Nearly there!

Kerfuffle · 27 March 2012 at 4:40PM

January20 wrote: »

Kerfuffle, I started this diary rather late in the day on my debt free journey so I am concerned you will not find very much info about how I did it, so here is a post to try and tell you:

First, I have been a single mum to my dd for about 12 years now, and my career path has been bumpy - even more bumpy than my road to DF (@GReenSaints ) For these reasons, it has taken me so long (nearly 6 years to get debt free) as I didn't have lot of money, and sometimes wasn't paid everymonth, and I didn't want my dd to do without too many things, so being DF took a back seat occasionally (but perhaps it is like a weight loss program - better to be slow and effective than fast and put all the weight/ debt back on?).

I discovered this site just before Easter 2006 but it took me until August 2006 to get my LBM. At the time, I was sinking fast into debt and I acquired a default that is a painful reminder of those days.

I took control of my finances: initially, I created a spread sheet for all my debts with balance, interest and repayment plans.

I then created a spreadsheet with all my outgoings ie all the regular bills, but it also lists my income (and back in the day the CTC and CB). I worked out how much I had to spend after all the bills were paid. At the beginning, I had 2 loans, 3 credit cards and 1 large bill for roof repairs (not my choice: management company)

In the years that I have been on MSE, I have spent a lot of time reading stories of people in debt, people in much worse debt than me, how they got out of it, etc. I got comfort from knowing I wasn't on my own. I learned tips and how to be really in control of my situation.

I started making more use of the online facilities on my current account. I now check my account every day or every other day. I need to know what goes in and out, I can't rest if I see a transaction I don't recognise so for this reason, I also save all my receipts and I have another spreadsheet for all my spendings, separated into categories: foods, toiletries and household stuff, petrol, car repairs, clothes, entertainment and general spending. I never buy anything without thorough research first. I buy second hand if I can ie books, I always buy second hand books.

The mistake I made: I should have started a diary much earlier but the truth is I was ashamed to be in debt. I told no-one in real life, my dd has just found out, and I think I started to come clean on MSE towards the end of last year, when I could see the end was near.

THE END
(not like me to write such long posts lol)

I may start a mortgage-free diary at some point, but there will be some changes in my work in the next few months, and I have been assured I would know my fate by the end of May so until then I will just relax a bit and save some money! And carry on writing on this diary and on GreenSaints' diary too.

Hi January20

Thanks for the post. I've read through your diary and it has been a great read, easy to follow as for the majority of the time there's only been one conversation to follow. There were plenty of times I felt I could have jumped in with ' I know just how you feel', such as BC's interest rate jacking, and how it feels like the banks are constantly trying to s c r e w us over.

It's been like reading the back of a book when you know what's going to happen but you don't know how it's going to get there, so at the begining of March you were talking about 'maybe' making a final payment at the end of March, but as I knew you'd already managed it it was a nail-biting finish to see how you did it :rotfl:

I've been following MSE for a few years and enjoy reading the diaries, I currently have some debt, and once it's gone I'm going to tackle the mortgage, so I hope you stick around so I can follow the rest of your journey.

I think when I get to the point of overpaying my mortgage I'm going to initially set mini goals, such as saying that in 2013 I'm going to pay xx amount extra off the mortgage, and see how it goes from there. I want to build some savings at the same time so it can't all be about the mortgage :mad:

Anyway, good luck with the rest of your journey.

January20 · 27 March 2012 at 9:38PM

GreenSaints, I think I am going no-where and I would definitely make sure you could follow me if I did

Kong, good advice from Denmark. I think I did live a little whilst paying my debt and that's why it took so long for a relatively small amount compared to the mountains I've seen people on here tackle. It's finding the balance now isn't it? Being DF makes me feel free - a great weight off my shoulders!

Kerfuffle, I know what you mean about following only one conversation. I've given up on diaries and other threads before because they move too fast for me. I don't always have the time to read a lot, never mind follow enough of a story to then post a reply! I hope you - and the other posters of the last few days - will keep posting on my diary - if only to save poor GreenSaints from boredom!

Kerfuffle · 27 March 2012 at 11:12PM

Hi January20,

I'll certainly keep bobbing in from time to time to see how you're doing. Reading your diary the last couple of days has inspired me to pay a little bit more than I was originally going to pay to BoM&D as I took your example to stretch myself a little bit out of my comfort zone.

As you say in your previous post, a lot of getting rid of debt is about keeping a balance, you've got to have a life, but not so much of one that your debt doesn't reduce. But whilst reducing your debt making sure you still have a life to stop you from slowly and steadily going mad.

So here's hoping I got the balance right when I paid a bit more than I was going to.:)

January20 · 28 March 2012 at 12:31PM

Stretching myself a little :rotfl: :rotfl: I have £2.82 left in my current account! Payday is on Friday though, my mortgage payment came out this morning, and I have a bit of cash in my purse so should be ok but still, talk about sailing close to the wind!:eek:

GreenSaints · 28 March 2012 at 10:52PM

I assume you have an overdraft just in case? Wouldn't like you to be charged for being over your limit for less than a day!

January20 · 29 March 2012 at 6:46PM

Oh yes I have an overdraft! I also know that there are no bills coming out of the account until tomorrow (spreadsheets ARE useful lol!). I don't like using my overdraft because I get charged interest and even if it's a few pennies it annoys me! I need to get my mortgage payment changed to the 1st of the month instead of the 28th (which is before payday) but that will probably require me to pay 2 mortgage payments from the same salary, so perhaps that should be my first aim since being debt free: saving up for an extra mortgage payment! I think I'll make that my first goal!

January20 · 31 March 2012 at 8:50AM

Well, not really but I have just received my yearly service charge and again, although I do love my flat, I am reminded why I so want to move into another property: £643.93 :eek: £20+ more than last year! When I first moved into the block, it was £350 (but that was nearly 12 years ago). And what do I get for that?

- The communal areas are cleaned regularly and well (until somebody hires a contractor and they make a mess everywhere!)
- The light is on all night in the communal area - and we have safety light during the day. (I would prefer a system where we put the lights on as we need!)
- The grass is cut (for people from the neighbourhood to come and let their dogs pee on :eek: It's an ongoing battle. They say it's council property, we say it's private property. One day somebody is going to get my bill shoved in their face :rotfl:)
- Various insurances, communal windows cleaned, various repairs and a contingency fund for future decorating work)

I have within 30 days to pay it. I have the money, but is not leaving my account for another 29 days!

Action plan:
- In the summer, I will do all the decorating jobs that need to be done. I will save up for carpets too. Get the flat ready to go on the market.
- In october, my defauts drops from my account. I will see what kind of mortgages and properties are available to me then. My dd and boyfriend are planning to move out at some point so it might be a good time for me too. Or they could move with me!
- I have been paying an extra £50 of my mortgage for a while now. When my work situation is resolved, I'm hoping to be able to pay more than this, although it's not the first time that work have promised me great things and they haven't materialised. :mad: Not putting my hopes up.

GreenSaints · 11 April 2012 at 9:28AM

Hey,

How are you doing?

I'm making a list of all the things that need doing in our house, but it's going to be costly and time consuming!

If only I knew a plasterer! Can you go out with one do I can get discount?

We're overpaying on the mortgage too (been here nearly 8 years and haven't really made a dent in it) Would like to clear off £6k this year, would be nice to get £10k, but that's wishful thinking!

January20 · 11 April 2012 at 3:40PM

Oh if you were up her in the north-east, I could get you a really good plasterer! ( and no, I didn't go out with him lol)

I have some work to do in the flat too but there is no point until my dd, her bf and their cat move out. I also need new carpets and a new sofa and that's not a good idea with a cat around! Most of the work is cosmetic: new coat of paint etc. It will keep me busy when I find myself alone.

I'm finding myself a bit lost at the moment because I'm not striving to pay off my debt which is good, but I have no firm plans for what I'll do in the future as I don't know my fate come September. I'm on holiday too at the moment but don't want to spend a lot of money, so am not going too far from home and am avoiding my "expensive" friend!

Anyway, it's still a good time, it's nice not to have to worry about debt, am thinking about opening an ISA but then wondering whether it's worth it as I plan to put any spare penny into my mortgage, although of course I don't know if I'll have any! Waiting game! That's why I haven't posted on this diary lately.

GreenSaints · 25 April 2012 at 1:28PM

Just popping in to check you haven't gone awal with your new found debt freedom! :P

Nearly there!

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