"Lightbulb moment - 67k down. Need to execute a recovery plan" 25 March 2020 at 8:07PM edited 21 January 2021 at 5:55PM in Debt free diaries 107 replies 19.9K views

ryanm8655

£2k since March is impressive, well done. You’re doing great.

My advice would be to keep going and assess where you are in a few months and the remortgage is due. Use that as a motivator to cut back and hit the debts hard.

Do you have anything you can sell?

Great to see one of the debts to friends drop off and the second looks close as well. Things get quicker the more debt you clear. If you keep it up you may well find that 0% offers become accessible again soon, then things really start to speed up.

Second the advice on minimum payments. I set mine to £1 above the minimum on all, then targeted the highest interest debt first with what was left over. Every month the amount you’re clearing on those cards is then getting bigger. Every little helps. 

When I started, a huge chunk of my debt was interest bearing and the debt that was 0% was expiring quite soon...now it’s all on interest free and things are progressing far more quickly.

bamgbost

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%

RAS

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?

TheAble

Pay back your friend asap. Before any other debts. Who knows,there may come a time in the future when you need their help again. And you don't want it on your conscience.

sharpe106

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. 

Geworgie

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.

bamgbost

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.

bamgbost

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?

Smashingitnow

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.

TheAble

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?