EXTENDED: You've got another week to add your travel & holiday deals questions for expert MSE Oli as part of the latest Ask An Expert event.
My life in debt
This discussion has been closed.
Latest MSE News and Guides
MoneySavingExpert
Chair, Martin Lewis · Editor, Marcus Herbert
Replies
I started this effort to clear my debts owing £49311. At the end of last year I was down to £42234.10 and was aiming to get to £35000 by the end of this year.
Sadly I missed that target but I am still heading in the right direction and today my debt is at £37465.68. My target for the end of next year is to get to £26000, so its going to take a focused effort.
The biggest boost is that I have managed to shift my highest interest credit card to a 0% balance transfer – this is going to make a huge difference. Interestingly online banking always showed that card as suspended, and I assumed it would be closed once paid off. So far it hasn’t been and shows a £0 balance with the full credit limit available. The card is long since cut up and there is no way I would use it again due to the interest rate. However instead of closing it myself I may leave it as it is for a little while to see if there may be any balance transfer offer – got to stay optimistic!
The only potential fly in the ointment is my motorbike. I sold my much loved bike and bought a cheap one to free up some money when I started this. It gave me £3000 to throw at the debt pile. I am beginning to find out that this may not have been the greatest move. The bike is my only form of transport and I need it to get to and from work. I detest my current bike, but I could live with that for another couple of years. The issue is that this bike is costing me more money that I had budgeted for – fix a failed MOT, new tyres, new battery, issues with the electrics (I appreciate this could all of happened on my old bike). Now it needs a new starter motor, along with a new sprocket and chain. Fixing this is going to cost pretty much what the bike is worth.
So what to do? I don’t see its worth paying to repair and keep the bike, and I have no confidence that it won’t continue to have issues. Even if I decide to keep the bike I’ve got to find the money to get it fixed. I could look for another 2nd hand bike, but am going to have to find the money for it somewhere. Previously I would have done this in a flash on my overdraft. I am now conscious that this is just another debt and I would be paying it at 18.9%. I could look at a new bike, using the current one as part exchange to pay the deposit – however this is another debt. PCP (another debt) would make the monthly payment cheaper at approx. £100-£140 per month, but still…
I really don’t know what is best. I need to bike to get to and from the train station every day, with frequent days when I commute the whole way due to lack of public transport. More than this, riding my bike if something I love and that I do for pleasure.
Anyway, enough rambling – overdraft I’m coming for you and in two more paydays you will be just an unpleasant memory!
Happy Christmas everyone.
I take my hat off to anyone that realises they created the debt and so it is their responsibility to pay it back.
It may seem like a long old slog but you are getting there.
Dont have any advice regarding the bike unfortunately.
Hope you find the right solution.
Keep smiling and Happy Christmas.
I did end up getting a new motorbike in the end. I looked at so many options but in the end I went for a new bike. It means I'll have £150 a month less to pay off the debt which on the face of it isn't ideal, however my last bike cost me nearly £2000 over the last 2 years in passing MOTs and repairs - and I hated that bike. I did get £1000 for it in part exchange, which was most unexpected! My new one has a warranty for 2 years and won't need a MOT for 3 years.
The only expenses on the horizon are a dentist appointment on Monday and my wife's birthday. However I applied for the HSBC account switch with £175 joining bonus which was confirmed today, so that will more than cover both with a decent chunk to spare. Result!
This month I was also paid some overtime, which with everything going on in the world I had forgotten I had worked.
With all the shops near work being closed I have been forced into taking food into work and not spending unnecessarily. I also switched bank accounts and got the £175 payment from HSBC. This with the overtime and lack of spending this is the month that will see the end of my overdraft,
All being well this will be the first month I haven't gone into overdraft in 27 years That looks horrific when I see it written down!
It's been 26 months since my LBM and it has been a slog, but I have by and large stuck with it and do feel that I am beginning to get somewhere. My debts currently are at £34655, so around £15000 paid off. The loan is just a distant memory and now with the overdraft paid I can get moving with snowballing the next target - Barclaycard I'm coming for you!!!
lockdown is forcing me to save money which is good!!!!