverted to doing his for "odd durations" - so when he renews next month for example it will be for 6 weeks I think, and will take him right up to Christmas. The odd days just pro-rata out but they don't advertise that you can do it at all!

Oh, and emergency fund - yes, you do. Get onto that, eh?!

fru-girl

Thanks! The travelcard - it's through season ticket loan at work, so it's being deducted from my pay. Also, I'm in London and I don't drive, so I don't only go to work using it; I use it evenings and weekends to get pretty much anywhere that's not my high street. It's not that expensive for London standards, it comes to about £107 per month and it's valid on train, bus, tube etc. Plus the annual card gives me a hefty discount on National rail - for both me and my child, so it's totally worth it.

fru-girl

Forgot to say, today came with good news, £300.50 from insurance claim, had some private dental work done and I claimed for it. That takes the Barclaycard down to £1,000 and total debt to £13,335. Don't think I'll be making more payments until the next paydate though, unless I'm left with money towards the end (it never happens ).

Current situation:
Bank of Scotland: £11,385 at 0% until June 2018
Tesco clubcard £950 at 0% until Dec 2017
Barclaycard: £1000 at 7.4%

I need to end things with my date, I feel so bad to do it on the phone but he lives far and I'm not free this weekend at all, I have my DD. At least it's not via a text, it's happened to me before, I got dumped via a WhatsApp message. The "joys" of dating...

Today it's going to be a NSD, I'm cleaning up my kitchen and bathroom, then off to the park and yoga in the evening. DD is still at her dad's until tomorrow. It's so good to be able to go to yoga more than once per week, but during term time I can't - I only do Wednesday or Friday evenings, depending on DD's schedule with ex.

Mood: still determined!

[Deleted User]

Great overpayment on the CC, it'll disappear in no time.


Hugs, dating is never easy.

fru-girl

Thanks, still haven't made the call. I'm thinking about it over a coffee. It's hard to do it!

I've created a signature to detail my debt and short term goals. Will update end of every month.