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  • FIRST POST
    • worriedDan
    • By worriedDan 25th Feb 17, 7:12 AM
    • 231Posts
    • 722Thanks
    worriedDan
    Dan's desperate dash towards solvency
    • #1
    • 25th Feb 17, 7:12 AM
    Dan's desperate dash towards solvency 25th Feb 17 at 7:12 AM
    Hi everyone,

    After posting on the DFW board, I have decided to start a diary. My earlier posts can be found here - http://forums.moneysavingexpert.com/showthread.php?t=5601202

    In a nutshell, we 55K in debt with not much to show for it. I have reached a point where something HAS to be done to sort out this awful mess. I do all of our finances and whilst my wife always knew that were in lots of debt, it has only been over the last couple of weeks that I have really started to discuss it with her.

    I put together a budget that would realistically allow us to clear the debt in about 3 years. I sat down with m wife and shared it with her. She was fully on board and agrees that we need to clear the debt before we turn 40 ( 3 & 4 years away for us)

    I still haven't said "we owe 55K" but I have shared with her the rough payments that we will make and the timescale. All of the statements are also there for her perusal and I offered to make her a list of what we owed - she declined. This was the worst part for me and I feel so much better having opened up our communication. My plan from this point onwards is to keep a check that we are both following our budget. I am also going to sit down with my wife every few months and do an update on how we are doing. I don't want to keep talking about the total balance though. It makes me feel physically unwell. Noone else knows about our debt and our friends and family probably think that we are doing well!

    The good news....

    We are able to throw about £1750 at our debts each months. Most are 0% so the majority of this comes off the balance. We take home just under 4.5K between us.

    We have 13K saved. This is saved with my wife's family ( complicated situation that I won't go into on here) . In theory I suppose that this makes our 55K debt 43K. We are not going to use the money to pay debts, not right now anyway, however the psychology of knowing that the money is there is a real help to me.

    I have set our budget so that after all bills and debt payments, we have 200 for food, money to cover diesel, kids clubs, emergency savings and £300 for 'fun' I think that this is realistic and doable. I cannot see a reason why this should fail. This new budget starts from next payday - early next week.

    I still can't believe that we owe such a large amount of money. I struggle with the total figure and am desperate for it to go down!!!!
Page 11
    • worriedDan
    • By worriedDan 18th Dec 17, 11:32 PM
    • 231 Posts
    • 722 Thanks
    worriedDan
    Inspirational!
    Originally posted by remote_control

    Thanks remote, but there are some really inspirational stories on here. We are still in the relatively early stages of our debt repayment.
    • Cumbria lass
    • By Cumbria lass 19th Dec 17, 6:13 AM
    • 2,385 Posts
    • 14,686 Thanks
    Cumbria lass
    You have done really well Dan , have a good Christmas and a great new year.
    CC1 £3500 Nov 2018.
    • EssexHebridean
    • By EssexHebridean 19th Dec 17, 3:39 PM
    • 8,718 Posts
    • 46,058 Thanks
    EssexHebridean
    You've made a huge amount of headway this year Dan. It sounds as though maybe getting your Emergency Fund up and running might need to be a priority for next year though - that would have covered a huge chunk of that expenditure you've had to make if you'd had 1k sitting in there wouldn't it.
    MORTGAGE FREE 30/09/2016
    Sainsbugs 0% card: 22/12/16 £1229.00/£1035.63 (09/07/18)
    SOA Calculator for DFW newbies: Stoozing.com SOA Calculator
    • another casualty
    • By another casualty 19th Dec 17, 3:59 PM
    • 3,682 Posts
    • 5,751 Thanks
    another casualty
    You’re doing really well dan . Relax, enjoy Christmas and keep on going
    • worriedDan
    • By worriedDan 30th Dec 17, 10:58 PM
    • 231 Posts
    • 722 Thanks
    worriedDan
    Hi Everyone, I hope you have all had a great Christmas.

    I have been doing some forward planning for 2018. We have quite a few things coming in the New Year - family weddings etc. Nothing hugely expensive but still stuff that falls outside of our usual expenditure. We are also planning to have a cheap holiday in the Summer. All of these things fall between January and July.

    This evening I have sat and worked out a 7 month budget. I have worked out how much money will will take home and deducted our house bills, food, fuel, afterschool clubs and debt payments. I have then deducted how much we think we will spend on the weddings, holiday etc.

    We will still have over a grand left over each month after everything has been paid for. This is money that we can use for emergency fund or possibly for additional debt payments.

    I have found it useful to take a longer term view of our finances for next year. I am also reassured that we can still do nice stuff without it impacting on our debt repayment plan.
    • EssexHebridean
    • By EssexHebridean 4th Jan 18, 12:14 PM
    • 8,718 Posts
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    EssexHebridean
    Yes - forward planning on the financial stuff is precisely the thing that stops us getting caught out by things - and by saving for expected spends like holidays, Christmas etc right through the year rather than just using a couple of pay cheques to cover it make a huge difference to the budget too doesn't it.
    MORTGAGE FREE 30/09/2016
    Sainsbugs 0% card: 22/12/16 £1229.00/£1035.63 (09/07/18)
    SOA Calculator for DFW newbies: Stoozing.com SOA Calculator
    • worriedDan
    • By worriedDan 24th Feb 18, 12:18 PM
    • 231 Posts
    • 722 Thanks
    worriedDan
    Time for an update!

    Sorry that I haven't posted for a while. Things have been good recently. We have made a positive start to debt busting this year. February's payments are due to be made next week and this will mean that we have cleared 4K from the debt since the start of the new year.

    We have quite a lot going on this year so we have had to budget well in advance. We have hen do's/stag do's coming up, followed by a major family wedding and then a holiday in August. We have budgeted for all of this and it will all be fine and won't affect our debt payments. I know that some people will say that this money could have be used for additional debt payments, however we have decided that we need to have something to look forward to, providing that it doesn't affect our debt payments or lead to additional debts.

    We also need to do a bit of work on the house this year. All essential stuff as opposed to cosmetic. Our bath desperately needs replacing and out toilet is on it's last legs!! We will probably have to repalce the tiles too. We are planning to do this work in the summer but we are buying bits and pieces when they are cheap and storing them in my parents garage. My BIL will fit these items for us in the summer in return for me tutoring his daughter through her GCSE's.

    We are going away with my lovely parents at Easter. We had the opportunity to stay at a friends Gite in France. We have used Tesco club card vouchers for the Eurotunnel so we have only got to find the money for food and fuel. Really looking forward to getting away for a week. My parents are paying for us to have a day at Disneyland paris on the way home. This will be a nice surprise for our son and something that we wouldn't have funded ourselves this year.

    A few days ago we fixed our mortgage for 3 more years at 1.84%. We had been on a variable rate for the last 7 years but I was a little concerned that any further rate increases might impact us. OUur new payments is £9 per months more than we were previously paying, however I think that this is a small amount for the peace of mind if brings me.

    I am still receiving some treatment for my depression/anxiety. Barclaycard and Creation have supported this by freezing interest on my debts for 6 months. Most of my debt is with these 2 lenderes so this is really helpful.

    Up until this point we have focused on repaying the highest interest debts. however for the last couple of months we have focused on paying off some little 'leftover' debts of £500 or less. Psychologically this has been useful as it is really nice to see fewer bills arriving. It also means that we have 4 or 5 more settled accounts on our credit file. at the start of our journey we had something like 10 different accounts that were paying each month!!

    We have cleared my wifes Flybe credit card which had a small balance of £350. Normally they will offer a 0% offer as soon as the balance is zero so we are hoping that we can use this to transfer my wifes Barclaycard debt across as the promotional rate expires soon.

    I hope that everyone else if doing ok. IF you are new to this board, please have a look back at my posts from this time last year. No matter how awful you are feeling, there is a way forward and you will feel better as time goes on, no matter how big your debts are. We still owe a lot of money but just knowing that there is plan in place and that is under control makes all the difference.
    • Cumbria lass
    • By Cumbria lass 24th Feb 18, 1:20 PM
    • 2,385 Posts
    • 14,686 Thanks
    Cumbria lass
    Great post Dan from some of your first ones . Really pleased the debt is decreasing . You have lots to look forward to this year .

    Keep on posting when you can.
    CC1 £3500 Nov 2018.
    • kelpie35
    • By kelpie35 24th Feb 18, 1:29 PM
    • 1,553 Posts
    • 5,029 Thanks
    kelpie35
    You are doing so well, long may it continue.

    Hope you all have a wonderful holiday.

    Take care
    • Drawingaline
    • By Drawingaline 24th Feb 18, 7:27 PM
    • 501 Posts
    • 1,640 Thanks
    Drawingaline
    You sound so positive. I hear you on the holiday, we have one coming up in may, something a bit more than normal. But i have cleared so much over the last year I felt that we could put it into our budget. I think as long as you identify your issues and are not putting it on a card, and are more frugal than you might have been in the past, these small luxuries are a must, especially on a long journey.
    • savingholmes
    • By savingholmes 24th Feb 18, 9:07 PM
    • 8,955 Posts
    • 17,027 Thanks
    savingholmes
    Just caught up on your diary Dan. You've been making great progress and sound so much healthier now than you did at the beginning. I think allowing some funds for enjoyable things to do together as a married couple is sensible and affordable for you.
    Today is a new day £93/310 £10 a day Mar Challenge DFD August 2021
    • remote_control
    • By remote_control 24th Feb 18, 10:30 PM
    • 280 Posts
    • 1,057 Thanks
    remote_control
    Great to have an update and that you are still smashing that debt!

    I love closing an account so nice to get the little ones gone.

    Good luck with the next few months of debt busting
    • Honeysucklelou2
    • By Honeysucklelou2 25th Feb 18, 7:01 AM
    • 1,175 Posts
    • 5,568 Thanks
    Honeysucklelou2
    Well done Dan...4K is fantastic progress.
    paydbx #93 £899.50/£8,000.
    Loan £17k - paid off in Aug 2017. Home improvement loans £3342 March 2017. £2994 in Aug 18
    • MeenaM
    • By MeenaM 25th Feb 18, 7:55 AM
    • 271 Posts
    • 483 Thanks
    MeenaM
    well done ! I have read most of the first entries of your diary so i may have misunderstood but i really hope your wife is now shouldering more of the responsibility of getting out of debt, it causes so much anxiety and stress on the one spouse who is trying to manage it all, it is a joint responsibility when you are married there are no my debt or my problem it is our debt and our problem and we both have to sort it out and face up to the figures i am going through this atm with my husband and it drives me nuts that he doesnt want to know stuff but yet is happy for me to sort it all out , he sounds just like your wife .

    keep focused on the outcome and your future you will get there
    Sealed Pot 11. #199Next£1170Barclays Credit Card £4891.20/0- 0% ends April 2019 virgin 0% ends july 2020 £4138 £570.09AA Credit Card £860 0- 0% ends Dec 2017 Sainsburys Credit Card £521.27-0 0% ends Feb 2018 STARTED Nov 17AIM TO BE DEBT FREE JULY 2019Emergency Fund £614/£1000
    • Suffolk lass
    • By Suffolk lass 25th Feb 18, 8:01 AM
    • 2,150 Posts
    • 22,325 Thanks
    Suffolk lass
    Great post Dan. Would you be up for doing an updated SOA in March? It is about six months since you last did one (round about post 175 or so) - to keep your journey visible and your priorities in line with your debt?

    I agree about having some treats in our lives. Very important to keep us positive
    MFiT T4 #2 update 90.89% after Q11 against revised stretch target of £60k balance
    Save £12k in 2018 #53 83.33% £9,999.70/£12,000 (after upping my target from £10k to £12k in October)
    OS Grocery Challenge 2018 spent £1,696.43/£3,000 including stores 67.14% of my annual budget at the end of Oct.
    My DFD is here
    • LabRatty
    • By LabRatty 17th Mar 18, 7:02 PM
    • 73 Posts
    • 108 Thanks
    LabRatty
    Congratulations Dan, lovely to see you so on top of things and planning a couple of treats too.

    All the best, LR
    Save In 2018 #109
    • worriedDan
    • By worriedDan 13th May 18, 11:01 AM
    • 231 Posts
    • 722 Thanks
    worriedDan
    So I haven't posted for a couple of months..... I am back somewhat sheepishly.

    After a great start over the last 12 months, we have slightly fallen off the wagon over the last couple of months. We haven't added to the debts, however we have not paid off anywhere near as much as planned.

    There are some extenuating circumstances.... My father was taken ill and spend a period of time in hospital. This coincided with a very busy spell for me at work, along with a few other minor issues that we had to deal with. I am afraid that we have lived the last 7-8 weeks in a state of dis organised chaos, and our finances have reflected this.

    So, things are more settled now. My dad is better and work is starting to calm down... so time to get back on the wagon. It's interesting that my feelings of stress and anxiety have increased significantly over the past month, so this is a huge reason to get back on top of things.

    I guess it was inevitable that we would have the odd hiccup along the way and this appears to be the first one for us!
    • Suffolk lass
    • By Suffolk lass 13th May 18, 11:07 AM
    • 2,150 Posts
    • 22,325 Thanks
    Suffolk lass
    Welcome back Dan. I know what you mean - my diet has gone to pot with work related pressure and I have put on a few unwanted pounds that need to go. You might find doing a Statement of Affairs will help you to be more accountable. We had a similar thing last year when my lovely Mum was ill and I did a few trips to Scotland to fill in while my more-local Sister took a bit of a break. Played havoc with the fuel budget!
    MFiT T4 #2 update 90.89% after Q11 against revised stretch target of £60k balance
    Save £12k in 2018 #53 83.33% £9,999.70/£12,000 (after upping my target from £10k to £12k in October)
    OS Grocery Challenge 2018 spent £1,696.43/£3,000 including stores 67.14% of my annual budget at the end of Oct.
    My DFD is here
    • triple choc chip
    • By triple choc chip 14th May 18, 7:04 PM
    • 886 Posts
    • 2,999 Thanks
    triple choc chip
    Hey, worriedDan, thanks for posting the rough as well as the smooth and keeping it real. I guess you must have more than £20k paid off now? A massive achievement not to be forgotten during the tough periods. Hope your dad continues to improve, keep on keeping on, only 6 weeks to the summer break.
    TTC
    Debt Free since 6.8.13
    New home 12 5 rooms to decorate/re-furbish
    Saving for Xmas 2018 #3: £736/£600 122.6%
    Emergency fund £1.1k
    Next car fund £1.6k
    • worriedDan
    • By worriedDan 12th Jun 18, 1:03 PM
    • 231 Posts
    • 722 Thanks
    worriedDan
    Hi,

    I have just been looking at how much we have paid off. At the start of our journey I didn't correctly calculate our total debts. In hindsight we owed about 63K if I factor in some 'little' debts that my wife had. We are not down to 47k so 16k paid off. We should have cleared more than 20K by now be we became a little 'derailed' a couple of months ago.

    Things are back on track now and I am pleased that we have cleared at least a chunk. At 20% APR that 16K that we have cleared could be costing us £266 per month!!!

    In September my wife is returning to work full time. I also move up to the next salary scale. My £122 tax debt payments is coming to an end. These three things will create an additional £400 for us. We are going to pay this straight off the debts.,

    I have struggled with it all since the Spring. I think that it just started to get boring. I have just read through some of my earlier posts and I definitely don;'t want to go back to where I was.

    My next aim is to clear at least another 10K by the new year.
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