Why do we fall? To learn to pick ourselves back up. (£26K+ DEBT!)

System

One typically wouldn’t overpay on an IVA or Debt Management plan, the point is to reduce your total owed and obviously reduce your monthly outgoings. Stepchange will be able to advise you accordingly but I’d say not to pin all hopes on getting out of debt within 12 months, instead pin your hopes on stabilising your outgoings with a management plan/IVA whilst you get back on your feet. You’ll wipe your debt, be able to put some money away/live a relatively normal lifestyle and won’t be able to take out credit for a while.

I often kick myself for leaving London and giving up that tasty salary to come and work in little old Norwich where salary has not increased to match the sky-rocketing cost of living but then I remember how dreadfully unhappy I was doing that and how much better it is being back here. You seemed really peeved and hacked off with your job in your previous diary so maybe it’s been a positive learning curve. Plus, like I say, in about 7 years an IVA doesn’t stop you getting a mortgage even with the most mainstream lenders. I’m not a financial adviser and obviously just work in mortgages but I have experience with a family member taking an IVA and it really turned his life around, he’s buying a house at the moment and wouldn’t have been able to if he hadn’t owned up to the debt and taken part in the scheme.

45 hours a week is a lot, don’t run yourself in to the ground… Flexibility to work from home sounds great though.. nothing like being able to have a cuppa t in your pj’s on a cold winter morning rather than trudging in to an office. Well done on the job and hopefully it’s a positive sign of things to come!!

MrJester

sauceoclock wrote: »

One typically wouldn’t overpay on an IVA or Debt Management plan, the point is to reduce your total owed and obviously reduce your monthly outgoings. Stepchange will be able to advise you accordingly but I’d say not to pin all hopes on getting out of debt within 12 months, instead pin your hopes on stabilising your outgoings with a management plan/IVA whilst you get back on your feet. You’ll wipe your debt, be able to put some money away/live a relatively normal lifestyle and won’t be able to take out credit for a while.

I often kick myself for leaving London and giving up that tasty salary to come and work in little old Norwich where salary has not increased to match the sky-rocketing cost of living but then I remember how dreadfully unhappy I was doing that and how much better it is being back here. You seemed really peeved and hacked off with your job in your previous diary so maybe it’s been a positive learning curve. Plus, like I say, in about 7 years an IVA doesn’t stop you getting a mortgage even with the most mainstream lenders. I’m not a financial adviser and obviously just work in mortgages but I have experience with a family member taking an IVA and it really turned his life around, he’s buying a house at the moment and wouldn’t have been able to if he hadn’t owned up to the debt and taken part in the scheme.

45 hours a week is a lot, don’t run yourself in to the ground… Flexibility to work from home sounds great though.. nothing like being able to have a cuppa t in your pj’s on a cold winter morning rather than trudging in to an office. Well done on the job and hopefully it’s a positive sign of things to come!!

Yeah, I realised that's not really possible to do overpayments. But getting started on that process as soon as I can, might need to delay it somewhat until my first full paycheque comes in which will likely be end of October, then I can make a proper DMP payment. So i'll see what I can do there, I have a friend who works for one of these charities so I should be able to get the best advice.

Yeah I know I wont get out of debt in 12 months, but I want to try and commit to making money, and spending less money, over the next year. And try and put any extra aside for myself, selling bits on ebay things like that.

Absolutely it's a give and take, I stay here because for my kind of work (both the full time work and my side hustle) they only have potential really here around open minded people/business with money in their pockets. Your right, my last job I really did not like. I began to earn good money and paying down debts, but it was an awful job in my view. Not right for me so I left very quickly and a year later racked up another 20k debt - but hey ho we're moving on.

This new opportunity seems like much more like what is right for me, I could be wrong, but i think over the last year if anything i've learnt a lot about myself and what's right for me. Yes 45 hour week scared me a bit too, but with me being able to work from home + some weeks might not be 45 hour and yet i'll still be paid the same.. i think it should even out and not feel quite so intense, hopefully. Ha absolutely winter is coming and not having to commute through london on a dark and wet and cold morning will be nice. I can even probably go home (mothers) early for christmas and work from there and not even have to actually take time off!

So it should be swings and roundabouts, and likely will be a better transition for me going from working from home full time for myself.. to mostly working from home almost full time for someone else and guaranteed income

Thanks sauce, it's been a funny old ride eh? Back and forth the pair of us for years now!

I am really excited to be able to get finances back in order, and look to the future and try and fight for some promotions over the next year, I think the company i'll be working for will have room for growth and I know i'm capable too. lets gooooo :cool:

MrJester

So just a minor update:

- Contract of employment came through, going to take a few looks over this weekend but so far everything looks good
- Completed my debt management plan online and got the forms through that I need to complete to get that process officially kicking off, should be able to give time to this on monday. I think IVA is open to me too, but it's stricter requirements and leaves more credit marks. As long as the DMP keeps creditors off my back then I'm ok with that, I have no plans to take out more credit

Generally I'm feeling much more positive, now that I have a clear plan/future for my finances. In fact I'd say I'm somewhat excited. I've always underestimated the feeling of financial security, because I'm generally someone who cares more about doing meaningful things and work no matter the cost, but to have some of that security back after a rough year will be a blessing.

Reb2016

Sounds like you are really getting organised and great to hear you are feeling positive, amazing how much difference taking control can have.

And congrats on the job too, it may be a little less than you were used too, but you sound very positive about it and are putting in into perspective, and who knows where it might lead.

Reb

MrJester

Update time. Thanks Reb yes even more positive now, my last message was forcing myself to think about the future and not get too bogged down but I have some updates:

- It's now been a week in my new job, and I'm actually really enjoying it. It's a very good work environment that is relaxed and trusts me to do my job well; which is ideal for someone like me. I feel like there is also lots of potential to grow at this new job. I also have opportunity to work from home a fair amount of the time which allows me to pursue other interests still.
- I spoke to debt charity about my debt management plan today as I had sent over my proof of earnings and the plan will officially start in November!! (after first full paycheque)

It really has felt like a wave of release, knowing that my creditors will now mainly work with the charity rather than me and I have that support in between both. It does feel good. It's no surprise we need a charity to help with that, people are so afraid of creditors and even me who knows quite a bit about how these things work now. It just puts a feeling of security into it. On the phone as well they are super understanding and considerate of peoples' emotional wellbeing so I have to commend them for that.

I've got more plans in the works too for how to tackle my debt further. We're talking no more rent, and instead £££ to throw towards debts. The amount of money I pay for rent is insane.. can you imagine throwing all that money at debt each month? It'd be gone so quickly. Watch this space.

Reb2016

Great to hear you are enjoying the new job, sounds like things are very much in the up for you

Reb

MrJester

Thanks Reb. Yeah things are generally positive, only thing is being very broke right now but should be cured somewhat at the end of this week as i'll get a partial pay cheque which hopefully i can make tide over my rent and spends needed for a month >_o

but that end of october pay cheque.. whoo life should get a bit less sticky

MrJester

DEbt management plan confirmed today ��

Need to just find out where and when I get my details for the online portal for it. It’s postponed to start in November when I can actually make payments. In the meantime I’ll call each creditor to notify them and that they’ll hear from my charity soon.

One step at a time!

System

Great news about your DMP, glad they were professional and helpful and that it’s going to see you feeling more comfortable financially. Also fantastic news about the job, bet you can’t wait to work from home! Interesting about the rent situation, can’t wait to hear more!

MrJester

Thanks sauce. It definitely feels a lot better now with the whole debt thing, really glad these charities exist. I can now just focus on my life again and earning money to pay it down faster. I'm not sure if I can make overpayments, I think maybe I can if I call them up but there's nothing on the online account area.

As I'd try to start selling stuff I don't need, and put that cash straight towards debts rather than beginning to think "hmmm what fun I could have with this money". Although, I may want to instead do this to start paying people back that I owe cash to, which is somewhere around £1250 last I calculated, but probably approaching £1500 now. It would be nice to pick up the momentum of paying back the smaller debts again, as my DMP is a fixed amount it gives me breathing room with those creditor debts for a while to pay off friends and family with any extra I can make, and then return to trying to do the same for the DMP too.

In other news, I want to be able to pay as little rent as possible. There's a few options I've been looking at, one is live-in Guardians which can be as low as £300 per month cutting my rent by over half. I've sent off an application. There's other similar things like this which I may apply to also.
The other option is this website https://www.trustedhousesitters.com - basically you live in peoples homes for free whilst they are away and usually just look after their pets. Yeah thats right FREE (except for £80 membership per year to the site)

I had a look at some of the homes and there seems to be a lot of options and with good periods of time too which could mean I could be at one home whilst looking for the next, and just hopping around London living for free. I'd reduce all my possessions to the bare minimum and just hop around. In-between I could then afford AirBNB's or stay with my partner. With my current work I don't have to always be in-office, and can work from home a lot if I choose to.

People tend to use this site to travel the world, but right now I'm thinking how about I use it to live for free.

With this, I'd have literally £600+ extra a month in my pocket or for my debts. That's a crazy amount of money extra to have every month. I think of the challenges I might go through living in lots of different homes and not having 'my own space' but then I think well I don't technically own my own space at all anyway, and that amount of money extra per month could change SO MUCH.

Not only could I pay off my 26k debt A LOT quicker, I could also pay off my friends&fam debts off, put money away in savings and investments, and have true freedom and money to support that freedom too.

I've talked about this idea to multiple people already, and whilst they do think its a bit nuts; they don't argue much about it because they too see the kind of money I'd be putting right back into my pocket which you just can't deny is incredible. It's not about the money, but its about what having freeing up that money could offer me in terms of freedom and great potential for my future once my CCJ's are gone.

I'm literally thinking long-term, I have this bad credit now from the CCJ's which will last 6 years. In 6 years I want to try and improve my financial situation as much as I can, whilst still also living a fun and joyful life, so that when I'm in my early thirties I'll be very much ready to buy my own home (even if its just an investment) having saved up a lot of cold hard cash.

Putting myself in a strange challenge like this could be really rewarding personally, as well as financially.

It just seems like a no-brainer. Or am I going mad?