Back here with more debt than ever before

As the title suggest I’m back with more debt than I ever had before. House improvements, holidays and it all just crept back up over the years. 

The usual story of credit cars, then loans to pay the credit cards off and now both credit cards and loans. But also for the first time I’m being refused credit and refused 0% deals so I now also have about 3k on credit cards that I have to pay interest on. 

I need to sort myself out….. and to hold myself accountable which I am hoping to do on here. 

Will be back with more details later on. 
Nationwide CC 0% March 2025 - £3,850 now £3,800
Sainburys CC 0% January 2025 - £6,450 now £6,300

FD Loan 1 October 2030 - £16,000
FD Loan 2 October 2030 -  £30,000

Husbands CC 0% August 2024 - £6,000

Car balloon payment February 2028 - £16,412

Mortgage - £194,500
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Comments

  • DFB35
    DFB35 Posts: 424
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    Credit cards not on 0%:

    American Express - £600 - I’m waiting for annual cash back of £276 which will reduce the balance to £324
    First Direct - £790 
    Halifax - £1,900

    Credit cards on 0%:
    Nationwide - £4,950 0% until 03/25
    Sainsburys - £8,765 0% until 01/25
    My husbands MBNA - £6,000 ish 0% until 08/24

    Boiler - £132 0% finishes in December 23
    EV charger - £952 0% finishes in July 24

    Loans:
    First Direct - £30,000 finishes 10/2030. We borrowed 30k but in the app the outstanding amount is -£37,554 
    First Direct - £16,000 finishes 10/2030. We borrowed 16k but in the app the outstanding amount is - 15,622

    Car PCP : husbands £274 a month 

    Mortgage:
    Barclays - £195,536 fixed at 4.3% until 10/28

    These are some pretty hefty figures however both my husband and I are on good salaries and can afford repayments at the moment, which makes it even worse that we are in this situation!

    However massive red flag is that I am unable to obtain anymore 0% deals, so if this is still the case by the time my Nationwide and Sainsburys deal comes to an end I can end up in very tricky situation. 

    This is the alarm bells I need hopefully to motivate myself to clear the cards as much as I can before the 0% is done. And categorically STOP further spending. 
    Nationwide CC 0% March 2025 - £3,850 now £3,800
    Sainburys CC 0% January 2025 - £6,450 now £6,300

    FD Loan 1 October 2030 - £16,000
    FD Loan 2 October 2030 -  £30,000

    Husbands CC 0% August 2024 - £6,000

    Car balloon payment February 2028 - £16,412

    Mortgage - £194,500
  • MorningcoffeeIV
    MorningcoffeeIV Posts: 1,926
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    edited 9 November 2023 at 7:58PM
    You need to get accurate figures.

    Some of the figures you quote, such as First Direct, are showing the full amount including interest if it goes full term. You need actual balances.

    Equally,  a monthly PCP figure is of no use. You need to know what is owed.

    You also need to find out APRs so you know what to pay off first.
  • DFB35
    DFB35 Posts: 424
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    My first aim is not to add any additional borrowing and to clear these cards:

    Credit cards not on 0%:

    American Express - £600 - I’m waiting for annual cash back of £276 which will reduce the balance to £324
    First Direct - £790 
    Halifax - £1,900

    Which brings me to a dilemma whether I should sell some designer items, when I’m being offered a lot less than what they are worth?? For example I have a bag worth 1.6k but I am only being offered £850 as a consignment sale? Or am I being a mug losing so much money on it. It’s in pristine condition but I actually really don’t like it, it’s the most unpractical bag ever…. I only wore it once when I realised how uncomfortable it is! (YSL medium Kate Chain bag if anyone is curious). 
    Nationwide CC 0% March 2025 - £3,850 now £3,800
    Sainburys CC 0% January 2025 - £6,450 now £6,300

    FD Loan 1 October 2030 - £16,000
    FD Loan 2 October 2030 -  £30,000

    Husbands CC 0% August 2024 - £6,000

    Car balloon payment February 2028 - £16,412

    Mortgage - £194,500
  • comeandgo
    comeandgo Posts: 5,717
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    Why do you think a second hand designer bag is worth £1,600, who gave that value?  You don’t like it, what’s the point of keeping it, I’d take the cash, you need it more than a bag.
  • MFWannabe
    MFWannabe Posts: 1,965
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    You need to sell as much as possible and pay off the debts; especially the interest bearing credit cards 
    That bag you don’t even like could clear the First Direct card; that’s a positive 🤷‍♀️that’s first one done 
    My guess would be you’ll probably have quite a few things you can sell if you have a good declutter 
    28/12/23: Debt total £12,900/13,192.13
  • RelievedSheff
    RelievedSheff Posts: 11,133
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    Have a good rummage around and find anything that you don't like or use that can be sold. Even smaller items of less value can go a long way towards paying off your debts.

    It's only a few years ago that we were in a similar situation to yourself with debts here, there and everywhere and unable to secure new 0% deals. It took a bit of perseverance, but we are now down to one card on 0% and one loan and the end is in sight. Just over two years and we should be debt free barring any major emergencies.

    Stick with it, make a plan and keep yourself accountable. 
  • DFB35
    DFB35 Posts: 424
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    So the consensus is to sell the items even if I perceive it to be at a loss. I have been in this situation before and not learned anything :(

    Really need to get a grip. I had a look again this morning and not eligible for further loans even though my salary is good and not missed payments. They do some sort of soft search nowadays. 

    I don’t think I had my lightbulb moment as still trying to borrow myself out of it…. But I don’t want to reach rock bottom for that moment to come…. Need to deal with it now!
    Nationwide CC 0% March 2025 - £3,850 now £3,800
    Sainburys CC 0% January 2025 - £6,450 now £6,300

    FD Loan 1 October 2030 - £16,000
    FD Loan 2 October 2030 -  £30,000

    Husbands CC 0% August 2024 - £6,000

    Car balloon payment February 2028 - £16,412

    Mortgage - £194,500
  • MFWannabe
    MFWannabe Posts: 1,965
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    Deep breath! You’ve done this before and can do it again! 
    Do the  soa you’d have done before 
    Write yourself a budget and stick to it
    Concentrate on  paying off the interest cards first; I would guess you could probably do this fairly quickly if you have a good declutter and sell anything you don’t use: need 
    28/12/23: Debt total £12,900/13,192.13
  • MFWannabe
    MFWannabe Posts: 1,965
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    edited 10 November 2023 at 9:41AM
    Another plus is the boiler payments finish next month which frees up that money to pay towards other debts 
    do you have any emergency fund? 
    28/12/23: Debt total £12,900/13,192.13
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