£35k Debt Diary

edited 16 January 2020 at 3:06PM in Debt Free Diaries
13 replies 884 views
shayesieshayesie Forumite
8 Posts
Second Anniversary First Post
edited 16 January 2020 at 3:06PM in Debt Free Diaries
Hi All - So yeaaa we have built up £35k worth of debt and without beating around the bush, my wife and I are terrible with money, we spend, we don't budget and it's just got too much for me. I suffer from anxiety so I've really made a rod for my own back BUT I'm nearly 36 now and enough is enough, I feel I've financially matured and have finally started a spreadsheet to address my debts head on. I want to be debt free by the time I'm 40 and give our family a better life.

This doesn't make pretty reading but here goes:
  1. Store Card £1,311.93 (interest free)
  2. Direct Debit - Currys - £1,417.17 (interest free)
  3. Credit Card 1 £1,317.60
  4. Credit Card 2 £7,396.71
  5. Credit Card 3 £7,995.31
  6. Credit Card 4 £3,039.65
  7. Credit Card 5 £3,475.66
  8. Overdraft - £3,500.00
  9. Personal Loan £5,938.99 (interest free)

About Me - £40k p/year salary + bonus (not guaranteed), My wife - £10k p/t salary - 1 dependant. Current financial score is Poor so I cannot consolidate cards etc. I never miss a payment but this does mean I never have any money.

Plan of Action - I have secured a part time cleaning job before I start my f/t job, this should give me an extra £200 a month which will be purely used to pay debts. I am planning to use the debt snowball method by attacking the smallest debt then once paid I will transfer the monthly payments from the paid debt to the next smallest debit and so on.

I was bankrupt at the age of 19 - there is no way I am running away from this one.

Wish me luck and I will try and keep this updated as much as possible.
«1

Replies

  • Purplemumof2Purplemumof2 Forumite
    7.9K Posts
    Part of the Furniture 1,000 Posts Name Dropper I've been Money Tipped!
    ✭✭✭✭
    Good luck on your journey x
    Official DFW Nerd Club - Member no. 791 - Proud to be dealing with my debts
    BC: £5000.00 - Lloyds: £5590.00
    Xmas Pot £535/£700 ~ EF £621/1000
    PAYDBX 2021 - #? £0 / £2,000
  • OnlyPariahOnlyPariah Forumite
    128 Posts
    Welcome to the boards and congrats on your LBM.

    It sounds like you've got a good plan and you'll find a wealth of support and information on these boards.

    If you can, however, get a SOA done and post here if you don't mind. The more knowledgeable here may be able to identify where you can make some savings which will help you pay down the debt quicker.

    The snowball plan is solid. I would ignore the interest free debts for the moment as you'll get no advantage with getting them paid just yet.
    Tesco [STRIKE]£7647.88[/STRIKE] £7,488.96 Asda [STRIKE]£2,552[/STRIKE] £2,300 Virgin [STRIKE]££4,204.95[/STRIKE] £4,204.95
    Halifax [STRIKE]£2,853[/STRIKE] £2,796.64 Barclaycard [STRIKE]£7,866.32[/STRIKE] £7,866.32 Wedding £488 EF £63
  • shiny76shiny76 Forumite
    528 Posts
    Tenth Anniversary 500 Posts Combo Breaker
    ✭✭
    shayesie wrote: »
    Plan of Action - I have secured a part time cleaning job before I start my f/t job, this should give me an extra £200 a month which will be purely used to pay debts. I am planning to use the debt snowball method by attacking the smallest debt then once paid I will transfer the monthly payments from the paid debt to the next smallest debit and so on.
    Why attack the smallest debt? I appreciate seeing creditors ticked off can give a sense of achievement/motivation but at what cost?

    Surely tackling the highest interest debt will save you money and get it all paid off quicker.

    Best of luck with it. It's taken me best part of 10 years to become 'debt neutral' - although that was without making changes to earnings/lifestyle
  • shayesieshayesie Forumite
    8 Posts
    Second Anniversary First Post
    shiny76 wrote: »
    Why attack the smallest debt? I appreciate seeing creditors ticked off can give a sense of achievement/motivation but at what cost?

    Surely tackling the highest interest debt will save you money and get it all paid off quicker.

    Best of luck with it. It's taken me best part of 10 years to become 'debt neutral' - although that was without making changes to earnings/lifestyle

    Yes I certainly see the sense in attacking the highest interest debts first but the snowball solution is very effective (well I hope anyway) and I think mentally it feels like you are working towards something when you see the smaller bits paid off and focus on the larger picture. Maybe not the best way for everyone but for me it's ideal.
  • shayesieshayesie Forumite
    8 Posts
    Second Anniversary First Post
    OnlyPariah wrote: »
    Welcome to the boards and congrats on your LBM.

    It sounds like you've got a good plan and you'll find a wealth of support and information on these boards.

    If you can, however, get a SOA done and post here if you don't mind. The more knowledgeable here may be able to identify where you can make some savings which will help you pay down the debt quicker.

    The snowball plan is solid. I would ignore the interest free debts for the moment as you'll get no advantage with getting them paid just yet.

    thanks for the reply. You might have to bring me up to speed on the abbreviations I'm afraid.
  • [Deleted User][Deleted User] Forumite
    0 Posts
    1,000 Posts Second Anniversary Name Dropper I've been Money Tipped!
    MoneySaving Newbie
    shayesie wrote: »
    thanks for the reply. You might have to bring me up to speed on the abbreviations I'm afraid.

    SOA is a Statement Of Affairs, it gives us a better idea of your incomings and outgoings and people can make suggestions, but it needs to be as accurate as possible for people to be able to help.

    https://www.lemonfool.co.uk/financecalculators/soa.php

    If you fill it out and then "Format for MSE" then paste it back on this thread, people will be along to give advice :D
  • shayesieshayesie Forumite
    8 Posts
    Second Anniversary First Post
    *UPDATE* - Just to quick update on my £35k debt journey. COVID-19 had an impact on the part time work I picked up so it stunted my progress but this is due to resume again in 2 weeks. I am almost down to £30k so £5k in 9 months! I am struggling a little because a couple of my credit cards are now incurring interest and I am having to increase my monthly payments which doesn't leave me with much after bills. Contrary to my original plan I have scrapped the snowball option and am concentrating on the bills with the most interest. I tried to get Virgin to freeze the interest but this has massively backfired and they are now outsourcing the debit to a third party which is quite worrying. I don't think this post will grab much interest but I will update this again even just for my own sanity!
  • pidge04pidge04 Forumite
    779 Posts
    500 Posts Third Anniversary
    ✭✭✭
    Hello... Well done for paying off £5k in 9 months.
    Are you getting an emergency fund together? I think the recommended figure is about £1000 and should prevent you having to use debt to pay for any emergencies which come up. I understand it can help to break the debt cycle.
    I'm so pleased your PT job is resuming shortly. That £200 a month will make a difference I am sure.
    Good luck to you. I wonder if anyone here can give you any advice about the outsourcing of your credit card.
    All the best to you. 
    CC £4,012 left to pay (was £5400).
  • IrishSeanIrishSean Forumite
    397 Posts
    100 Posts First Anniversary Name Dropper
    ✭✭
    Hi, well done on starting a diary. 

    I agree, paying highest interest is important at this point. I think it's called avalanching; important to pay loan & all other CCs should be DD's set to minimum. Your debt's too high to snowball as you're pushing 70% of annual income in debt. 

    5k in 9 months is very good though.
    Only post what you're comfortable with but anything from your previous bankruptcy that might help now? Spending or situations to avoid, experience with lenders good or bad?  Most of us have made mistakes on the DFW journey, the advice from forum experts is amazing, i'm just a small time forumite who enjoys the site. 

    Do post an SOA when you get a chance, ppl can really help advise then.

    Some abbreviations you'll see here include: OD overdraft, CC credit card, DD direct debit,  CA current account, LBM light bulb moment, DW etc. Anything D prefix is dear as in dear wife.

    GL in your journey!
    💪😀
    Admin for Tilly Tidy to £1825 DFW challenge: 2021
    Rolling Total for 2021: £970
  • shayesieshayesie Forumite
    8 Posts
    Second Anniversary First Post
    pidge04 said:
    Hello... Well done for paying off £5k in 9 months.
    Are you getting an emergency fund together? I think the recommended figure is about £1000 and should prevent you having to use debt to pay for any emergencies which come up. I understand it can help to break the debt cycle.
    I'm so pleased your PT job is resuming shortly. That £200 a month will make a difference I am sure.
    Good luck to you. I wonder if anyone here can give you any advice about the outsourcing of your credit card.
    All the best to you. 
    Thanks for your response. I didn't get any notification by e-mail so have only just seen the response. I am glad I am not just talking to myself. To be honest, although I have paid a bit off my credit cards are biting back big time and I'm racking up about £300 a month in interest. I am going to call them all today to try and get some help so the idea of building up a £1,000 fund is a pipe dream at this stage.
Sign In or Register to comment.
LATEST NEWS AND DEALS