Single, six kids and going to be debt free!

Mumoffourkids

Spendless wrote: »

You can't change your username yourself, only by contacting the MSE staff, but they tend to only change it, if there's an identity risk eg you'd used a username with your own first and surname. I'd wondered the same thing, but I looked at your join date and thought there must have been 2 new(ish) additions.

Yeah my youngest two are 16 months and almost three. They are exactly 18 months apart in age and there is almost five years between number 4 child and number 5 child.

I'm having am evening sorting budgets, to do lists and goals for the next year. I want to set a target amount to pay off my debt slightly more than the monthly payment I have worked out but not too much more that I feel disheartened if I don't get to target!

Mumoffourkids

Ok so to do list for tomorrow:
- batch cook meals to go in the freezer
- write out January lists/appointments in New diary
- clean toilets/bathrooms
- paint bathroom
- work out money for week and January
- finish spreadsheet for rest of 2018
- work out goals for January and for 2018
- list furniture for sale in FB
- sort out drawer of doom in the kitchen
- do tip run

I think that's all but I am at home by myself tomorrow with no kids doing am hoping to get a lot done.

Mumoffourkids

Today's list didn't all go to plan!
- batch cook meals to go in the freezer partly done
- write out January lists/appointments in New diary done
- clean toilets/bathrooms not done at all
- paint bathroom done
- work out money for week and January
- finish spreadsheet for rest of 2018
- work out goals for January and for 2018
- list furniture for sale in FB
- sort out drawer of doom in the kitchen
- do tip run done

So could do better but in fairness I was completely shattered after Christmas so had a rest.

I will try harder tomorrow but not sorted a list yet for tomorrow.

In addition today I have collected some items to go to music magpie totalling just over £10. They are all ready in a box, just need to print off the label and take to the post office tomorrow.

I have decided that anything extra I make from selling items will go half towards debt and half towards buying stuff for the house. The kids need some bits of furniture which in theory I should be able to get this month if I sell enough/save enough.

camz2017

Just read your diary fully, as you read mine - hello

I think you need to seriously consider whether the DMP route is for you, your initial post listed your APRs at 0%, so assuming that is accurate, you gain no benefit on a DMP where the creditor may freeze interest, as the rate of interest is already low.

It seems like you have enough money to meet your minimum repayments, is that correct? A DMP is good when you cannot meet the minimum repayments, and you can reduce the total payment across debts, into one payment you can afford. Debts included in a DMP will be flagged on your credit file, so when you apply for credit, this indicates the debt is being paid via DMP, and this suggests you are making reduced payments. It is therefore unlikely you will get favourable rates or even approved.

Important to note, whilst on a DMP, creditors can still charge interest, and I read a bunch of posts where Barclaycard kept charging interest on DMPs throughout as one example. If they choose to do this, you don't have the luxury of moving debt around to other 0% deals with other cards, as your credit is not good enough to be approved, so you can force yourself into a situation of accepting high interest rates.

In my honest view, you would be best to have self discipline, pay the debts and use a snowball calculator to help with the order:
http://www.stoozing.com/calculator/snowball-calculator.php

Doing this keeps your credit in check, as you make the payments your credit score goes up, and you can manage the debts however you wish.

All of this really boils down to whether your credit is already poor, if so, the DMP might be your choice.

I personally chose to do it myself, this way my credit score has remained good. I did a check yesterday and I am at 890/1000 on Experian despite 30k debt. My MBNA just approved me for a 5k credit limit increase, and they typically offer me a bunch of 0% of 6.9% deals, so when an offer pops up I can move some higher APR debt around to that. Keeping my debts in my control has allowed me the flexibility to manage things how I need, also need I say the months I've had to fix the car etc, I've been able to pay the minimums. Life happens and I like being in control 100%.

Either way, I have subscribed and wish you all the very best!

Mumoffourkids

Hi camz and thanks for reading.

Unfortunately the majority of my debts have not been paid in nearly two years so my credit rating is already trashed. I was on a DMP with stepchange but I couldn't afford the payments as I hadn't really worked out my budget.

This time I have a sufficient budget to cover emergencies etc so my plan is to use the budget payplan agreed and send this to my creditors with a monthly offer. I am planning on saving money out of my budget in order to try and pay off my debts earlier.

In addition there is a chance that I may get some inheritance in the next six months which would more than cover all my debts, so I just think if I get repayment plans with all my old debts agreed I could be debt free in two years even without the inheritance.

So today has been a spendy day, but from budgeted categories and I was still being money saving. I had to go to a medical appointment, while I was there I had a quick look in the shop as I needed a printer cable in order to get the printer working. Got a cable but also got pyjamas and a dressing gown for my son in the sale for £8. Then I had been checking diesel prices and topped up diesel at the petrol station there as it is the cheapest around. It's not worth me driving there for the saving but if I am there anyway it's all good.

Whilst driving to the appointment I was also thinking about what I could sell. I have got a few bits out so will take pictures and put them up for sale this afternoon.

I am hoping for a no spend day tomorrow and over the weekend but I know I will need milk and bread top at some point.

Mumoffourkids

Positive money saving news, I have sold a toy storage unit that wasn't being used anymore for £10. Half of that has gone into furniture savings and half has gone to debt savings. The plan is that when I get to the end of the month, I will pay whatever is in debt savings to one of the debts. Undecided as to which one yet though.

I've also listed dd2's old bed on FB along with some baby sleeping bags that are no longer used. And listed a Jumperoo on 3bay on a ten day listing. Going to try and list three items a week for sale. But I can't just say it, I need to be accountable somehow, so I am off to find an 3bay/FB selling challenge.

Poppypen

Hello mumoffourkids :j

You're sounding very motivated and determined- hope you give yourself a pat on the back. I too am looking forward to 3 year old funding in April! Xx

camz2017

I see, well at least you can finally start tackling this! What does worry me is now you’re paying £800 of debts whereas before you were not paying them, that requires an absolutely enormous adjustment in lifestyle. You need to be so committed the first couple of months then it’ll come naturally. I ask myself “do I need this?” It’s almost always a no, and I don’t buy it. With the £8 dressing gown, it might have been on sale but did your son absolutely need it? Had be been managing fine without it? If the answer is yes, he was fine, you shouldn’t have bought it. If he had been screaming out for ages “mum I need a dressing gown”, then it’s more of a need and was justified. I’m not meaning to criticise your individual purchases I just want you to get into my thought pattern as this is what’s helped me the most during this journey.

Another tool I love in MONZO, there’s a waiting list for it but sign up anyways. It’s a bank but it is never delayed on transactions, I spend £5 it’s immediately gone, none of this “available balance” nonsense and waiting for things to hit the account. You can set spending targets and it automatically breaks your spending down into categories eg groceries, eating out etc.

Mumoffourkids

Poppypen wrote: »

Hello mumoffourkids :j

You're sounding very motivated and determined- hope you give yourself a pat on the back. I too am looking forward to 3 year old funding in April! Xx

Thanks poppypen, I am very determined this time. And yes so looking forward to three year old funding in April. Then in September my youngest will get two year old funding! I can't wait as my nursery bills are almost as much as my rent at the moment.

Mumoffourkids

camz2017 wrote: »

I see, well at least you can finally start tackling this! What does worry me is now you’re paying £800 of debts whereas before you were not paying them, that requires an absolutely enormous adjustment in lifestyle. You need to be so committed the first couple of months then it’ll come naturally. I ask myself “do I need this?” It’s almost always a no, and I don’t buy it. With the £8 dressing gown, it might have been on sale but did your son absolutely need it? Had be been managing fine without it? If the answer is yes, he was fine, you shouldn’t have bought it. If he had been screaming out for ages “mum I need a dressing gown”, then it’s more of a need and was justified. I’m not meaning to criticise your individual purchases I just want you to get into my thought pattern as this is what’s helped me the most during this journey.

Another tool I love in MONZO, there’s a waiting list for it but sign up anyways. It’s a bank but it is never delayed on transactions, I spend £5 it’s immediately gone, none of this “available balance” nonsense and waiting for things to hit the account. You can set spending targets and it automatically breaks your spending down into categories eg groceries, eating out etc.

Yes I am finally tackling my debts. With regards to the money, I have only had that amount of money spare to pay my debts since end of November, before that I definitely did not have money spare as it was only from mud November I have been getting all the benefits I am entitled to. So in theory I won't miss what I am not used to. I am used to being on a budget and I think I have quite a bit of wriggle room in my budget before getting to the £800 to pay off my debts.

In addition work are talking about upping my hours and the extra I should receive in wages will be more than I lose in benefits. I am also on a mission to clear out my house and will try and sell as much as I can.

I know what you are saying about the dressing gown and pyjamas but he only has about three pairs of pyjamas and these will be for his birthday in February. Yes he probably doesn't 'need' a dressing gown but instead of putting the amount I paid for it on my list, I will put the amount if it was not in the sale. I am thinking more about what I am spending and am definitely not spending as much as I was.