How long did you take paying off your debts and how did you do it?

jazzyja

Would love to hear everyone's stories. I currently have 3.5k to shift. Putting absolutely everything into it for the coming year because I'm desperate for a mortgage. Im working extra hours from now till next year to save and pay off debts! Want some inspiration that it can be done and the road isn't so daunting!! #postivethoughts  

CreditCardJunkie

Hey, I had similar amount to you this time last year and have £450 left to pay which I should *hopefully* be able to pay off at the end of the month. I found creating a realistic budget including spending money every month worked for me. That and additional income. I did a fair bit of mystery shopping before lockdown and currently use prolific at the moment. 

ryanm8655

I’ve still got some way to go but I’ve found having short and long term goals has helped a lot. The fact you’re saving for a house must be a huge motivator.

I’ve set up a spreadsheet detailing income vs outgoings and work out what I can afford to pay on payday after allocating funds. Then I pay it so there isn’t the option of splurging on things I don’t really need.

Covid has helped a lot as my Achilles heel was entertainment budget (eating out and drinking mainly).

Have you done an SOA? People on here are really useful for critiquing your spends and revealing any areas for potential saving.

Naomim

There's also the DebtFreeWanabe Roll Of Honour thread on this forum full of inspiring stories from people who have cleared their debts. I often go and read it to keep me motivated. 

Naomim 

daniellemaire

Hey!  I'm at the start of my journey, but I wanted to let you know that I was able to get a mortgage with loans outstanding.  I had my car loan (which I'm still paying off) and my macbook loan (was about 1k which I've paid off) and £1000 on my credit card, and my mortgage still went through with Natwest.  I tried to get a mortgage with Santander as they were the cheapest, but they declined because of loans, but Natwest went straight through

jazzyja

daniellemaire said:

Hey!  I'm at the start of my journey, but I wanted to let you know that I was able to get a mortgage with loans outstanding.  I had my car loan (which I'm still paying off) and my macbook loan (was about 1k which I've paid off) and £1000 on my credit card, and my mortgage still went through with Natwest.  I tried to get a mortgage with Santander as they were the cheapest, but they declined because of loans, but Natwest went straight through

Oh really? That's interesting! How long did you wait to apply again? My cousin has one with santander she has a fair large amount of debt so I'm surprised by that! 

curlytop12

re mortgages, can i suggest you use a Whole of Market, fee free  broker?
MSE recommended London and Country as one example, i have used them about 4 times now over the years .
they do it all over phone/ via email, get your details, find out all your needs and then do the searching for the best deals for you. they are fabulous.

jazzyja

curlytop12 said:

re mortgages, can i suggest you use a Whole of Market, fee free  broker?
MSE recommended London and Country as one example, i have used them about 4 times now over the years .
they do it all over phone/ via email, get your details, find out all your needs and then do the searching for the best deals for you. they are fabulous.

Thanks for this! I did have a morgage advisor in mind that a friend recommended. Sorry for my daft questions but would I still use an advisor plus a broker? Thanks 

Kiwistrawb1990

Managed to clear 3.5k (overdraft and credit card) in 3 months.
My basic take home pay is 2.1k a month, so I did some overtime making it 2.8k a month.
Then I cancelled some subscriptions, and drew out £100 a week to live on for the first month. By the second month I'd started to live on £50 a week.
My monthly outgoings (minus debt) were £905.
Strict budgeting is definitely the way forward if you're able to! 

enthusiasticsaver

£3.5k is not a massive amount to shift.  We never had historic debts but when we had 0% debts for a big holiday, piece of furniture or a car we worked it out aiming to clear asap and just cut back on all other spending. The most we ever borrowed (apart from our mortgage ) was £8k on interest free credit for a car over 2 years but we already had a house so there was no rush to clear it. If it is a relatively short period of time it is quite easy to just say no to most things and focus entirely on getting rid of the debt.  A lot of people do what they call the scenic route but it seems to take forever to get it cleared then and I am of the opinion I just want it gone as quickly as possible. What is your monthly income and your fixed expenses?  

If you want a mortgage my advice would be work out using an online calculator how much your mortgage repayment would be based on the amount  you would be able to borrow and cost of properties in your chosen area and direct that amount towards the debt.  Obviously if you are  paying high rent at the moment though you may have to take that into account. 

Not only will you have to repay the debt though you also have to save a deposit and money for fees, moving expenses and furniture. The debt has to go first though.  

enthusiasticsaver

jazzyja said:

daniellemaire said:

Hey!  I'm at the start of my journey, but I wanted to let you know that I was able to get a mortgage with loans outstanding.  I had my car loan (which I'm still paying off) and my macbook loan (was about 1k which I've paid off) and £1000 on my credit card, and my mortgage still went through with Natwest.  I tried to get a mortgage with Santander as they were the cheapest, but they declined because of loans, but Natwest went straight through

Oh really? That's interesting! How long did you wait to apply again? My cousin has one with santander she has a fair large amount of debt so I'm surprised by that! 

I would caution against that.  Paying a mortgage and moving into a new house with inevitable expenses that comes with that is difficult enough without stacking the odds against you by having unsecured debt.  If you have a fixed loan for a car or something that is ok but having high debt and a new mortgage sounds unwise to me.  I am cautious by nature though.