Fed up of the debt cycle

SGz

Hello all, 

I have finally taken the plunge to create a DFD after being awake until 2am last night, thinking about money. I am off work this week, so obviously not tired enough to just crash out as I usually do! I have lurked on these boards on an off for a few years, but this year I really want to break the cycle of being in persistent debt. 
Where to start...I opened my first credit card when I was left short on rent by a housemate and it has grown since then. I dont have anything to show for it  and have just dealt with this on my own. I have used my credit card to supplement my income over the years, which is never a good idea. My boyfriend is aware that I have some debt, but not how much, my family also arent aware. The start of this turning point, was receiving a letter from the bank last year explaining that I was in persistent debt and to increase my minimum payments - embarrassingly I hadn't looked at a statment for this card in some time. However, I increased my direct debit and gave my BF the card to hide. I went through all my statements at the start of the 2021 and was shocked and embarassed with the total amount I owed, but I am here to continue the in roads I have made thus far and I am looking for encouragement and support, I will support as much I can for others along the way too.
Once the debt is cleared my goals are to save for a house and ensure that I have a decent emergency fund. 

So, I started the year with £14,988.14 of debt . The curent state of play is as follows: 
CC1: 1,441.68 @ 25.55% / 2,643.14 @ 4.94% (until 07/01/22) Minimum payment 81.07 (£40 interest at last statement)
CC2: 5,815.03 @ 0% (until 13/05/2021) / 2,080.00 @ 0% (until 30/09/2021) Minimum payment 78.95 (Future rate 19.17%)
CC3: 969.63 @ 17.9% Minimum payment 25.07
Overdraft: 1,250 @ 39.9% -  However, had a very long and drawn out conversation with the bank this morning and they have agreed to freeze interest for 6 months and refund the most recent interest payment...Small win yey :-) 
Total - 14,199.48
As you will see I am paying interest on CC1 and CC3. CC2 interest free period is due to run out for the largest amount, which is bothering me. I have checked the credit club and the best offer for a balance transfer is MBNA, but I am only 70% accepted. I have attempted to speak to the banks this morning about my credit cards, I was hoping I may be able to get a balance transfer on CC3, but no such luck. I was looking into debt consolidation last night, but understand that this is not always an advised approach. 
My boyfriend and I will be moving house in April, moving from a flat to a house, so my rental bills will be increasing. Also, I am conscious the change in address will affect my credit file. I have thought that if possible,  it would be best to apply for any additional credit before this ?  I paid £550 towards my credit cards last month, but would like to drop this to £400/450 to help with costs for the new place. 

Before I start to ramble thank you for reading, any advice or support is much appreciated. 

:-) 

FootyFanDan

Hey 👋 I just wanted to wish you the best of luck in getting debt free. I’m sure there will be plenty of more experienced folks here to give some sound advice but it looks like you have already taken some good steps to address the debt. You have 100 percent got this! 

[Deleted User]

Hiya,

Good luck on your journey.

Pmo2
xx

SGz

Morning, 
Two days of annual leave left, my head was a little sore yesterday thinking about all of this, so want to take some time to destress today. I’m just about to head off for a long walk. 

My plan today: 

- start packing up stuff for the move, taking the slow and steady approach, so it’s not manic when it comes to moving day

- list some clothes on selling sites. I have a lot of going out wear that has probably only been worn once or twice. I have an eBay and Shpock account, has anyone had luck selling on Vinted? 

- complete my profile on a few survey accounts and Prolific. 

- it’s payday tomorrow. I have been thinking I need to start creating separate money pots. So will have a think about these. 

 

Have a good day all 

SGz

@FootyFanDan thank you. Had a peak at your diary and you have come a long way. I’ve got an busy little bee in my pocket now and just want to get it all paid off as soon as possible. 

Scott_Weiland79

re Survey sites try these two 
Qmee and Curious cat both have apps and are good i bring in 10-15pw off both.

Good luck on the journey we will support all i can. 

FootyFanDan

SGz said:

@FootyFanDan thank you. Had a peak at your diary and you have come a long way. I’ve got an busy little bee in my pocket now and just want to get it all paid off as soon as possible. 

Thank you, my debt wasn't as high as some on here, however it was causing sleepless nights/anxiety/stress so it needed fixing. I was like you in the early stages I went full on attack mode to get it under control and while it was really tough going in the early stages adjusting to an whole new mindset, it was the best thing I did. I feel much more in control of finances and confident that I can now manage to not get into debt again. I did have to adjust things along the way as full on attack mode only worked for so long but the key is finding a balance that works for you. If you can make a plan that you are content with and follow then you are on a good path.