Working Hard Debt Diary - Here goes

WorkingHardDFW

This is so sad....

I've just spent 15 mins 'gazing' at my debt spreadsheets and getting a real kick from seeing our first cc target getting close to being paid off. I've just worked out that allowing for the car money, tax refund and insurance refund, my overtime this month plus the monthly payment (which I forgot) we'll be left with only (.............I know but our debt is huge) £700 left on it.

I then started playing around with the well if that payment then goes on the next target card, well you know how it goes. I got suck a kick out of seeing just one of our debts nearly cleared.

I just wanted to share my moment of DFW with others who'll understand...

I am so going to achieve the clear a debt by April Challenge:cool:

phoenixchick

Wow! Just read your diary and it is a real inspiration.

WorkingHardDFW

Thanks for that phoenixchick it doesn't feel like it at times.

Unless we get unexpected windfalls the remaining huge amount will be only got rid of by good old fashioned slog - makes up for the way we got the debts I guess.

But I am getting a kick of see the first target tumble...its true small steps and all that!

WorkingHardDFW

The car has gone, money is in the bank and will shortly be winging its way to the target CC.......:beer:

Now to wait for payday to see how much extra my job lot of overtime brings in!

This clearing of the debts more satisfying as the shopping etc that ran the debts up in the first place. Thats not to say that I wouldn't rather not have the debts but it sure is motivating too get rid of them albeit slowly.

Listed 11 things on ebay yesterday plus I've got half a dozen more to list as well. Aiming to get at least £100 from that lot which again will all help.

Money from the cashback sites which I've finally got the hang of now will start of come in next month.

Two DS's birthdays in April which I need to plan for. I've budgeted for birthdays but the pot of birthday money hasn't built up enough to cover the budget for them.....I'll ponder that one. I may need to take some money out of their own savings account to fund their birthdays but that does seem a little mean. However staying within budget is the priority now.

Previously I've done the snowballing which gives me my DFD of 2011 (:o ) but I think I need to do it again. Many of my cards have variable interest rates on them when I've moved things around on a deal. Plus I'm not sure I'm converting the interest rates correctly. I need to revisit completly and read Martins mutterings on the subject.

The mortgage holiday is the next on my list of DFW things to do. By my calculations if we took a four month mortgage holiday the mortgage money plus the ususal credit card payments would be enough to clear another of the CC's completely. I need to understand if this would add four months to our mortgage and how it would affect our Fixed rate deal which runs until Jan 2009. Clearly I want rid of as many of the Cc's as soon as possible but I also want to be in a much sounder financial position when our fix rate ends next year. If by mid year we've cleared two debts but are still throwing £700 (:eek: ) per month at the CC's they should come tumbling down.

I'm not sure whether I should post this mortgage holiday question on the mortgage board - I now feel so comfortable on this board. Other questions I guess are about going interest only on the mortgage or overpaying it substantially - the latter is for when we are debt free. Getting DF is the first target

Busterollie

Well done you. I have just been reading your diary and you are getting on so well. Carry on the good work.

WorkingHardDFW

Thanks for that Busterollie.

I've read my diary again today and I can see how far we've come in the last few months. At times I get so up with paying off a bill or throwing cash at the CC's but in the same breath I think echk we've still got £40k outstanding.

An example my mortgage holiday idea. If we do it it will mean

• that we've another CC cleared - only 3 cc's, 1 OD and 2 loans left!
• clearing another CC gives us room to move around to 0% and save % which brings the DFD nearer month by month
• we've have cleared since LBM £12K - we've still got £41k remaining!

The loans dont't clear until 6/09 and 3/10 - so we've a way to go until we can add them into the Debt clearing pot.

It comes down to me being a cup half empty person again and I can't help that.

As I said earlier I definately need to snowball again just so I know we are on track. As I typed that I thought of course we are on track we're not using our cc's/od/loans they are all going down. Ah!!!!!!!!!!! Oh to be debt free.................

WorkingHardDFW

I've just updated my snowball and the DFD is still 5/2011. Such a long way off........

Just to say I'm not sure I've got the interest rates right on there. I clearly need to find a idiots guide somewhere - any pointers would be appreciated.

Looking at my 'lovely' cc statements some say

• Annual rate pa - fair enough I understand
• One says (MBNA) 0.1610% monthly - how does that convert to an APR?
• One says (RBS) 1.167% monthly - as above.

Maybe I'm being dense but do I convert the monthly to annually by a simple x12. Assuming thats correct does for eg 0.161% become 1.93% APR which seems very low. It was a BT deal but...

Any help for this dense person would be much appreciated.

Spoke to the OH this evening about the mortgage holiday. I'm going to ring the B/soc on Wednesday and find out a bit more about it.

WorkingHardDFW

Positive day

Posted 23 items on ebay. None of them of particularly high value but it is true that every little helps towards the debt.

I got paid today and received £550 for my accumlated extra hours. Transferred this straight to the CC as planned.

Spoke to the B/soc today and got some information regarding a mortgage holiday. I now understand that the interest still accumlates which the holiday is on and that is added to the term of the mortage when you resume payments. Obsviously we need to cost against paying the CC interest rate. I also posted on the mortgage board to get some advice. Once suggestion was to switch to interest only once the holiday is over. We may consider this but I so want to be in a better position by Jan 2009 when our fixed rate ends. Feel positive though since a four month holiday will clear the CC and the resultant extra cash available at the end of it will tumble the other cards quicker plus then give us two free cc's to enable us to BT to get better rates on the rest of the debt. Hope that makes sense. Anyway we'll wait until the paperwork comes through and review with OH then.

As I said a positive day and a few more hours left to get stuff done!

MissEyre

Sounds good, just wondered if the mortgage payment holiday will affect your credit rating at all?

Have just read your whole thread and think you have made some great progress on your DF journey! x

WorkingHardDFW

Hi thanks for your message. I'm pretty sure that it won't since we are within the terms of our mortgage. However I do that that its a valid point and one that we will check out before we go ahead.

Equally we are not intending to apply for any credit until we are free from debt again. Our LBM came when we'd applied for a CC to BT and we were told we were over committed which we were and we knew but we just want to move stuff around. Again paying another CC's off (that will be too clear at the end of the mortgage holiday) will leave us with two cards with which to shuffle the debt around and reduce the interest plus we'll have more income to throw at the debts. I'm not sure I'm making sense here!