Countdown from 47k...

ryanm8655

Looking forward to following your progress.

I know some of the comments may seem harsh but they come from a place of kindness and I think if you really think about it, they’re true. The truth hurts sometimes. I actually came on this forum many years ago, when I had about £15k of debt and also found the tough love a bit much. I ignored the points about consolidation, thinking I knew better and ended up back here with double the debt having consolidated and used more offers. What makes it worse is I’m an economist in my day job ha.

I’d also be wary of the overdraft. Mine got randomly cut without warning a couple of years back. I was permanently in it and would bottom it out before it reduced on payday. I became accustomed to that and then didn’t have enough money to live on when it suddenly was reduced by £2.5k. I actually ended up withdrawing cash on credit cards so I could pay rent etc. I know you’re focussing on clearing those anyway but a little anecdote as a warning. I assume I must’ve reached a point in terms of use of available credit where the bank considered me more of a risk. The 40% interest rate also makes it imperative to get that gone as a priority. If you’re anything like me then I’d also look at reducing your overdraft so that you don’t end up dipping into it for emergencies (that’s how mine started way back when).

Initially you may find progress is slow, but the more you pay, the less you’re spending on interest so things will get exponentially quicker overtime. Especially when you can access 0% offers again and shift some debt to 0%. Overpaying is key. 

Take advantage of those lockdown savings and hit the debt hard and fast to get yourself off to a flying start.

Maybe come up with some mini goals in the short term. I found these really helped. Things like clearing smaller balances in one go just to get them gone. Targeting a higher interest amount and aiming to have that gone in 2 months. Realistic goals that are achievable with some small sacrifices.

monetxchange

WhySeaEm said:

Thanks so much, @monetxchange   some great ideas and support there. I appreciate it!

No worries, just paying forward the support I got from here!

I was watching Nadiya Hussain's insta story the other day and she had her kids draw pictures of their dream meals for breakfast lunch and dinner and then she cooked it with them. Obviously there were some crazy suggestions like sandwich and four types of crisps for breakfast, but it was so joyful for her and the kids and I was thinking what a great cheap lockdown activity to do with kids!

findingthisdifficult

Just read your diary from the beginning, just wanted to wish you well on your journey.  
This place has been a lifesaver for me, not even an exaggeration, I would always upgrade my phone before the contract was up, costing me a ridiculous amount and at one point I had 7/8 products on credit, buy now pay later, 0% for X years all the great deals that lure you in...now I think about my purchases a lot before spending any money - to the point where I have some Mr T vouchers that I'm tempted to use on Denby but that would mean using all of my vouchers...even though there isn't anything else I want to spend them on.  

I know if I was in your shoes, I would have also replaced my laptop if it was becoming temperamental, I use mine every day for both work and pleasure...so a good investment.
Guess what I'm trying to say is, getting rid of the debt isn't a sprint, it's a marathon.  In my early days of debt busting I remember reading a thread on here where they compared paying down debt to emptying a lake with a teaspoon.

WhySeaEm

Good morning everyone, happy sunny bank holiday! They certainly don't feel as fun without spending an afternoon in a pub or round a bbq with friends. 

I've made a Monzo account this morning so I can use the 'saving pots' feature. I can't believe how quick and easy the process was, whole thing took 15 minutes and now I'm up and running with an account! Going to transfer £270 a month into it then distribute into pots for clothing, haircuts, car, amazon prime, and presents. 

Feel very productive!

Drawingaline

I have friends who funded Monzo when it was a start up. They love it. I use ynab so don't see the need for it, but hubby opened one and for the first time ever he has savings! (Not all our finances are linked). I think it is a good idea and if I hadn't fallen in love with ynab I would have totally switched accounts to Monzo. It has a nice bright card too!

Aspiration

WhySeaEm said:

Good morning everyone, happy sunny bank holiday! They certainly don't feel as fun without spending an afternoon in a pub or round a bbq with friends. 

I've made a Monzo account this morning so I can use the 'saving pots' feature. I can't believe how quick and easy the process was, whole thing took 15 minutes and now I'm up and running with an account! Going to transfer £270 a month into it then distribute into pots for clothing, haircuts, car, amazon prime, and presents. 

Feel very productive!

I think Monzo has definitely been a huge factor in seeing how much money I spend and where. The pots are great and allow you to budget for those yearly events like Christmas, car tyres and services etc.

I hope it carries on going well for you and following you diary! 

findingthisdifficult

Happy sunny bank hol!

Well done on setting up a Monzo account, I found splitting my money in to separate accounts has also helped me budget better.

WhySeaEm

Thanks everyone! 

Having a nice day so far. Went to Aldi and the queue was only about ten minutes long, then bought subway salad for lunch. They're expensive but yummy and gets us all eating masses of salad, so that's good. Came home and played boardgames for a few hours, it's so nice that LB is now old enough to play interesting games with us! (He's nearly ten)

WhySeaEm

Phoned and cancelled Sky tonight. Didn't let them tell me any cancellation offers. Going to buy a Freesat box instead (£230) which we will make our money back within six months. Unless they offer me something amazing within the next 31 days that is!

TheAble

Just FYI you can still use your skybox for Freesat even if deactivated. No need to buy a new box.