NOW OPEN: the MSE Forum 'Ask An Expert' event. This time we'd like your questions on TRAVEL & HOLIDAY DEALS. Post by Wed and deals expert MSE Oli will answer as many as he can.

"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
1235711

Replies

  • SinglespeederSinglespeeder Forumite
    238 Posts
    Eighth Anniversary 100 Posts Name Dropper Combo Breaker
    Forumite
    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.
    DEBT FREE - Feb '21
    • Mortgage March '21 -£130,000
    • Mortgage now - £82,281
    • Mortgage daily interest Nov £4.60 Dec £4.57 Jan £4.54 Feb £4.52 March £4.49 April £4.46
    • #62 2023 MFW £9,921 / £11,000
  • bamgbostbamgbost Forumite
    460 Posts
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    Forumite
    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!
    365 Day 1p challenge - £371.49 / 667.95
    Emergency Fund   £425 / £1000
    DFW - £TBC
  • edited 1 September 2020 at 10:24AM
    SinglespeederSinglespeeder Forumite
    238 Posts
    Eighth Anniversary 100 Posts Name Dropper Combo Breaker
    Forumite
    edited 1 September 2020 at 10:24AM
    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 :)
    DEBT FREE - Feb '21
    • Mortgage March '21 -£130,000
    • Mortgage now - £82,281
    • Mortgage daily interest Nov £4.60 Dec £4.57 Jan £4.54 Feb £4.52 March £4.49 April £4.46
    • #62 2023 MFW £9,921 / £11,000
  • SmashingitnowSmashingitnow Forumite
    151 Posts
    100 Posts Name Dropper
    Forumite
    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.
    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


  • bamgbostbamgbost Forumite
    460 Posts
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    Forumite
    @sourcrates Can you help move this to diaries pls?
    365 Day 1p challenge - £371.49 / 667.95
    Emergency Fund   £425 / £1000
    DFW - £TBC
  • bamgbostbamgbost Forumite
    460 Posts
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    Forumite
    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.
    365 Day 1p challenge - £371.49 / 667.95
    Emergency Fund   £425 / £1000
    DFW - £TBC
  • bamgbostbamgbost Forumite
    460 Posts
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    Forumite
    Hi ALL its been a while. But I want to start providing regular updates. And would appreciate any helpful comments, or feedback ! :smile:

    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!
    365 Day 1p challenge - £371.49 / 667.95
    Emergency Fund   £425 / £1000
    DFW - £TBC
  • bamgbostbamgbost Forumite
    460 Posts
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    Forumite
    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?
    365 Day 1p challenge - £371.49 / 667.95
    Emergency Fund   £425 / £1000
    DFW - £TBC
  • joedenisejoedenise Forumite
    15.3K Posts
    Part of the Furniture 10,000 Posts Name Dropper
    Forumite
    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.

  • bamgbostbamgbost Forumite
    460 Posts
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    Forumite

    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.
    365 Day 1p challenge - £371.49 / 667.95
    Emergency Fund   £425 / £1000
    DFW - £TBC
Sign In or Register to comment.
Latest MSE News and Guides

Energy Price Cap change

Martin Lewis on what it means for you

MSE News

Best £1 you've ever spent?

Share your most impressive bargains

MSE Forum