I’VA Problem

Peza90

Hi everyone! Today marks the beginning of my journey towards financial freedom. I have just shy of 17k in debt. Spread across one loan, and five credit cards. I’ve found myself in this mess through no ones fault but my own. After what can only be seen as a series of poor financial decisions, I have finally had enough.

Today I spent around 45 minutes on the phone to a really nice guy called Jamie from the debt company. After going over all my expenditures he came to the conclusion I can pay £100 a month for the next 6 years and that will be that. Any and all remaining debt will be wiped away. The only downside being my credit will be shot in the process. Sounds like a bargain to me, I’m currently paying almost £500 a month on my debts.

Now call me cynical but I’ve always felt if something sounds too good to be true it often is. So I hit google faster than you can say Can’t pay we’ll take it away. If just the dictionary definition of insolvency wasn’t enough to put me off, the prospect of remortgaging at the end of the IVA certainly was. (Jamie left out that little nugget)

So after a few more hours googling some ballsy strategies, involving token payments to declaring mental health issues. I finally settled on snowballing my out.

The loan is fixed so that stays where it is, 44 more payments of £180. The credit cards will have £300 to split between them. Paying the minimum on each card and then whatever is left goes on the card with the highest interest. I have a reasonable sum coming my way in September of 3k from a salary sacrifice scheme which will all go towards this goal.

In these past few months I sold my car and bought a bicycle. I gave up smoking. I am more determined about this than I ever have been about anything. If I stick to my plan I’m looking at being debt free (credit card free) by February 2021. Maybe even sooner if I can swing a 0% balance transfer once I’ve paid off some of the cards.

Your stories have all inspired me so I’m sharing mine with all of you. Plus if anyone has a link to a tidy spreadsheet to help me keep track of my snowballing that would be greatly appreciated. I’m having a mare attempting to make one!

Thanks for reading!

bedhair

http://www.whatsthecost.com/snowball.aspx
Good luck on your journey

beanielou

Happy shiny new diary

pidge04

You CAN do it!
This forum is amazing and will change your life. I’m about halfway through and I am so pleased I’m on this path.
I wish you so well and can’t wait to see you smash this.