£50k to zero - made it across the finish line

One-step-at-a-time

TL:DR; version -
£50,241 of debt paid off.
Starting debt higher than gross household income. Thanks to a spending overhaul and strict budget, debt has been paid down with no settlements, no windfalls, no DMP.

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In December 2016 I had my lightbulb moment when a travel insurance payment got declined. Debt at that point was higher than our gross household income), with half of it at interest rates of around 20%.
We were both debt free/mortgage-free until our early 30s. We met after both leaving broken relationships, which took a large financial toll. Periods of physical and mental ill-health followed for both of us, along with un/underemployment, and some really bad decisions. We never missed a payment on anything, so the enormity of the debt was ignored.

In Jan 2017 we decided to try to remortgage. It was a shock to be turned down, but we are both glad it happened, as it made us realise that we had to tackle the problem at source.
Over the first year the unsecured debt reduced by 7k, and thanks mostly to balance transfer ping pong, only 5.5k of it is left at a high rate, with the majority being at 0% or 4.9% for at least the next couple of years. I have not used a credit card for 14 months, minimum monthly repayments are down to less than £700 per month, and I'm snowballing repayments onto my highest rate card.
The last year hasn't been smooth. It started with a drop in income of 5k when my second job folded literally days after the remortgage was denied, then the car died, and more recently I had an injury and health scare with some out of pocket medical expenses.
And honestly, we did not cut our spending as much as we could have; it took time to adjust to doing things more mindfully. The plan for 2018 was to double down on our efforts, and aim to clear more than the previous year. So far, so good!
Then we became aware that some more debt was coming our way, the result of mishandling a situation several years previously. I will know the extent of it within the next two weeks, but if *lucky* it is likely to cost me £400 per month until it has gone.
Currently the stress of the incoming additional debt and the uncertainty over how that is going to pan out is ruining my sleep and concentration, and I am lucky if I go a couple of days without having a fairly big wobble. Highs, lows and inbetweens will be documented.

strawberryfield2233

Didnt want to read and run. I dont have experience to help you but I think from these forums if you post a SOA (statement of affairs) others may be able to help you. I do want to say that posting is your first step and there are alot of good folk on here who will help. Please dont let it get on top of you both, you will get sorted and I wish you all the best xx

Tahlullah

Hi, just read your post and am keeping my fingers crossed for you. Sometimes, it helps to know that there are others in a similar position. I am in relation to waiting for the Grand Debt to land on my plate. I am anticipating around £20k. Nothing can be done to avoid it, just roll with the punches...

However, you are doing great. You have a plan and the plan is working. And as you said, if you can do it once, you can do it again.

Keep the faith. I will subscribe and cheer you on.

Tx

One-step-at-a-time

Day 3.

I've done the SOA properly now. The good news is that we can manage an additional 400/month and will still be able to throw a little extra at it and make CC overpayments, though not as much.
Our gas and electric DDs are very high so we will take new meter readings tonight and look at switching suppliers as it's been way too long. Hoping we should be able to save at least 20/month on the combined DD. Any refund will go to the high interest card.
Our food budget is less than what's on paper; I've been overgenerous in the allowance for this.
We have never had a formal 'household emergencies' budget as whoever is the least skint at the time covers whatever the emergency is, so I'm changing that and have got an online account set up for it which will have a standing order going to it starting next payday.
On the 'earning extra money' front I have a suitcase full of clothes and bric-a-brac to go on eBay which will all be up before the weekend, and I have the option to do a craft market next month which could either lose me the £15 table fee, or net me up to a couple of hundred in sales - I have to decide if this is worth the gamble.
I'm most definitely having an 'up' day today. Got up early enough to walk a bit of my journey to work, which always helps.

Silver_Queen

Any chance of sharing a table with a friend?

One-step-at-a-time

Working on it! I have been also posting some pics of the things I've made on facebook and have got a few people interested in buying; some are previous customers so it's likely if I need to take the table on my own it will at least be covered

strawberryfield2233

Good to read you have taken quite a few positive steps and it comes across you are feeling more in control. Have subscribed and will follow how you get on. Re Electric and Gas we use Engie for electric and Daligas for gas (Daligas very basic service they send emails LOL) they are not big suppliers but I dont care its all the same down the pipes/wires.
I have also been playing with YNAB on a free trial might be worth a look.
Good luck if you do the craft table x

**YNAB is you need a budget app system for managing budget.
** Daligas does set up a fixed direct debit based on expected usuage and only adjusts it annually ie if you submit a reading dont expect a readjustment etc

strawberryfield2233

Couple orher things if you can have apps on your phone Shopmium is an app which has food items which you can get for free or for less by submitting a receipt though the app, it is mentioned on MSE forum if you search. There are others checkoutsmart etc might be referrals on MSE forum.
There is also a try me free thread for alsorts of food and other things usually need to buy product and follow t&c!!!8217;s for reimbursement.
Making use of coupons if you have access to a printer is worthwhile lots if info on MSE.
Prolific Academic is worth a look for extra pin money again mentioned on MSE forum.

One-step-at-a-time

Thank you, some really great tips there! I will investigate them all
I already use cashback sites for everything I can, and check yellow labels for things already on my grocery list.

We made a lot of progress last year killing 7k of debt, it's been a total about face from it creeping up by hundreds every month; it's the old debt sneaking up on me that has really thrown me out for the last couple of months and knocked my confidence. With that on the way to being handled (even though it adds so much to the total) and the recent health scare behind us, I am feeling a lot closer to normal.

Today I have also looked at the promotional balance transfer rates on the two cards that I juggle, so it's possible that by the end of this month I will have shuffled another almost 3k of the debt from 17.9% to 4.9%. That will mean less than £2300 left on a high interest rate card, which is a nice realistic target to demolish.

strawberryfield2233

Managing to get rid of £7k last year was really good going so it shows if you put your mind to it you can do it!
Be good to get that rate down to 4.9%, £2300 sounds like a good first target ! Makes me mad CC companies can charge such high rates.
Glad you have done a SOA too x

AstroTurtle

Best of luck on your diary!


Smash that debt.