Everything is in place now in regards to getting on top of my debts. The next step is sticking to the five year plan of sorting out this debt and this blog should help with that, well maybe.
There are some things on the to do list which will need to be completed.
- Contact all Creditors to make sure the outstanding balances are correct.
- Work out which debts to settle for the next six months.
- Check what’s happened to my credit report.
- A financial audit to check I am getting the most for my money.
Contacting Creditors to make sure the outstanding balances are correct
This is the most tedious task on this to do list and the one I am dreading the most. I will need to write to all 25 creditors and ask them to confirm how much I owe, along with going through the statements they send me. However it is worth doing to make sure the records I have been keeping are correct.
This is one of the joys you have when you have set up your own Debt Management Plan.
I also scan in any correspondence I receive so I can refer back to it later, plus with the amount I do receive about these debts I would have a lot of paper lying around if I didn’t!
Working out which Debts to settle
The most exciting part is looking at my debts and working out which of them I can pay off over the next six months. Currently I have 25 outstanding debts and the aim is to reduce this number to 19 by the end of this six month period.
I have 16 debts which are below the £1000 mark so there is plenty to choose from. In fact the way I am going to do this is to pay off the debts that cause me the most grief. That way they will be gone for good and I can move on to bigger and better things.
Checking what’s happened to my Credit Report
As I mentioned in my about page, there have been a couple of recent additions to my debt. I need to see how these are being reported on my credit file to see if I can limit the damage done.
Fortunately this won’t cost me anything as I use noddle.co.uk to check my credit report as well as my credit score.
A Financial Audit
I will need to go through my monthly budget and check that I am not wasting any money. I know for a fact that recently, I have been going out and buying my lunch instead of making it myself. That has to stop. I will also check I am getting the best value on my monthly expenses and see if there is anything I can cut out completely.
The plan for next six months is to settle one debt each and every month. The other thing I need to do is to increase my monthly repayment to £840 in order to hit my target of being debt free in five years. Currently my repayments are going to be around the £700 mark so I need to find that extra £140.
One way I could get around this is to make full and final settlement offers to the debts I pay off. This means I could settle some of my debts for a fraction of the balance owed. This may be what I have to do to stay on track and it will save me the job of trying to get some of the charges and interest back.
Until the next update thank you for reading!
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