Day 44 – This frugal life is hard

The calls and letters have entirely stopped but I am finding the budgeting hard, which let’s face it is why I am writing a debt diary in the first place.

I shop in Tesco’s, I look at the prices carefully, I cycle, I don’t eat out, I think twice when I get an urge to buy the new t-shirt then put it back. How does everyone else cope?

As for what’s going on in the wider world. Wow. I thought I had it hard. I feel for those who are victims of timing and circumstance. I don’t feel for the greedy bankers (I said bankers ) who caused much (not all) of the mess in the first place.

Anyone got any how to live like a king on a shoestring tips?

Day 39 – Life’s great, and it’s not just the sunshine

The Debt Management Plan or DMP as those in the know call them is well under way. The letters and phone calls have stopped, and I feel a different man.

The sun is shining in London, and the world is great. Oooops. Read the newspapers and it appears it’s not and the finances of the world are down the toilet.

Perhaps the UK needs a DMP?

Day 23 – Had my telephone interview with CCCS

I must admit the wait felt like an eternity and in the meantime the creditors have kept calling and the letters have kept arriving. I have as advised told them that I am currently going through a review of my debts with the CCCS and I will be intouch with a proposal shortly. This has made most my creditors get off my back.

So the phone call. The lady I spoke to was lovely and very understanding. She asked my all about my income and then lots about my expenditure. Both what I spend now and what I would be expected to live on. As I understand it, creditors want to be confident that you are not living the life of luxury and they have decided how much food, bills, travel etc are if you’re livign on a shoestring and you have to have a good reason to be asking for more.

After reviewing both a debt management plan was her suggestion. Basically my £33,235 of debt would be repaid at £500 per month (what it was decided I could afford). Interest rates and charges would stop (although this is not guaranteed, and my creditors could change their mind!!!). I would have to review my income and expenditure annually, and if I could afford more I would have to pay more.

After an hour on the phone that was it. It was over. The letters and phone calls are going to stop. And I can get on with living my frugal life and stop the worrying.

I am never goign to get into this mess again!!

I would also recommend that if you are in debt – get help.

I am going to keep this blog going and I may even try and give others a helping hand. I have read a huge amount on debt, the companies involved, how the system works and who you should talk to and perhaps avoid. I will try and share this before I forget. I will also share what it is like to live life on a budget. Scary I am sure.

Day 3 – I phoned the CCCS

They were very nice and understanding and I have a date for a telephone interview with a debt advisor in a few weeks time. It’s going to be a long two weeks but I am filled with optimism for the future.

I will now need to pull together all my debts, who I owe what, whether it is secured or unsecured, the stage the relationship is at e.g. CCJ’s yet, income, expenditure, bank statements and every relevant detail I can muster about my life. Time to get to work.

Day 2 – WOW! There are so many debt companies out there

Things must be bad. Google ‘Debt Advice’, ‘Debt Help’, ‘IVA’, Debt Management or any debt related words and you get so many companies telling you that they can help you. Some even talk about writing off 90% of your debts. These worry me as what sounds too good to be true often is.

Found one site that doesn’t look commercial that has reviewed what appears to be the main companies and options called talk about debt.

I have also had a look on Money Saving Expert and both of these sites appear to like the CCCS and Citizens Advice. Both are charities. Surely they’ll be the best place to start.

I’ve got some time off at lunch time I’m going to give them a call.

Day 1 – Beginning Debt Therapy

Hello. My name is Martin and I am in serious debt.

There I said it.

I am writing this because I refuse to believe I am alone. And I really want to share this journey because being an optimist I believe it’s going to get better and me and my family will stop getting the letters through the door and the phone calls at all hours of the day chasing money we haven’t got. We’ll stop being threatened with Court action and Bailiffs and we’ll be normal.

Day 1 is here

It came to a head when my wife looked me in the eyes with tears streaming down her face and said ‘make it OK’. I know she meant it and I know I have put her through a lot over the last two years (yes that’s how long I have been in denial). I have spent hours on Google and have read a huge amount on what me options are. They appear to be:

• Another loan – or ‘Debt Consolidation’
• Debt Management Plan – this appears to be a deal that is done with your the people I owe to repay all of the debt but in smaller amounts. it looks like the key here is to get the interest stopped and avoid management fees
• IVA or Individual Voluntary Arrangement – Tricky one to describe this. It appears to be a Government piece of legislation that allows you to write off the part of the debt you can’t afford whilst paying the balance in small instalments over 5 years. I’ve got lots of question that I need to ask about this one as it appears too good to be true.
• Bankruptcy – Don’t even want to go there.

Today’s mission is to work out who to call. There are so many companies out there.