Paying Off Debt

Sanctioned_Parts_List

WhenIam64 wrote: »

Minimum payments don't reduce debt - it actually increases it. If the monthly interest is 1.89% and the minimum is 1% then the debt grows with you paying interest on interest.

I thought the law had changed some time back to force the credit card companies to set their minimum payments to a level that at least covered the interest, to prevent this.

OP mentioned in the first post that a DMP might be appropriate. While these can be self managed (see https://debtcamel.co.uk/how-much-work-dmp/ and other pages on that site for form letters etc. to use), it's easier to have one of the debt charities take on the work. They will also advise whether it is, actually, appropriate.

Happier_Me

You have two options really and neither of them involve you paying just one card off at a time and allowing the others to default.

You can either carry on on the path you have started, living very frugally to reduce the debt, taking advantage of better interest rates as they arise etc. The benefit of this is your credit rating will survive somewhat intact but you're going to have to cut your cloth for a few years to clear the debt you have.

Or you ring a free debt charity such as stepchange and seriously consider a DMP. You can self manage or they will do the legwork for you. The disadvantage is a poor credit rating but the majority of the interest will be frozen and you will see this cleared much more quickly, whilst being able to live at least a little

AnonymousM

WhenIam64 wrote: »

Minimum payments don't reduce debt - it actually increases it. If the monthly interest is 1.89% and the minimum is 1% then the debt grows with you paying interest on interest.

And why would Credit Card companies reduce the interest payable? You would have seen and read the terms of taking out the card, and agreed to them by using the card.

Sit down with a spreadsheet and work out how much more you are going to be in debt following your current method in a year's time.

You really have to do the numbers and decide.

No, I agree. I have been paying off more than the minimum (not much, but maybe £50 more), saying paying the minimum probably wasn't the right way of phrasing it.
I guess if you don't ask for help you certainly don't get. Their job ultimately is to make the most amount of money out of you as they can. Fair play.

Sanctioned_Parts_List wrote: »

I thought the law had changed some time back to force the credit card companies to set their minimum payments to a level that at least covered the interest, to prevent this.

OP mentioned in the first post that a DMP might be appropriate. While these can be self managed and other pages on that site for form letters etc. to use), it's easier to have one of the debt charities take on the work. They will also advise whether it is, actually, appropriate.

I haven't spoken to anyone in that arena or even the banks other than asking for a reduction in interest rates. I think I earn too much and haven't missed payments so unlikely to do anything.
I think once defaults start happening, this is when they are put in a position that they have to 'help' resolve the problem.

I'll do this. Not worried and not phased. Changes have to happen in life and this is for my best.

M_anonymous

Hi, 

I just wanted to bounce this thread to the top. 
For some reason I don't know what email address is associated with the original account and can't get access to it. 

So this thread was created February 2019. 
In 2019 I did nothing, just bumbled along through life.

June 2019 I moved out of the shared house to go and live alone. This pretty much just over doubled my living outgoings from the £550 to £1200-£1250 ish. 
Going home to an empty house every evening wasn't much fun. I knew I had to get out and about just to save my own sanity. 
I looked at jobs like Dominos pizza delivery driving. I needed something that was going to allow me to function in my main job, and give flexibility for evenings and weekends. I knew I couldn't work somewhere being bossed around; It's difficult when you're already in a senior management role. 

December 2019 I signed up with Just Eat. Tried to get the 3rd party add on insurance but seemed to struggle to get that sorted. My thought process was I could see on the roads that taking traction and whilst I have my Christmas period off work I could get out the house and do that instead. Everyone else would be at home ordering the bleeding stuff. Win-win. 
The sign up process isn't the quickest I quickly found out so unfortunately Christmas 2019 came and passed. 

January I spoke to someone regarding the insurance required to get on the road - "no, you've had too many accidents"; "I haven't had any!?" - "We can't offer cover at this time". 
March - same repeated conversation. 
April - Spoke to someone a lot more helpful. On their system was showing a duplicated entry for some damage that I reported to the police after someone had driven into me whilst my car was parked at home. Insurance cover granted and away I went April 30th. 

As I mentioned in my first post - I go to watch football every week. The last game we was allowed to go to was March 14th. I genuinely don't think I would have given this up. It was the only time I got out and about and was "my thing to do". 

So off I set on Thursday 30th April, out collecting food after finishing the day job. I quickly realised all the other drivers had multiple apps with which they were collecting food for. Just Eat - Uber Eats - Deliveroo. I quickly had to delve into that and get all the documentation in place. 

I don't want to upset people with my good fortune because I understand that there has been a lot of hardship over this year unfortunately with the pandemic and I feel so sad for those people and businesses too. No one asked to be hit with a global pandemic and it was no one's fault (well, here anyhow!) it began.

I've been lucky to keep my main office job, and continue working throughout the whole year. I've had the flexibility of the driving for these take away shops. I've worked my !!!!!! off. 15 hours a day, every day almost. I could count on 2 hands how many times I've done less in fairness. I've only taken 2 days off totally since starting. 

So figures on the door.... 
At the current time of when I was able to recalculate where I was at with the debt. 

Debt		Paid
HSBC	£  4,000.00	£  1,550.00 - Left £2,450
Barclay Card	£  6,708.73	£  3,354.37 - Left £0
Halifax	£  4,730.21	£  300 - Left £4,430
Virgin	£  8,950.62	£  3,950.00 - Left £0
Current	£24,389.56	£16,034.37

 
Basically my Barclay Card and Virgin debt = £15,659.35. I managed agreed settlement figures and paid £7,304.37. My boss at work and grandparents lent me the money up front and I paid them both back quickly. 

As of writing this morning I owe £6,880. 
I earn between £800-£1,000 on the driving side of things currently but this can fluctuate depending on how busy it is, unfortunately it is not something I can control. Once insurance and costs deducted it's been between 79%-84% profit, this does NOT include money put aside for the tax/national insurance bill as I will pay that from my main job once payment comes around. 

I earnt £900 last week so I will be paid that this week and I've got money in the bank so I will pay another £1,000 off at the end of this week. 

I've just moved house last week also. My rent per month has decreased so I am able to put the difference towards the debt and will be due my rent deposit soon which will be another £1,100 back in my pocket and given straight towards the debt. 

I just wanted to get down in writing, I've ALMOST done it! And I feel the pressure released. I am looking forward to becoming a human again. 

 



 

DayDreamerandGeneralWaster

Well done on your fabulous progress.

TheAble

Well done

designingalife

M_anonymous said:

Hi, 

I just wanted to bounce this thread to the top. 
For some reason I don't know what email address is associated with the original account and can't get access to it. 

So this thread was created February 2019. 
In 2019 I did nothing, just bumbled along through life.

June 2019 I moved out of the shared house to go and live alone. This pretty much just over doubled my living outgoings from the £550 to £1200-£1250 ish. 
Going home to an empty house every evening wasn't much fun. I knew I had to get out and about just to save my own sanity. 
I looked at jobs like Dominos pizza delivery driving. I needed something that was going to allow me to function in my main job, and give flexibility for evenings and weekends. I knew I couldn't work somewhere being bossed around; It's difficult when you're already in a senior management role. 

December 2019 I signed up with Just Eat. Tried to get the 3rd party add on insurance but seemed to struggle to get that sorted. My thought process was I could see on the roads that taking traction and whilst I have my Christmas period off work I could get out the house and do that instead. Everyone else would be at home ordering the bleeding stuff. Win-win. 
The sign up process isn't the quickest I quickly found out so unfortunately Christmas 2019 came and passed. 

January I spoke to someone regarding the insurance required to get on the road - "no, you've had too many accidents"; "I haven't had any!?" - "We can't offer cover at this time". 
March - same repeated conversation. 
April - Spoke to someone a lot more helpful. On their system was showing a duplicated entry for some damage that I reported to the police after someone had driven into me whilst my car was parked at home. Insurance cover granted and away I went April 30th. 

As I mentioned in my first post - I go to watch football every week. The last game we was allowed to go to was March 14th. I genuinely don't think I would have given this up. It was the only time I got out and about and was "my thing to do". 

So off I set on Thursday 30th April, out collecting food after finishing the day job. I quickly realised all the other drivers had multiple apps with which they were collecting food for. Just Eat - Uber Eats - Deliveroo. I quickly had to delve into that and get all the documentation in place. 

I don't want to upset people with my good fortune because I understand that there has been a lot of hardship over this year unfortunately with the pandemic and I feel so sad for those people and businesses too. No one asked to be hit with a global pandemic and it was no one's fault (well, here anyhow!) it began.

I've been lucky to keep my main office job, and continue working throughout the whole year. I've had the flexibility of the driving for these take away shops. I've worked my !!!!!! off. 15 hours a day, every day almost. I could count on 2 hands how many times I've done less in fairness. I've only taken 2 days off totally since starting. 

So figures on the door.... 
At the current time of when I was able to recalculate where I was at with the debt. 

Debt		Paid
HSBC	£  4,000.00	£  1,550.00 - Left £2,450
Barclay Card	£  6,708.73	£  3,354.37 - Left £0
Halifax	£  4,730.21	£  300 - Left £4,430
Virgin	£  8,950.62	£  3,950.00 - Left £0
Current	£24,389.56	£16,034.37

 
Basically my Barclay Card and Virgin debt = £15,659.35. I managed agreed settlement figures and paid £7,304.37. My boss at work and grandparents lent me the money up front and I paid them both back quickly. 

As of writing this morning I owe £6,880. 
I earn between £800-£1,000 on the driving side of things currently but this can fluctuate depending on how busy it is, unfortunately it is not something I can control. Once insurance and costs deducted it's been between 79%-84% profit, this does NOT include money put aside for the tax/national insurance bill as I will pay that from my main job once payment comes around. 

I earnt £900 last week so I will be paid that this week and I've got money in the bank so I will pay another £1,000 off at the end of this week. 

I've just moved house last week also. My rent per month has decreased so I am able to put the difference towards the debt and will be due my rent deposit soon which will be another £1,100 back in my pocket and given straight towards the debt. 

I just wanted to get down in writing, I've ALMOST done it! And I feel the pressure released. I am looking forward to becoming a human again. 

 



 

Very well done, nice to see your hard work has paid off congratulations on your progress 👍

ZaSa1418

Well done  

mothsinmywallet_2

That's a fabulous story. Well done for working so hard. Bet you are looking forward to relaxing a bit!