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  • FIRST POST
    • mandi80
    • By mandi80 9th Apr 18, 12:26 AM
    • 10Posts
    • 0Thanks
    mandi80
    Sorting out this massive mess
    • #1
    • 9th Apr 18, 12:26 AM
    Sorting out this massive mess 9th Apr 18 at 12:26 AM
    Evening all,

    I have been planning this post in my head all day! I am posting here for support, advice and generally somewhere to vent about our current circumstances.

    DH and I, both 37 with one kid, are in debt to the tune of around 60k.. The debt is made of up a combination of credit cards, and a loan. we have been in debt ever since we became a couple. We lived our twenties during the noughties and we took advantage of the 0% balance transfers that seemed to be everywhere back then. We funded holidays, weekend and away and general lifestyle stuff with credit cards, before balance transferring to another 0% card and so on, so on etc. Totally foolish in hindsight but we were totally taken in by the debt culture.

    our debts up until around 5 years ago were around 25K, Whilst this was lot, it was easily manageable on our income and we didn't really think much about it. Fast forward to 2018 and we are around 60K in debt... how did this happen.... I'll digress!

    we were supposed to receive a large sum of money last year (50Kish) that was due to us. Sadly, due to the actions of others this money will not be coming our way ( well not all of it). I can't really go into much more detail. DH is happy for me to post on here, on the condition that I don't reveal anything too specific, so I need to respect this. We have done everything we can to get the money that we are due, however we have had to accept that it isn't going to happen.

    We racked up a lot of debt using a loan, and 0% credit cards with the full intention of clearing it when we received out 50K. This money was used to fund our house renovations, maternity pay gap, as well as funding a 9 month gap when I was not able to work. I need to be jonest and admit that a good 10K was used to totally non-essential things such as holidays, expensive furniture, and being too generous to people who, in hindsight, didn;t appreciate of deserve it.

    We hqve both made peace with the fact that the 50k isn't going to appear. We have had to, in order to maintain our sanity. I am a practical person and not really a worrier, therefore I am taking on the role of 'money manager' in our house - DH is on board and fully aware, but tend to fret and worry and IMO this gets in the way of progress!!. I like to look at things logically, so I have spent sometime today thinking about the reasons why I am/am not worried

    I am worried because
    • Its a massive amount of debt, regardless of income
    • A sudden loss of income would be catastrophic for us
    • It makes my DH anxious and stressed, which I hate.
    • The
    0% deals are running out soonish

    I am not worried because
    • Its only money I have witnessed family and friends deal with all sorts of horrendous things during the last few years and our money woes are minor in comparison
    • We have a reasonably small mortgage of just over 500 per month, which enables us to throw more at our unsecured debts
    • We have a good joint income, taking home around 4800 per month. Minimum debt payments are around 1200 so this still leaves an income of 3600 after minimum debts are paid, which isnt too bad. We managed on far less at the start of our relationship
    • We have paid off 10K since oct/nov 2017
    • We will definitely receive around 17k mid 2019, so this can be knocked straight off the debt, with perhaps a couple of grand retained as an emergency fund
    • Stepchange said that we dont need to consider a DMP as we can easily afford minimum payments.
    • I have put the figures though the snowball calculator with the interest set at 20% and we can still manage it
    • I pay everything on time, and have been overpaying so I am reasonable confident that I will be able to obtain more 0% transfers when the time comes
    I will do a full SOA tomorrow when I am not so tired, but as a general idea, our finances are arranged in the following way

    Income 4800
    Mortgage and all house related bills and direct debits 1250
    Food, fuel and kids clubs 600
    Minimum debt payments - 1200
    TOTAL outgoing- 3050

    Do this look doable? I think that we can do it without resorting to a formal debt solution, based on the fact that we do have a good surplus at the moment. Our jobs are secure so we should be able to make a decent dent in the debts this year.
Page 2
    • One-step-at-a-time
    • By One-step-at-a-time 11th Apr 18, 4:53 PM
    • 127 Posts
    • 450 Thanks
    One-step-at-a-time
    Hello!

    Just wanted to chime in and say good luck - it looks absolutely doable, plus debt-busting is far more addictive than spending once you have the mindset in place
    Jan 2017 CC debt 37,800.21: 29,399.52 / 8,400.69
    Mar 2018 Other debt 7,693: 5,680.84 / 2,012.16
    Debt 22.97% PAID
    Emergency fund 350/1000 DFD March 2022
    • mandi80
    • By mandi80 11th Apr 18, 9:14 PM
    • 10 Posts
    • 0 Thanks
    mandi80
    This evening I've been looking at interest rates. My current 0% deals run out between oct and December this year, so I need a plan to avoid paying hundreds of interest each month.my credit core isn't great right now due applying for too many 0%deals in short space of time plus a couple of late payments during a period of disorganisation late last year. Am praying that 6-8months of good payment history will open up new promotional rates.if not than I guess I'll just need to grin and bear it until they do become available.
    • mandi80
    • By mandi80 15th Apr 18, 9:28 PM
    • 10 Posts
    • 0 Thanks
    mandi80
    I have been looking at the SOA again today. There are quite a few little changes that I think I need to make, but I have decided to keep a spending diary for the next month and then update it again. In reality I think that it is going to take a few months to get it spot on.

    We have spent this evening with mybrother in law and his fiance. They get married in a few months. I love them both to bits but with my new MSE head on, I just know that they are getting into debt for it. Last year they took out an 8k loan and also some 0% credit card debt, to fund the big day. I dread to think how much they have borrowed now. It is absolutely none of my business, and I wouldn't dream of saying anything, but I would hate them to end up in our situation.
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