£80k debt - 30 month debt free aim - all support is welcome

DebtfreeaimOct21

a_silver_lining wrote: »

Hi there and well done for posting

I second seeing if you have anything to sell or return. On my lightbulb moment I immediately went through my pile of recent spending receipts and found a few things I could take straight back to shops. I eat organic food and that plus cat, toiletries and household bits comes to £150pm. I home cook thought and cut out coffees and eating out, as before then I was spending another 150pm some times.

Good luck

Thank you, I’m going to start looking through items this weekend and get some gone.

DebtfreeaimOct21

in_need_of_direction wrote: »

Is your electricity really £100 per month?

Hi it’s terrible, but I don’t actually know, just been paying bills as they come in. I will check and someone suggested I send a monthly amount to them.
I’m planning on using all the advice I get before the end of April, then when I get paid, as I pay things I’ll update the SOA with the exact figures to the penny and the exact minimums to the penny, then with he support on here, I’ll hone in on the plan.

I have had the refund now in my account from CF so I will use the to kick start the emergency fund?

DebtfreeaimOct21

enthusiasticsaver wrote: »

You have done well to climb out of the debt hole and balance the books so to speak as usually the only way to go when you get to the PDL cycle is bankruptcy or a DMP so I think you should give yourself credit for that. Also good that you have realised the error of your ways as without that the tendency is to slip back into old ways and allow the debt to creep up. Debt busting is a hard slog and without knowing how old you are it for presumably has taken you around 10 years or more to get to your current position. I think it is wonderful you are aiming high to get it all cleared in 30 months but on such a large amount of debt setting yourself smaller targets along the way may help keep you motivated.

You have lots of positives. A good income. A willingness to change spending habits and arrangements already made and interest on hold for some debts so in effect your own self managed DMP.

So presumably getting rid of the PDLs is the first aim for the first 6 months of your challenge?

Thank you, your comments are very kind and have made me feel a bit better about it all.

Yes first aim then is to remove all PDLs within 6 months.
I now have £350 in emergency fund due to the CF refund hitting my account today. So I’d like like aim for the £1000 in emergency fund at the same time through selling items, using the £50 already allocated a month in the SOA and reducing the £50 for clothes a month, this should be achieved providing I stick to the budget, but this is what I am here for, so that it the plan.

6 month aim from end of April is agreed as -
So £5,700 down and £1000 saved, plus the rest of the debts come down each month as I pay them.

I am due to hear back about 4 of the PDL complaints by end of April, so if I get anything from them I will use this to clear off balances owed, which hopefully means these will be gone within the 6 months time frame and I can get cracking on the cards and loans. I will keep you posted.

DebtfreeaimOct21

I will change the SOA details as I get statements etc and accurate details.

I have good news, the electricity I put £100, but I have now set up a monthly direct debit with them for £78 and they worked this out based on my usage and they will review it again in 6 months time so may go up or down.

This means the £22 will go straight to Vanguis as you’ve all advised extra should.

Thank you

PositiveBalance

DebtfreeaimOct21 wrote: »

Thank you, your comments are very kind and have made me feel a bit better about it all.

Yes first aim then is to remove all PDLs within 6 months.
I now have £350 in emergency fund due to the CF refund hitting my account today. So I’d like like aim for the £1000 in emergency fund at the same time through selling items, using the £50 already allocated a month in the SOA and reducing the £50 for clothes a month, this should be achieved providing I stick to the budget, but this is what I am here for, so that it the plan.

6 month aim from end of April is agreed as -
So £5,700 down and £1000 saved, plus the rest of the debts come down each month as I pay them.

I am due to hear back about 4 of the PDL complaints by end of April, so if I get anything from them I will use this to clear off balances owed, which hopefully means these will be gone within the 6 months time frame and I can get cracking on the cards and loans. I will keep you posted.

Evening Debtfree,

I'm a massive fan of emergency funds and would normally prioritise one over paying off debt (initially), but I have to admit the idea of you paying nearly £200 interest on your £400 balance on your Vanquis card is enough to make me weep.

I'm going to put a proposition to you and it's up to you to decide whether to take it or leave it but is it worth considering using the £22 left over from your electricity budget this month, plus the £50 for clothes plus £328 from the £350 to clear the Vanquis card, then use the min payment from the Vanquis card from next month onward plus any extras to build the emergency fund?

It might be worth waiting until you see if you get anything back from the other PDLs before making your mind up, and it would also depend on the billing date on your Vanquis card, which is when they will apply the interest for this month.

What is the billing date for your Vanquis card?

As I said, this is normally out of order and might not be the way to go for you, but please give it some thought.

I'm sure the other, wonderful posters here will also chip in with their opinions.

DebtfreeaimOct21

Thank you, it’s due to go out on DD on the 10th for minimum payment so I understand what you are saving and have a bit of time and hoping PDL claims pay out.

PositiveBalance

DebtfreeaimOct21 wrote: »

Thank you, it’s due to go out on DD on the 10th for minimum payment so I understand what you are saving and have a bit of time and hoping PDL claims pay out.

Hi Debtfree,


That's not quite the same thing. What is the billing period for this CC? Does it run from the start to the end of the month or something else?


You should be able to see it on your statement.

savetosave

Hi if it’s just you, do you need life insurance?

in_need_of_direction

Especially since you’re now in a pension scheme which may pay out on death?

DebtfreeaimOct21

PositiveBalance wrote: »

Hi Debtfree,


That's not quite the same thing. What is the billing period for this CC? Does it run from the start to the end of the month or something else?


You should be able to see it on your statement.

I have no idea, I’ll dig it out the weekend and have a look as I mostly have just ignored it as I don’t use it and it’s DD for minimum payment. I’ll let you know.