Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • danze
    • By danze 28th Jan 18, 8:22 PM
    • 20Posts
    • 27Thanks
    danze
    Accrued £136,325.55 in 5 years! Time to stop.
    • #1
    • 28th Jan 18, 8:22 PM
    Accrued £136,325.55 in 5 years! Time to stop. 28th Jan 18 at 8:22 PM
    Hi all,

    I've been a longtime lurker, on these forums and site occasionally visiting when looking things up, making purchases, deals, switching banks / energy providers.

    I didn't realise I had much of a problem with debt until I started getting seemingly out of the blue rejected for credit.

    Needless to say the first thing I did was check my credit score on a couple of sites and I couldn't believe I was in the 'very poor' classification - I feel embarrassed and ashamed I've been so careless and blas! with my finances - so now it's time to take back control - fortunately I'm not worried about the score so much as I don't intend to wastefully apply for credit in future but it's still the shock I needed.

    I don't have any problems keeping up with payments but it was a wake up call as to how much debt I was continuing to pile on - the warning sign should have been that almost any 'nice-to-have' purchase was turning into a finance application rather than saving for things and following the money saving mantra.

    As of this month I have £136,325.55 in total debt, £40,757 of that as unsecured (excluding the mortgage) and no savings to speak of, just living month to month but very wasteful with money - I've never missed a payment but where I've probably messed up regarding the credit score is the total amount and allowing credit cards to tick over on minimum payments for a couple of years and never realise it as a problem.

    Anyway - numbers geek that I am I've created a spreadsheet that shows all my income and expenditure, loan/credit balances, APRs, budgets and gives me a leftover total, some of which I'm devoting to using the avalanche technique to clearing other debts.

    If I can stay within my budget by September 2021 I should have no more unsecured debt and be left with £85,000 on the mortgage which I can then start overpaying at which point my available budget will be just over 3.5x larger than it is now - so I shouldn't need finance and saving for my future / the things I'd like to achieve will be much easier.

    My plan is based on paying off the highest APR debts first, then using the money saved on paying these to throw at the next highest - it will mean sacrifices, living to a budget, spending less on takeaway and video games and other impulse purchases.

    I don't know if any tools like my spreadsheet are already out there but being a bit of a hobbyist programmer I might turn it into a free money-saving website/app if there's any interest - it's something to keep my mind occupied so I don't spend money on things I don't need and keep my focus on where it needs to be - getting rid of this debt and maybe helping others do the same.

    I know I can do this - but I appreciate your tips and support.
Page 1
    • rjwr
    • By rjwr 28th Jan 18, 8:33 PM
    • 341 Posts
    • 208 Thanks
    rjwr
    • #2
    • 28th Jan 18, 8:33 PM
    • #2
    • 28th Jan 18, 8:33 PM
    i hate to say it but troll.
    But never spend money you don't have to buy things you don't want to impress people you don't like.
    .
    Originally posted by kidmugsy
    • danze
    • By danze 28th Jan 18, 10:47 PM
    • 20 Posts
    • 27 Thanks
    danze
    • #3
    • 28th Jan 18, 10:47 PM
    • #3
    • 28th Jan 18, 10:47 PM
    Woah, bit quick to jump on the name calling - I can't help that I look like Tubbs on the league of gentleman.

    Not sure how exactly you arrived at 'troll' other than it being my first post.
    Last edited by danze; 28-01-2018 at 11:41 PM.
    • Purplemumof2
    • By Purplemumof2 29th Jan 18, 9:18 AM
    • 6,561 Posts
    • 24,760 Thanks
    Purplemumof2
    • #4
    • 29th Jan 18, 9:18 AM
    • #4
    • 29th Jan 18, 9:18 AM
    Woah, bit quick to jump on the name calling - I can't help that I look like Tubbs on the league of gentleman.

    Not sure how exactly you arrived at 'troll' other than it being my first post.
    Originally posted by danze
    There was most likely a troll post on your thread which got deleted.

    Good luck with your journey x
    Official DFW Nerd Club - Member no. 791 - Proud to be dealing with my debts
    MBNA: £5660.00 Lloyds: £9878.75 BC: GONE Cap One: GONE
    OD £0/£500 LC £371.25/£1500 Washer PAID
    POAMAYC 2018 #041 PD £7219.86/£7000
    Savings for Christmas £385.36/£400
    20p Savers 2018 £2 Savers 2018 50p Savers 2018 SPC 12 2019 #003
    • Mahsroh
    • By Mahsroh 29th Jan 18, 10:55 AM
    • 339 Posts
    • 330 Thanks
    Mahsroh
    • #5
    • 29th Jan 18, 10:55 AM
    • #5
    • 29th Jan 18, 10:55 AM
    Hi danze. Just popping by to say hi, and good luck!
    • MeenaM
    • By MeenaM 29th Jan 18, 11:31 AM
    • 271 Posts
    • 483 Thanks
    MeenaM
    • #6
    • 29th Jan 18, 11:31 AM
    • #6
    • 29th Jan 18, 11:31 AM
    Hi Danze ! I did like the Trolls movie , very up lifting film lol

    anyway welcome to the diary section, there are quite a few sites out there that will calculate either the avalanche method or the snowball one, I've opted for the snowball one as it will hopefully keep me motivated as it clears the debt with the lowest balance first regardless of interest,

    i'm following Dave Ramsey, 1. get an emergency fund of £1k, 2. snowball your debts, 3 , when debt free increase emergency fund to 3-6 months of expenses, etc

    priority is to do a budget when you get your pay cheque , account for every £ and stick to it , good luck with your journey to debt freedom!
    Sealed Pot 11. #199Next£1170Barclays Credit Card £4891.20/0- 0% ends April 2019 virgin 0% ends july 2020 [COLOR="Red"]£4138[/COLOR] £0AA 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 2020EF£800/£1000 virgin2 £5927.92MBNA £8214
    • danze
    • By danze 17th Mar 18, 9:27 AM
    • 20 Posts
    • 27 Thanks
    danze
    • #7
    • 17th Mar 18, 9:27 AM
    • #7
    • 17th Mar 18, 9:27 AM
    Hi all, it's been a few weeks since my original post and just wanted to let you know how I'm getting on.

    My wife and I been living with a budget, shopping online to minimise being tempted and I've been wasting less money on 'treats' (fancy coffee everyday, video games etc) and now we're starting to feel in control again.

    So in terms of the numbers - we've settled a couple of the higher interest debts already and the total amount including the mortgage of debt now stands at £130,351.79.

    I am saving a little every month, enough to pay for car maintainable and eventually self insure - I know its a false economy as it'd be more efficient to use the savings to clear debt - but we've never been savers or had a pocket of money to draw on so it's more to form a habit than anything else.

    Touch wood barring anything unexpected our credit cards should be cleared by Christmas. Our new goal is to have the unsecured debt cleared by May 2020 and by then we should have a bit of a buffer saved as well.

    So things are positive so far, I had turned into a bit of a compulsive spender, getting more out of spending money than actually what I was buying and by tracking everything its keeping me focused and accountable.

    Thanks everyone again for the support and advice.
    • enthusiasticsaver
    • By enthusiasticsaver 17th Mar 18, 10:36 AM
    • 7,378 Posts
    • 16,280 Thanks
    enthusiasticsaver
    • #8
    • 17th Mar 18, 10:36 AM
    • #8
    • 17th Mar 18, 10:36 AM
    Looks like you are doing well and have a plan. As you say getting rid of the high apr debts first and saving an emergency fund so you are not tempted to spend on the cards again should be a priority.

    For anyone who is any doubt. Anyone who is paying minimum payments on credit cards and paying interest will never pay the cards off. Set the payments slightly above minimums and as soon as you are able to get 0% deals balance transfer the most expensive ones. There are all sorts of noises about interest rate increases and the BOE is clamping down on banks who lend more than 4.5% income and high unsecured debt will be taken into account with remortgage deals. Sorting out your budget so you are decreasing unsecured debts and saving for things rather than putting it on credit cards is definitely sensible.
    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
    • danze
    • By danze 7th Apr 18, 12:56 PM
    • 20 Posts
    • 27 Thanks
    danze
    • #9
    • 7th Apr 18, 12:56 PM
    • #9
    • 7th Apr 18, 12:56 PM
    I've been fortunate that there has been a small amount of overtime available at work and that's helped me get a good start on clearing this up, now the total stands at £128,810.45 (~£34,000 unsecured) so I'm feeling positive that so far we're making good progress.

    I spent the last couple of days setting up YNAB (on my third free trial - I just didn't get it before) and I'm hoping that will help prevent me going back into debt for the things I never used to plan for (like car maintenance).

    Not only am I losing £'s in debt but also lbs in weight, less stress from feeling out of control with money has lead to a stone weight loss over the last few weeks - it's telling that I gained just under 100lbs in weight over the last few years I started piling on the debt and losing control...

    I'm not rushing or putting pressure on myself but I am being deliberate and aggressive to fix this mess I've created.

    Thanks for keeping with me on my steps to wealth and health.
    Last edited by danze; 07-04-2018 at 1:04 PM.
    • enthusiasticsaver
    • By enthusiasticsaver 7th Apr 18, 2:24 PM
    • 7,378 Posts
    • 16,280 Thanks
    enthusiasticsaver
    Goodness that is a brilliant reduction in just a few months. Do you have a DFD in mind? (debt free date in longhand).
    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
    • danze
    • By danze 7th Apr 18, 2:36 PM
    • 20 Posts
    • 27 Thanks
    danze
    Well, unfortunately the overtime is not likely to be available again at work for the foreseeable future (it's very unusual to be offered it where I work so I made the most of it while I could) which means I'm expecting the pace to slow down.

    With the new budget which takes into account true expenses and building a reasonable emergency fund the clear unsecured debt goal is by my birthday in August 2020, that's possible assuming myself and my wife hang on to our jobs and there are no dramatic negative shifts in earnings/costs.

    My long term goal is to be totally debt and mortgage free by 2025.
    Debt free journey (Started Feb 2018)
    124,857.98 / 136,325.55
    • enthusiasticsaver
    • By enthusiasticsaver 7th Apr 18, 2:43 PM
    • 7,378 Posts
    • 16,280 Thanks
    enthusiasticsaver
    Well, unfortunately the overtime is not likely to be available again at work for the foreseeable future (it's very unusual to be offered it where I work so I made the most of it while I could) which means I'm expecting the pace to slow down.

    With the new budget which takes into account true expenses and building a reasonable emergency fund the clear unsecured debt goal is by my birthday in August 2020, that's possible assuming myself and my wife hang on to our jobs and there are no dramatic negative shifts in earnings/costs.

    My long term goal is to be totally debt and mortgage free by 2025.
    Originally posted by danze
    Good luck with that. Shame no more overtime for now but at least you have made a real dent in the unsecured debt.
    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
    • danze
    • By danze 14th Apr 18, 8:24 PM
    • 20 Posts
    • 27 Thanks
    danze
    We're taking the dog for a little holiday at the seaside in the UK this weekend and looking forward to a few days away from work, especially after all the overtime, we're not expecting to spend much (except on fuel driving there as we've already paid for accommodation) and a budget is in place on YNAB for the trip

    Last month I did apply for a couple of 0% balance transfer cards which took a while to hear back from and I was accepted for however I'm not going to bother, the majority of my unsecured debt is a very cheap 3.3% personal loan and I want to totally end this spiral of applying for credit/finance even if it will save me a little in interest and I think there's more value in having an incentive to continue to clear the credit cards and then close down all but the cheapest, which should happen before the end of summer.

    My mortgage deal is due for renewal this time next year so I'd like to do as much as possible to repair my credit score before then to secure a good fixed-rate deal, so I need to keep that in mind that I can't swear off credit, but draw a line that the only time I should be using credit is my mortgage so any advice on this is appreciated.

    As of today we're at £127,553.79 (£32.753.79 unsecured), slowly but surely.
    Debt free journey (Started Feb 2018)
    124,857.98 / 136,325.55
    • danze
    • By danze 29th Apr 18, 8:17 PM
    • 20 Posts
    • 27 Thanks
    danze
    We had a nice break, really great weather and managed a very economical drive with the car so didn't spend as much on fuel as I'd budgeted.

    Online grocery shopping is a massive help to our budgeting, and I'm also getting more comfortable with YNAB and finding squeezing money into next month is getting more common - possibly more room to pay off debt but I quite like the idea of paying next months bills with this months wage.

    I cancelled one of the credit cards today, I'm going to keep the cheapest rate one active - although well on target for having them all paid off before August.

    A tiny bit more overtime to come next month but then that's certainly the end for a while, my wife may be getting a promotion soon so that will hopefully help us meet our goals quicker.

    We're at £31,608.74 unsecured now. Thanks for reading
    Debt free journey (Started Feb 2018)
    124,857.98 / 136,325.55
    • danze
    • By danze 20th May 18, 1:59 PM
    • 20 Posts
    • 27 Thanks
    danze
    Just a small update, total debt now £124,857.98 and unsecured at £30,195.98.

    It's interesting reading the old post and seeing that I was aiming at September 2021 to clear but now it's looking more like December 2019, we'll actually have the mortgage just about paid off by then based on the current budget/plan - again, assuming no major setbacks - no doubt there will be some but by the same token the quicker we get it cleared the less likely we are to hit a setback before we are able to deal with it.

    MeenaM mentioned Dave Ramsey and I must admit I've become somewhat obsessed watching his show, I guess I'm currently on babystep 2, I'm excited about what the future will bring but can't help feel regret/remorse for not having this lightbulb moment ten years ago.
    Debt free journey (Started Feb 2018)
    124,857.98 / 136,325.55
    • enthusiasticsaver
    • By enthusiasticsaver 20th May 18, 3:18 PM
    • 7,378 Posts
    • 16,280 Thanks
    enthusiasticsaver
    You are still making good progress. On the monthly repayments you appear to be making presumably you are a high earner.

    Do you have an emergency savings account? Dave Ramsey is a fan of that too.
    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
    • danze
    • By danze 20th May 18, 6:47 PM
    • 20 Posts
    • 27 Thanks
    danze
    Hi Enthusiasticsaver - I certainly don't feel like a high earner but overall our household income is comfortable - once you start tracking your spending you find all sorts of money you didn't know you had, and realise you're spending all sorts on things you don't even care about - I did always feel like we were starting to struggle somewhat needlessly and were dependant on credit for the things we wanted - as really we do have a comfortable income between us.

    We do have an emergency fund although it's only funded up to £750 so far, we add £50 to it each month.

    I've planned our October over-payment 'snowball' to the car service / some unexpected maintenance, Christmas and making sure the emergency fund is topped up to £1000. This will be the first snowball payment after everything but our larger, longer term, low interest loans are paid off, so I have also tried to account for some 'true expenses' in the budget as well so I won't need the emergency fund for these types of events.
    Debt free journey (Started Feb 2018)
    124,857.98 / 136,325.55
    • brizzlegirl
    • By brizzlegirl 20th May 18, 9:32 PM
    • 444 Posts
    • 2,948 Thanks
    brizzlegirl
    Well done on tackling your debts. Keep posting, it will definitely help you stay on track

    Have a good week
    MFW..aiming to pay it off in 2022.. 2018 Savings Rate - Goal 40% [29%May 25%June 15%July 32% Sept & Oct 0% Nov ] 2018 Income Goal £125/£750 December Goals: AFDs 03/25; Decluttering 15/60; LSDs 03/10; NSDs 01/10 Exercise 01/15 12k steps per day pls Aiming to be a true Frugalista!
    • danze
    • By danze 13th Jun 18, 10:16 PM
    • 20 Posts
    • 27 Thanks
    danze
    Well, we've actually gone up a little bit - I hadn't been including my wife's credit card debt in my original calculations and I've now taken over managing that aspect of our budget and debt snowball as well (should have from the start really).

    This has added almost £3000 onto the total (fortunately most of it is in an interest free basis) this will now take priority over the other debts and I'll be hoping to have this all paid off in August.

    The good news is she's really disciplined, all of the spending on those cards was for things like holidays and impulse purchases made on a joint decision, she's not actively using them and the cards are safely out of the way.

    Fortunately it won't make a difference to our debt free and longer term mortgage free dates because dw is now earning a little more and is willing to use half of this increase to contribute to our goals so our new debt free target (excluding the mortgage) is October 2019 which I believe is just under 18 months away - about the length of a phone contract. We will do this.
    Debt free journey (Started Feb 2018)
    124,857.98 / 136,325.55
    • Mnd
    • By Mnd 14th Jun 18, 9:30 AM
    • 833 Posts
    • 1,016 Thanks
    Mnd
    Doing well so far..impressive
    Good luck in the future
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

354Posts Today

2,171Users online

Martin's Twitter