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

bamgbost

Still out here grinding and have updated my signature on where things are currently at.

I also used a debt free calcularor which projects exactly 4 years  to be debt free ( if making contractual minimum payments). Which is Jan 2025!!!

Quite a shocking length of time. especially considering life throws in plenty of uncertainty. Yikes!

 Nonetheless, gotta grit my teeth and get on with it. First stop is to reassess my priority debts and commit to snowballing! And then target a consistent over payment amount. To try and reduce this timeframe.

BabyStepper

Hi bamgbost 

Just wondering how you got on with the mobile phone contracts at the end of last year? Did you change to sim only?

Also, have you checked recently if you can get any 0% cc deals? As you know, that'd make a big difference to the impact your overpayments make. 

If I were you I'd prioritise paying back your overdraft. It really helpes with shifting your mindset, being in credit all the time is a huge boost. You can reduce it by going online and requesting the reduction, it's usually applied right away. Also, you might be paying more interest on it than you think you are, and they can call it in at any time. (Although probably won't but you know, peace of mind.)

How's your emergency fund looking? 

£300 to feed a family of 4 during lockdown is excellent, is your food bill still so small? If so, excellent. 

You're well on the way to nailing those credit card debts, well done. Keep going. And try not to worry too much about how long it's all going to take. Those years will pass anyway and you may as well use them to improve your financial position. Once you're debt free you'll have thousands extra every year to do whatever you want with. 

BabyStepper

Also, what's the situation with your cars? Can you make do with one during this pandemic? You could sell the other and share, or at least take one off the road for a while. I know it's a big thing and mostly no-one wants to do that, but maybe worth looking into?

You haven't mentioned much about your family, do they know you're doing this? Can you get them on board to help? You have 2 kids, maybe there's loads of toys/clothes that could be sold for a quick boost to your debt payments? Also have a look for old mobile phones/books/cds that you could sell. Something to keep you going inbetween paydays can help with motivation.  

bamgbost

Babystepper thanks for commenting. In response to your Qs:

- yes the 2 mobiles are now on SIM only. now £20 instead of £70 a month! (Huge saving there already - £600 a year! easily)
- No I cant get any new deals. Due to high Credit utilization. I hope i can re-evaluate this in the Summer, or later in the year (maybe)
-Overdraft is my current priority. I'm on track to hopefully clear that within a month! I agree.. it will boost my confidence with all this.
- Emergency Fund...needs to be built. Your right. Its pretty much non existent at the mo.
-With regards the monthly food budget, yes its defo exceeded that. With the kids being home now homeschooling etc. And utilities bills have risen with it too!
- Focus is clearing all credit cards (maybe bar 0% one). Then tackle the loans. using the snowball method.
- The reduction to 1 car is something we are pondering. But haven't taken the step. The main issue is that one is now a banger and prob worth £800 maybe. So as long as its not needing major repairs. We are comfortable keeping it. We are both key workers. I go in fulltime still and mrs 50/50. So they are both still in use.
- And Yes they now know. It took massive effort to come out and reveal it all (including the gambling). And to cut it short - Its been a journey! But yes we are all on the same page, with our approach.

bamgbost

As an update to the diary, things are progressing well. As you can see in my signature, the outstanding balance still stands significant but is reducing slowly. This has helped with me doing a few extra gigs. 
Albeit a lot is being consumed by increased food bill (due to kids at home during lockdown).
But things are moving in the right direction. 

May update balanced later in the day or week.

MrFrugalFever

bamgbost said:

As an update to the diary, things are progressing well. As you can see in my signature, the outstanding balance still stands significant but is reducing slowly. This has helped with me doing a few extra gigs. 
Albeit a lot is being consumed by increased food bill (due to kids at home during lockdown).
But things are moving in the right direction. 

May update balanced later in the day or week.

A great read and so pleased you are making great progress. The first step (admitting you are in a mess and need to take action/get help) is always the hardest. 

I too have been in a similar situation although not through gambling as such. I am not critical of even pence leaving my bank account and where it’s going and why. When you get to this stage (if not already!) you will start to see your debts come down at a tremendous rate, for me it almost created an obsession like OCD and that become my ‘feel good factor’, not spending it!

do keep us informed I like these success stories 😀

MrFrugalFever

MrFrugalFever said:

bamgbost said:

As an update to the diary, things are progressing well. As you can see in my signature, the outstanding balance still stands significant but is reducing slowly. This has helped with me doing a few extra gigs. 
Albeit a lot is being consumed by increased food bill (due to kids at home during lockdown).
But things are moving in the right direction. 

May update balanced later in the day or week.

A great read and so pleased you are making great progress. The first step (admitting you are in a mess and need to take action/get help) is always the hardest. 

I too have been in a similar situation although not through gambling as such. I am not critical of even pence leaving my bank account and where it’s going and why. When you get to this stage (if not already!) you will start to see your debts come down at a tremendous rate, for me it almost created an obsession like OCD and that become my ‘feel good factor’, not spending it!

do keep us informed I like these success stories 😀

*now critical of every penny leaving my bank account

silly iPad fingers!

lucielle

Keep going you will get there.  Had similar debt levels to you, see siggy
L

CL21

Hi @bamgbost just read through your whole diary and wanted to just pop on and say well done, you’re doing so well! Your motivation to pay down your debt is inspiring and I look forward to reading along with your progress. I also struggle with the slow pace of paying down debt - I’m impatient and just want it gone! - but as @MrFrugalFever said, once you get snowballing it moves quicker than you ever thought possible. Best of luck to you (and pay off your overdraft - best thing I did) 

warby68

Over £13k in 10m is a great achievement.
Sounds like you're managing to drive this forward very well since your light bulb moment.
I understand if the 2nd car isn't costing much to keep on the road it might be worth keeping especially if you both go out to work, the value outweighing a small cost in this case.
I think the phone thing is almost symbolic on the diaries - so many diaries start not long after someone has locked themselves into a new swanky phone contract (similar with TV packages and vehicles). You've fixed that one straight away.
Well done and keep going.