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

15681011

Comments

  • bamgbost
    bamgbost Forumite Posts: 467
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    Forumite

    Thanks for all the kind words and motivation guys. Sometime you forget how far you’ve come along, when it still seems there’s a huge mountain ahead. But when I sit back and think about it, yes I have prob cleared close to 20% ish in the last year.


     In terms of whats helped me so far …

    I think writing this diary has meant holding myself to account And ensuring I don’t messup but actually continually move towards the goal of getting debt free.

    Furthermore, the suggestions to listen to Dave Ramsey and other podcasts on debt management and gambling addiction controls has helped too. To continually keep me focus on the job at hand and not to backtrack on either.  So I defo would encourage others to find something similar to keep them motivated and focused on the job of driving down this debt.

    The lockdown season too has helped, to minimise unnecessary expenses, eating out, birthdays etc. But I think this is a mindset thing, to just reduce frivolous expenditure.

    I would also say getting your local support network on board is essential. E.g. wife n kids, or close family or whatever.

     

    These have all helped me thus far. Along with all your kind words of support!

     

    Will continue to post on progress

    365 Day 1p challenge - £371.49 / 667.95
    Emergency Fund   £1000 / £1000 ( will enlarge once debts are cleared)
    DFW - £TBC
  • bamgbost
    bamgbost Forumite Posts: 467
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    Forumite

    Its been a couple weeks since I updated on progress.

     There’s been a few issues in recent weeks. With car repairs, setting me back. Which certainly brings up the all-important question of an emergency fund. No matter how small. So I defo need to incorporate that into plans going forward.

     Focus is currently on getting rid of overdraft. Which is moving in the right way. I have just over 400 left on it to clear. Yippee! :)

    365 Day 1p challenge - £371.49 / 667.95
    Emergency Fund   £1000 / £1000 ( will enlarge once debts are cleared)
    DFW - £TBC
  • bamgbost
    bamgbost Forumite Posts: 467
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    Forumite
    Progress Update shown below...



    CARDS Amounts interest
    S CC 1230 30%
    M CC 2255 30%
    H CC 4285 0 ( til Sept 2021)
    C CC 1465 30%



    Loans

    A L 7020 9
    B L 9645 14.9
    R L 10,230.00 14.9
    H L 13970 7




    Other
    P 1100 20
    OD 430 19.5






    TOTAL 51630
    365 Day 1p challenge - £371.49 / 667.95
    Emergency Fund   £1000 / £1000 ( will enlarge once debts are cleared)
    DFW - £TBC
  • bamgbost
    bamgbost Forumite Posts: 467
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    Forumite
    The current focus is to get rid of Overdraft (OD) by month end. Then to prob start with the 30% interest credit cards next.
    What i found interesting Is when i put the above into a snowball calculator. It suggests moving to debt "P" next. I guess because the balance is smallest? But I think going to higher interest ones is a wiser move for now.

    In Summary, Its moving... slowly but surely.
    365 Day 1p challenge - £371.49 / 667.95
    Emergency Fund   £1000 / £1000 ( will enlarge once debts are cleared)
    DFW - £TBC
  • Bizzywizard
    Bizzywizard Forumite Posts: 206
    Third Anniversary 100 Posts Name Dropper
    Forumite
    Hi Bamgbost,
    I've just read your whole diary, you have done really well! My DH had CC debt in 2019 and we transferred it into my name for the 0% deals (this was no longer open to him), when he came clean about it. I know others don't agree with this on the forum but it helped get the debt under control straight away, so no interest to play with. Also I set up a new bank account with RBS for a joint account with NO overdraft, so only bills went out of this account with one set of money going in each month, so it was the same each month. I also transferred my HSBC to Nationwide flex direct which offered and interest free overdraft for 1 year (so this could help you get out of you £400 o/d even if its for a couple of months, you can then change it to NO OD. The overdraft is what really crippled us as we never felt we had money and HSBC were not interested in helping up DH apr ws about 45%!!!! Plus some accounts are letting you switch accounts and they are paying £125. We did this and made about £350 (3 accounts between us) so more money to put at the debt. Check to see if you will be accepted though.
    Hope this helps!
    Bizzy
  • TheAble
    TheAble Forumite Posts: 1,536
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Forumite
    bamgbost said:
    The current focus is to get rid of Overdraft (OD) by month end. Then to prob start with the 30% interest credit cards next.
    What i found interesting Is when i put the above into a snowball calculator. It suggests moving to debt "P" next. I guess because the balance is smallest? But I think going to higher interest ones is a wiser move for now.

    In Summary, Its moving... slowly but surely.
    Can be more motivational to start with the smallest first. The theory being it wasn't the interest rate that got you into the problem so it won't necessarily be that which gets you out. It does work for some.
  • bamgbost
    bamgbost Forumite Posts: 467
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    Forumite
    Hi Bamgbost,
    I've just read your whole diary, you have done really well! My DH had CC debt in 2019 and we transferred it into my name for the 0% deals (this was no longer open to him), when he came clean about it. I know others don't agree with this on the forum but it helped get the debt under control straight away, so no interest to play with. Also I set up a new bank account with RBS for a joint account with NO overdraft, so only bills went out of this account with one set of money going in each month, so it was the same each month. I also transferred my HSBC to Nationwide flex direct which offered and interest free overdraft for 1 year (so this could help you get out of you £400 o/d even if its for a couple of months, you can then change it to NO OD. The overdraft is what really crippled us as we never felt we had money and HSBC were not interested in helping up DH apr ws about 45%!!!! Plus some accounts are letting you switch accounts and they are paying £125. We did this and made about £350 (3 accounts between us) so more money to put at the debt. Check to see if you will be accepted though.
    Hope this helps!
    Bizzy
    Thank you!
    Mizzy you have suggested a few things i havent considered. will defo look into them.
    Your right its the interest that kills ya. on average we prob pay close to £1600-1800 a month and close to £600 is interest.

    i am continually doin extra gigs as and when and that already means the big psychological overdraft is now down to £290+. so defo on track to clearing it before month end! :)
    365 Day 1p challenge - £371.49 / 667.95
    Emergency Fund   £1000 / £1000 ( will enlarge once debts are cleared)
    DFW - £TBC
  • Andyjflet
    Andyjflet Forumite Posts: 473
    Part of the Furniture 100 Posts Name Dropper
    Forumite
    Read your posts and thanks for sharing, I cant help but think running the Dave Ramsey method on debt tackling in Baby Step 2 would sort this sooner, its a mindset but I'm half way through my journey and I started with sorting the Overdraft and Emergecny fund first, the rest is now really speeding up in sorting through my debt. Just a thought. Have a lovely day. 
    Baby Step 6/7 - £61500 saved for emergency fundDEBT FREE !!!
  • bamgbost
    bamgbost Forumite Posts: 467
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    Forumite
    Andyjflet said:
    Read your posts and thanks for sharing, I cant help but think running the Dave Ramsey method on debt tackling in Baby Step 2 would sort this sooner, its a mindset but I'm half way through my journey and I started with sorting the Overdraft and Emergecny fund first, the rest is now really speeding up in sorting through my debt. Just a thought. Have a lovely day. 

    Thanks Andy... yes its the snowball method I am using.
    I just have skipped step 1 - by having an emergency fund! Something I defo need to do!
    365 Day 1p challenge - £371.49 / 667.95
    Emergency Fund   £1000 / £1000 ( will enlarge once debts are cleared)
    DFW - £TBC
  • bamgbost
    bamgbost Forumite Posts: 467
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    Forumite
    SO a bit of good news. That Overdraft of mines has gone! kaput! finito! :):D
    Finally!

    So next is to start snowballing a fresh debt now. Either Credit Card "S" or "C".

    I also found out this week, theres no pay rise at primary job! :(. But i guess its no surprise with all thats going on in the world . But there will be a bonus paid out. So thats a bit of a consolation. :) And that bonus hopefully will net me £1k in the bag.

    The question now is whether to use that 1k as my Emergency fund money. Seeing as I dont have 1 and  Everyone has said follow Dave Ramseys 7 steps. of which Step 1 is having that fund.

    If I didnt, I could prob hustle and squeeze myself to clear another CC within the month.

    Decisions, decisions.

    365 Day 1p challenge - £371.49 / 667.95
    Emergency Fund   £1000 / £1000 ( will enlarge once debts are cleared)
    DFW - £TBC
Meet your Ambassadors

Categories

  • All Categories
  • 339K Banking & Borrowing
  • 248.7K Reduce Debt & Boost Income
  • 447.6K Spending & Discounts
  • 230.8K Work, Benefits & Business
  • 601.1K Mortgages, Homes & Bills
  • 171.1K Life & Family
  • 244.1K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards