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"Lightbulb moment - 67k down. Need to execute a recovery plan"

edited 21 January 2021 at 5:55PM in Debt free diaries
107 replies 19.9K views
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  • bamgbostbamgbost Forumite
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    Soooo.... the time has come where we get paid again @ end of next week!  And to plan how to clear some debts!
    Fortunately, we should also be getting some one off bonuses too.of approx £2,400. So lets say maybe an extra £1,6k after tax approximately.

    As an update, I have been in touch with my credit card providers to see if any can offer me a 0% deal. Its a tough ask, but lets see what they come back with. Debt title B CC seems promising. as they have given me 1 month interestfree whilst they investigate and decide.

    Anyways, given my SOA.. on page 1 and current outstanding balances below. Any advice on how best to tackle these debts this month?
    There are many methods I have read on snowball, highest interest etc. I like the sound of snowball. So I am leaning to wards clearing off 1 of the credit cards immediately. Perhaps CC 2 balance of 800!

    What do I then do with the rest? any suggestions? DO I pay off my friend?

    Name  Amount Interest
    Friend 650 0
    Overdraft 1435 19% ( over £500)
    Paypal 1500 19%
    C2  CC 800 29%
    S CC 900 29%
    C 1 CC 2700 29%
    M CC 2550 29%
    B CC 3425 29%
    H CC 4500 29%
    A loan 8000 9%
    B Loan 10940 13%
    R Loan 11600 11%
    H Loan  14250 7%
    365 Day 1p challenge - £371.49 / 667.95
    Emergency Fund   £425 / £1000
    DFW - £TBC
  • RASRAS Forumite
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    Given that you've got a lot of credit cards at 29%, I'd be tempted to try and get C2 and S cleared as that reduces the number of creditors. And you never know when you cancel the card, they may make a better offer?
    The person who has not made a mistake, has made nothing
  • sharpe106sharpe106 Forumite
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    Pay of your friend first. If you overdraft below £500 is 0% interest then get that below £500. Then work on the highest APR credit cards. Might as well start on the smaller ones first so you can close them and less cards to manage. 
  • GeworgieGeworgie Forumite
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    bamgbost said:
    Soooo.... the time has come where we get paid again @ end of next week!  And to plan how to clear some debts!
    Fortunately, we should also be getting some one off bonuses too.of approx £2,400. So lets say maybe an extra £1,6k after tax approximately.

    As an update, I have been in touch with my credit card providers to see if any can offer me a 0% deal. Its a tough ask, but lets see what they come back with. Debt title B CC seems promising. as they have given me 1 month interestfree whilst they investigate and decide.

    Anyways, given my SOA.. on page 1 and current outstanding balances below. Any advice on how best to tackle these debts this month?
    There are many methods I have read on snowball, highest interest etc. I like the sound of snowball. So I am leaning to wards clearing off 1 of the credit cards immediately. Perhaps CC 2 balance of 800!

    What do I then do with the rest? any suggestions? DO I pay off my friend?

    Name  Amount Interest
    Friend 650 0
    Overdraft 1435 19% ( over £500)
    Paypal 1500 19%
    C2  CC 800 29%
    S CC 900 29%
    C 1 CC 2700 29%
    M CC 2550 29%
    B CC 3425 29%
    H CC 4500 29%
    A loan 8000 9%
    B Loan 10940 13%
    R Loan 11600 11%
    H Loan  14250 7%
    There is a website/app you can use to compare snowball/avalanche called stebt.com I've found it really helpful.
  • bamgbostbamgbost Forumite
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    Thanks for the advise guys...
    Yes overfraft is currently 0% upto £500. ( i guess this temporary due to Covid).
    And I agree with you, to pay back friend and C2 first. Then loo at snowballing going forward.
    365 Day 1p challenge - £371.49 / 667.95
    Emergency Fund   £425 / £1000
    DFW - £TBC
  • bamgbostbamgbost Forumite
    460 Posts
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    Posting a more upto date SOA, as somethings have changed  (ever so slightly)...

    [font=courier new][b]Statement of Affairs and Personal Balance Sheet[/b][b]

    Household Information[/b]
    Number of adults in household........... 2
    Number of children in household......... 2
    Number of cars owned.................... 2[b]

    Monthly Income Details[/b]
    Monthly income after tax................ 3100
    Partners monthly income after tax....... 1450
    Benefits................................ 145
    Other income............................ 0[b]
    Total monthly income.................... 4695[/b][b]

    Monthly Expense Details[/b]
    Mortgage................................ 1065
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 196
    Electricity............................. 20
    Gas..................................... 20
    Oil..................................... 0
    Water rates............................. 35
    Telephone (land line)................... 0
    Mobile phone............................ 66
    TV Licence.............................. 15
    Satellite/Cable TV...................... 23
    Internet Services....................... 23
    Groceries etc. ......................... 300
    Clothing................................ 25
    Petrol/diesel........................... 240
    Road tax................................ 34
    Car Insurance........................... 65
    Car maintenance (including MOT)......... 30
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 100
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 13
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 10
    Contents insurance...................... 10
    Life assurance ......................... 35
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 20
    Haircuts................................ 25
    Entertainment........................... 35
    Holiday................................. 20
    Emergency fund.......................... 150
    Kids savings............................ 100[b]
    Total monthly expenses.................. 2675[/b]
    [b]

    Assets[/b]
    Cash.................................... 1500
    House value (Gross)..................... 370000
    Shares and bonds........................ 0
    Car(s).................................. 6500
    Other assets............................ 0[b]
    Total Assets............................ 378000[/b]
    [b]

    Secured & HP Debts[/b]
    Description....................Debt......Monthly...APR
    Mortgage...................... 285000...(1065).....1.8[b]
    Total secured & HP debts...... 285000....-.........-   [/b]

    [b]Unsecured Debts[/b]
    Description....................Debt......Monthly...APR
    Friend.........................300.......0.........0
    Overdraft......................1500......40........19.9
    S CC...........................1200......35........29
    R Loan.........................11600.....297.......11
    H Loan.........................14100.....290.......7
    B Loan.........................10770.....326.......13
    A Loan.........................7900......205.......9
    H CC...........................4400......50........0
    B CC...........................3350......85........29
    M CC...........................2650......75........0
    C CC...........................2700......75........29[b]
    Total unsecured debts..........60470.....1478......-  [/b]

    [b]
    Monthly Budget Summary[/b]
    Total monthly income.................... 4,695
    Expenses (including HP & secured debts). 2,675
    Available for debt repayments........... 2,020
    Monthly UNsecured debt repayments....... 1,478[b]
    Amount left after debt repayments....... 542[/b]

    [b]Personal Balance Sheet Summary[/b]
    Total assets (things you own)........... 378,000
    Total HP & Secured debt................. -285,000
    Total Unsecured debt.................... -60,470[b]
    Net Assets.............................. 32,530[/b]

    NOTE 1:Council Tax – includes overpayment for bill of 2019/20.
    Note 2: Utilities have reduced for a few months due to summer payments


    Summary is I have high debts, but keen to clear it without a DMP. Biggest changes since the start is paying off 1 friend, 1credit card and slowly reducing other amounts owed.

    Not sure where to target next. But I guess minimal payments on the 0% cards right?  Therefore I would guess a combination of either the Overdraft or S CC?

    Any suggestions on how to tackle this?

    365 Day 1p challenge - £371.49 / 667.95
    Emergency Fund   £425 / £1000
    DFW - £TBC
  • SmashingitnowSmashingitnow Forumite
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    Well done! Brilliant the nursery fees have gone...gives you lots more to go with.
    I'd go for the S CC...can get that gone in two months and it's a horrible APR.
    You may find as I did that as you pay it down towards zero (not sure what utilisation you are at on your 3 29.9% cards) that they give you a good BT rate...as they'll know you've been profitable in the past.
    Little do they know your days of making profits for them will soon be gone!!
    Keep going...you are doing great.
    March 2020 - 21k of debt; September 2020 - 14k of debt. Debt free target date September 2021 
    Diary of paying down debt whilst living abroad:https://forums.moneysavingexpert.com/discussion/6181237/5-000-miles-and-even-more-pounds#latest


  • TheAbleTheAble Forumite
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    Pay your buddy back that £300 first. Then yes, od and s cc.
    I haven't read the full thread but can you do anything about those mobile and sky tv bills? Also you're burning through an awful lot of petrol every month - what sort of cars do you drive?
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