2024 – New Year, New Me

Sam2018

Hi Everyone, 

Thought I would start a diary as I start my DMP journey. 

A bit of background: 

We both had full time well paid job and although we were probably living a little above our means even back then, we were paying more than minimum off everything and had lots of available credit and new offers continually, so just spent a few years moving stuff around to new 0% deals all the time and never worried about it. Debts always remained at the same sort of level.

Then Covid hit …. 

I lost my job and my partners hours were significantly reduced but we managed. Well I say manage, we basically lived off our credits cards and then took out a loan, whilst I continually applied for new jobs. That alone was very disheartening as applying for countless jobs every week and not hearing anything back at all really knocked my self confidence. I did have a couple of interviews and made it to the short list of 2 or 3 twice but never actually got a job offer.  In desperation I started applying for part time jobs, even jobs I didn’t even want and eventually secured something – few hours, very low paid but it’s something at least. Am continually applying for new jobs even now but not hearing anything back, or going to interviews and then never hearing anything afterwards. All very frustrating! 

2021 – We continually lived off credit cards but managed to balance everything 

2022 – Started to struggle a little but everything got paid 

2023 -  Found the part time job so things eased off a bit but then creditors starting sending persistent debt letters demanding more money each month and my credit file was getting worse each month so now there are no more offers, no way of moving any debts and had to resort to taking cash out from credit cards each month just to make the minimum payments each month (absolutely ridiculous now I am clearer in my mind).  Realised I cannot carry on like this anymore so have decided to start my DMP journey. 

Debts are 35k, split over 17 creditors, minimum repayments total £1600 per month! In my name only. Partner is aware this will have an impact on his credit rating too and we also have a joint mortgage together which we are hoping we can just renew with existing lender, or go on variable rate once our fixed period expires. He has his own debts, but can service them all a lot better if he is not having to bail me out continually (he does not want to enter a DMP himself).

With the help, guidance and a bit of hand holding from some lovely people here, I have logged into all my accounts and changed my phone number to a PAYG number which is in an old phone which is now switched off. I am not strong enough yet to deal with constant harassment by phone – can ignore the emails/letters and wait for defaults to start happening and then plan to self manage my own DMP to get everything paid off once defaulted and interest is stopped.

Although I haven’t technically missed any payments yet (direct debits all cancelled) they will all start missing at the end of December and throughout January. Our mortgage is hopefully safe and all my priority debts are 100% paid and up to date. 

Sam2018

Diary for a little more hand holding and general day to day stuff as thought it would be helpful to me and to anyone else that is in a similar situation. 

18th December 2023 – Cancelled all non priority debt direct debits and opened new Monzo account.

19th December 2023 – Went shopping for the first time after making this dreadful decision and honestly, what a different experience is was! I didn’t have to log into various credit cards accounts to see what available balances I had so I could see which card I could use – or go to two different shops so I could put X amount on one card and X amount on another, because there wasn’t enough credit on one card to do a full shop. 

I went in, brought what was on my list, paid on my debit card and left. I do have to admit though, as guilty and embarrassed as I am that I have got myself in this state, walking home I did feel a sense of peace. Peace that I am not going to have to live in that constant state of fear, that constant worrying about how on earth I am going to pay for anything, or checking what card I can use just to buy a few essentials.

Plan for New Year is to pay off a couple of the smaller debts (the ones for literally a few hundred each), close the accounts and then let 12 creditors default me.  Will use the money saved from non payment to credit cards to start building up an Emergency  Fund and create “pots” in my Monzo account for saving towards Birthdays/Christmas, House repairs, etc.

I am giving myself a little breathing space over Christmas to relax  and then will do my full SOA, although I have shaved off as much as I can everywhere, reducing phones to Sim only, reducing insurances, tv, broadband, energy, everything I possibly could. I did this last year to try and keep our head above water!  We haven’t been away anywhere for 4 years or brought anything of any value, or had any repairs done in the house and some are definitely going to need doing in 2024.

Sorry for the very long post – I hope to get to know you all better and hope we can all mutually support each other on this long journey to a better life. 

Thank you for reading. 

njkmr

Good luck. Hopefully 2024 will be a fresh start for you.
Sounds like you have a plan, so stay strong and you will get through it.

Less_Talk_and_More_Action

Just dropping in to wish you all the best.  I’m looking to start my own diary next week and from what I’ve seen over the years of reading the diaries of others, it’s a great way of organising your thoughts and tracking your progress.   It’s a positive step to have taken and I’ll be following your progress.  There are some extraordinary journeys and successes on the diary pages and a lot of them started exactly where you are. 

L

sparks_2023

I wish you all the best. With regards to the job hunting, I always remember that amongst all the 'not hearing back' you only need 1 job application to be successful.

Sam2018

njkmr said:

Good luck. Hopefully 2024 will be a fresh start for you.
Sounds like you have a plan, so stay strong and you will get through it.

Thank you   Its been quite a relaxing Christmas not having to stress about money every second. Haven't really done anything and not spent anything other than on food but so lovely not having to log in to every credit card account to see what still had a few pounds left to spent, just used by debit card for bits we actually needed without having to overly worry about it. 

Been a long time since my life has been like that !

Less_Talk_and_More_Action said:

Just dropping in to wish you all the best.  I’m looking to start my own diary next week and from what I’ve seen over the years of reading the diaries of others, it’s a great way of organising your thoughts and tracking your progress.   It’s a positive step to have taken and I’ll be following your progress.  There are some extraordinary journeys and successes on the diary pages and a lot of them started exactly where you are. 

L

Thanks I have just had a read through your Diary - yes we both have the same issues with spending on cards!  I think once you live like that for a while, its just normal. I have spent the last few weeks only using by debit card and it does make you think twice as to whether you actually need something or not! 

Wish you well on your journey

sparks_2023 said:

I wish you all the best. With regards to the job hunting, I always remember that amongst all the 'not hearing back' you only need 1 job application to be successful.

Thank you   I can almost handle applying and not hearing anything, but it does really grate on me when you get yourself all dressed up, out the door for an interview, waste several hours with travelling etc and then they don't even let you know that you didn't get the job. It would literally be a 30 second task for them

Onwards and upwards though - will keep applying !

TheScarletPixie

I'm just dropping in to wish you well on your journey.  I'm thinking of starting a diary too.  In the last 18 months I bought a house, a couple of months after moving in my OH lost his job and I've been having to use credit cards a lot to keep afloat.  I've worked through our financials over Christmas and worked out budgets etc.. to keep me on track.  I can just about keep our heads above water for now and have got the support of my OH in regards running a tight ship.  He is looking for work too and we hope that he gets something soon.  In the meantime we're keeping positive and I'm working out other ways to get some extra cash into the bank.    Good luck 

Couldsavemore

Hi

I hope the diary is helping you keep your clear.

Have you thought of looking for free courses to get some extra qualifications that could help you?

I was made redundant many years ago and had to take a 30 grand pay cut to work as a carer. So I really feel for you. It kept me going through some tough times and I eventually got back to where I was before.

I'll be following and hope things get better