Tired of Being Boracic Lint

Bird.Heart.Mouse · 31 January 2017 at 2:23PM

ramblehan wrote: »

Welcome - we have a similar debt level to you. Looking forward to joining you on your journey. We got to the sorry state of not being able to afford repayments though - so well done to you for having your LBM now before it is too late!

Do you know how much £££ you will get on your balance transfer card? I think i would try and clear one card and one overdraft into that so you can start operating with your shiny new budget in a "good" account - makes it much easier not to fall back into the O/D.

Have you used a snowball calculator yet to work out the best way of reducing it all?

One of the other approaches is to ignore the APRs (but move what you can to 0% obviously to reduce interest as much as possible) - and just go for the lowest amount due - and pay that off quickly - so if you could make overpayments on the smaller loan and clear it even before the end of the year, this would free up £103/month to throw at the other debts? Psychologically this approach is supposed to work well, as you quickly see progress and get spurred on by your success (rather than chipping away at something and seeing little results)

One of the hardest lessons I have been learning is about proper budgeting - and that's not just budgeting for the bills that go out each month, but saving up for things that don't go out by d/d- e.g. putting something away each month towards vehicle repairs and maintenance, starting an emergency fund, or saving for christmas. My advice would be to make sure your budget factors these things in as a form of future debt protection. Then with whatever you have left, chuck that at your debts.

Also, it wouldn't hurt to budget something for you both as a treat - be that a holiday / or a nice couple of days out. Paying off debts is HARD WORK and if you can reward yourself along the way it will make the journey less tedious!!

Hey ramblehan,

Thanks for your hearty message - very much appreciated. I have taken on your / Bobarella's advice and started to attack Mouse's loan, which will see that snowball effect in the coming months and help knock away some of the expensive Barclaycard debt sooner.

I must say I hadn't come across snowball calculators before; it's now on my finance plan To Do list. Can you recommend any good sites / tools?

All the very best with your debt free journey too - lets have at it!

Bird x

GeorgianaCavendish · 31 January 2017 at 2:58PM

Good luck Bird! I love your "we are Future Us" LBM. This is similar to me, I've just started a Debt Free Wannabe Diary too after LBM about my level of debt and a realisation that I'm the adult now ... no one else is going to come along to sort it out for me!
Your breakdown of when everything would be paid off is very sobering, I am quite scared to do that for my credit cards but I think it would be a good wake up call!

I'm contemplating exploring 0% balance transfer cards for part of my debt, but I think that first of all I need to get a handle on my spending because that is where my main problem lies. I might see how I get on in the next couple of months and then think about balance transfer in new tax year.

Bird.Heart.Mouse · 31 January 2017 at 3:21PM

Hello all,

What a week or so it's been. Good news on the finance front, however sadly after a decade together my Brother & Sister-in-law decided to call time on their relationship. An amicable split (no children involved or shared responsibilities) but it's still

Ahem - thanks for letting me get that off my chest - armed with a fresh perspective (and love for Mouse) thankfully there has been much better news where debt busting is concerned:

1) MBNA BT credit card arrived and that hideously expensive debt (£4,157 @ 25.9% APR) is now being paid off at 0%!

2) A final £81.17 was left on our evil 25.9% APR credit card after the BT - paid it off three working days before the due date, which saved us £160+ interest for the month

3) Spoke with Barclaycard to see what could be done about our next most expensive credit card debt
- As a gesture of goodwill there will be no interest charged on the next statement

4) Today paid our first £50 overpayment on Mouse's loan - snowball debt repayments here we come!

Here's to brighter times ahead,

Bird x

Bird.Heart.Mouse · 31 January 2017 at 4:47PM

GeorgianaCavendish wrote: »

Good luck Bird! I love your "we are Future Us" LBM. This is similar to me, I've just started a Debt Free Wannabe Diary too after LBM about my level of debt and a realisation that I'm the adult now ... no one else is going to come along to sort it out for me!
Your breakdown of when everything would be paid off is very sobering, I am quite scared to do that for my credit cards but I think it would be a good wake up call!

I'm contemplating exploring 0% balance transfer cards for part of my debt, but I think that first of all I need to get a handle on my spending because that is where my main problem lies. I might see how I get on in the next couple of months and then think about balance transfer in new tax year.

Hey GeorgianaCavendish,

Your Debt Register looks like a great start, well done!

I don't know if you felt the same thing, but as horrible as the amount of debt may be, there is a calming, almost empowered feeling that comes with being able to see every penny of debt written down. It's like viewing a stormy ocean from a safe place - a tough ride that can be planned out instead of a constant struggle not to drown!

I completely identify with your experiences of temporary debt responsibility - after what were great intentions to sort out money woes, a few months later old habits take hold. I'm currently trying to conceive ways of keeping motivated over the next 6, 12, 18, 24 etc months, and I feel it starts with repeated visits to the Debt Free Diaries.

Good luck! I'll catch you on your diary

Bird x

Bird.Heart.Mouse · 31 January 2017 at 4:50PM

GeorgianaCavendish wrote: »

Your breakdown of when everything would be paid off is very sobering, I am quite scared to do that for my credit cards but I think it would be a good wake up call!

By the way... it is very sobering to work out when debts will be paid off / how much the debt actually costs. I'd absolutely recommend to do it, but do it when it feels right for you. You mention getting your spending under control as a priority, maybe achieve that first (feel the 'win!') then tackle the next challenge

Just a thought...

Bird x

GeorgianaCavendish · 31 January 2017 at 4:59PM

Bird.Heart.Mouse wrote: »

By the way... it is very sobering to work out when debts will be paid off / how much the debt actually costs. I'd absolutely recommend to do it, but do it when it feels right for you. You mention getting your spending under control as a priority, maybe achieve that first (feel the 'win!') then tackle the next challenge

Just a thought...

Bird x

That is a great idea, thank you Bird!
I have just discovered that I can subscribe to threads on MSE so I have subscribed to yours and look forward to following your debt free journey

I love your analogy of watching a stormy sea from a calm place, that is exactly how I feel at the moment! (Now I am limbering up and rubbing myself with goose fat before jumping in to the no credit card February waters!)

Bird.Heart.Mouse · 12 February 2017 at 3:06PM

Hello everyone,

Feeling positive after another week of controlled spending and planning out the next 12 or so months (when key debts will be paid off / snowballing the savings onto the next set of debts etc)

I had a night out with my dad on Thursday this week to catch up (I know, on a school night!) which in the past has ended in drinking too much and spending too much money. Hands up who's woken up after a evening out with no cash and only a hangover to show for it... :wave:
However this time felt different, owed I feel to my LBM at the start of the year, and in the end spent in total £35. An absolute bargain for quality time spent with family, and well within my budget for the month!

Some key achievements this week...

1) Re-worked my budget (god bless spreadsheet formulas) so that Mouse and I can pay an extra £125 per month on her loan. This means it'll be cleared by June instead of November! :j I can't wait to start making snowball payments of £228 extra per month on our hideously expensive Barclaycard credit card! More to come here so watch this space

2) Got my No7 hot cloth cleanser from Boots for a bargain £4.95 instead of £9.95! Sadly I have exceptionally sensitive skin, so this stuff is a necessary expense, but the lovely lady at the till used a £5 off voucher I was due to get post-purchase to save me money on the day. Top customer service!

3) So I discovered that I'm a stock owner... :think: My employer gave me shares some time ago which I could not decipher at the time so eventually forgot about them, yet a letter in the post this week informed me they are worth $680! Now I won't be featuring on the cover of Wall Street Journal any time soon, but I feel incredibly lucky, is something I need to pounce on and throw at our debts - more research needed methinks... I will be back to let you know how I get on

Bird x

Treadingonplaymobil · 12 February 2017 at 3:36PM

Hi, and well done on turning into 'future you'! It feels very similar to how I've been viewing our family (and our debts ) recently. I think I was waiting for that the when I'd suddenly earn more, have a grip on my finances and be able to afford everything I wanted, but eventually realised it wasn't going to happen without us actually doing something about our truly alarming debt :eek:.

I've subscribed to your diary, and wanted to wish you good luck with it!

enthusiasticsaver · 12 February 2017 at 5:58PM

I think you are right to start making a dent in the credit cards but don't ignore the overdrafts as they actually cost you more than the loan and credit cards. I would focus on one (the smallest to motivate you) and reduce it month on month and then focus on the next smallest and so on. Alternatively apply for a money transfer card at 0% if you can get one and repay them all then stop using overdrafts altogether.