£50k to £0

jbkmum

I've been a long time lurker, since 2012 and have never made a post before!

I started off with 70k of debt, I currently have 50k. Its taken me 6 years to pay off 20k and quite honestly I've not really focused on it. However, due to my husband losing his job and starting one at a low salary I am trying to cut back and not spend £700 a month on food for 2 adults and a child (yes yes I know).

£50,546.15 is my total debt. I would like to pay this off as quickly as possible. I'm currently paying £999 a month towards it. It isn't all interest free and I am unable to do a credit card shuffle at the moment. The most infuriating thing about the Dave Ramsey Snowball is that I know that my 5k credit card is accruing interest and I really want to concentrate on it but I'm committed to the DR method and when I paid off a credit card recently I did feel very satisfied.

I'm decluttering our house and trying to reduce our bills in order to maximise this debt snowball. We did look at moving recently but we just couldn't afford it as a new house would have cost more to rent and I think we wouldn't have been able to meet our minimum payments.

Hoping to do a few carboots in August and I'm still plodding on with facebook/ebay/gumtree selling. My next mission is to clear my DS toys out as he has far tooooo many.

Recently won a £200 argos voucher so I've covered presents for DS and DH as well as whatever else we might need. Considering whether I should sell the voucher on ebay but not sure what the going rate is.

Also want to plan no spend days, living from freezer etc. Basically lots of things I need to do in order to get this debt cleared and be able to save for a house. I shall be back with a plan soon!

enthusiasticsaver

If your credit card is accruing interest you should tackle that first. Does the DR snowball target the smallest debt first? The usual advice here is target the most expensive one.

jbkmum

I have £245 left of my petrol and food budget for the month of July.

Technically only £45 of that is left for food as I did a big shop a week ago. We don't really need to buy any food at all this month. We're meal planning weekly and sticking to it, I just have an awful habit of popping into Aldi and spending £30 on things. I have actually used what I bought (mugshots and polish) but I need to have more control over this as I want to spend less than £200 a month on us whilst I eat through the freezer. If I see an orange sticker at the co op I'm straight in there and just refill the damn freezer. Got to stop this for a while I think.

My plan for this weekend:

Freezer food for tea tonight - probably going to be lazy and have paprika wedges, chicken nuggets and ice cream. Its a no veg Friday.

Saturday I'm at a hen party so will defrost some bolognese and we have garlic bread in freezer (for DH and DS, although I think DS is at a party)

Sunday I'm driving to Newcastle to pick my brother up from university. He's given me £20 for the journey which is £30 short of the actual cost but he doesn't have any other money and it will just have to be his present. I plan on taking a mugshot for lunch, lets hope he has a kettle! Or I might make a wrap - must resist fast food.

Then I need to plan for the week after...

jbkmum

enthusiasticsaver wrote: »

If your credit card is accruing interest you should tackle that first. Does the DR snowball target the smallest debt first? The usual advice here is target the most expensive one.

Yes DR goes for smallest debt first because he says that wins will help with motivation and he doesn't care what the interest is on a debt, he just wants you to clear the smallest one first and work through it methodically. His logic does motivate me, although the credit card always hovers in the back of my mind!

enthusiasticsaver

I think it would motivate me more knowing I was saving interest by tackling the interest bearing debt first. Your call though.

enthusiasticsaver

What is the interest rate on your £5k card?

jbkmum

enthusiasticsaver wrote: »

What is the interest rate on your £5k card?

I think its 20%

I wasn't sure whether I should clear smaller ones first in order to balance transfer (I get offers) or whether to focus on the 5k one. If I focus on the 5k, I might then get to the point where the 0% period ran out on the little ones. I can't work out what maths to do to work out what is cheaper

jbkmum

Ooooh good news, I've been in possession of a collectible which I've been offered £250 for. I don't know what it's real value is as there's nothing like it out there, its a music book from 1901

Kitten868

You'd have to write out your cards and how much you owe and aprs as if you have a couple of hundred here and there I'd stay as you are but I think I would tackle the £5k first if I were you as you want to get rid of the interest. Maybe try and motivate yourself with how much the interest charge is decreasing month on month.

Have you gone on step change and seen how things would work out in a DMP for you? You've slogged for 6 years already! It would all be interest free and you could focus on your budget x

Karonher

Have a look at Zeek with regards to the voucher. Some people knock 5% or 10% off the value, so if you can sell it you should get a good amount.

jbkmum

Kitten868 wrote: »

You'd have to write out your cards and how much you owe and aprs as if you have a couple of hundred here and there I'd stay as you are but I think I would tackle the £5k first if I were you as you want to get rid of the interest. Maybe try and motivate yourself with how much the interest charge is decreasing month on month.

Have you gone on step change and seen how things would work out in a DMP for you? You've slogged for 6 years already! It would all be interest free and you could focus on your budget x

Luckily most are interest free so it's really just a case of deciding whether to try to clear the 5k one or not. I'm going to finish the current card I'm working on as its got £800 left and then I'll look at the 5k one. If I clear the £800 quickly I should be able to BT £1000 to the 5k one which will help a little. Although I could also just pay £800 to the 5K one. ARGH