Tired of Being Boracic Lint

armchairexpert

Hi Bird! You've done so many great things already - special kudos on talking to Barclaycard and the bank manager, I think most of us dread those sorts of calls more than almost anything.

Have you considered doing a proper SOA so you can see what kind of realistic targets for overpaying you have?

Bird.Heart.Mouse

Treadingonplaymobil wrote: »

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!

Thanks Treadingonplaymobil, I went through exactly the same thing - waiting for more money to start coming in, and holding on to the delusion that when it did all finances would be magically organised!! Well done on your LBM, even if the its a long path ahead, feels great to have real control.

Bird x

Bird.Heart.Mouse

enthusiasticsaver wrote: »

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.

Hi enthusiasticsaver - appreciate the heads up! I have updated my plan to start chipping away at the overdrafts once Mouse's loan is paid off (watching the amount decrease with each overpayment brings such amazing sense of satisfaction & excitement that I really didn't expect!) That will be the first big win of the year, so with that under our belt we'll start tacking the smallest £550 overdraft

Cheers

Bird x

Bird.Heart.Mouse

armchairexpert wrote: »

Hi Bird! You've done so many great things already - special kudos on talking to Barclaycard and the bank manager, I think most of us dread those sorts of calls more than almost anything.

Have you considered doing a proper SOA so you can see what kind of realistic targets for overpaying you have?

Hey armchairexpert - thanks so much, 'the gob' runs in my family!

I did do an SOA which was really helpful for budgeting - I'm amazed that I forgot to include money for birthday presents... your birthday is one of the few guarantees in life!

That said... I'm not sure if anyone else has experienced the same same thing, but if I'm completely honest I wasn't a huge fan of the snowball calculator results. All of our expensive debt is around 18% / 19% APR and I had made my plan around paying off Mouse's loan first so that we can celebrate a big win earlier, keep motivated etc. The snowball calculator suggested getting rid of the overdrafts first, but on an emotional level that just doesn't work for me.

My OH Mouse would be the first to tell you once I have a plan / idea in my head it can be hard to shake, but I believe it's the right thing to do!

I'd welcome your thoughts

Bird x

angelpye

Hi Bird, maybe do what the snowball suggests once you have had your win with the loan? The snowball can be manipulated so you can do a minimum payment type of thing to a certain account and its amazing the difference in interest and /or DFD...the calculator works out how to get you there with the least amount paid in interest and therefore quickest route to debt free but no emotional motivation is in its equation.

Good luck

Bird.Heart.Mouse

angelpye wrote: »

Hi Bird, maybe do what the snowball suggests once you have had your win with the loan? The snowball can be manipulated so you can do a minimum payment type of thing to a certain account and its amazing the difference in interest and /or DFD...the calculator works out how to get you there with the least amount paid in interest and therefore quickest route to debt free but no emotional motivation is in its equation.

Good luck

Hey angelpye - great idea! It hadn't struck me to re-visit the snowball and refresh my details / debts. Love it, adding it as an action in my finance plan right now (I'm a proud spreadsheet nerd)

Many thanks

Bird x

Treadingonplaymobil

I am intending to go against my snowball's advice too - we have one low balance card (relatively speaking! They are all ridiculously huge) which I intend to throw everything at once it's gone, for the psychological win. Once that's done I'll do as Mr Snowball tells me like a good little debtor and pay off as instructed.

GeorgianaCavendish

Sounds like you've been making great in-roads! I totally agree about manipulating the snowball, I don't think we should underestimate the psychological win factor in this journey.

Bird.Heart.Mouse

Hello everyone,

A Debt Diary update after what feels an age! It's been two weeks since my last post (sensing a 'Debtors Anonymous' vibe here... all together now: "Hi Bird"). Whats interesting is the amount I have thought about posting an update; each time something is ticked off the finance plan 'To Do' list, or a debt payment is made, my immediate thought has been to update the diary. Life sometimes gets in the way, but I really feel good habits are being formed.

So with February drawing to a close, the past two weeks have been positive from a finance perspective. Of the 19 finance plan 'To Do' tasks I set myself this month 17 have been completed (18 when this post is finished!) so very happy with that.

Some of the highlights:

1. Spoke with Sky after receiving a letter about increased fees for Broadband and Calls (possibly for other services too). Interestingly, the letters stated that customers had the option to cancel these services if they wanted to - very consumer friendly I thought! Anyway, one phone call later and I saved £49.08 in additional fees for this year while keeping the same service - result!

2. The new debt-busting budget kicks in this month starting with a lovely £125 overpayment on Mouse's loan

3. Barclaycard got in touch to apologise for overcharging us at least £212.78 in credit card interest! Waiting to see the final amount in our next statement which will be deducted from our total debt

4. Last but not least, Mouse and I celebrated 10 years together :heart2: We went out for dinner and drinks, employing my lost Tesco Clubcard vouchers, which were boosted to get a beautiful meal on a budget. £30 for the entire evening (including one too many drinks )


Goodbye task 18 of 19

Bird x

GeorgianaCavendish

What a great month of debt-busting! I only recently realised how useful Tesco Clubcard Vouchers are, and since then we've been meticulous about collecting the points and wombling left behind receipts at the Self Checkout. Kicking myself for all those times I popped in for milk etc without my Clubcard and didn't bother getting a receipt.

Hope March is another great debt-busting month for you too