Getting out of this debt sharknado

EmmaMicawber
EmmaMicawber Posts: 138 Forumite
edited 23 July 2019 at 10:11AM in Debt free diaries
Over Christmas OH gathered together the paperwork for his various chunks of debt and revealed that his total unsecured debt comes to a horrifying figure of £97,400 (£73,500 on credit cards and a £23,900 loan).

We are 6 weeks into an 8.5 year journey, although I'm going to do my best to trim that down where I can. I'm currently struggling to sleep but keep reminding myself that no one has died and we won't starve. I think a diary will help to keep me on track and help me feel I'm not alone. Sharknado is the most ridiculous horror film I've seen, but has a happy ending and it brings a smile to my face to think that OH and I, like Fin' and Nova, will emerge triumphant in the end. Hence my diary title (and I couldn't think of anything Inspirational! )

Jan 2017- Credit cards- £73,500 Loan £23,900 Total £97,400
Jan 2018- Credit cards- £58,000 Loan £18,500 Total £76,500
May 2018 Credit cards- £26,500 Loan £14,500 Total £41,000
Jan 2019 Credit cards £18,700 Loan £0 Total £18,700
Jun 2019 Credit cards- £12,900 Loan £0 Total £12,900

CURRENT GRAND TOTAL DEBT £11,600
«13456717

Comments

  • System
    System Posts: 178,077
    Photogenic Name Dropper First Post
    Community Admin
    Good luck on your journey, like your title !
  • crunch_time
    crunch_time Posts: 1,353 Forumite
    Yes good luck on your journey! Xx
    19/8/19 vs now Current Total debt £14,188 Savings £2757
    Overdraft £1600 vs £1050
    HSBC1 £1900 vs £3868
    HSBC2 £4100 vs £3730
    Virgin 1 £3050 vs £2800
    House stuff and improvements £4460 Virgin 2 £2740
  • 8.5 years good luck whats the plan to tackle it? Overtime?? etc etc
    Cashback Earnings YTD £46.04 Survey Earnings YTD £182.66
    "Always always train, be the best version of you that you can physically be"
  • -taff
    -taff Posts: 14,423
    First Anniversary Name Dropper Photogenic First Post
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    Are you sure bankruptcy/IVA isn't a better option for him? His credit rating will be trashed but even a bankruptcy will see it more or less restored after 7 years.
    Have you spoken to any debt charities?
    Shampoo? No thanks, I'll have real poo...
  • Definitely have a chat with stepchange or another charity. The wife and I are 47k in, and thought we could do it ourselves, but just being able to get advice and to have someone impartial look over the "books" has been a godsend. We're now looking to start on an IVA which should see us debt free in 6 yrs and we get to keep some forms of enjoyment budgeted in. Good luck on the journey, it's quite a shock when you finally tally up what you owe.
  • EmmaMicawber
    EmmaMicawber Posts: 138 Forumite
    edited 18 February 2017 at 8:59AM
    Thanks everyone. Well done on tackling your debt iiMatjeii- good to know it's working okay.
    OH had been juggling the balances around 0% credit card offers and finally told me the full extent of our situation when the eligibility tool on MSE came back with 0% chance of getting another balance transfer for all but one of the cards listed - I guess that means his credit rating is already totally trashed. It was apparently 80% chance of acceptance for most of the cards a few months ago so has changed very quickly.

    We've had credit card debt for years and years - since Uni- but it's always ticked along in the background until now and was much much lower.

    Over the last few weeks I've done all the obvious things-
    Changed gas/electric
    Got rid of expensive phone contract
    Changed Internet provider
    Reduced food budget massively
    Bought YNAB4 (this is amazing- I feel I know where the money is really going for the first time ever)
    Cancelled gym, a couple of subscriptions, pet insurance,

    I've started going through the spare room looking for things to ebay (that's raised a pittance so far) and have sold around 50 books on the Ziffit website which has raised a bit (£40).

    OH is still in a certain amount of denial as to how bad this really is, but is totally on board with the new YNAB budgeting.

    I took the plunge yesterday and called stepchange. It was the first time I've spoken to anyone but OH about our debt so was really nervous. The guy was lovely though and didn't ask how we got into this mess (I'm not sure myself yet)
    Having gone through all the figures he recommended a debt management plan for us. OH's first reaction was very negative - saying it was like taking charity (!) and not for "families like us" (!) and would make his credit score even worse (I don't think it can get any worse-it) I think his inner Victorian came out because he is having to confront the scale of our problem -he's not really like this at all.

    There is one massive change I need to make to help our situation but I'm currently plucking up the courage.
  • OH has gone for a Park Run and DD is at a sleepover so I've a peaceful few minutes to myself.
    I'm all for him getting into running more as his other hobby is expensive (think expensive equipment, servicing, travel).

    The major thing I have to tackle somehow is the fact I haven't worked for 3 years. I ended up taking a lot of time off from my last job due to home issues and now homeschool one child. I know I have to tackle this and even a part-time income would make a massive difference.
    The 2 problems are: can my DD go back into school okay? How will I get a job given that I 'll get a bad reference from my last one? Though my previous bosses were alwaysvery happy with my work.
    I think I've lost a lot of confidence and have to force myself to confront this.
  • motivated
    motivated Posts: 3,044
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    Hi Emma

    We too are in the same boat as you money wise. Approx £75.000 of unsecured CC and loan debt :eek:

    Like you we ran out of options like transferring CCs etc. Actually a Godsend as we would have just carried on.
    OH has been in denial for a long time as was I but after asking for advice on here I finally contacted Stepchange who as you say are wonderfully supportive and non judgemental. We are now at the beginning of starting a DMP which will take approx 7 years to clear but we are dealing with it, paying it back albeit a little slower but we will also have a better quality of life from now on.

    After the initial arguing and blaming each other and OH more worried about the credit score than the huge hole we are in we finally accepted that it was a joint effort to get where we are and it will be a joint effort to clear this mess up.

    Since deciding to go down the DMP route we have been getting on so well and are actually talking like adults now.

    Have a read on the DMP support thread the people on there have saved us from ourselves and will guide you in the right direction.

    I have subscribed and will be cheering you along on your journey

    Good luck
    M
    Emptying my lake with a teaspoon
  • Thanks, it's great to have you along for the journey.
    I'm feeling quite happy about the lack of spending over the weekend. We cheated a bit as we were out on Saturday at something we had already paid for in full months ago. Sadly there are no more prepaid nights out on the horizon, they'll have to be very cheap and budgeted for in YNAB but I think it made us appreciate it all the more.

    OH is still slightly in denial about the scale of our problem. He is adamant he doesn't want to go down the DMP route yet. We can just meet the monthly payments at the moment but that's only because we've a few 0% deals and they all end around September.

    We've compromised and agreed to see how things go for 3 months of strict budgeting and me trying to find part-time work, maybe from home, with a view to going full time as soon as DD goes back to school.
  • motivated
    motivated Posts: 3,044
    First Anniversary Photogenic First Post PPI Party Pooper
    Forumite
    http://forums.moneysavingexpert.com/showthread.php?t=5575569&highlight=rest

    Hi Emma have a look at this thread. Someone shared it with me and I love it. I read it regularly and it's where I stole my signature from :o

    So inspiring
    M
    Emptying my lake with a teaspoon
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