Quite a lot has happen over the last few days!
Firstly, we have contacted most if not all of our creditors to arrange a payment plan to pay back £1 per month for the next 6 months. This may seem like an insignificant amount but it will be enough to keep the wolves from the door and give us a bit breathing space to plan our next move towards a debt free life.
On the Monday when Skint Mum left for work, I played with C for a while then sat down at the table with a long list of creditors in front of me to contact. All of the enthusiasm from the previous days slowly drained away.
I had that little voice in my head telling me that it was OK not to ring these people. It was OK to keep ignoring the phone calls and letters that we were bombarded with on a daily basis.
I was absolutely petrified!
C came over and asked for a drink of milk which I was glad to oblige. Anything to get me away from the job at hand!
She settled down with a few toys and I approached the list once again. Looking at it for a moment I suddenly felt energised. In front of me was a list of companies that we owed money to, a list of companies that lots of people owed money to. All I needed to do was pick up the god damn phone and dial a few digits. By doing this I would be taking the first steps towards a debt free life! What more of an incentive did I need!
As I dialled the first number on the list I didn’t know what to expect. The first call was to a company we owed £988.57. After going through an automated system I was finally connected to a real person who wasn’t a monster, didn’t want to kill me and most certainly didn’t take me to court right that second!
I explained our situation and that I wanted to start dealing with the debt. She asked for numerous financial details which I had already prepared. We went through all incomings and outgoings down to the last penny.
I found once I had given her a complete picture of our financial situation there wasn’t really any alternative than to accept our £1 offer. I explained that I wanted to review it in 6 months and I didn’t expect to pay a £1 per month until the debt was clear.
In regards to the payment method, I chose to set up a standing order. This way I had complete control over what comes out and when, and I could also change the amount if we had more spare one month.
After the call I updated our debt spreadsheet which Skint Mum had cleverly designed. It is quite clever in the fact that on the front page it shows a list of all debts and how much is outstanding and how much has been paid.
Each debt then has its own sheet which has details of payment frequency, additional payments, account and bank details – everything we need to track the debts.
For the rest of that day and the next I made over 30 phone calls to different creditors. I found that because I had prepared our figures and knew exactly where we stood financially, 9 times out of 10 they accepted our offer of £1 per month. Only two creditors so far have refused as they feel a £1 per month is not enough. We are still going to make payments to them so at least they will see we are trying. Other than that we will continue to offer a £1 per month until they accept.
Skint Dad Debt Diary Tips
- Don’t waste money ringing expensive premium rate numbers, use SAYNOTO0870.COM to find alternative geographic numbers instead which doesn’t cost the earth.
- Prepare your SOA before making any calls. I recommend checking out the calculator on stoozing.com which we are currently using.
- If, like me, you dislike making these sort of calls, just close your eyes for a minute and imagine a life without debt. Imagine not having numerous people chasing you day in and day out! This should be enough incentive to pick up that phone!
- Be honest and open with the creditors. They are more than likely to accept your offer if you come across as genuine rather than a closed shop.
- Remember, you are not the only one in this position and they speak to hundreds of people per day so don’t be embarrassed at offering even a tiny amount – at least it’s something.
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Vikkilyra says
Many congratulations to you guys! Those phone calls sure are difficult, aren’t they?
This morning I’ve just registered the two car parking spaces that come with my house on parkatmyhouse.com. I can’t drive. I have no car. Someone else just as well make use of the space! I’m hoping this will provide some extra little pennies towards the debt-free dream.
Your blogs are so helpful. Makes the journey seem a little less lonely.
Warmest wishes to you all :-)
Skint Dad says
They certainly are! I was so worried before making the first one but like I said in my blog, once that one was out of the way I got momentum and went from there.
Great idea about the parking, hopefully you will get some interest soon :-)
Helen & Peakles (@peaklepie) says
Fantastic news. What a brilliant blog and what a wonderful start to the rest of your lives. I hope you are sleeping better tonight too! There are loads of ‘frugal’ bloggers out there which will help you create wonderful meals and family traditions. We have started buying one extra item every food shop which goes in the ‘Xmas box’ by mid Dec I should have all the essentials for Xmas dinner. We don’t buy a turkey or chicken, I cook two chicken legs and two chicken breasts plus loads of sausages wrapped in bacon. Works out at less than £10 for family of 4 incl pudding n mince pies. We make crackers & decorations. Plus we got married on a budget so it can be done!! :-)
Skint Dad says
Thank you. I love the idea of a Xmas box. We have so many plans and on the outset it almost seems an impossible task but you know what, nothing is possible if you want it that much :-)
I’m glad you like my blog.
Judith says
Well done, what a huge step to take and one in the right direction. I’m so enjoying following your blog, I think they open and honest way you speak about your debts will help others.
Having been at rock bottom with finances for many years in the past I can honestly say “You will get there and things will get better, it just takes time”
Glasgowfoodie says
What a great blog and hopefully you’ll feel the support from everyone. It’s not easy sorting out finances. Take care x