New Leaf for 2026 - Dire Debts

RAS

Agree totally that at the moment, live within your new budget and monitor carefully. And get an instant access savings account set up into which you can stash an emergency fund.

Even if you can only start with £500. Put any of those savings, that aren't needed towards debt repayments, into the emergency fund at least until you get the back pay, then top up to £1k.

Brie's identified the most expensive accounts you need to target and rounding up those minimum payments could give you access to better deals. If you can now get any 0% deal for a year or more, grab it and shift something off the most expensive account. And then try again in 3 months.

Regarding your mortgage, you just go into your current provider's website 3-6 months before the fix ends and select the best new one they offer, with any credit check. Many many folk here have done it.

Use the back-pay to kill a couple of the most expensive debts. Clearing Curry's and Monzo might be a bigger boost psychologically than just Lloyds?

You've only a small house, but if you've something you know you are most unlikely to use again, consider selling and adding to the emergency fund.

sourcrates

Most people live pay packet to pay packet, they may have a reasonably good income, but most of it goes on credit repayment, and to make ends meet, they have to resort to credit again.

The higher the income bracket, the more debt they seem to carry, we live in this strange world where living on credit is seen as the norm, and its all perpetuated by the banks, starts with credit cards, then a loan, more cards, another loan, PCP, or HP, the list goes on, its seen as normal to have a flash new electric car costing 50k, exotic holidays abroad on the credit card, weekends away funded in the same manner, its called the credit bubble, and lots of folk get trapped within it.

The only way you can get out of this bubble is to start living within your means again, as Dave Ramsey would say, "that`s what your income is for, not some stupid credit card".

I wish you luck OP, as it can be a long road, and there will be more like you joining this forum in the coming weeks, we always have an influx of people at this time of year, new year, new start sort of thing.

linux_Master

Thanks @RAS!

Some really sound advice there. I think tackling Curry's then Monzo will definitely be better for the psychology as they're made up of smaller individual amounts. 

I'm hoping those small wins will help keep me going once I have a bit of a pot behind me for the unexpected. Even if it is small to start with, it'll help stop the reliance on credit.

I've been pre-approved for a Barclaycard at 0% for 32 months, I think I might open this. I don't know what my credit limit will be but I suppose moving even some of the interest bearing debt to interest free is a good thing. I was worried it would be an extra payment to manage, but the balance should be pretty consistent so it might even give me a smaller debt to tackle later down the line if I can't move the full amount.  

I think I have sold pretty much everything I can, but I am very good at IT, so I am exploring doing some web design on the side to see if I can get another stream of income through (if my current place of work allows it). 

If not, I am putting in every ounce of overtime I can. Takes two months for this to come through but last month I did an extra 25 hours, so hopefully every little will help. As long as I don't burn out!

linux_Master

You're exactly right @sourcrates

You know, the worst thing is, I love my job and I make good money. I recognise I am in a very rare and lucky position to be in. 

I recognised I was in debt years ago and each time I had a promotion or job change and made a little more I would always think 'right, keep the debt there then that's more for me'. But no, nothing stuck with me and what happened? All my debt increased as with my salary. Relationally as one increased so did the other. 

The day I took out my first capital one credit card at 18 (without really understanding credit at all), will haunt me to this day. I can't change the clock, but if I can share advice with anyone it would simply be 'don't do it'. My parents did it and for many years I just thought it was 'normal'.

It wasn't until I had this revelation, caused by all the stress I suppose that I realised I had to stop and what ultimately led me to starting this thread. 

One of the things that scares me most is that I will work, just to pay off debt (which is kinda right now), and I don't want to hate my job. It's all I have ever wanted to do, but I can't let those mistakes affect my future prospects.

Even holidays! I have flights and hotels on my Monzo flex, I couldn't even enjoy them properly because I kept thinking about payments when I got home. 

The spur of the moment feels great, but then afterwards all just feels downwards, in hindsight I shouldn't have gone on holiday if I couldn't afford it, I have learned that now.

Funny you should mention DR, I came across a post from someone who I think he does a podcast with and only last night did I discover his 'baby steps', he offers sound reasoning with that and it sounds a very good plan! 

I could go on about my woes I suppose, but I definitely want to say I completely echo what you have mentioned and I appreciate the support. For anyone else who comes across this, please know you aren't alone! It wasn't until I found these posts that I felt like I had a glimmer of hope. Big shout out to all the work and advice everyone gives in this forum. 

linux_Master

Wow. 

I applied for a Barclaycard (0% for 36 months on balance transfers). They accepted my application with a credit limit of £13,500!

That's a HUGE amount! I am not complaining as I can now shift all of my Santander and Lloyds credit cards to 0% deals. I am leaving Tesco where it is as my 0% period still remains.

But my goodness look how easy it is just to get an extra £13,500 in 5 minutes. I truly believe Martin's quote 'We can't expect lenders to be responsible, so we must be responsible borrowers). 

Just if anyone see's this, once shifted I reckon I should close both my Santander and Lloyds credit cards. Is this a good idea?

I am not fussed about my credit score at the moment as paying off debt is priority, I am not expecting to take any more debt on at this time; but any thoughts to the contrary are welcome. 

With this limit I could even move my Tesco credit card too and put it all in to one, then know I have 3 years from now to pay it off?

Moving all to the one card alone will free up £240 a month assuming I pay the minimum on my BC while I tackle the others. 

Brie

If/when you get the Barclaycard 0% account consider paying the same amount on it each month to ensure it is at zero by the time the offer ends.  If you just pay the minimum required each month you'll have a big lump to find when the offer is over otherwise you'll be back to paying 29% or whatever interest on what is left.

But this also makes me think that your credit report must look pretty good if you can get a new CC.  Very positive!!

Brie

Barclaycard must love you!!!  I had a card with them for years (originally a Frizzell card, then Goldfish, then something else, then Barclaycard) and over 20 years the limit was increased to about £18k.  Which they then decided was too much and cut it to under £1500!!!  I only keep it now as there are occasionally some ticket perks.

linux_Master

Honestly @Brie shocked is an understatement!

I thought I read it wrong at first haha! But I am absolutely not complaining, at least now all my money I put towards this will be paying off the debt, rather than just accruing interest. 

You know I didn't even realise they could reduce your limit like that! 

I know that overdrafts they can expect you to pay it back on demand but I had no idea with credit cards they could just cut limits. Maybe I am a little naïve in this space, I do apologise! 

But I think that sounds a good plan. Assuming I move all my cards to this one, my £13,500 limit will pretty much be at its maximum, including the BT fee. 

If I aim at £375 per month, this will have the balance at £0 by the time the 36 months is over if I did my maths righthand this is roughly the amount of what I am paying now across the three cards anyways, so that sounds like a good plan. 

Phew even that is a weight off. May not make a difference to my monthly income but I can now see a light at the end of the tunnel for these credit cards at least!

ManyWays

How long is the remaining 0% deal on the Tesco card?
What rate does the Tesco card go to at the end? What rate does the new barclaycard go to at the end?

linux_Master

@ManyWays I did give Tesco Bank a call to check as it was nowhere on my paperwork, apparently they only remind you two month's before your deal is due to end and no other time. 

But they did confirm that it ends in April and will revert to 29.9% APR. 

The Barclaycard is at 24.9% at the end of the 0% deal.