PinkNeon's debt free thread

PinkNeon

I've been fighting for years. 

Divorce, extra spending to give my kids what they need, frivolous spending, compulsive bidding. Beyond my means. 

This year I am ready to fight the good fight. Been trying to get better employment and tight budget I only started overpaying in October after doing a lot of research - a small amount but I can see the difference.
Got a balance transfer with CC6 summer for CC1 (who were threatening the persistent debt texts making me feel worthless and depressed). 

Need to pay off CC1 then CC2 ASAP as interest rate is stupid. Then CC6. Then the rest. I've just overpaid  £100 tonight plus a new job (10% payrise in Jan for 12m) so I'm feeling hopeful !

Here we go 2023 !

PinkNeon

To add: I am also saving. 
MONZO: 125.00
Nationwide (switched and banked £200):  £615.50 (switch, winter fuel payment, child benefit and additional wage this month).

AntoMac

Good luck. Are these repayment figures before your pay rise or is that taking into account your new salary?

PinkNeon

Thanks @AntoMac no I haven't calculated as I am not sure what salary will be until end of January. 

Getridofdebt66

Good luck!

WinterWarrior

Good luck. Using the snowball method the small barclaycard would be a good one to pay off and close down to get you your first win. 

PinkNeon

Disappointed tonight. 

I know it's  a long month  but I had hoped to snowball middle of  the month £20 each card again  but I'm budgeting  for what seems   like an extremely expensive car repair after my car died outside kiddos school week  before Christmas. Taking   my garage ages to work out what is wrong  with  the car  brain I've put aside £600 for  this.
But  - I've literally overpaid a mere £10 off  each this last hour.

CC 3 are taking £113 interest a  month. DD is SO   of £170 a  month. It's  brought it home how bad  my situation is.
We  desperately need to move and  I just can't see  the  light.
Sorry  I need a new laptop also which I am resisting  to  buy on HP so bare with my  spacing 
I'm still unsure what my  'new' wage will be so I  can't budget until I know. I'm   just  so fed  up if  the  debt cycle it's been going on for  years now. Please send  positive vibes !

shell16

Hi There

I know it all seems like you want everything sorted asap, but its a marathon and not a sprint.  I too when I came on here wanted debt gone, thought I was doing everything I could and got down when life happened.

As long as you have the following in place you will get there!

1. Emergency fund. Most opt for £1000 but I personally like small steps so start with £500.  That will cover most emergencies
2. Budget.  Go through all your statements and average out those spends over 3 months.  So Groceries, you may have spent £700 over 3 months, so budget £235 a month.  
3. Start side hustling.  Have a clear out and sell.  All cash goes to a CC.  Surveys, best is Prolific but believe there is a waiting list.  Receipt snapping
4. Overspending on something?  Move to cash, I believe using a card is too easy.  I use cash for Groceries and Fuel.  Once its gone for the week its gone..

With regards the budget, I appreciate this is difficult but you will get a working budget for you.  I think it took me around 3 months for mine to work..  I cant see a SOA, do you think its worth posting to see if we can see something you are missing?

Stay strong and determined.  The help on here is fantastic.
Shell x

Sarahwithlove

I agree you didn't get into debt over night and it won't go away in that time. Have you approached any of your card companies to see if they would freeze interest to give you some breathing space. Or looked at balance transfers as that's a lot of interest to be paying out for rather than it going towards the debt itself. 

PinkNeon

Thanks both. I had breathing space early last year but it happened at different times with each card so didn't really help. I'm honestly too scared to contact  CC 3 and 4  and CC1 I  just  want gone.  I think  I  have  too much  to BT? CC 6  was taken out to pay CC1 which is   the most  urgent..  

Thanks so  much for the support  and advice. 

bekah89

Good luck on your journey! Even if you have too much to put on a balance transfer you could still transfer part of it as that will still save you some money in interest, aslong as the interest saved will be more than the balance transfer fee. I’ve got 6 different cards with varying 0% deals that end all on different dates so I keep transferring some amounts around if not paid off, it’s working for me at the moment. You might also have some offers on current cards to transfer money from higher interest cards, that doesn’t affect your credit rating either. 

There would be no harm in contacting them your credit card providers. Maybe ask for some advice on the step change board? They have advisors on there that can help. 

Even small amounts of overpayments I’ve found really help! I keep paying off little amounts throughout the month anything I make from selling things or where I’ve saved some money