My SOA and Situation Realisation

foreverdieting

Well done for realising your position and doing something about it.

Is increasing your mortgage a possibility, as this will be a lot cheaper interest wise than paying interest on credit cards. I know you will pay it over a longer period of time, but most mortgages allow at least a 10% overpayment each year if you're on a fixed rate, if not you can pay chunks off as you go along.

If this isn't an option and you think your credit rating is really bad it might be worth going to a debt charity and asking them to negotiate with the card companies on your behalf. They may be able to get the interest suspended and arrange a payment plan for you.

Whatever happens you will be in a much better position this time next year and should feel proud of yourself.

Good luck.

shteca

I could look to increase my mortgage as there is equity in my flat but the thing is I have promised myself no more borrowing. I can’t keep borrowing myself out of debt.
Another thing is moving the debt to my home will mean taking it from unsecured to secure debt which I don’t think is better and without paying off debt my mindset towards it may not change.
I am 100% focused on just paying off as much as possible each month. With my income being irregular it is difficult.

beanielou

You are awesome.
What an amazing amount to pay off in a short time

enthusiasticsaver

shteca wrote: »

I could look to increase my mortgage as there is equity in my flat but the thing is I have promised myself no more borrowing. I can’t keep borrowing myself out of debt.
Another thing is moving the debt to my home will mean taking it from unsecured to secure debt which I don’t think is better and without paying off debt my mindset towards it may not change.
I am 100% focused on just paying off as much as possible each month. With my income being irregular it is difficult.

I could not agree more with this. You are doing a great job of getting rid of this debt. No need to increase your mortgage.

shteca

Huge milestone for me today!!
I just paid off my £7,500 NatWest overdraft and called them to cancel it!
I have been working on this immense mountain of debt for the past six months first focusing on clearing some smaller debts but this has been one of the hardest to clear or budget for. It was an every day reminder of how hard the journey is. Every day looking at my phone and seeing my balance say a - and not knowing the best way to clear it.
Now logging in to see £129 in my account is the most amazing thing. I almost feel like a normal person again. I feel like I can start my journey properly and budget correctly.
I am no where near being debt free. I still have a mountain of debt that scares the socks off me and motivates me every day but this was a huge moment for me.
Thank you everyone for the support so far.
Only £22,000 in consumer debt to go. Sure does beat £54,000 I had a year ago!!

Mnd

Well done, and thanks for the feed back

Singlespeeder

Great going ! Great to read the successes too. Clearing an OD is a huge milestone and incredible psychological step forward. Literally helps to stay positive +
Keeping moving forward.

Gettingtherequickly

That is an amazing achievement! Well done! If you update your signature, it will give you another boost to see the balances have reversed

shteca

MND, SingleSpeeder, GettingThereQuickly

THANK YOU ALL!

I am going to update my signature now

Pip_Boy_111

Hi. Just checking in again. Been a while since I left you a WELL DONE!
Great achievement with the OD and you've paid off how much??? :eek:
Awesome. Keep it going. :T