If we can get through the next 10 months….

nettyz

hi everyone. we had our Lbm this week.  It's a shame it didn't come sooner but at least it's shining now. 

Hubby and me have both got horrific credit ratings (we're in the really poor bracket).  Bad habits and no self control, coupled with living in a money pit of a house, a car that almost permanently needs fixing and some pretty bad luck have put us in a position whereby we have spent much of our 22 years of married life scrimping to pay bills, nursery fees, repairs, borrowing from credit cards, high interest loans, even higher interest credit cards, then payday loans, 2nd mortgages, never seeming to get to the stage where each month isn't a challenge. we are still together, we are happy together and somehow despite totally screwing up our finances constantly, we are still here muddling along somehow. 

Anyway long story short, we are now in a position where we are making payments on all our debts and slowly (very slowly) they are reducing.  But ...Our son begins post-graduate study in September this year.  He's eligible for the full loan to cover the cost of the course but unfortunately this doesn't go anywhere near covering the cost of his accommodation.  A room in halls with a shared bathroom, kitchen etc will cost just under £800 a month.  If he can get a part time job then brilliant as that can cover his student social life and travel but ultimately it looks like it's down to us to find the money for the accommodation.  We've worked out that we can maintain just above the minimum payments on our debts and cover his accommodation costs and this would leave us just over £450 a month for our own food, travel and household expenses - ie toiletries, cleaning etc.  We're going to give this our best shot.  I'd love to not have to dip into the credit cards as they are all stupid interest rates (34%) unless it really is an emergency as over the last year I have managed to get the total balance down from £8.5k to £6k.  I've a loan that I stupidly defaulted on at the beginning of the year when I was at my lowest.  I then set up an arrangement to pay which I've been keeping up but I made an offer for f&f settlement which I'm hoping to hear back on soon.  If it's accepted it will help me mentally to tick off a debt (albeit one of the small ones) but it's a shame the default will take a full six years to drop off.  I really could kick myself for not sorting that sooner.

I've no idea really why I'm writing such a long post - I'm sorry for boring you all.  I guess I just need make myself accountable and felt safer here with people who understand what it's like to be swallowed up with debt (even though I'm sure my reasons are far less worthy than most other peoples) rather than my offline friends and familiy who all seem to have their finances sorted and definitely would be judgemental which isn't something my mental health needs right now. Ironically at that point we make the final accommodation payment, if I can maintain current payment levels then two credit cards will also drop off that month along with HP payments on the carpets for our house.  Typical.  

At the moment I don't see how we can save for a contingency other than a few pounds here and there but whilst the credit cards have some available credit on them I'm hoping they can be our absolute emergency fund only to be touched if it's a real disaster and fingers crossed that doesn't haPpen. 

mumtoomany

Good morning, you've come to the right place. Lots of people here have been in similar and worse places than you. You will get loads of support and encouragement. Does your son know of your debts? It's he on-board to help as much as possible? Could be look into working long hours for the next six or seven weeks until term starts? Any money be can save now will help. Have you looked into a debt management plan? All your interest should be stopped. Must go, grandchildren sorting me! Well done on starting, good luck, mumtoomany.

nettyz

hiya, thanks for your reply.  
yes son knows about the debt - sort off - not all the details but enough.  He is really good with money and has been trying to get a job since he came back for the summer - he'll work any hours.  he hopefully starts work at beginning of Aug part time. it was meant to be sooner but covid closed the shop down unfortunately.  he's also applied for every scholarship he can and isn't a waster even though he is a student   we cant enter any kind of dmp due to our jobs where it could be classed as opening us up to bribery and therefore is not an option (the fact that we wouldn't be bribed is apparently immaterial).  all we can do is pay off as per the contract.  When I was given the default earlier this year (mostly down to me not being able to face opening post etc due to mh issues) I then had to declare that at work too.  That ended up being more stressful than the default itself so a real eye opener to having to sort this out once and for all.   
we can do it - we simply have to.

nettyz

This morning I woke up to a refund on a subscription I cancelled that I didn’t think I’d get. It was only £50 but in the grand scheme of things … so I reduced my overdraft facility by £50.  Normally I’d have treated it as a reason for a treat but I’m determined to get a handle on this. Feeling upbeat. 

threepenny_bit

Hi Nettyz - well done on making a start and I hope you hear soon about the f&f outcome too. It is hard to suddenly find that accommodation money and think it is a great thing you are doing. Good luck

nettyz

threepenny_bit said:

Hi Nettyz - well done on making a start and I hope you hear soon about the f&f outcome too. It is hard to suddenly find that accommodation money and think it is a great thing you are doing. Good luck

Thank you. Hopefully we’ll manage it. 

I’m overpaying on my credit cards not by much but roughly about 20% over on each card. I also have an overdraft of 550 that I noticed today was 49%. I have seven Credit cards 😳 ranging from One with £125 outstanding that I want to pay off this month through to three that have £1400 roughly on each. The other three have between £300 and £500 outstanding. The interest rates on 6 of the cards have interest rates ranging from 30 -35% interest and one with the largest balance of £1395 is 0% for 6 months.  I don’t know the best way to attack these. Should I carry on as is or should I pay minimum on them all except one and target that? And if so should I pay off the smallest first and work up so that I can tick them off or start with the highest interest first and work down? I really want to get these paid but don’t want to feel like Im getting nowhere.  Any ideas from you guys who are far further down the recovery road than me would be really welcome.  Thanks
Netty. 

vampirotoothus

Hiya, well done for posting and wow, that's a challenge. You seem really positive about it and in a couple of years your son will have achieved his aims and you will be debt free. What a goal for you all
Personally I would try and kill the overdraft off first, staying in the black will make such a difference each month.
I would:-
1. set the DDs for each of the CCs at the minimum rounded up to the next £1 and fix them (this is better for your credit record as it shows you are paying more than the minimums).
2. Chuck everything at the o/d and see it off (highest APR and easier to manage the banking)
3. Work out the order of the aprs and either hit them that way or, pay of the smallest one first and then hit in APR order.
4. For any unexpected income save it to an emergency fund and defend it with all your might. You don't want to dip into it unless it's for something essential.
5. Make do, mend and upcycle anything you can, try and make it a game and be inventive. Put any savings in your emergency fund, so it builds. Try and engage the whole family on this.
Good luck, you've got this

nettyz

Thank you so much for the advice. I’ll sort the DDs out as you suggest and work too down. I think that way the biggest should be clear by nov. Then have dec just paying minimums allowing a bit extra for christmas and then restart on the next card in Jan.
I am feeling positive … don’t really know how/why … maybe I’m just daft but I think just owning up to it and writing it down showed me that even though it’s not great our situation is actually better than I’d imagined. 

In the meantime I’m looking round the house for things I can sell. 😃

vampirotoothus

I always believe that everything in life is better when you're dealing with the facts. Have a good day

nettyz

Son just came downstairs buzzing. He's been awarded a fees reduction scholarship of £4k which frees up some money towards his accommodation and still leaves him some money to put to his living costs and travel. For me and OH it means trying to find £700 a month rather than £800 to cover the rest of his room fees. I genuinely feel like I've won the lottery.  

Also, so glad I've posted on here as after the advice on here I've looked at all the interest rates on my credit cards and decided exactly which to prioritise first which is totally different to how I would have approached it myself. 

Needed to go to supermarket after work today. Treated us to a bottle of wine and a packet of magnum as a celebration of the scholarship but nothing else - no takeaway no stupid spends. 

I've spent years dreading payday as it's just a reminder of how out of control we are and suddenly this month I can't wait till Friday just so I can make the first payments. 

nettyz

Afternoon everyone
It’s the day before payday and I’ve £60of available credit left on my overdraft (600 limit) so ive just formally reduced it by £50 forcing me to spend less next month. Psychologically I need to pay off my cc debt first or at least get rid of some of the cards even the the od apr us higher but this way I feel like I’m at least tackling it a bit. Now that the boy is getting his scholarship I’ll be able to free up some more cash in sep (we still need to find the first quarters rent of £2500, before he receives any payment) to throw at the OD then. Anything I manage to sell online I’m going to use to squirrel into a savings fund towards emergencies I think… so far I have £45 🤦‍♀️🤦‍♀️

Sorted through our spare room and I have so much wool and cotton as I was a keen crafter before life got in the way.  I’m thinking of making some jewellery and socks and listing  them on Etsy or folksy. Anyone any advice? I used to do craft fairs years ago which had different levels of success  from brilliant to dire but as I have the supplies I need just gathering dust I might as well try.