One debt at a time ... the new plan!

melvis

Hi everyone

A few months back I posted about how we were gonna try and tackle our debt asap, a few days later OH lost his job and hasn't found any work yet (it's been 3 months now), so the money I'd made off Ebay that was meant to be used to pay off debts ended up being used to survive til my next pay day.

A few weeks ago we received final Bailiff notice (they've been chasing for a while!) from an old council tax debt from when OH lived alone 4+ years ago. We paid them £88 last week (made a £90 payment but they take a £2 admin charge the swines!) and we'll be paying them £40 (well, £38 a month) til it's cleared. The minimum they'll accept per month is £37.

I figure if we can cope without this £40 whilst were paying off the bailiffs then once that debt is repaid (5 payments of £38 due + a final payment of £36 so 6 months time) we will be used to not having this £40 so I can use it to pay off other debts.

I'm then gonna pay off one debt at a time starting from the lowest to the highest. Obviously, if OH finds work then we'll have more money but for now were sticking with the £40.

On top of this I already pay a £10 payment to one of my loans that was passed to a debt company and token £1 payments to everything else.

I shall edit this post shortly with all our debts in the order they will be repaid. I can then use this thread to keep track of what's been paid and what is owed and make me feel good when things are paid off

1) Council Tax Arrears £164.00/£314.32
2) Friend/Family debts £190.00/£420.00
3) Npower arrears (old a/c) £0/£125.89
4) Lowell Financial/Hamptons Legal £0/£294.44 (possibly rising to £402.45 with costs)
5) Wiseman/Provident £0/£795
6) Egg CC £10/£1328.71
7) Cahoot Loan £50/£7188.54
8) Natwest £5/£454
9) Mint/Triton £5/£461.80

hypno06

Log onto the snowball calculator at www.whatsthecost.com, play around with your numbers and it will give you your debt free date on exactly the basis that you are talking about!

melvis

At the moment I'm reluctant too as we have debts totalling over £20k and £40 a month won't really make a dent! If the debt free date is forever away it'll make me think there's no point trying and I'll end up just spending the money on other things! :beer: haha

MUM40

hello, just read the OP and also thinking that I/we should look at our debts and try to get them into control. i have thought about looking at whats the cost, but frightened of what we may find out. good luck in your journey, and hope that things work out, and when I feel like I can, i will start a dfw diary. i just need the courage.

melvis

The way our finances are at the moment it's gonna be dribs and drabs being paid off. We get my wage + tax credits (total income £1281 per month approx). My OH isn't entitled to any benefits apparently. Anything I make off ebay/quidco will be paid off as and when although I do need to buy a new hoover first but have been keeping my eyes open for a bargain.

At least if I have everything listed here I'll be able to see the each small step we make!

hypno06

But that is the whole point of the snowball thing - £40 really DOES make a difference.

My debt is hugely greater than yours, and when I first started using the snowball calculator was even greater. But using the snowball calculator I could see that even £10 a month more made a difference, and it became a new motivator.

Give it a go!

Lorne

I would definitely agree with the snowballing advice, it has provided us with so much focus over the years. Every penny does count and I love updating our sheet and seeing our debts coming down. Give it a try.

melvis

I'll attempt to find details/amounts owed for all my/our debts this week, there's paperwork all over! Then shall snowball on Saturday when I'm next off work.

chevalier

melvis wrote: »

The way our finances are at the moment it's gonna be dribs and drabs being paid off. We get my wage + tax credits (total income £1281 per month approx). My OH isn't entitled to any benefits apparently. Anything I make off ebay/quidco will be paid off as and when although I do need to buy a new hoover first but have been keeping my eyes open for a bargain.

quote]

ref OH I guess that is he gets a minimum wage job then it comes straight off your tax credits?

But he could do online surveys and daily clicks to earn vouchers, money etc. Every little helps.

Ref hoover don't forget about www.freecycle.org You can join your local group/groups and if someone offers a hoover, you apply for it, and if you get it, then you go pick it up FOR FREE!

chev

melvis

Bit of a delay I know but have now updated my OP with more details of debts owed and with this months payments made.

Shall hopefully find time to Snowball today :eek:

melvis

Edited OP to include this months payment

New vax is arriving on Monday too :T