Getting out of this debt sharknado

HairyHandofDartmoor

EmmaMicawber wrote: »

I've had to move a big credit card balance as the 0% deal was about to expire. The plan is that, if everything stays on track, OH's bonus (if he gets it- he won't know until the start of January) will pay a big chunk off this one but I can't afford to let it revert to 18.9% as that would cost £275 per month in interest alone! The balance transfer fee was 1.9% which isn't great though.

Current position: £59,280 owed on 8 debt (credit) cards.

I'm going to start properly snowballing the credit card balances in January as I haven't really done this so far because I've been trying to manage the 0% deal end dates to save money on interest. But, especially as I should be earning (fingers crossed), we're going to start paying them off smallest to largest balance and make 2018 the year we really turn the corner.

2017 positives:
Credit card balances reduced from £73,500 to £59,280 (it feels so slow though)
Kept out of our overdraft for 11 months straight now and have reduced our overdraft facility to £1000
Loan: switched to a two year one at lower rate - will save over £1300 in interest
Budgeting: started using YNAB and have budgeted properly for first time ever, including increased costs due to DD1 going to uni. (And DD1 has managed without having an overdraft or taking out a credit card ).

£73500 to £59280 doesn't sound slow to me Emma, that's an amazing achievement :T.

HairyHandofDartmoor

EmmaMicawber wrote: »

Well I didn't get the job It would have made such a difference to our finances and I am desperate to get back to work. I'm not really surprised though, I feel like I've lost the ability to speak any sense as a 'professional' person rather than a mum as I've been out of work for 3 years and probably spoke a lot of rubbish in the interview. I feel I would do pretty well if I could only get the chance to do the job.

And I can't see how everyone else doesn't spend well over £1000 on Christmas- I must be doing something wrong. All in all not a good day!- I'm putting this here as I need to crack on and put on my brave face for the world and will hopefully look back at this one day when we're out of debt and remind myself what a long hard slog it was so I am never tempted again.

I went to an amazing Christmas food and gift fair last night (to keep a friend company) - there were beautiful things everywhere and people buying armloads of stuff. I resisted but it made me feel a bit rubbish. It's probably just my hormones. At least there were lots of free tasters.

Ugh, enough self-pity- all are first world problems.

Sorry about the job. Maybe some voluntary work would help? It is hard to get back into the job market when you've had time off.

I know it's hard sometimes not to buy lovely things, but I see it as me versus the shops. If I walk out without buying anything then I win :rotfl:.

EmmaMicawber

Ah, thanks so much for dropping in to cheer me up Hairy and Motivated- I'm back to normal today
If it's me versus the shops I'm definitely winning more than I did last year!

Hairy- yes, I thought volunteering might be good- over the last few weeks I've been sorting out something which is fairly relevant to my old job skills and am due to start in the new year- it all seems to take so much time though. Of course it won't pay the bills but will hopefully help me brush up my skills, get some confidence back and be useful.

I know what you mean about being 105 when we're out of this Motivated, it's a shame that debt and payments to children at uni aren't tax-deductible, that would make a big difference.

Mind you when I first posted in February our DFD was 8.5 years away. We've really cut everything and moved debts around so 10 months on it is currently 5 years away. DD may go to uni in Autumn 2019 which would push costs up by probably £300+ per month but I WILL be earning by then so should still be in a better position overall.

As far as uni goes, I saw in the papers yesterday that some national audit guy thinks the same as me (with probably a bit more evidence!) That the drive to get so many 17 and 18 year olds to sign up to 30 years of debt with no financial advice and follow courses that in some cases make the student LESS employable than an 18 yr old with A levels, would be mis-selling if a financially regulated product.

DD2 is thinking of studying non-vocational Arts subject and I really doubt it is worth the money to be honest.

DD1 (who is doing a vocational course) has friends doing Arts subjects who have 4 hours of lectures/tutorials a week, will finish the 'year' in May and pay £9250 plus £7000 rent!! I reckon they get around 100 hours contact time per year- that is some hourly rate, and lectures often have large groups of students sitting there.

Anyway, it will be up to DD2 but perhaps we won't have to pay uni costs for her. Though it would only be fair to give her the same overall as we're giving DD1, but perhaps she could use it to help start a business or towards a house deposit.

2018 will be an interesting year.

EmmaMicawber

I've just done the transfer to my new B/ Clyxesdale account which is the last condition I had to meet to qualify for the £250 switch bonus - I think it'll be paid in January but will be a big help after Christmas.

enthusiasticsaver

I think the reductions you have made this year are brilliant. More than £14k repaid which is amazing. Sorry you didn't get the job but keep trying. The £250 switching bonus will come in handy too. Just try and keep your Xmas spends as low as possible. I am debating not bothering with crackers this year. It seems an expensive waste of money and landfill for a few paper hats and the tat or usual stuff you get inside. We have also decided not to go overboard with drinks this year. A bottle of prosecco and a nice bottle of wine rather than the usual bottles of spirits, cocktails etc.

JimM284350

Hello Emma, OH's are challenging especially if they are blokes like me. Just finished our DMP with StepChange. After a messy-ish divorce and me being brave and ignoring everything I ended up with £64,000 in unsecured debt. Not great as I then met my lovely now wife six months after the split. I didn't want to worry her about it either.

I would love to say I had a flash car and champagne lifestyle to show for it but no, most of my debt was essentially robbing Peter to pay Paul, just borrowing more on cards, using them at cashpoints and even using credit card cheques (terrible idea) to pay for things where people wouldn't / couldn't take cards.

Big issue is the basic wiring in my head, hunter gatherer bit. We can't ask for help, we don't like sympathy and we certainly don't discuss feelings with friends. We all hate asking people 'how are you?' if their response is likely to be anything other than 'fine'

So, I finally went to the bank and said 'I just need to extend my overdraft' It was £10,000 already and maxed. The person at the bank, a very sensible lady of a certain age said. NO. I was shocked. She then used very matronly language and showed me where I was a dream for a lender totalling up all the interest I was paying out anything up to a £1,000 per month in interest alone.

She put me in touch with StepChange (CCCS at the time) - rang them from the bank so I had no choice as I would no doubt of put my head firmly back in the sand.

They were fab, job 1, moved banks, listed everything with them and all the lenders agreed to the IVA.

Job 2 - I have paid as much as I could afford and 7 years later its now all gone, debt free.

Did my credit rating get hit. No. All debts are listed as satisfied and my ClearScore rating is 472 out of 700 which is not by any means terrible. Why it is still ok is that everyone got their money, nobody wrote off any debt, they all moved debts to other firms (still owned by the banks) but its done.

All the banks lost was the interest earnings, every penny they lent me they got back, bless them.

Horrible to worry and he needs to speak to StepChange, they understand our wiring and use the right words, much nicer than locking up all the worry in a little box and getting busy with other things e.g. hobbies and running. Proper bloke stuff...

Any part-time income will of course be a bonus, good luck and I am sure you will do fine

motivated

JimM284350 wrote: »

Hello Emma, OH's are challenging especially if they are blokes like me. Just finished our DMP with StepChange. After a messy-ish divorce and me being brave and ignoring everything I ended up with £64,000 in unsecured debt. Not great as I then met my lovely now wife six months after the split. I didn't want to worry her about it either.

I would love to say I had a flash car and champagne lifestyle to show for it but no, most of my debt was essentially robbing Peter to pay Paul, just borrowing more on cards, using them at cashpoints and even using credit card cheques (terrible idea) to pay for things where people wouldn't / couldn't take cards.

Big issue is the basic wiring in my head, hunter gatherer bit. We can't ask for help, we don't like sympathy and we certainly don't discuss feelings with friends. We all hate asking people 'how are you?' if their response is likely to be anything other than 'fine'

So, I finally went to the bank and said 'I just need to extend my overdraft' It was £10,000 already and maxed. The person at the bank, a very sensible lady of a certain age said. NO. I was shocked. She then used very matronly language and showed me where I was a dream for a lender totalling up all the interest I was paying out anything up to a £1,000 per month in interest alone.

She put me in touch with StepChange (CCCS at the time) - rang them from the bank so I had no choice as I would no doubt of put my head firmly back in the sand.

They were fab, job 1, moved banks, listed everything with them and all the lenders agreed to the IVA.

Job 2 - I have paid as much as I could afford and 7 years later its now all gone, debt free.

Did my credit rating get hit. No. All debts are listed as satisfied and my ClearScore rating is 472 out of 700 which is not by any means terrible. Why it is still ok is that everyone got their money, nobody wrote off any debt, they all moved debts to other firms (still owned by the banks) but its done.

All the banks lost was the interest earnings, every penny they lent me they got back, bless them.

Horrible to worry and he needs to speak to StepChange, they understand our wiring and use the right words, much nicer than locking up all the worry in a little box and getting busy with other things e.g. hobbies and running. Proper bloke stuff...

Any part-time income will of course be a bonus, good luck and I am sure you will do fine

What a lovely, inspiring post. Thanks for sharing. I too am in wayyyyy over my little head and it’s posts like yours that make me even more determined to trudge on.

See Emma we will be helping each other to hobble over the finish line and we will share a nice glass of bubbly. Stores own band of course, we are in debt you know
M

EmmaMicawber

Hi Jim, thanks for taking the time to share your experience. It's so inspiring to hear from someone who's been there and come out the other side. And the wired differently thing makes perfect sense and rings very true..
My OH is also a runner and didnt really have anything major to show for the debt- he had just been using credit to top up everyday spending. He still doesn't find it easy to talk about though is committed to getting out of debt (hence I"m on here and he isn't). I found Stepchange great when I first realised our situation- they were so non-judgmental and positive- we're also determined to pay back every penny we owe.

What an incredible achievement!- I can't imagine how fantastic you must feel at the moment!

Keeping going for 7 years is so impressive and really gives me confidence that we can get there too in the end.
It must be great to have money coming in that you can choose how to spend instead of knowing it's already spoken for by the credit card companies.

Enjoy your debt-free life :beer:

EmmaMicawber

M- bubbly sounds good

EmmaMicawber

One week to go until Christmas and I'm nearly sorted, but not quite. DD1 is back from uni and DD2 has finished at school so the house is noisy again which is lovely but my food bill has gone up.
Just about to cook brunch- sausages, bacon, tomato, scrambled egg (with smoked salmon), porridge and toast- delish! An occasional treat in our house.

I haven't, and won't have paid for anything on a credit card but am still struggling to keep to my budget. I think more than anything this year, Christmas spending is a real challenge for me. The money really doesn't seem to go far when buying for the girls and I end up worrying if they have enough/ the same as each other etc. Then entertaining when people come to stay gets pricey and the people generally want tp do things and even paying for a coffee and cake for 8 or so people is £50. And I'm still dreadiing saying no to pub meals etc. after Christmas walks -I don't want to be the party pooper.
I've managed to track down some cut price theatre tickets for over the Christmas break and our guests can pay for the ice creams for everyone
I do like Christmas but can't wait for January when I feel in more control again.