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  • FIRST POST
    • nsl101
    • By nsl101 26th Jul 17, 5:02 PM
    • 36Posts
    • 43Thanks
    nsl101
    £46,000 possibly more debt I want it gone..
    • #1
    • 26th Jul 17, 5:02 PM
    £46,000 possibly more debt I want it gone.. 26th Jul 17 at 5:02 PM
    Hi all,

    so its gone on too long, ever since i was in my teenage years and i could get debt i've had debt, I've struggled with depression and although I probably can afford debt its growing and I really want to get rid.

    I can't tell you exactly how much debt i have but in short I have one bank loan currently sitting at 16,000 two credit cards one is at 8,000 the other i think is about 4,000 i dip in and out of my overdraft, I have a car on PCP finance that's about 10,000 and on top of all this i owe my father another 8,000 which he is in no hurry for but still i feel its time i face up to it and actually paid this stuff off .

    I also have a sofa loan which i think is about 4,000 but to be honest i really don't know...

    I have three teenage children and I'm divorced, i live on my own in a house i bought 2-3 years ago on the help to buy scheme which i will have to extend my mortgage to buy the other percentage in a few years so I'm on a ticking time bomb to loosing my home if i don't straighten this all out.

    I'm here for the motivation and the kick up the wotsit to get it done, and in double quick time before my Girlfriend who i love dearly looses it with me over money worries.

    I plan to sort out a full break down of what i owe and post it in due course. In the mean time I hope this may be of interest to anyone else in a similar boat reading some of the posts on this forum has really encouraged me to get on with this i should have done it years ago.
Page 2
    • theoretica
    • By theoretica 5th Jan 18, 8:17 PM
    • 5,214 Posts
    • 6,479 Thanks
    theoretica
    What is your relative timing of renewing the car insurance and selling one car? Might be worth thinking about this so your one car insurance isn't left higher than it should be.
    But a banker, engaged at enormous expense,
    Had the whole of their cash in his care.
    Lewis Carroll
    • nsl101
    • By nsl101 5th Jan 18, 8:47 PM
    • 36 Posts
    • 43 Thanks
    nsl101
    so my insurance is due on the 26th of Jan, car goes on the market on the 1st of Feb, however i don't know how long it will take to sell.. I've spoken to the renewal team, and run a load of quotes through the meerkat website. Essentially they have rejigged things to make it cheaper for me while i have both cars, and when I want to drop down to one car, the price of insurance for the car i'm keeping is matched to the lowest quote i got back from the comparison site. however i intend to run another set of quotes through the system before I remove the other car, as it might be worth my while haggling again with them when the time comes as they will charge a £25 fee to remove one of the vehicles which I'm sure if i make a good case they may well be able to overlook in return for my loyalty.

    My brain is in "if you don't ask... you don't get" mode... I've been sitting here all night crunching numbers trying to figure out how i can squeeze things more to get my monthly expenditure down further...
    Fresh start & LBM #2: 21/12/2017 : DFD: 02.02.2024
    Debt at 21/12/2017: £46,506.94 | FD Loan: £334.04/£35,700.00 | O% finance: £143.85/31918.00
    1% challenge: 0%
    • nsl101
    • By nsl101 5th Jan 18, 8:55 PM
    • 36 Posts
    • 43 Thanks
    nsl101
    Everything is starting to look so much better for you.
    Well done!
    Originally posted by vickthestick
    thankyou, Im still concerned the numbers may not be correct but i am thinking constantly about reducing my bills and shrinking my debt so lets see how it goes... I never thought id be in this mess, and when i found out i was i never thought id see a light at the end of the tunnel but i do and that is encouraging at the moment. Its People on this forum that have really motivated me and reading others posts...

    I work hard for my money and I deserve to get through this and be able to live a better life. If nothing else this has been an invaluable lesson to my three children who are actively involved in helping me find ways to save money and pay off this debt. There is no better financial education than to live through it.

    I will clear this debt might be 7 years, but i will clear it, im aiming for 2 years... eeek
    Fresh start & LBM #2: 21/12/2017 : DFD: 02.02.2024
    Debt at 21/12/2017: £46,506.94 | FD Loan: £334.04/£35,700.00 | O% finance: £143.85/31918.00
    1% challenge: 0%
    • Pixie5740
    • By Pixie5740 5th Jan 18, 10:25 PM
    • 12,171 Posts
    • 17,189 Thanks
    Pixie5740
    The interest on your First Direct loan hasn!!!8217;t been front loaded. Interest is calculated daily so the more you overpay the less interest you!!!8217;ll pay in total.
    • Ashingtonian
    • By Ashingtonian 6th Jan 18, 12:27 AM
    • 135 Posts
    • 102 Thanks
    Ashingtonian
    Sorry for being nosey but I assume that FD loan is secured against your home?
    Current MFD 1st July 2026

    Target MFD 1st April 2023
    • nsl101
    • By nsl101 6th Jan 18, 10:12 AM
    • 36 Posts
    • 43 Thanks
    nsl101
    Thatís good to know, when I phoned about over payment I was told they didnít have the facility to recalculate it... which worries me as I wasnít sure how I would know how much my overpayments would affect the interest ... I guess Iíll have to build my self a spreadsheet to do the calculations...
    Fresh start & LBM #2: 21/12/2017 : DFD: 02.02.2024
    Debt at 21/12/2017: £46,506.94 | FD Loan: £334.04/£35,700.00 | O% finance: £143.85/31918.00
    1% challenge: 0%
    • enthusiasticsaver
    • By enthusiasticsaver 6th Jan 18, 2:25 PM
    • 6,606 Posts
    • 13,847 Thanks
    enthusiasticsaver
    Do you still want this thread moved to the diaries section?
    Debt free and mortgage free and early retiree. Living the dream

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • enthusiasticsaver
    • By enthusiasticsaver 6th Jan 18, 2:30 PM
    • 6,606 Posts
    • 13,847 Thanks
    enthusiasticsaver
    Having consolidated your debt on to such a high loan I strongly suggest you don!!!8217;t use credit cards or take out further borrowing.
    Debt free and mortgage free and early retiree. Living the dream

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • nsl101
    • By nsl101 9th Jan 18, 3:30 PM
    • 36 Posts
    • 43 Thanks
    nsl101
    Having consolidated your debt on to such a high loan I strongly suggest you donít use credit cards or take out further borrowing.
    Originally posted by enthusiasticsaver
    I agree, so here's the copy of my new years resolution on Facebook, its more of an affirmation though...

    2018 debt repayment year ... im tired of interest and overpaying for things... from now on three rules ....
    1) No new credit cards
    2) No new car finance
    3) No new loans
    Iím done with paying interest ... itís time someone paid me interest ...

    I figured since its affected every aspect of my life its not a bad thing to shout about... My girlfriend of five years broke off with me in November for not commingling to her and letting her down, and this debt is a massive reason for that as i was keeping it from her... I am not making that mistake every again... She now knows about the debt and we are talking... I don't know what the future holds but I am not letting money control my life... I work too hard to let that happen.. Im using this as my kick up the backside to get things moving... in the right direction.
    Fresh start & LBM #2: 21/12/2017 : DFD: 02.02.2024
    Debt at 21/12/2017: £46,506.94 | FD Loan: £334.04/£35,700.00 | O% finance: £143.85/31918.00
    1% challenge: 0%
    • nsl101
    • By nsl101 9th Jan 18, 3:31 PM
    • 36 Posts
    • 43 Thanks
    nsl101
    Do you still want this thread moved to the diaries section?
    Originally posted by enthusiasticsaver
    Yes please, I want to keep this rolling so I keep motivated this time.. :-)
    Fresh start & LBM #2: 21/12/2017 : DFD: 02.02.2024
    Debt at 21/12/2017: £46,506.94 | FD Loan: £334.04/£35,700.00 | O% finance: £143.85/31918.00
    1% challenge: 0%
    • nsl101
    • By nsl101 9th Jan 18, 3:35 PM
    • 36 Posts
    • 43 Thanks
    nsl101
    Sorry for being nosey but I assume that FD loan is secured against your home?
    Originally posted by Ashingtonian
    So I don't know... now feeling a bit like i should have read more small print... going to pull the paperwork and take a look... eek.
    Fresh start & LBM #2: 21/12/2017 : DFD: 02.02.2024
    Debt at 21/12/2017: £46,506.94 | FD Loan: £334.04/£35,700.00 | O% finance: £143.85/31918.00
    1% challenge: 0%
    • nsl101
    • By nsl101 9th Jan 18, 3:42 PM
    • 36 Posts
    • 43 Thanks
    nsl101
    The interest on your First Direct loan hasnít been front loaded. Interest is calculated daily so the more you overpay the less interest youíll pay in total.
    Originally posted by Pixie5740
    Are you sure about this, im in a bit of a quandary, I don't know if that's entirely true they said and I quote "If you pay £5,000.00 lump sum, then you reduce the term by the number of payments that covers". To be fair they did say it could potentially reduce the interest but they say they have no way of calculating that until all payments have been paid and then they would refund any owed.. if any??

    I'm going to sell a car and i have the option of saving 2,000 from the sale price back for use for a holiday for me and to send to take my kids to Scotland to see my elderly grandmother or I can put the whole lot on the loan now... but from what they say it I don't know if that does make a lot of difference... its so confusing.. as from next month I am going to budget provision for a holiday the following year as i think its important to live a bit even though i have such a big debt to pay I cant live no life for the term of the loan.

    I just don't know... Id feel happier if i knew by putting X amount in it saves me X amount interest so i can make a real informed choice at the cost of me going on holiday..
    Fresh start & LBM #2: 21/12/2017 : DFD: 02.02.2024
    Debt at 21/12/2017: £46,506.94 | FD Loan: £334.04/£35,700.00 | O% finance: £143.85/31918.00
    1% challenge: 0%
    • enthusiasticsaver
    • By enthusiasticsaver 9th Jan 18, 3:45 PM
    • 6,606 Posts
    • 13,847 Thanks
    enthusiasticsaver
    Yes please, I want to keep this rolling so I keep motivated this time.. :-)
    Originally posted by nsl101
    moved to diaries section.
    Debt free and mortgage free and early retiree. Living the dream

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • nsl101
    • By nsl101 9th Jan 18, 10:56 PM
    • 36 Posts
    • 43 Thanks
    nsl101
    So in the interests of trying to get this debt down today i have almost completely decluttered the first room of the house. I have found several items that could be sold, that i don't use, want or need. Listings have been created and saved for later... I will be setting them live on Thursday...

    I also showed a prospective lodger round the freshly decluttered room in the hope that they will rent it Monday to Friday... they said they would let me know... eeek

    I've spent some considerable time looking for higher paid work, and also prepared a quote to DJ for a birthday party...

    I have almost got my paper work in order too, i have a stack of papers on a desk now i need to work through and make sure i have them all sorted.. just finishing off 2016-2017 books for my lady who does them to enter up and complete my tax return and i'm starting 2017-2018 to try and get that in a soon as possible so i have no unexpected tax bills... that should give me one less thing to stress about.

    Considering phoning my energy supplier Scottish Power to discuss what Tariff I am on,. I know it might not make a lot of difference but i think its worth finding out...

    My lodger has passed me a collection of watches to sell on Ebay, he tends to make a bit of extra cash buying and selling and hes trying to help me learn to do some trading, if this works it might provide me with another source of income.

    on the down side my Fuel card was rejected when i filled up my tank today £62.00 of fuel i had to take the whack out of my current account... so although I thought i was doing well this week keeping my spending inside what i predicted on my SOA, I think ive blown the fuel budget for last month which has hit me this week. I need to follow up on the fuel card in the morning when i can phone up and discuss the limit...

    The car i intend to keep is going in for a service tomorrow too, so fingers crossed but sods law being what it is I am expecting costs... Next year there will be a pot of cash waiting for the service... but meh i have to just figure it out this time..
    Fresh start & LBM #2: 21/12/2017 : DFD: 02.02.2024
    Debt at 21/12/2017: £46,506.94 | FD Loan: £334.04/£35,700.00 | O% finance: £143.85/31918.00
    1% challenge: 0%
    • Pixie5740
    • By Pixie5740 11th Jan 18, 9:24 AM
    • 12,171 Posts
    • 17,189 Thanks
    Pixie5740
    Are you sure about this, im in a bit of a quandary, I don't know if that's entirely true they said and I quote "If you pay £5,000.00 lump sum, then you reduce the term by the number of payments that covers". To be fair they did say it could potentially reduce the interest but they say they have no way of calculating that until all payments have been paid and then they would refund any owed.. if any??
    Originally posted by nsl101
    Yes I am sure. Front loaded interest is not legal in the UK for Consumer Credit as all loans have to have the interest calculated on an actuarial basis meaning that on early settlement you only pay the interest accrued to date plus a maximum penalty of 58 days interest.

    What do the T&C of your loan say about overpayments and early settlement?
    • MuffinTops
    • By MuffinTops 7th Feb 18, 7:59 AM
    • 2,119 Posts
    • 6,416 Thanks
    MuffinTops
    Hello nsl101. Thank you for popping in to read my diary. I've subscribed to yours now and I'll have a proper catch up this evening.

    MT
    STARTING 2017:
    Credit Card Debt: £2,650.00!!!
    ======================
    Saving For a New Property
    Pot of Gold = All gone to the above
    • MuffinTops
    • By MuffinTops 7th Feb 18, 9:32 AM
    • 2,119 Posts
    • 6,416 Thanks
    MuffinTops
    So, I've caught up with your diary and you've done so much. I also really admire your bravery for speaking to your girlfriend and telling her what's been going on and why you weren't able to commit.

    You've had a huge amount of useful financial advice so I won't muddy those waters, but I will say that we're not just about the finances here. If you feel you're slipping into a depression then come on and have an anonymous vent or just get things off your chest. Or just come on and tell us about your day.

    Your Dad is lovely for letting you take a breather from his debt. That shows he has trust in you to get things sorted out.

    Your DJing sounds fun too. Even better if you get some payments for it too.

    MT
    STARTING 2017:
    Credit Card Debt: £2,650.00!!!
    ======================
    Saving For a New Property
    Pot of Gold = All gone to the above
    • nsl101
    • By nsl101 5th Mar 18, 4:54 PM
    • 36 Posts
    • 43 Thanks
    nsl101
    Yes I am sure. Front loaded interest is not legal in the UK for Consumer Credit as all loans have to have the interest calculated on an actuarial basis meaning that on early settlement you only pay the interest accrued to date plus a maximum penalty of 58 days interest.

    What do the T&C of your loan say about overpayments and early settlement?
    Originally posted by Pixie5740
    I'm sorry i haven't had a chance to dig it out, yet I will try and sort it this week, reached a bit of a meh moment all getting a bit on top of me at the moment, I've fallen behind with this thread, my budgeting etc...
    Fresh start & LBM #2: 21/12/2017 : DFD: 02.02.2024
    Debt at 21/12/2017: £46,506.94 | FD Loan: £334.04/£35,700.00 | O% finance: £143.85/31918.00
    1% challenge: 0%
    • Asmoosy
    • By Asmoosy 5th Mar 18, 5:02 PM
    • 28 Posts
    • 11 Thanks
    Asmoosy
    You need to sit down and write a list of your outgoings which you have done.
    You then need to look at ways of saving on your bills, mortgage payments etc. Whatever you have left must go to the most expensive debt you have and start to pay it off.
    Also you need to become more frugal, you probably have £1000 sitting in your house in stuff you could sell on eBay.
    Join the debt free community on Instagram and make extra money through side hustles. I am @freebiequeenuk. The debt free community will show you so many ways to make money that don't involve much work and find ways of saving money on your bills.
    Cashback/ freebies for groceries are not going to feed you day in day out but you'll save some money on some items!
    • Asmoosy
    • By Asmoosy 5th Mar 18, 5:07 PM
    • 28 Posts
    • 11 Thanks
    Asmoosy
    Also try moving some of your credit card balance to an interest free card. If you do a balance transfer it could save you a big chuck of interest. I know you don't want more credit cards but it could make things more manageable for 18months at least!
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