Paying off big chunks of debt???

headinthesand_3

Hey all

I've been trying to find out how people on here are paying big lumps off the debts, I've noticed its normally at the start of their debt free journey is this due to switching bills etc??

Or are people cashing in investments, selling cars, savings, isa's, etc??

I know as everyone on here states its the little things that mount up and you need to change your life style, but I'd still be interested on how people are paying off big lumps

I have read of people paying £1000s in fact £10000s off a year is this all down to good budgeting???

What has been anyones best earner??

floss2

Personally, my big chunks were paid off by an inheritance from my mum and my bank charges refund.

The balance was paid by careful budgetting & managing, cutting out unnecessary spending and making cashback from Quidco.

headinthesand_3

Do many people get into debt but still have good savings?

I know at one point last year i had £2000 in an isa and £1700 overdrawn didn't make the conection to pay it off!!! finally did and felt alot better

mummytofour

I have no savings but am just about to go with a DMP. My CCCS budget is I am really hoping going to be enough to live off for example their budget allowas me £425 pcm for food but I only spend £65 per week so I pray I can save the rest then in a few months start to offer full and finals... I am dreaming that in 2 yrs I will be debt free when I can then over pay on mortgage add this to the fact both DH and I are planning on going to uni lol we like it tough!

Storm

I think at the start of the DF journey there can often be big chunks from selling stuff off, cancelling unwanted DDs, cashing in any savings accounts etc. It depends what you're doing though - I managed a good chunk (for me) last month and it was because I got paid for some overtime, plus had quite alot of work mileage getting paid back - this month isn't so good, but February should be better.

The little things are the ones that will keep you going and hopefully prevent you getting into debt again in the future - regularly checking your utility supplier, phone package, insurances etc are the cheapest will consistently save you money (and hopefully get you cashback) for example.

Some people do have big things - there are people on here working 7 days a week doing extra jobs, some do sell a car and get a bike or cancel an expensive gym membership, holiday or hobby. The trick is to find the right balance for you - like dieting (or any other new year resolution!) if you deny yourself everything you'll fall off the wagon big time!

hope that helps

Actiongirl_2

I have always used my annual bonus which has tended to be in the low thousands. This has helped me pay off my CC/OD every year.

Thankfully now I am on mat leave, I have paid off the debt, which is good because I work for a Bank and am unlikely to have got a bonus this year...!!

Zebedee69

I work 50 hours a week at work and then work Saturday and Sunday doing medical courier work. This month now is the first when il have a large healthy wedge of money to throw at cards and o/d... Il be chuffed when it happens.

Lemon_Tree

i'm having to do the long slow road to pay my debts off, unfortunately no lump sums any where to use. I'm just having to be sensible with everything i own and spend and really watch it. I'm hoping i may have found a way to get some overtime at work, not in my section and i'm not counting my chickens but it could be there for 14 weeks ish and would come in very handy.

bathgatebuyer

You'd be surprised how it all adds up. Seriously, I used to take out a tenner every second day of the week just for travel, lunches, coffees, magazines, etc. Now, I'm lucky if I spend a tenner a week on travel, newspapers, lunches........

I did manage to reclaim charges on bank accounts, credit cards, and my mortgage exit fee which made a nice dent in my debts to start off with, but the real change has been in my mindset. I once went to Pinks armed with a credit card and bought 5 blouses at £60 each for work! Just daft. Now, £60 a month probably does my food budget!

If you can save on your utility bills, make cut backs where possible (smoke less, drink less, back to basics cooking - which is probably better for you, take advantage of the offers on the board for cinema tickets, get some pressies for yourself using Pigsback - my vice is 3 for 2 toiletries and the like!, use Quidco for purchases........................). You may find yourself saving quite a bit more than you think possible right now. The mindset change is the biggest thing though.

Lydia.42

When we had our light bulb moment we initially cut back as much as possible and sold stuff too. I sold my second car (yeah - one of the many stupid things i bought, hence the debts. Lesson learnt!!! ). My OH sold his motorbike, i had 1000 given to me when my Nan died which went straight onto a card, OH's back pay, my yearly tax rebate for company mileage......you name it. Depressing, but it's made a big difference. The biggest change has been budgeting though. Without that we would have just carried on as we were and not cleared any more, just run them up again.

I'm currently on maternity leave, and we have had to put the overpayments on hold as i only get SMP, but i go back to work next month, so we are back to throw as much as possible at the debts again then. I will also look at changing our mortgage in April, as our current deal ends in August, so we are hoping to find a better deal than we are on at the mo (limited choice 3 years ago due to finances). All our debts are on 0% cards now, so at least we are still clearing a little each month with the minimum payments.

Hope this helps