Today I totalled up my debt for the first time...

DebtPioneer

@BellaLasagna2018 Thanks - you are correct! As you mentioned, I added up those small monthly savings I mentioned and over a year I'm saving £275.88 - almost the same amount I pay for my annual car insurance, so a substantial sum indeed!

@One-step-at-a-time Thank you - I spotted your debt free diary on this forum, and it is really genuinely inspiring. So well done to you for clearing your debt, and so quickly too. It really gives me hope, especially as your numbers were similar to mine. I am in the process of taking a note of the different interest rates - to be honest I didn't pay much attention to them in the past, but there are considerable differences between the rates on the different cards. I'm looking forward to reading through the rest of your debt free diary for more inspiration.

@another_casualty - Thanks - thinking back, I have actually procrastinated for years about adding up the totals, using excuses like "I can't find the log on details for that account" and so on. I am so glad I have done it though. Before my debt situation felt like a chaotic nebulous mess that I'd constantly brush to one side, but it was always there not far away, lurking around! Now it feels that I am finally begining to have things in order, seeing the numbers on a spreadsheets makes them feel manageable, and I have hope and purpose, and actually motivation, about my finances now. 

@enthusiasticsaver - Thank you - I created an account on the StepChange site, and spent an afternoon feeding in all my numbers to the very penny. I have not spoken to anyone yet, but the automated system came back with various options - the most recommended was to manage the debt through a budget. I think I am going to try this, to see if I can make careful budgeting work first, before looking at things like a debt management plan. I would not rule out something like this, but I think, hopefully, I've managed nipped things in the bud just in time.

@jennystarpepper - Thanks - I had never thought about this! I will ask at my library. Interestingly, after I read your message I went on to my library's website and found out that they actually rent free audiobooks and e-books online - which I am going to make use as a replacement for Audible. It's amazing finding out about all the stuff I have been paying for that I could have basically gotten for free all these years!

enthusiasticsaver

DebtPioneer said:

@enthusiasticsaver - Thank you - I created an account on the StepChange site, and spent an afternoon feeding in all my numbers to the very penny. I have not spoken to anyone yet, but the automated system came back with various options - the most recommended was to manage the debt through a budget. I think I am going to try this, to see if I can make careful budgeting work first, before looking at things like a debt management plan. I would not rule out something like this, but I think, hopefully, I've managed nipped things in the bud just in time.

I would do an soa as a first step then if you want to go down the budgeting route.  It gives you an idea of how much money you have to play with and often solidifies a plan.  People can comment on whether your figures are different to average and suggest ways to save if you put it up here. There is a link below. 

 https://www.lemonfool.co.uk/financecalculators/soa.php

DebtPioneer

So a small update on my money saving/debt reducing activities this week. 

Had a heart-sink moment the other morning after we discovered a leak under our kitchen sink. It was coming from the bit where the hot water pipe comes in from the wall. Thankfully we caught it in time before any major damage caused, but it looks like it has been dripping for a while and must having been getting steadily worse. Started looking online for a number for a plumber, but then I remembered we have home emergency cover included with our bank account. I gave the emergency line a call and was pleased to find out that the leak was covered (curiously as long as it kept leaking when the tap was off - which it did). So they arranged a plumber to come out, and it was all repaired it all within 2 hours - so was delighted with this.

Not such good news was that the car was in the garage. It is a 10 year old VW, which I've had for years, all paid off - I finished the car loan payments for it last year. But it's starting to need repairs here and there. I'd been hearing a noises from the back, and generally it wasn't feeling right, so dropped it in to the local garage I always use for MOTs etc. It turned out both rear springs were broken - garage replaced these for me - £171 in total, which when I checked online is about right for parts and labour. Not the best news, but at least the car is now safe.

In other news, from our budgeting, we realised that our bank has been charging us around £100 per month on arranged overdraft fees, which they charge on a daily basis - sometimes £4 some days. I phoned the bank and told them about our difficult situation, that I am budgeting and attempting to get things back in to order, and that the overdraft fees weren't helping. They offered to stop charging OD fees for 3 months, and have said they'll also stop the interest on the CC I have with them, again for 3 months. They've said I can pay a reduced amount to my CC in the meantime - although I intend to keep up with the normal minimum payment. I see it as a chance to get the balance down a bit with no additional interest being added. Had a niggly concern after the call that having the arrangement in place might somehow have a negative effect on my credit rating. But I need to get the debt smaller in any and all ways I can I suppose!

Speaking of which I was also surprised to be accepted for a new 0% CC. The credit limit is £1500, but I'm planning to move at least some of my higher interest balance on to this card. And actually I should be able to use it to completely get rid of my Aq*a CC which has a smallish balance (£600ish) but a terrible interest rate (32%). Again, this will help a bit.

And we have decided that SkyTV has to go! It's £56 per month, and we can get all the channels we watch for free through a box that our broadband provider Virgin Media gave us when we took out our broadband package. This will save us best part of £700 a year so really a bit of a no brainer!

So, overall getting things back in order and heading in the correct direction I think, slowly but surely!

Catty89

Hi, well done starting it's hard when you look at your wage then realise how much of it has to go on debt alot of the things your paying for you probably don't even own anymore. 
I remember I used to even put money to charity on my credit card. So bad!!
Definately get rid of sky, there's so many ways to watch things now for alot cheaper. We got rid of it after having sky all my adult life and iv never missed it at all. 

AntoMac

Well done with all you’ve achieved so far. Lots of small changes have already added up. Good to see how helpful your Bank has been as well.

DebtPioneer

Just a small update to my original post - 26 months in and we have now reduced our credit card debt from £53,373 in Aug 2021, to £29,080 this month Oct 2023. I will hopefully provide a more detailed update when we get to the halfway mark (abt. £26,000) in a few months time. The debt was overwhelming when we started, but now we can see the light at the end of the tunnel. To anyone who is starting out or already on their debt free journey - keep going - we can do this!

uptomyeyeballsinfeckingdebt

Well done DebtPioneer, that's brilliant news and very impressive. Wow. 

DebtPioneer

A small update - as we approach the half-way mark of £26k in CC debt (down from £53k in Aug 21). As I'm beginning to get approved for 0% balance transfers cards again, we've managed to move more than half of the remaining debt over to 0%. Still going strong - basically doing Ramsey's baby steps - on a strict budget, doing overtime at work, and directing every penny possible to debt. Getting there bit by bit - but wish it was faster! Hope everyone else is doing well.

JustALass

That’s amazing work! Well done to you! Hope the next half goes as well!

DebtPioneer

JustALass said:

That’s amazing work! Well done to you! Hope the next half goes as well!

Thank you!