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    • BabyStepper
    • By BabyStepper 8th Jul 18, 8:39 AM
    • 21Posts
    • 33Thanks
    Tidying up the mess
    • #1
    • 8th Jul 18, 8:39 AM
    Tidying up the mess 8th Jul 18 at 8:39 AM
    I am trying to find ways to get me and OH out of the debt mess we are in. I became self-employed a few months ago and my credit card providers wrote to me to reduce my credit limit to just above what I owe. This was worrying and I'm now thinking they might call in those debts at any moment. Me and OH then sat down for the first time to list everything we owe and figure out what to do about it. We are in it together to sort it out but this is where we stand just now.

    Hitachi loan 844 0%
    Lloyds cc 1,311.39 mostly 0 % but 403.68 @17.9%
    Overdraft 2,000 0%
    Santander cc 3,367.30 0%
    Halifax cc 3,242.65 0%
    Barclaycard cc 4,614.38 mostly 0% but 838.75 @ 16.9%
    MBNA cc 5,213.34 0%
    Student loans (1) 8,160 (currently deferred)
    Student loans (2) 27,190 (payment taken straight from wage)

    Total 55,943.06

    We spent 10k we didn't have when we bought our house, front and back doors, new windows and damp treatment. 3k is still to be paid off after our wedding 2.5 years ago. The Hitachi loan is carpets and lino. Student loans have never been on the radar as something to be paid off but they are now. Other than that we have around 6-7k that we both just maintained on cards, not to buy anything in particular, just spending and forgetting about it.

    I need a coffee after writing all that.
    Last edited by BabyStepper; 09-07-2018 at 6:37 AM.
Page 2
    • katsoocam
    • By katsoocam 13th Jul 18, 10:36 AM
    • 33 Posts
    • 82 Thanks
    BabyStepper I do this, look pretty much everyday, don't worry it's normal! If you get a spreadsheet with all your bits in it does really help - especially because then you look at how much you owe every time you pay something and work out what percentage you have paid off. If you have a bit of free time on your hands it would be a good thing to occupy yourself a bit. I'm a MFW not a DFW (we do have debt but two 0% payment things which we have the money to pay in a high interest account).
    Have you looked at your energy deal and things like that yet to pare down your monthly expenses?x
    • BabyStepper
    • By BabyStepper 13th Jul 18, 4:43 PM
    • 21 Posts
    • 33 Thanks
    Thanks for the support purplemumof2. Thanks also katsoocam for the tips about spreadsheets. That's helpful.

    I've had more stuff from the banks today. After the first round of telling me my credit limit was being lowered, we are now onto round 2 where they all write to me announcing they are changing the terms and conditions of my credit agreement. So far I have heard from Lloyds and now Halifax. I will wait with baited breath for Santander to drop a letter through the door. Even though we have decided to go credit free, it is still alarming to think I couldn't get credit if I wanted it. And what about our mortgage?! I didn't even think of that!! For the 59 millionth time this week I'm thinking I should pay off the Lloyds card first before Hitachi. I don't think I can follow simple instructions of smallest to largest, I'm going to panic myself into a big confusion.

    And breathe...
    • BabyStepper
    • By BabyStepper 14th Jul 18, 5:55 AM
    • 21 Posts
    • 33 Thanks
    I'm in a panic again, just realised our emergency fund is possibly not safe as its in a savings account with the same bank I have a credit card and overdraft with. They could 'offset' this at any time. I need to move this, OH has a savings account we could use, just wondering what's going to happen when they notice my regular wage is not going in there every month, though I do put my smaller wage through that account.

    This is terrible. I had no idea the banks would know when I left my job. If anyone has any experience of this I would appreciate some info and advice.
    • indigowarrior
    • By indigowarrior 14th Jul 18, 7:17 AM
    • 655 Posts
    • 4,834 Thanks
    Hi BabyStepper,
    I dont have any advice about savings but wanted to say hello. Another DR Follower here . Been on this very slow journey for 18 months and now starting to make progress.
    #545- SPC July No Spend: 5/20
    • Kitten868
    • By Kitten868 14th Jul 18, 7:37 PM
    • 928 Posts
    • 1,987 Thanks
    I need to check with husband is not what you expect to hear from a bride you're right. Maybe it's for their daughter? My shoes were always bought by men which made me cringe but I'm sure were perfectly normal transactions.
    Get your list of random stuff that comes up x
    Loan 1 5800/8000
    Loan 2 3800/5800
    Total 9600/13800 30% PAID
    • BabyStepper
    • By BabyStepper 15th Jul 18, 6:07 AM
    • 21 Posts
    • 33 Thanks
    Hi Indigowarrier and thanks for stopping by and for your support. There are so many DR followers on here it's amazing.

    I spoke to OH about the cards yesterday and we did some research and properly read the changes to terms and conditions. Turns out the worst they can do is increase my minimum payment up to double what it is now and when I make an overpayment, still take the minimum payment later in the month. This is manageable as the minimums are small and we have extra cash so could cope with an increase. If they call in the debt I'll just need to ring them to come to some agreement,and if they closed the accounts then so be it, I'm not using them again anyway. It all feels much better today. I'm just going to keep an eye on the statement to see what they are up to. I've also changed my priorities in paying them off, Lloyds is first followed by the other 2.

    The wedding dress buyer didn't get back to me, have to assume she doesn't want it, thought that was too easy. OH is still to paint his bike but will maybe do that today. Almost all my invoices have been paid. Monday should be a good day for the emergency fund and the start of babystep 2.
    Last edited by BabyStepper; 16-07-2018 at 6:35 AM. Reason: typo
    • BabyStepper
    • By BabyStepper 15th Jul 18, 6:10 AM
    • 21 Posts
    • 33 Thanks
    Hello Kitten 868, ooh yes their daughter, hadn't thought of that. Maybe I should stay hopeful she'll get back to me. Thanks for dropping in. It's good to know there are others on my side.
    • Savertobe
    • By Savertobe 15th Jul 18, 10:29 AM
    • 33 Posts
    • 224 Thanks
    The whole checking thing is common I think - I do the same even though I no it won't make any more money appear and spending the same time looking extra hard for a job would make more sense.

    I get the Dave Ramsey thing for you just be careful to note any UK/US legal differentiations around debtors.

    Good work on changing mind set though
    • BabyStepper
    • By BabyStepper 15th Jul 18, 11:38 AM
    • 21 Posts
    • 33 Thanks
    BabyStepper I spent as much time looking for extra work as I did checking bank accounts. I'd be in much better shape!

    Good point about the legal differentiations. I still have found nothing to tell me why the banks would know that I'd left my job. It's very strange. I've listened to a lot of podcasts and read a lot of diaries on here and have yet to hear of that happening to anyone else. I'd counted on everything being fine with the ccs as long as i made minimum payments.

    Oh well, off for an mse style picnic today to enjoy some of this sunshine.
    • BabyStepper
    • By BabyStepper 16th Jul 18, 6:41 AM
    • 21 Posts
    • 33 Thanks
    We had a lovely picnic yesterday and spent an afternoon in the park. All within the food budget so that was good. This beautiful weather really helps keep the spirits up.

    OH made a big thermometer wall chart with all our debt on it. We included the mortgage and practically had to have a lie down looking at the total...203,000. We can colour in sections as they get paid off. We've put it on the inside of the wardrobe door so that family and friends can't see it when they come to visit. Talk about hiding your debt...

    My biggest invoice has not been paid today, I'm very disheartened but I know things can go more slowly as people take annual leave and things just get left. So still haven't managed to top up the emergency fund. Frustrating. Also my dress buyer has disappeared. And OH is yet to paint his bike.

    Another week of trying to generate more work, and so many people I need to speak to are on holiday. Could this go any slower?
    Last edited by BabyStepper; 16-07-2018 at 6:42 AM. Reason: typo
    • GlendaSugarbean
    • By GlendaSugarbean 16th Jul 18, 6:50 AM
    • 57 Posts
    • 393 Thanks
    Love the idea of the thermometer, sounds like you are both on the same page which is great

    200K sounds a lot, but plenty of people have that and more on a mortgage alone. I'm sure it's doable.
    • Lydia42
    • By Lydia42 16th Jul 18, 9:18 PM
    • 37 Posts
    • 115 Thanks
    Love the thermometer idea. Great visual to see your progress, and definitely shows you are both working through this together! ;-)
    Total Debt June 2018: 19, 444
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