Venturing Out of the Vault (of Debt)

Pip_Boy_111

Morning all. The sun is out again :T (surely this can't be summer already? Worried this could be it for the year :rotfl:)

Pretty financialistic (new word TM me) day yesterday.

win no 1 set in motion a switch to FD for my bills account. Offered a £500 OD, of which, £250 is at 0%. Will also get the £100 switching incentive. :T
win no 2 wee man's birthday money purchases were ordered through topcashback and have attracted £6 odd cashback. This on top of the new mower means i have £10 and a few pence pending. Also got 20% off the bike for trading in his old one. With the saving he bought a new computer game :T
win no 3 BT have messed up downgrading our sim plans. Rang about it and they're refunding this month's higher payment and giving us a month free for the hassle :T
win no 4 paid another £200 of the OD :T
win no 5 checked out my pension figures. SP easily on track for full amount at 68. My ex employer DC pot has performed well. Left 5 years ago with it sitting around £21k. As of yesterday it's sitting at £32k, with 0 payments in since I left. Also played with the calc and IF investment performance is moderate (2.5%) we should have around £25k a year plus lump sum of £90k ish from the pots. If it's high (5% ish) this figure is MUCH higher. Like £45k a year :eek: Fingers crossed :T

All in all, a very successful day money wise. Once we smash these debts to oblivion, the plan is to use some of the spare cash each month to up contributions to the pension. Some will be saved towards a 6 month EF, and the rest is then ours to have some fun with. (Balance :money:)

Don't know if it's the sunshine or what but this week is full of positivity.

Have a great Thursday :beer:

Pip_Boy_111

Sanctioned_Parts_List wrote: »

I'm still ambivalent on car finance - I've done both the "buy a 4 year old car and run it for 5 years" and the "lease a car and just give it back" thing. In the end, especially with how thirsty some of these cars can be for parts between years 5 and 10, I can't say that buying the older cars worked out particularly cost effective.

Possibly I need to be happier to chance cars breaking down on me, but foolish me tends to replace components when recommended by the manufacturer.

This is where I sometimes waiver in what I'm thinking. Older cars CAN get expensive to maintain, it's happened to me. And apart from the monthly payment and the dealer service, everything else is covered on the new car. Maybe I need (another) spreadsheet to work out the true cost of both and compare. I think it might be the monthly sum leaving my bank account that I don't like, but then I'd have one if i took a loan to buy an older car (unless it was a true banger for a few hundred). i
Hmmmmm. I feel a spreadsheet coming on :rotfl:

Pip_Boy_111

Just had my welcome pack and debit card delivered from FD. Rang the number, all set up for online banking and the app in minutes. Well impressed. Quite reassuring to hear a fellow northern accent on the other end of the phone too! :rotfl: 100% positive with FD so far. Just waiting for all the DD's to go on Tuesday then the switch will happen and hopefully 100 of the Queens English will be appearing in said account not too long after that. By then the overdraft will down to £500 and, as FD give the first £250 of the OD interest free, HALF of my OD will be at 0% and the other half 15.5% (if i remembered the figures correctly) which is less than the HSBC one (18.something, ish, maybe).
I also noticed that FD are offering personal loans at 3.3% up £30k. My settlement figure today is just under £17k so debating, in my head, whether or not it's worth applying. Obviously I already have the loan with HSBC (12% ish), which will probably scupper my affordability and another search may not look great on the file, but i'm not intending to apply for any other credit in the next few years (other than a new mortgage deal in 2 years but Natwest didn't do a credit check last time as we were just switching deals on the existing mortgage we have with them) and wonder if it's worth a shot. It would save a FORTUNE in interest IF we could get the 3.3% (big IF). Or do I just accept it won't happen and carry on as normal? This is NOT, i repeat NOT, a consolidation loan in the usual sense of the word. Just looking to save a wodge of cash in interest and reduce what's actually owed. there will be no extra applied for to spend and all other debts will remain untouched. Hmmm. Need some opinions. FORUM TEAM ASSEMBLE :rotfl:

Edit: It's really hitting home now how stupid and careless I was with money, now that i'm sitting down and slowly picking apart what i'm left with and trying to find ways to reduce the cost of the debts. The loan conundrum above is a good example of it. Overdraft, loan and CC. Overdraft is about sorted with half now at 0% and should be gone in a couple of months. The CC was switched to 0% a while back and now i'm looking at the possibility of reducing the loan interest. If i'd just been more careful in the past none of this would need doing. But then, if I'd been more careful in the past i probably wouldn't be here rambling away at all! Ah well, it's all about the journey right?

Moneywhizz

Have just been reading through your diary and wanted to say well done for your radical change of attitude to managing your money. It is such an encouragement to others who are trying to pay off their own debt to read successful stories like yours. A couple of things I noticed in your Soa. You have listed very low amounts for some categories such as clothes, presents, medical etc. Do you actually only spend that amount and are you actually putting money aside each month into all the different categories so that you have the money in a "pot" when it is needed? You are making very sizeable debt repayments every month but it is good budgeting to keep money aside for expenses that crop up throughout the year. Also note that your wife's income is fairly low, will this possibly increase in the future as your family grow up? Just a few thoughts that came to me as I read your diary. Regarding applying for another loan, as long as you are sure you are not too worried about your credit file, there's not much to lose by applying anyway and see what rate you are offered. If you can save some interest it would bring your debt free date closer and you are determined not to add to your debt so it wouldn't do any harm. It sounds like you have a good balance between enjoying life and paying down your debts. Good luck with your journey.

Pip_Boy_111

Well, took a shot in the dark and........he scores :T:T:T

Absolutely did NOT think that i was going to get anywhere with this application. As soon as you get the message to "call us to provide further information", you just know that it's usually a no. However, after 45 minutes on the phone with a very nice lady and answering many, many questions, I was put on hold for 7 minutes whilst she finalised her checks with the CRA's. 7 minutes of wondering whether it was a stupid idea. And then......it happened. A YES:T
No increased rate, exactly the 3.3% advertised. Absolutely ecstatic :j
In one phone call i have saved us £3206.45p in interest and knocked 6 months off the term and dropped the monthly payments down by £32.80 per month :j:j:j:j:j:j:j
Not updating the signature just yet, not until the agreement is signed, posted and received and the funds are in the account.
So pleased that I took a punt on FD just to make £100! I am so bl**dy happy right now.

Pip_Boy_111

Moneywhizz wrote: »

Have just been reading through your diary and wanted to say well done for your radical change of attitude to managing your money. It is such an encouragement to others who are trying to pay off their own debt to read successful stories like yours. A couple of things I noticed in your Soa. You have listed very low amounts for some categories such as clothes, presents, medical etc. Do you actually only spend that amount and are you actually putting money aside each month into all the different categories so that you have the money in a "pot" when it is needed? You are making very sizeable debt repayments every month but it is good budgeting to keep money aside for expenses that crop up throughout the year. Also note that your wife's income is fairly low, will this possibly increase in the future as your family grow up? Just a few thoughts that came to me as I read your diary. Regarding applying for another loan, as long as you are sure you are not too worried about your credit file, there's not much to lose by applying anyway and see what rate you are offered. If you can save some interest it would bring your debt free date closer and you are determined not to add to your debt so it wouldn't do any harm. It sounds like you have a good balance between enjoying life and paying down your debts. Good luck with your journey.

Thanks for reading.
As you can see i went for it and got it:j
WRT the clothing, presents and medical. Yes they are right. I'm not what you would call "the height of fashion" (i have a t shirt that is older than my son who's 9 :eek:) and these are based off actual spends. There's enough wiggle room in the fun budget that can cover any needs as they arise (be it school uniform replacement at short notice etc.) We've banned toys as gifts now as the house is full of them, so grandparents etc (big family) are instructed to buy clothes as gifts. It's working well As far as prescriptions go, i can't remember the last time i needed one, or the wife, or kids for that matter (must be something in the countryside air??) Most visits to the Dr have been by me but it's been broken bits and torn thingamys through sport :rotfl:.
WRT wifes income. Yes, it will increase. As the kids have got older she decided to re train to be a TA in the local school so is currently on 1st year apprentice wages. Only 8 months until an increase.

Pip_Boy_111

Quiet few days as at work.
Still waiting on the documents for the loan to come through to sign (still on cloud 9 about that).
All meals for work are from built up freezer stores of "ready meals". So, not much going on, money wise, but the small things continue to add up.
After the debt busting/money saving action of the past week today feels a bit like progress has halted. I know it hasn't but it's all quiet on that front. Still, payday tomorrow. Debt busting will be resumed :T

Pip_Boy_111

Bright but windy day here today.
It's payday! :j

So today, paid another £50 off the overdraft. The company bonus was announced this morning and the amount means the overdraft will be consigned to history as of this time next month :j
Have paid another chunk off the credit card. This is now under £3400 for the first time in forever. After the overdraft payment next month, there will be enough left over to make a sizeable payment to this on top of my usual budgeted amount. Of course, going forward all my overdraft payments will paid towards this to decimate it before the 0% runs out next year. I need to sit down and work out the figures but i'm aiming to have it clear by September. I just want it gone to have a clear run at the loan.
The loan is still awaiting the paperwork and funds, but once sorted this will be paid as usual until the CC is clear. I know the CC is 0% but we need to channel funds to it to clear it before the 0% runs out (a lot sooner hopefully) as i have no intention of applying for one again, even a BT card. With the interest dropping to 3.3% the most it will cost us is just over £1000 in interest over the term. However, this won't apply, as once the card is clear in September ALL the CC payments will be going to the loan, so that will come down in double quick time, saving most of the interest. I can live with a couple of hundred in interest after the rate i WAS on (12.5% :eek:).
Have noticed today my sky bill has jumped to £56.16p :mad:. Next month is £76 :eek:. I guess my contract is up and I missed it with everything else i was sorting. No matter. A quick call to sky and it turns out, my contract is indeed up. A quick chat with the "retention" team and everything is cancelled as of next billing date (15th May). Too late to do anything about this month as the DD is due tomorrow but that will be my last payment to sky. I refuse to pay £76 per month for ANY TV, especially when they can clearly afford to offer less (as evidenced by my offer I've had for 18 months). So all in all a saving of £30.50 per month from what i have been paying as of next month. Freesat, Netflix and Prime for us for the princely sum of £17.98 per month. For the use it gets from the family, I think that's good value. The sky only really got used by me for sport, and only because it was offered at a low price. I can live with match of the day and F1 highlights.
Monthly Summary
All in all, an excellent month of budgeting and debt busting. the totals keep coming down, the budget is on point (even with a couple of unexpected events) and some more money saving actions have taken place. The outlook for the next few months is extremely positive with a new loan rate, company bonus and a slight payrise, and DW is completely on board with the plan. :j
Pension wise, checked my payslip and my recent contribution increase means that, combined with the company contribution, there is over £950 per month going to the pot. I hope this is enough to build up a comfortable retirement, but it's a good early start.
Just waiting for something to bring it all crashing down:eek: (I'm a worrier)

Edit: I've realised, reading these back, that this could come across as bragging or smug to some people. That isn't my intention at all.I'm just so proud and excited about the change in attitude and the ability to budget correctly to enable us to pay these debts as quickly and painlessly as possible. It isn't my intention to brag and i realise we are EXTREMELY fortunate to have the ability to do so. As I've said previously, without the good folk on here we would have bumbled along as normal and ended up with debts that far outweigh our income. It's thanks to this forum that I realised the trend and took corrective action and am still picking up tips and advice to enable me to have the knowledge to be able to make these changes.
Rather than being smug, my intention is to show the forum members that because of THEM, someone has been able to make changes and that their comments, advice and occasional tough love, have had a positive effect on someones life even if not directly aimed at that person. Thank you all.

Pip_Boy_111

Very quiet day, debt busting wise. Nothing to do now but leave the accounts be and watch them sort themselves for the month. It's quite relaxing and reassuring to know that everything is now at a point where a quick check every couple of days is all that's required once the wages have gone in. it certainly shows in everyday life too. I feel less stressed, I'm generally in a much happier mood and I can now be more "c'est la vie" about little problems. In the past, although I didn't realise it, constantly juggling money around to keep up with bills and debts was causing me to be stressed and moody and every little thing was stressed about. it's only in hindsight, however, that I can see this. Another example of the mental toll of debts, even when not actually in dire straits.
It's funny how just taking the time to be organised and in control can have such a positive effect on the mental state. Of course, there are still things to cause worry in life, but debt is now a much smaller factor, and this contentment seems to radiate through into other aspects of life in general, leading to a much calmer, happier state.
Of course, when the weather's this good, it's hard NOT to be positive and content. Stunning day for this time of year. Feels good to be sat outside, even if I could sleep on a washing line :rotfl:

Pip_Boy_111

So............

Today is a good day. The loan capital from FD came in and the first thing I did was to ring HSBC and pay off that loan with the horrible interest rate. :T
Because a DD payment went out between applying and getting the loan I've actually ended up with a bit left over. No matter this has been put to good use. First up, another £150 off the OD. This is now down to £350 and will be gone as of payday next month :T

Next was a payment to the CC. Confession to keep myself accountable :A This was cut up. I ordered a replacement. Fear not. I haven't returned to old ways. The card is not kept in the wallet and is kept tucked away so that it is a conscious decision to use it. My reasoning is that whenever we make a purchase online of any value I can use this for the protection it affords and immediately repay the balance from the cash in the current account. This is what the repayment was. Anyway, this was to be repaid anyway from the current account but that cash will now be put aside as a mini emergency fund as all debt is now low/no interest. I suppose it doesn't matter which way round you look at it, either the spare loan cash has been put to the CC or the emergency fund and the cash we already had vice versa. Either way same result, but wanted to write down the reasoning for having the card back in the spirit of honesty and accountability (and to gauge opinions on having it ).

As you can see from the updated signature, this has saved us a FORTUNE and sped up the debt free process no end. All because of a bit of elbow grease combined with a speculative application and phone call.

off to use the snowball calculator now to see what our projected debt free date might be. SO HAPPY :j