"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

Singlespeeder

Eating cheaply isn't necessarily eating badly. No need to punish anyone. Less than perfect veggies are seriously cheap. I assume you're all omnivorous, try bringing some vegetarian meals in, veggie curries are easily as good as a meat one. Lentils get ridiculed , but tbh they're a great addition to pad meals out. Soups cost next to nothing to make. You can eat VERY well, cheaply.

bamgbost

Thanks for the comments and advice guys. Defo taking them on board. Still plugging away at it.

Im proud that in the last 5 months, I have got rid of the following completely:

Description....................Debt......Monthly...APR

Friend 1.......................200.......50........0

Friend 2.......................1500......200.......0

cred 5 (c2)....................1500......50........29

cred 3 (s).....................1500......25........29

cred 7 (b1)....................1000......50........29

Now still left with:

Overdraft......................1500......40........19.9

Paypal.........................1400......35........20

cred 6 (b).....................3350......85.......29

cred 4 (c1)....................2700......75.......29

cred 2 (ha)....................4400......50........29

credit card 1 (m)..............2650......55........0

loan 4(rs).....................11600.....297.......11

loan 3 (aa)....................7900......205.......9

loan 2 (boo)...................10615.....326.......15

loan 1 (ha)....................14100.....290.......7

Not sure if my posts, suit more of the diaries forum? Either way, will continue to update, as it motivates me to keep plodding on.

Time to take more in roads at the higher Credit Cards& overdraft  i guess. Wish me luck!

Singlespeeder

Personally, I would want rid of that overdraft. You should be £375 a month better off with what you've cleared. If it's an 'active' overdraft, I would want to be out of it. If it's inactive, on an old account, it's just another debt. Cred 4 would be my next target. With the OD and cred 4 gone you should have £500-ish more to hit cred 6.
You're doing great

Smashingitnow

Yes - ask if they will move this to the diaries. That would be good. It's nice reading of your progress. Just tag Sourcrates and he will hopefully be kind and move it for you.

bamgbost

@sourcrates Can you help move this to diaries pls?

bamgbost

So im in the diaries section now!

Been having a think, and I believe that with great effort, it may be poss to get rid of interest paying credit card debt by year end! Just needs determination and discipline.

bamgbost

Hi ALL its been a while. But I want to start providing regular updates. And would appreciate any helpful comments, or feedback !

With my unsecured debts standing at almost 60k. I recently thought let me contact a debt charity for advise.

They said based on my circumstances i have 2 options. DMP or Bankruptcy.  After listening to their advise on both, i decided they were not for me. As its likely to affect my job, home (due to equity release) and affect my partners credit as we are married. Plus i have managed to keep head above water thus far, so I havent had any adverse credit reported on files. Besides they calculated on a DMP it would take me 5+ years to pay off ( assuming interest freeze by all lenders).

Trying to tackle the debts myself therefore leave me with the options of either

Avalanche method (pay off in interest order)

Snowball method (pay off smallest to largest)

or a COMBO of the 2.

Therefore I think, I will focus on clearing the interest paying credit cards first, ( as they have highest APR & smallest balances) - a combination of avalanche and snowball!

bamgbost

As it standards my debts are listed below. And I have tried to assign a number of order of priority to clear.

Name	Amount	%	Min Pay	Priority to deal with
	CARDS
B CC	2922	34	70	1
S CC	1466	30	30	2
M CC	2360	0 ( til Jan 2021)	0	3
H CC	4300	0 ( til Sept 2021)	50	9
	Loans
A L	8000	9	204	6
B L	10456	14.9	326	7
R L	11140	14.9	290	8
H L	13790	7	297	10
	Other
Paypal	1271	20	50	4
Overdraft	1500	19.5	30	5
TOTAL	57205		1347

When you really list the debts and face them head on its all rather daunting. But i hope to keep my head down and tackle this mess. Wish me luck!

Does all the above make sense? Sound achievable?

joedenise

What rate does the M CC go up to once the 0% comes to an end?  You have that down as Priority 3 so is it higher than the 20% Paypal charges?  If so then yes I'd leave it at Priority 3 if not I'd go with the Paypal as Priority 3 rather than 4.

bamgbost

joedenise said:

What rate does the M CC go up to once the 0% comes to an end?  You have that down as Priority 3 so is it higher than the 20% Paypal charges?  If so then yes I'd leave it at Priority 3 if not I'd go with the Paypal as Priority 3 rather than 4.

correct its 26% APR.