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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 3
    • nsl101
    • By nsl101 5th Mar 18, 5:10 PM
    • 36 Posts
    • 43 Thanks
    nsl101
    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
    Originally posted by MuffinTops
    Hey MT,

    Thanks for reading... I have had a lot to think about and i think i'm doing really well, however finding it really tough to stay high spirited about it all at the moment.

    I have now sold my car and I've made a massive effort to stick to lower costs. As a result I have one tesco current account with 3,000.00 another with 3,303 - this was at 3906 but ive paid out for a holiday this year... I need to finally get my first break away from this place.

    I found Monzo, this is a pre payment card, fantastic, its really working well for me as the app shows me all my spending, also i'm making a special effort to ensure that when i want something i count through in my mind, is this something I need or is it a luxury item.

    I wanted a new door mat - bigger than my current one ... i went to the shop looked at them saw that the price and said to myself... I don't need it... didn't buy it and went home. Felt quite good about it too. This is a new behavior for me...

    Sadly the DJing has to come to an end as from mid March. Its not really making me money, I know this as my tax bill is really low. I want to concentrate on doing things that make me money, its important now more than ever that I don't burn considerable amounts of time doing things that do not contribute to my goals. Also I enjoy it less and less these days.

    The trading on ebay appears to be going well, I've been doing this for three weeks and I have yet to crunch the numbers properly but I appear to be up on the numbers.. I need to make time to take stock of all my associated costs and the time i am spending doing it to understand if its worth my time and if I am going to use it as part of my strategy to pay off the debt.

    Lots to think about and what does not help is i have had a few off moments with my family..

    I know im making progress and I need to update all the spreadsheets and do a fresh SOA but ... meh

    I dunno perhaps ill feel lighter tonight lol.
    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 19th Mar 18, 7:00 PM
    • 36 Posts
    • 43 Thanks
    nsl101
    Hi All,

    So this weekend I decided My contingency is now complete, and I can now start to focus on over payments on the First Direct Loan. Having been completely confused about how the interest is calculated and having read on here in replies to my posts that the interest is not "front loaded" I decided it was tie for some learning and education. Being the Guy who likes to ask why I ended up doing the following three things this week:
    1) make a few small starts to over payment and see the impact of this on whats left to pay.
    2) Ask for a Settlement Figure to see what it would cost me to settle the loan.
    3) compare that figure to what I've paid and thus figure out what Id cleared off the capitol with the
    regular payments.

    Step 1 was the easy bit... So Im in the 1% challenge and I wanted to follow it to the letter, so I totaled up my debt and nominated my self for 37,000.00 at the time i thought its do-able and I would make a good head start when i sold a car for approx 6,000, and then got another lodger to rent my room out mon-Fri I would be more than capable of finding 1% of 37,000.00 (370) appears I'm wrong... However I didn't do this because it was easy... So given that I've now sold the car and changed my plans to hold it in two accounts for contingency (this stops the need for more debt, fixing my problems at source) I have decided that I would now break down each 1% (370) box into a further 1% bite size chunks ...

    Enter the mini Gird - a 10 x 10 box grid printed from an excel spreadsheet with some simple formulas to calculate the value of each box as you work through the grid.

    so my four simple rules...

    Rule 1: everything Is bought on Monzo card... This is a prepayment card that has a "pot" saving system, this pays no interest but its like an envelope system for cash in an app on your phone... however they have a new feature called "Coin Jar" this is a round up system so I pay for my weeks shopping at Aldi for 15.43 (not uncommon now im really watching the pennies), once the transaction goes through Monzo will round it up to the nearest pound and place the difference into my Coin Jar Pot... Once it makes it to 3.70 (1% of 370) then I pull the money out the pot and transfer it directly to the loan via sort code and account number. Then I tick the Box on my mini grid.

    Rule 2: If I can do it cheaper or negotiate it down then the difference goes into a box. E.g. My girlfriends a hairdresser, I cooked her tea and she cut my hair... That's normally a cost of just under 10 so I calculate to the nearest box tick off 3 boxes and 11.10 paid off the loan..

    Rule 3: Sell some thing.. So this at the moment is odd junk laying about the house. I sold an item that I had owned for a long time that was no longer of interest to me to a chap on facebook for 100.00 - this may be subject to tax (capitol gains would mean it comes in on the allowance or could be considered income tax or such like :-( ) but my lady who does my books will help me with that but in short that's 7 boxes ticked unless i round it up to 8 (103.00). I'll pay the tax when the estimation on the bill comes in from the lady who does my books... This will also be supplemented going forward each month by my new found buying and selling on ebay which will be subject to income tax any profit will be used to shrink the loan with over payments. However as i de-clutter i am continuing to sell stuff along the way.

    Rule 4: Celebrate success... Once mini Grid is full Tick off the next box on the big 1% chart on the side of the fridge, print out next mini Grid and send in my result to the 1% challenge, update my signature and then, and only then go blow a few quid on a beer or two. Remembering of course to buy your beers on the Monzo card to trigger the round up to start off Rule 1 for the next chart...

    So to cut a long story Short I am now 41 boxes completed on my first Mini Grid This Gives me a reason to do Step2 and phone up about the settlement Figure on the first direct loan.

    Step 2 This was easier than the last one... I phoned First Direct from my app and as Always I got an answer and got through to someone who was very friendly and helpful she gave me the settlement figure of 35,365.96 - Great I thought thanked her for her help and noted the figure down and carried on with my day...

    Step 3 I thought about it and realised that I borrowed 35,700.00 and I've managed since December to reduce the settlement figure down by 334.04 So then I was left confused and it got to me I didn't understand how they arrived at the figure...

    How Could I plan my targets effectively if i cant see the impact and understand how that's happened? Do I gain more if i pay more in a month? should I pay it at the beginning of the month or at the end? Should i just pay when I have it? Is it making any difference to the interest at all? Whats the best way to get the most benefit of my 11.10 over payment?

    Well put simply... I was just far to confused... So I phoned them... I politely asked them how the interest is worked out if its charged daily or... and I wanted to know proportionately how my of my regular payments actually helped reduce the capitol and if the same was true for over payments and how this would affect my overall term of the loan... In short the lady did not know herself but was very helpful in trying not only to answer me but to give me the right answer... I am blown away with First Direct... Having gone from being told any over payments will just pay off the interest first then the capitol.. they have managed to correct themselves and say quite simply a larger amount of the payment goes towards the interest and the rest goes on the capitol this then reduces as the time goes on through the loan so towards the end of the loan your paying more capitol than interest, this now matches what I would know of fixed payments and feels much better in my mind, that making an over payment does help reduce the amount of interest payed, even though its calculated up front and added to the balance you see in the app. So ... we arrived at... I now have a direct dial number for the loans team, and someone I can ask for with her extension and the days of the week shes working... this was all offered to me without me complaining or winging... all ive done is ask how and why.. and as a bonus they are sending me an amortization report, which will give me more information on just how much of my payments go on interest... and I've been asked to call back and ask to speak to the Lady so she can learn this info too... at that point i will get my updated settlement figure as well.

    So you might ask why... well why not... I am keen to learn as much as i can about the Loan so I can work hard and reduce it as soon as is possible with the means I have available.

    My next plan is to figure out how to buy out of my Vodaphone contracts and divert the funds I would have spent monthly on them into this loan... this is a possible 100 a month of resource. Considering using some contingency fund to buy out, selling some handsets to recoup the contingency fund, but that will be my next post once I've worked out all the facts and figures for the various contracts I have... I know my son is eager to set up his own pay as you go phone.. and one of these contracts is his so i figure that is a good place to start...

    Anyhow... here is my status... and signature updated... I figure i should provide this whenever i post to keep me spotted.
    Debt at 19/03/2017: 45,150.51 - Includes interest for full term of loan - but excludes Mortgage
    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%
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