Finally making a dent in the debt

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.  

Feb 2024:
CC1 6537.66
CC2 7804.45
CC3 4221.17
CC4 2053.68
CC5 989.30
Loan 1 3686.44
Loan 2 5275.22

Total £30,567.92
«13456

Comments

  • SueP19
    SueP19 Posts: 1,869
    Photogenic Name Dropper First Anniversary Combo Breaker
    Forumite
    Hi Wild, I restarted back here only a few days ago.

    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 
    Debt Free Diary - Second Chances! Life in a Tourer........Tilly Tidy Founder in 2016, Tilly Tidy 2023 £17.43, NSD Jan 2023 9/10, Debt £13,491.65
  • Thanks Sue, the contact is relentless isn't it?! And as you say, it's at all times of the day and night! But I think I've got to grips with that, just one company decided to play silly games. 

    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. 
    Feb 2024:
    CC1 6537.66
    CC2 7804.45
    CC3 4221.17
    CC4 2053.68
    CC5 989.30
    Loan 1 3686.44
    Loan 2 5275.22

    Total £30,567.92
  • It may be worth chatting with your dental practice as mine let's you do a 0% payment plan for any work over £500. Not ideal as you already have debts but might be a possibility. How urgent is the dental work? Could it be postponed for 6 months? Hopefully as we are coming out of the winter months your boiler may last a little longer. It's frustrating isn't it when you are trying to get on the straight and narrow and things go against you. 
    *Dad loan - £5300 - £3100
    *Virgin Credit Card - £3552.50 - £0
    *Barclaycard - £0

    *Total debt - £3100*

    *Sinking Fund - £1500/£3000*
    *Emergency Fund -£0/£3000

    *Debt Repayments Pot - £0/0*

    New diary- https://forums.moneysavingexpert.com/discussion/6474943/the-three-cs-coffee-clothes-credit-cards/
  • SueP19
    SueP19 Posts: 1,869
    Photogenic Name Dropper First Anniversary Combo Breaker
    Forumite
    Was just about to say but @Sarahwithlove beat me. Most dental will schedule the appointments around you and your payments, shame often makes us agree to stuff when we just can't manage it x
    Debt Free Diary - Second Chances! Life in a Tourer........Tilly Tidy Founder in 2016, Tilly Tidy 2023 £17.43, NSD Jan 2023 9/10, Debt £13,491.65
  • A month since I last checked in, must do better! 

    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 :smile: hope everyone has a lovely day and week

    Feb 2024:
    CC1 6537.66
    CC2 7804.45
    CC3 4221.17
    CC4 2053.68
    CC5 989.30
    Loan 1 3686.44
    Loan 2 5275.22

    Total £30,567.92
  • So I got my official job offer and put my notice in at my current job. My mental health took a real battering and this should make me happy but if anything it's making me feel worse but I know it's not permanent. 

    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! 
    Feb 2024:
    CC1 6537.66
    CC2 7804.45
    CC3 4221.17
    CC4 2053.68
    CC5 989.30
    Loan 1 3686.44
    Loan 2 5275.22

    Total £30,567.92
  • HI I would investigate further why your oven isn't working and whether it can be fixed for little money. Google is your friend. You may need a cheap part, or be able to source a good 2nd hand one for not too much money. They just slot in the existing hole (may be a couple of screws holding it in, but simple to undo). Don't spend loads of money re-doing your kitchen, it isn't in your plan and is probably a knee jerk reaction to feeling a little out of control. You don't want to undo the great work you have started. Good luck on your journey V x
  • PS congratulations on the new job V x
  • foxgloves
    foxgloves Posts: 10,941
    First Post Name Dropper First Anniversary
    Forumite
    Re your oven...not long after we bought our house, the oven conked out & was not repairable. We removed the kickboard (it was built in), took all the measurements & bought a freestanding oven which just slotted in. We needed a new kitchen too, but just couldn't afford one at the time as it was pre-LBM & we had quite a lot of debt. When we were in a position to save for & buy new kitchen, the oven was obviously still in good order, so we just had the units built up to it & have since replaced it with another new freestanding one. It's perfectly doable as long as the measurements are taken carefully.
    F
    "For each of our actions there are only consequences" (James Lovelock)"For in the true nature of things......every green tree is far more glorious than if it were made of gold & silver" (Martin Luther King Jnr)
  • So the previous owners did this trend of having the oven built in at waist height, with microwave on top. The house is the house that Jack built - everything has been done on the cheap and so far all but the oven has already been replaced and the kitchen rewired. 

    @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 
    Feb 2024:
    CC1 6537.66
    CC2 7804.45
    CC3 4221.17
    CC4 2053.68
    CC5 989.30
    Loan 1 3686.44
    Loan 2 5275.22

    Total £30,567.92
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