Dealing with mega debt - query

enthusiasticsaver

matt8787 wrote: »

Staying in and watching Sky is about all we can afford to do right now - if I cancel that, I'm pretty sure the other half would file for divorce

Re credit cards, do 0% offers ever run out? I know you don't get the introductory lengths any more, but thought offers of 12-15 month 0% periods would always be around for existing customers - at least that's what I've always found - is this not the case?

Re the mortgage - yeah, the debt accrued has probably got me by the knackers there - will probably be forever tied to the Chelsea - though would still look for a remortgage deal from them rather than move on to SVR.

No 0% deals are not around forever. There may be a point when the credit card companies feel you no longer meet their criteria (overcommitted, affordability etc etc) and they may not be so freely given. I too am wary when you say you "deserve" the good things and would rather delay paying the debt off to ensure you have money still for holidays etc. Budget for them by all means but one way or another the only way to pay off debt is either to increase your income or decrease your costs. I would suggest you post an soa to get better feedback. There have been a lot of people on here who have paid off that amount of debt so it is not impossible but it does require financial discipline. Have you received help to kick the gambling habit?

nkkingston

Have you checked what you're watching on Sky that's only available through them? is there a cheaper package that still includes it? If it includes the football, would a season ticket be cheaper (you'd be surprised - it often can be, even with PL prices!)? At the very least, ring up and threaten to cancel, and you'll almost certainly be offered a discount to stay.

mrskingandthescarecrow

It can be done - see my sig.


It took me a long time. First I ensured that I spent less than I earned so the balances didn't increase. Then paid as much spare cash off the debts as possible, starting with the highest interest rate.


I transferred to 0% cards as I was able to but stuck to essential purchases only. I decreased my outgoings as much as possible and earned as much extra money as I could to increase the repayments.


There are much cheaper alternatives to sky for those nights in waiting for the debts to vanish.


If you are serious about paying off your debts, you should cut the cards up so that you cant use them anymore.


Good luck on your journey.

matt8787

nkkingston wrote: »

Have you checked what you're watching on Sky that's only available through them? is there a cheaper package that still includes it? If it includes the football, would a season ticket be cheaper (you'd be surprised - it often can be, even with PL prices!)? At the very least, ring up and threaten to cancel, and you'll almost certainly be offered a discount to stay.

am locked into an 18 month contract

matt8787

Slight silver lining - debt amounts to £70k as oppose to the original £100k estimate.

I guess all I can do is prioritise the cards with the 0% periods finishing soonest / meet the minimum payments on the others / move balances to new 0% offers when existing 0% periods expire.

January2015

matt8787 wrote: »

Slight silver lining - debt amounts to £70k as oppose to the original £100k estimate.

I guess all I can do is prioritise the cards with the 0% periods finishing soonest / meet the minimum payments on the others / move balances to new 0% offers when existing 0% periods expire.

Slight silver lining - £30k less debt than you thought is a massive silver lining.....great news

MrsTinks

Well you just knocked 30% off your debt total - I think that's a serious positive! That will have taken years off your debt free date

enthusiasticsaver

Well that is a bit of a rosier picture but still £70k is a lot of debt so good to start dealing with it now. Yes, I would prioritise first any debts not on 0% then the ones which finish the deals earliest. Sometimes keeping one or two open in case 0% deals are offered on them after they are cleared is sensible for some of the other cards you have. Good that they are on 0% but if you are only paying minimums you are still looking at a long haul.

ani*fan

matt8787 wrote: »

Hi

- held on ~10 credit cards (making use of 0% deals / moving it around as and when necessary)



thanks

matt8787 wrote: »

Re credit cards, do 0% offers ever run out? I know you don't get the introductory lengths any more, but thought offers of 12-15 month 0% periods would always be around for existing customers - at least that's what I've always found - is this not the case?

Hi Matt

I just wanted to firstly repeat what others have said about doing an soa. You need to work out ways of overpaying if you want to get these debts reduced.

Secondly, if all of that debt is on 0% then you are walking a fine line. 0% offers do indeed run out and it's happened to many of us on here. If you suddenly started having to pay 20% on all of that debt then your budget would need to change significantly to deal with that. And there are usually transfer fees to keep switching which will add to your debt. It's always better to get as much paid off as you possibly can, particularly while your debt is interest free as every penny you pay goes towards reducing your balance.

Good luck. I'm interested to see how you get on.

moneyfacts

Matt

You and your family cannot afford the lifestyle you feel you deserve. You have clearly spent years being the victim of advertising and had no self control. You owe £70k! Whilst we do not know your income, just think how many months of work that is.

Stop thinking that spending money is needed to enjoy life. Go camping with the kids in Cornwall this summer and they will love it. Question absolutely every penny you spend. The fact that you owe £70,000 and still think paying for Sky TV is ok means that you're a financial fool and will never give your family the security it needs.

I grew up so poor, but when I needed to pay £9,000 for a post graduate course, my parents offered me the money! They kept the money aside for what I really needed it for, not cinema and nandos.

Just think how much money Sky cooperation has. You have debt and yet you are giving them more of your hard earned money! Please wake up and smell the (instant) coffee!