Dan's desperate dash towards solvency

worriedDan

So last night we had our first proper 'money meeting'. It sounds a bit formal but basically we have agreed to sit down properly around pay day each month. We looked at out budget for the month and though about things that we need to pay etc. I found it really helpful as it ensures that we are both on the same page.

We have decided that we are definitely going to go for the 'big challenge' of paying off everything including the mortgage. We worked out that this will take us around 56 months based on the fact that we are paying 2k off the unsecured debts plus our usual mortgage payment of nearly £500. We are not going to overpay the mortgage until every bit of unsecured debt is gone. This should take us around 30 months ( providing we can secure new 0% deals later on this year) and then for the remaining 26 months we will throw the 2K, plus our usual £500 mortgage payment at the mortgage.

It's quite exciting to think that we could actually be in the position of being totally debt and mortgage free within 5 years.

Verbatim

How exciting and what a turnaround! And not a word about guilt or shame and quite right too! If that means you're feeling much better than before hooray and well done.
V

worriedDan

Verbatim wrote: »

How exciting and what a turnaround! And not a word about guilt or shame and quite right too! If that means you're feeling much better than before hooray and well done.
V

I am feeling loads better. My stress and guilt is slowly being replaced with a determination and impatience!!

We both feel quite excited about the strong position we could potentially be in, in a relatively short time.

worriedDan

Last night we sorted out our money envelopes for the month. I like to have the cash in my hand as I find it harder to spend it in comparison with handing over my debit card. We are doing well on the food front. Another lovely tea last night using food that we had in the freezer and another one to come this evening! Normally we would have just shopped mindlessly and crammed more food in on top of what was already there.... and then ordered a takeaway... on my Barclaycard.

I have made some of the payments for this month. Some of the DD's come out at various points during the month so I am going to do the snowball over payment on around the 20th on each month.We will definitely make a 2K payment this month.

worriedDan

Things seem to be ticking along nicely. We have relaxed into the budget now and I feel less scared of spending money that has been allocated - food etc.

We are looking forward to a nice Easter break and we have budgeted £250 for this. This doesn't impact on our 2k debt repayments, however it does mean that we have to be extra frugal for the next 2 weeks.

We both actually feel as though we have had a pay rise! I have listened to Dave Ramsey quite a lot in recent weeks. He talks a lot about telling your money where it needs to go. This has been such good advice for us. Previously I felt like I had little control over my money and spending, even when my intentions were good. I now feel much more in control of it as we already know how we are going to spend our money this month.

I have been offered a 0% balance transfer deal! It's for my Halifax card which only has a £500 limit, but even so it's a step in the right direction. I am going to transfer £490 from one my cards that is accruing interest. This is also the card that I targeting first in my debt snowball. This means I will pay £26 less interest from next month which is great - it's almost enough money to pay my car insurance!!!

I have picked up some extra work over the summer exams period. I should take home around £2500 so we need to think very carefully about his we use this money. A significant chunk will clear debts but I also want to put money away to pay for christmas so that I know it's sorted well in advance. December is definitely my worst month for overspending so I really want to plan ahead this year.

Suffolk_lass

worriedDan wrote: »

I have been offered a 0% balance transfer deal! It's for my Halifax card which only has a £500 limit, but even so it's a step in the right direction. I am going to transfer £490 from one my cards that is accruing interest. This is also the card that I targeting first in my debt snowball. This means I will pay £26 less interest from next month which is great - it's almost enough money to pay my car insurance!!!

Why not call Halifax and ask them to increase the credit limit on the card with the 0% deal before you do the balance transfer? - maybe ask them to take the whole balance from the high interest one you are targeting - the worst they can say is no, and it would let you cancel the naughty card if you can cancel that balance completely.

I always think cancelling some when they are cleared is a good idea because after a few months you are eligible for introductory special offers again :money:

worriedDan

Suffolk_lass wrote: »

Why not call Halifax and ask them to increase the credit limit on the card with the 0% deal before you do the balance transfer? - maybe ask them to take the whole balance from the high interest one you are targeting - the worst they can say is no, and it would let you cancel the naughty card if you can cancel that balance completely.

I always think cancelling some when they are cleared is a good idea because after a few months you are eligible for introductory special offers again :money:

I will give it a go!

worriedDan

Increased to £3800 - enough to transfer one whole card which is currently accruing 24.9% plus a couple of other bits!!! Thanks Suffolk Lass xx

motivated

worriedDan wrote: »

Increased to £3800 - enough to transfer one whole card which is currently accruing 24.9% plus a couple of other bits!!! Thanks Suffolk Lass xx

:j Another step in the right direction Dan. Go you.

Its lovely to see you much more positive and so glad you are having a break away you and your wife deserve it.
M

Verbatim

Wow. Result. Just shows it's really worth it to ask!