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

bamgbost

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

bamgbost

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!

bamgbost

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

bamgbost

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.

Bizzywizard

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

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

Bizzywizard said:

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!

Andyjflet

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. 

bamgbost

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!

bamgbost

SO a bit of good news. That Overdraft of mines has gone! kaput! finito!

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.