Oh pants I messed up BIG!!!

Broke_Bear

Ok so I have been lurking in a major way for the last 2 weeks after having my lightbulb moment. I have had a pretty rough 2 months and lost both of my bears (labradors) in quick succession (they were both very old for labs) and then I had a minor breakdown over everything and my finances came bubbling out to my OH after the vet bills.

Now It has sunk in that everything is out in the open and he has not run away, for which I am eternally grateful, I can put a plan in action to get the big scary number gone for good.
Ok so here are the starting scores on the doors as of 01/09/2018:

B - £10,531.80
T - £6,776.15
M - £6,422.11
V - £5,462.32
L - 25.89

Total - £29,218.27 :eek::mad::eek::(

How did I get that far in debt?? I honestly didn't think it was that bad until I put all cards on table (literally) with OH!

We have gone through income and expenditure and have a plan of action for the next 12 months or so (0% BTdeals the above cards are on) but I thought it would be good to document my journey as a reminder for future debt free me. It is my mess and I will not let my OH pay towards the debt, not even one penny. It is my stupidity and I should feel every painful penny of paying it back, I will never be this far in debt again!!

Willing2Learn

Good luck on your journey

Igamogam

You have come to the right place! Good luck and I will subscribe and follow your journey

Broke_Bear

After going through all of the numbers with my amazing OH, we have worked out that if I really cut back I may be able to clear £500 capital off this for this month. I need the DD's to go out and the budgeted top up payment to be made so I can see the first reduction in the Big Scary Number (BSN).

Broke_Bear

Oh and both yesterday and today were NSD's - I need to have as many of these as possible but will be aiming for 20 this month as a starter (not counting DD's and payment off debt)

beanielou

Happy shiny new diary

Broke_Bear

Hi, thanks for stopping by, I hope as my journey moves forward (and downward) I will have some lovely company for my ramblings/rantings and wailing!! I will return the favour with your diaries if you have them

chocolatebum

good luck

i started my new diary today also, (well 3rd attempt at a diary lol)

Broke_Bear

Ok so I rang the CC companies today to get the breakdown of deals and rates etc. Here is the depth of the damage:

BC
£10,531.80 - Balance
£8345.77 - 6.9% for life of balance
£2163.47 - 17.68% standard rate

T
£6,776.15 - balance
£5,695.78 - 0% until 30/11/2020
£1,049.00 - 0% until 31/08/2019

M
£6,422.11 - balance
£6,270.84 - 4.9% until 01/04/2021
£146.16 - 0% until 01/10/2019

V
£5,462.32 - balance
£5,462.32 - 0% until 30/09/2019

L
£25.89 - Balance

£29,218.27 as at September 1st 2018
0% paid off
78% utilisation

I just need to work out in what order to tackle this. I'm thinking, to keep the BC as a fixed payment for the amount I am paying now (just above minimum rounded up to pound) and as the balance decreases it will be overpaying but otherwise leave alone. The L card with only a tiny balance will be wiped on payment this month as I changed the DD last month to take full balance knowing it would be clearable this time round. That just leaves the other 3.

I am thinking to throw everything at the V card as this has the shortest date for the highest amount ending next year. I spoke to T and what I am paying off each month is going off the balance with the shortest date first so if I set that for £100/month then the smaller part will be cleared (just about) by the time the rate ends on that bit. Again, if I sent the M card @ £100/month. Every other penny i can muster will go off the V card which will be approx £160-£200/month and then do a bit of shuffling between the other 2 hopefully for new promo rates for what is left at the end of the 0% on V.

Sorry for the long ramble and I hope this makes sense, I would appreciate any thoughts on the action plan??

Redrose

Good Luck with your journey, and a shiny new diary


I too have just had my LBM...… and been working towards my debt free life, its only been a month, but taking baby steps really helps - it can be a little frustrating, as I have all the ideas in my head and can only do a little each month.....


once again Good Luck

Igamogam

Welcome aboard the rollercoaster!! I have a similar amount of debt and am pushing for it for much of to have gone in 3/4 years as I really want to take early early retirement! Just a quick look at your CC balances I would say the Golden Rule is to throw everything to the balance that is costing you the most - £2163.47 - 17.68% standard rate It might not be the biggest but it is costing you interest which is wasted money. The rest of your CCs have a reasonable length 0% or LOB rates so really hammer this very expensive one - no point in over paying others just yet - they are low rate or no rate! Once this is gone then tackle the next highest and so on. There is something called the snowball calculator - g00gle it. I might help getting the order right. Also what is your contingency when the 0% balances run out - you need to be able to move those too otherwise the interest will hit you hard. If to pay off the expensive card and keep the account they may offer you a 0%BT which can only help - obviously work out the BT fees against any interest you are paying. Anyway that is my take on it
Its all bit of a juggling act and you have to keep on it - 'payment a day challenge' is a good one to get into........you just make a payment EVERYDAY to a debt - your highest interest CC for instance. Some people make a set amount which could be as little as a £ others like me 'tidy up ' the bank account each day: if the bank account balance say £102.56 at the end of the day then I would pay £2.56 off a debt. Its amazing how it adds up and you really dont miss the few £'s and pence each day.

Good luck!