2024... Debt no more🤘

WhiteBunny

Hi all, here I go to ridding myself of debt for the final time. I don't want to work forever and would like some good savings before I reduce my working hours. I'm not getting any younger and suffer with various ailments so  instead of borrowing I need to pay off what I owe and save instead. Previous borrowing was always such a good idea at the time to clear the credit cards then before I knew it I spent on them again. I've been in a DMP before and want to try and clear debts without one this time, but I'm definitely ready to listen to any advice given. Total debts, monthly payments, disposable income etc. posted later when I've been through it all. Thanks for listening.

WhiteBunny

Mmm, been through the debt and it's worse than I thought. 
My total income is £2705.00.
My essential spend includes rent, council tax, car, utilities, shopping, TV, mobile etc is £1885.00
My total debts come to £16,898 and is a mix of two loans (£9,600) £272 and £137 pcm; and five credit cards £7,298 varying amounts £150, £83, £80, £70, £20 pcm - all high interest which comes to £813 pcm as total monthly payment for the debt which I might add is higher than my rent.
So.. if my maths is right, this leaves me £7 a month left over 🥺. Don't think I'm going to make many in- roads with that.
So ashamed. I have nothing saved, no emergency money. Even more ashamed that I've not learnt anything from going through all this a few years ago.
Only me and daughter in the house, no going out etc. Putting it down here and reading it makes me feel a little sick to be honest. Serious thinking this evening.

NeverendingDMP

Have you used a debt payoff planner app or what's the cost.com to play around with how long each debt will last.  If there are any you can do minimums on to be able to hammer one and get rid of a d debit would that help. Or is it fully to the wire with your income and outgoings and minim payments. 

WhiteBunny

Hi Neverending... I've not done anything like that. Now I can physically see I've got less than £10 remaining makes me think about getting an evening job and doing surveys, might be able to bring in another £300 a month by doing this. I'll have a look for one of those apps though. Thank you 

NeverendingDMP

Yeah give it a try. Whatsthecost.com is a website snowball calculator. I know different schools of thought are smallest or highest interest first but ideally I think you need to look at the best way of freeing up some of your budget so you have more than 7 a month spare whilst also get some debts down. Can you get any 0% deals at all. Extra income will help as well if that's a possibility.  Is the interest shocking if so a dmp may still be in the picture although I know you don't want one. 

NeverendingDMP

The thread make 2023 in 2023 on the challenges pages might be a good read too. I think they will have a make 2024 page going by now but having a read of last year's might give you some ideas as to how to earn extra income

WhiteBunny

Thanks so much. I'm not ruling out a DMP but I just remember the stress I felt doing that at the time but it might be my only option. Appreciate your comments.

WhiteBunny

Have plugged my info into the stepchange website and it would take me 4 years to pay off my debt which isn't as bad as I thought. Credit score is shot anyway.in reality I would struggle with an evening  job due to my OA, so would be limited to the extra earnings I could make. Feeling a bit better about things now. I will give this further consideration over the weekend (she says like she has a choice).

Shopping first though, list in hand. Paying in cash 😲

NeverendingDMP

Hope the shopping went well. Have a think over the weekend like you said. And No rush. Don't worry about the circumstances is going forward that counts. I was almost on the up eighteen months ago with the end in sight and with the cost of living and such like I'm back to watching every penny with the short term aim of getting my debts back to being as low as they where this time last year 😭 

WhiteBunny

I hope things get back on track for you soon NDMP. I have decided to contact my creditors and arrange a payment plan. I can't go on like this my head is all over the place. I have nothing to make extra payments with and so DMP it is. I feel better already now having come to that decision.
I am also moving at the end of this month so am hoping a smaller place will give me more cash each month which I could use to save up.
Tomorrow I will prepare my emails for creditors and stop payments before they are due this month.

NeverendingDMP

I think as much as you don't want to be on this position it's onwards and upwards (downwards for the debts!) for you from now on and a dmp is going to ease the burden and help you make some headway. Good luck getting it all sorted out