Debt Diaries - Starting point 2

Debt Diaries - Starting point 2 

I am not going to call this Debt Diaries - Starting Point as it really isn't our starting point, our starting point was in February 2016 when we were in at least £27,000 of debt, I think the exact figure was closer to £30,000 but I couldn't quite bring my self to include everything. 

The clincher came for us when our £10,000 Barclaycard's interest free period ran out and we couldn't get any credit to replace it with. So suddenly out bills went up by £120 a month in interest and our precarious financial balancing act tumbled! 

At that point we knew we needed help, we got a lot of debt advise and were advised to go on an IVA (an individual management plan) due to our jobs this really wasn't a good option for us so we had to find a way to manage it ourselves. If you are currently in the same or similar situation I would advise you do get advice, in the UK a good place to start is step change. Click on the logo to visit their site

So what we actually did was contact all of our creditor's, explained the situation we were in and asked for all of the interest to be frozen. We agreed monthly payments with all of our big debts and concentrated on clearing the little ones. We did really well for a long time and then it all sort of slopped off. 

As we are on a spending ban it seems a perfect time to focus on getting the debt down. 

So were are we right now?

  1. Natwest Credit Card 1      - £2400       - 53.2% paid off so far
  2. Natwest Credit Card 2      - £2000       - 62.2% paid off so far 
  3. Barcleycard Credit Card   - £5250       - 49.0% paid off so far
  4. HSBC Overdraft                - £850        - 0.00% paid off so far
  5. Natwest Overdraft 1          - £200        - 0.00% paid off so far
  6. Natwest Overdraft 2          - £500        - 0.00% paid off so far 
  7. Very Catalogue                  - £400       31.7% paid off so far  
  8. Loan                                   - £2887.75 - 6.66% paid off so far
  9. Capital One 1                     - £1000 - 25.6% paid off so far
  10. Capital One 2                      - £110. 79   - 96.05% paid off so far 
  11. Sunny Loan                        - £206.40  - 0% paid off so far
Total - £15804.01  - 41.46% paid off so far

I want to aim to pay off 20% of our monthly income off the debt each month which is £690, the only one of my bills that has interest on it is the Loan and the interest is bad but not taking that into account by the end of the shopping ban we should have paid off £8280 of debt and be on around £7000 which is much more manageable, in 2 years we should be debt free. Obviously if my husband takes a lower paid job the plan will change but for now this is the plan! It is ambitious but you need to aim high! 

Debt levels as of 1st of October 2019