A question about : January 2015 is the beginning
Hi all
Well - having read lots of diaries on here I can see why they help you on the road to becoming debt free, and how they inspire others. So I thought I would start my own diary.
A little bit of history - which if I say it fast enough may just slip by you 
We've have had large debts before and consolidated it into a secured loan. Huge mistake, but we are where we are and can only move forward.
With just under Ј94k of unsecured debt the only way forward for us is a DMP with StepChange. For months and months and months we've borrowed from Peter (aka credit card A) to pay Paul (aka Credit card B, C, D, E, or F) 
Stupid (I know that now). Having borrowed like this we are up to date with all payments, but we just can't continue. Seriously, I would literally take money out of an ATM on one credit card to walk into the bank and pay money off another.
I've completed the StepChange debt remedy which advises me we could potentially be debt free in 9 years 4 months 
I know this is subject to creditors agreeing to freeze interest and may therefore be longer. To be honest I don't care how long it takes as long as we are paying off the debt and we have enough money to live on each month.
So having had our LBM last week this is my first diary entry of what we have done so far:
Opened 2 new basic bank accounts (1 for me and 1 for DH). These accounts are with a bank not associated with any of our debts (amazingly there was one 
). We plan to use one account for mortgage and bills. The other account will be used for our living money, eg. food, fuel etc.
Both of us have advised our payroll departments of the new bank details.
Cancelled all credit card direct debits and made a token payment to each of them this month
Contacted insurance providers, mortgage, secured loan etc for new DD forms - I know when opening new accounts the banks can sort out DD transfers, but I was worried about only transferring some and not others and just wanted to do this all myself so I know what's going across (probably daft but it is what it is in my brain)
Completed the StepChange debt remedy and applied for a pack to start the ball rolling
Taken a one month payment holiday on both our loans (approx Ј660 in total per month). This was done to allow time for the StepChange process to start and contact to be made with our bank before they start chasing us for money. Technically it does add interest to the loans, but hopefully they will agree to freeze the interest anyway...eventually.
Contacted our broadband/tv/phone provider and reduced our package by over Ј40 per month.
Logged onto all credit card and bank accounts and changed contact phone numbers so that only our home phone number is listed, i.e. no work contact numbers.
Sorted out some items to put on ebay - but decided to wait until end Jan to do that based on my theory that sale prices are likely to be low as folks will have little spare cash following Christmas and may need to wait until payday at the end of Jan.
So now just to wait for the StepChange pack and get the ball rolling. We are very nervous about the setup and acceptance period for the DMP - the period of time when creditors realise we are not paying the required amount, but only paying token amounts for now and then when they get the StepChange info. DH definitely worried they will contact him at work. Hopefully it won't happen but I've told him just to be polite and explain this is a personal matter and he will be happy to speak to them if they phone him at home after 6pm. When (if) they phone us at home we will just advise that we are working with StepChange to resolve our debt issues and will take their (StepChange) advice from this point on. Strangely, for the first time in what seems forever, I am not worried about talking to our creditors as I feel I am not floundering with how to move forward but have found a way and made a decision to move forward with a plan which will eventually result in clearing all the debts
Sorry for such a long first diary entry. We are looking forward to the beginning of the rest of our lives, and I'm looking forward to getting to know my fellow DFWs along our journey 
Best answers:
- Hi everyone
Having spent the last week finally facing up to the debt and starting the ball rolling to deal with it, I felt strangely 'flat' today. I felt I should be doing something but am in limbo waiting for the StepChange pack to arrive.
I was good and had a NSD - it felt great to walk round the shops during lunch break with some colleagues and despite sales galore I didn't even feel tempted to buy anything. Spoke to DH when he got home and he also had a NSD. Let's hope (know) this is the first of many NSDs for us both.
I need to work out how to sort out a signature on this forum. I've gone from not being able to face the amounts to determined to see them reduce and can't wait for the DMP to start. I spoke with DH last night and said I thought the debts will increase to start with because it may take a while to organise freezing of interest and some, or all, of our creditors may refuse to freeze the interest.
Happy debt busting everyone - I don't post very often, I am very much a lurker but just wanted to wish you the best with your journey
- Hi January. Good luck on your journey, I had my LBM in November, and the first payment on my DMP was 1st January, so I'm very early in to my DFW journey.
For the signature, if you go to 'USER CP' on the green bar across the top of the screen, this is where you edit your profile and can add a signature on.
I will be subscribing. - Hi January,
We started a DMP just over 16 months ago and have never felt so good. We still have the odd moment where something unexpected happens but it is so much better than waiting till midnight for pay day to pay off a payday loan and get another to pay off another loan, crazy how things get!! We started with a debt over 54000!!! Luckily it is now down to just over 38000. Finally feel like we are getting somewhere. Sorry for the ramble but just thought I would say keep your chin up and it does start to get a lot easier!!
Hope this helps
Danidav88 - Well done for starting a diary and getting going with your DFW journey - here to cheer you on
- I seem to have acquired an obsessive compulsion to check and recheck figures I haven't been able to bear to look at for oh I don't know how long.
On the positive side I calculated all the debts correctly. Also on the positive side I input DH's salary into the StepChange debt remedy by Ј100 per month, i.e. he brings home Ј100 per month more than I wrote down. A bit embarrassing have to tell StepChange I got it wrong. I don't want them to think I was trying to mislead them or anything. I am really hopeful that when this extra Ј100 is added to the DMP payment (when eventually set up) it will have a significant impact on the length of time it will take to become debt free.
I tried logging back into my debt remedy form on StepChange but it now states that as we have chosen a debt solution we need to contact them if our situation has changed. So DFW task for tomorrow (oops today now) is to phone StepChange after work tomorrow and update DH salary figure.
Edit: Just done a quick Excel calculation and I think the extra Ј100 per month will reduce the debt payment timescale by 1 year 1 month Will have to wait for StepChange to confirm my calculations but I can now go to bed with a smile on my face - Great news January, a reducing DFD already.
I know what you mean about looking at the figures, I can easily spend an hour looking at the spreadsheets to see if I'm missing something.
I wouldn't worry too much about this 'gap' time from deciding to go with a DMP and payments actually starting. Are you sending token payments to covers the period to 25thFeb when the SC payments will actually roll in. You might get a few calls, but mainly they will be positive rather than problematic.
Before you call SC I'd just like you to take a moment to think about building your emergency fund, you know the 'boiler gives up/car breaks down' problem. Making sure the budget has some built in savings can make a big difference a couple of years into the DMP.
Great diary posts btw, useful to direct newbies to from the support thread. Congratulations on making life changing financial decisions. - Well done for making a start! That's the hardest thing. I'm 10 months into my DMP and can honestly say it is the best thing I did. For the first time in years I am in control of my finances and not worried about opening letters etc. You have done the right thing. I've subscribed to keep up with your journey. Good luck. HB
- Hi everyone
Another NSD for me
DH spent Ј2.70 on lunch, but to be fair that was only because he knew I was at a work event with a meal provided so we agreed he would buy a cheapish meal at lunchtime so we didn't have to cook a full meal this evening.
We have an online savings account we haven't used for years and I managed to lock myself out because I forgot my memorable information Phoned up to unlock the account, and found we have accumulated Ј2.66 of interest in the account . I've set up 5 jam jar pots in the savings account for - Christmas/birthdays
- Appliance/vehicle repairs & maintenance
- Optician/dentist
- Clothing
- Emergency fund
- Best of luck on your journey January!
A DF diary is such a great idea, I know mine helps me loads to stay focused and motivated! - Hi everyone
Well I got a phone call today whilst at work from one of the CCs chasing the late payment. I politely advised that I was at work and it was not convenient to talk and could they phone me at home after 5pm. Very nice lady said no problem. I got home and didn't wait for them to call me and phoned them myself. I explained I couldn't make the full payment but had just made a token payment and was working with StepChange to set up a DMP. The person on the phone couldn't have been nicer and explained the process from this point onwards. I was asked for the StepChange reference that I got at the meeting - what meeting? I explained I had filled everything in online and sent off for the application pack to start the DMP ball rolling. Does that mean I will have to attend a meeting or can it all be done by post/email etc? The person at the CC company said they would need the StepChange reference as soon as I have it. Whatever, dealing with letting this CC company know that I am entering into a DMP was certainly less difficult that I thought it would be.
I sort of had a NSD today. I did spend, but bought our shampoos and smellies on Boots points so I didn't actually use any cash - so for me that counts as a NSD
Day of of the diet and because it's the 5:2 diet and this is one of the 5 days we had a lovely meal using up stuff from the freezer. We've spent the evening going through the freezer and cupboards and planning meals. Apart from basic veg, milk etc. we have enough food to see us through the next three weeks. Menu plans being drawn up so we do not deviate. Tomorrow is the first of the 2 days - so is a fasting day. We plan to have cereals in the morning and soup for dinner. DH is going to struggle with that and I may just have to fit bolts to the fridge, freezer and larder
I cannot wait for the DMP to be set up - I already feel so much happier with life. I have actually slept the last 2 nights which for me is amazing.
Hope everyone has had a great day - I changed my dual fuel using one of the MSE offer thingys in December. I set up the direct debit based on the full year use given on my annual statement from my previous provider. Direct Debit set at Ј109 p/mnth. I've been putting in weekly meter readings since joining the new supplier.
Because I am going to go on a DMP I have opened new bank accounts and so need to change the direct debit with the energy supplier. They want to increase it to Ј247 per month I need to phone then tomorrow to find out what's going on.
When I input meter readings it produces an updated account balance. I have gone into debit each week, but not by much and I thought paying a fixed monthly sum meant I would be 'overpaying' in summer months to offset 'underpayments' in winter months. Whatever, I cannot afford Ј247 per month - or I suppose I can and will have to update StepChange with revised figure. I need energy supplier to explain to me why it's such a massive jump one month into the contract.
Apart from this glitch things seem to be very quiet on the financial front. I feel like I am in limbo just waiting for something to happen. Hopefully it will be the pack from StepChange and things will start moving. I really want this DMP set up now.
On another note I check my points on my Sainsburys nectar card Ј27.50 We have stopped shopping at Sainsburys and now shop at Lidl (and sometimes Asda). I'm going to keep hold of the nectar points and use them when there is a clothing sale. DH likes Sainsburys shirts for work and his old ones are looking a bit tatty. He does have some to slim into but is not there yet
First fasting day of our diet today. It wasn't too bad - did you know a 400g can of Heinz vegetable soup is only 188 calories . Soup, 2 slices of white bread (93 calories per slice) gave a total 'evening meal' of 374 calories. DH was not impressed and I did say he could sort something else out for next Tuesday (next fasting day) if he was so inclined. We also had a small bowl of cereals for breakfast so it wasn't total starvation. This had better work - Just a post to wish you the very best with the DMP and debt busting.
Interesting fact on the Heinz vegetable soup.....I was thinking of trying this 5:2 thingy and normally diets point us to salad things which I hate , Makes me want to have a go for a couple of months so I can tighten my belt to the usual hole again and speed up a bit
You have the most beautifully written posts! Whilst I only consulted with Step Change and then didn't use them, I understand the feeling of impatience and limbo all too well in this game . I keep thinking I want to do something about all of this right now but.......what can I do?
I will follow you if you don't mind.
Brogden x - Just subscribed to this thread and wanted to wish you luck. We are in the process of working out all out figures to fill out the debt form online to see of StepChange can help us. There is a few things I don't quite understand...about it all, but will start another thread to ask as don't want to hijack your diary....Good luck.x
My plan is to move the money StepChange allow us each month for these things from our current bank account to the savings account so that we don't start spending this money on the wrong things and really do save for when we need these things.
I aim to sell several items we are currently sorting out on eBay and use money from those sales to build up the emergency fund. I would like to get at least Ј1,000 in this pot but at the moment that's just a dream.
For the optician costs, we already buy our glasses on line (both of us wear glasses) so we have already massively cut costs for these. I don't know of any way to cut dental costs unfortunately so that's what this pot will be used for mostly.
Christmas/birthdays - this is a difficult one for me. DH and I don't buy each other presents and I no longer buy our (grown up) children anything, but I do want to keep buying presents for my gorgeous grandchildren - all of whom we are lucky to be very close to. We have eleven grandchildren between the ages of newborn (over the new year) and 13 years and until they are grown up themselves I still want to be able to buy them something nice. So even if I only spend Ј20 on each of them for birthdays and Ј20 for Christmas that's a total of Ј440 per year. I buy presents in sales and when I find bargains - sometimes buying months ahead of one of the children's birthdays if I find a suitable bargain. I aim to try and put aside Ј10 each week for this pot - which sounds a lot, but I hope to generate this Ј10 from extra income, e.g. some eBay sales, using loyaly points from Supermarkets to buy pressies instead of cash etc. I may have to revise this goal along my journey but this is my starting aim.
Clothing - we both have lots of lovely clothes we can diet back into and hence save massively on costs there . We've decided to try the 5:2 diet as it not only will help us lose weight, but on the 2 days of fasting is very money saving as well . So from now on (not today because we've eaten already ) Tuesday and Thursday will be fasting days....watch this space for updates on weightloss.
I discussed with DH my error on his take home salary and he thinks I was right in the first place and that the last two months were bumped up by backdated mileage claims and expense reimbursements. He doesn't get printed payslips so he is going to log on at work tomorrow and check what his usual salary is.
I've made a token Ј50 payment to one credit card today (all the others are up to date in full at the moment but this is the one card that brought me to my LBM as I was about to take money out of an ATM on another card to pay the bill....again ). I came home to a letter from the CC company advising of a default charge of Ј12 which I expect will be the first of several such letters.
I've just realised that for someone who has never kept a diary I can waffle a lot . Have a great evening everyone
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