Finally making a dent in the debt

766 Posts


April 2022 was my LBM when I calculated that my debt had grown to a whopping £50k. Fifty thousand pounds. Even saying it out loud now makes me feel sick. But I spoke to Stepchange who set up a DMP and since May 2022 I've paid off over £9k.
It's not been without its issues - I'd forgotten how rough it is when the calls and texts start. A couple of complaints resulted in some compensation - not at all why I did it, they need to realise that constantly hounding people is pushing people over the edge - which I put in my wee emergency fund.
I was in a car accident back in 2020, and has only just been settled in the past couple of weeks but its meant I finally got my excess back and has allowed me to pay off one of my credit cards completely. Although it's only £200 it's the mental thing of seeing a zero balance I think.
My emergency fund was built up then wiped out regularly but I'm trying to build it back up again. My boiler is on its last legs and will need replaced in the next few months, and I'm looking at a £2000 bill for dental treatment so I'll need to consider speaking to Stepchange about making a £1 token payment for a couple of months if they'll allow it.
With the accident going in my favour it'll hopefully bring my insurance back down a bit, and my phone contract is up soon so that'll drop quite a bit which will help.
So far I've had a proper clear out and sold approx £700 of stuff on V*nted and whilst I'm not happy at work, the terms I have mean I have zero travelling costs to pay out.
DFD is currently mid 2026, which doesn't sound so bad when you think about it.
It's not been without its issues - I'd forgotten how rough it is when the calls and texts start. A couple of complaints resulted in some compensation - not at all why I did it, they need to realise that constantly hounding people is pushing people over the edge - which I put in my wee emergency fund.
I was in a car accident back in 2020, and has only just been settled in the past couple of weeks but its meant I finally got my excess back and has allowed me to pay off one of my credit cards completely. Although it's only £200 it's the mental thing of seeing a zero balance I think.
My emergency fund was built up then wiped out regularly but I'm trying to build it back up again. My boiler is on its last legs and will need replaced in the next few months, and I'm looking at a £2000 bill for dental treatment so I'll need to consider speaking to Stepchange about making a £1 token payment for a couple of months if they'll allow it.
With the accident going in my favour it'll hopefully bring my insurance back down a bit, and my phone contract is up soon so that'll drop quite a bit which will help.
So far I've had a proper clear out and sold approx £700 of stuff on V*nted and whilst I'm not happy at work, the terms I have mean I have zero travelling costs to pay out.
DFD is currently mid 2026, which doesn't sound so bad when you think about it.
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Similar to you, accident Sept 2021, nightmare trying to get sorted and treatment etc
I too have had extensive dental work and gone through the DMP process
It's horrendous when they start at you isn't it, back in the old days you just had a 5 min meltdown when postie came but now it's text's, calls and emails all times of day and night plus weekends too
Looking forward to seeing your journey
I'm hoping the boiler can limp along until the summer, and there's the next dental appointment to contend with where we plan the work and I find out the cost.
Work has announced that they are seeking people to apply for voluntary redundancy, but for now I'm excluded from applying. Not sure if that's good or not as it means the work will just be redistributed to the ones that aren't at risk.
*Tesco Credit card - £3604.30* - £0.00
*Finance - £581.91 - £0.00
*Dad loan - £5300 - £3800
*M+S Credit Card - £0
*MBNA Credit Card - £1211.88 - £0
*Virgin Credit Card - £3075 - £0
*Total debt - £3800*
*Sinking Fund - £2500/£2500*
*Emergency Fund -£250/£5000*
*Mortgage Overpayment - £46.90/£1000*
Premium Bonds - £200/£1000
Facing Reality - My Debt Free Diary
I've still got niggles from the toothache, and now the oven has packed in. I'm thinking about getting rid of the built in type and just going for a freestanding one, but it means getting rid of a few cupboards/drawers and doing a fair bit of work!
The more I look at it all, the more I'm thinking new kitchen might just be easier! But that obviously means money, which I need to save for cause that's more than just using my EF.
In other news, I've got a nice shiny new job and with it comes a decent pay rise but not til May/June time.
I'm thinking about going down the self managed route for DMP, as much as I have no real issues with Stepchange, I find them a wee bit judgey and not as flexible as they perhaps could be?
Are there still the same "rules" around a self managed DMP?
Anyway, lots to think about for a Monday morning
Debt has dropped into the £30k bracket, still eye watering when I think how little I have to show for it but from £50k last year it's a big achievement.
Renewed my car insurance and despite my claim being settled in my favour, my premium has jumped by over £120 for the year. The only cheaper quote was one with a black box - I'm a 40 year old woman who drives a mum bus, hardly the stereotypical driver who needs a black box!
F
Sir Francis Bacon 1561 - 1626 (Philosopher & statesman)
@vampirotoothus I'd love to say it's a knee jerk reaction to not being in control but unfortunately it's really the only appliance still to be replaced. So far the integrated appliances (washing machine, dishwasher, fridge freezer and hob) have all been ripped out due to them breaking down, flooding, shorting out etc. Microwave has been replaced but old one hasn't been ripped out.
When I say new kitchen, it's new door fronts, worktops and sink, and possibly one new cupboard. It's mostly ripping out rubbish built in stuff and stupidly impractical drawers etc