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  • FIRST POST
    • Nicnak
    • By Nicnak 10th Sep 17, 8:30 PM
    • 406Posts
    • 1,653Thanks
    Nicnak
    Debt Free Year
    • #1
    • 10th Sep 17, 8:30 PM
    Debt Free Year 10th Sep 17 at 8:30 PM
    Hi,

    I've pretty much buried my head in the sand over the past 15 years about debt and what it means. I've always seen it as 'normal' to have debt for things, and never thought twice about it. Recently though, I have wanted to think about cutting down my work hours, and I just can't. I can't be the mum I want to be to my 4 year old because I need to work to make sure I can pay the bills and debts. That is when it hit home, that I can't continue like this. I am having a wedding reception in December, which I know is going to take up most of my 'spare' cash, but from January 2018, I will make a difference to my debts.

    Currently have
    £485 0% credit card. It was £2000 in July, So I have been ensuring that I am working on it.
    £7500 Tesco loan at 3.2% - Paying £220 a month and due up in Three years
    £17,450 car loan. Car is in negative equity and I'm stuck in the PCP. The car also is over mileage and has damage. I am 10 months away from handing it back, but with excess mileage and damage, I am thinking this might not be the best idea. Currently paying £351 a month for this luxury that I am thinking I don't need. (I shouldn't have got it, but I did, I can't change what I have stupidly done, and now need to work on the best options).
    I spend money every month on things I don't need, and really need somewhere to record and focus on what it is I am doing, and the inspiration to keep going when I see progress is being made.

    I've started a written diary as well to try to help. If I pay off these debts, then I know that I will be £500 better off. In April, my phone is due up for renewal, and I have already looked at the SIM only deals which will take it to the £500 a month mark.

    i am going to try to earn some extra per month to pay off the debts, which in the short term might reduce the time I have with my daughter.

    Here goes...

    I really need to do this now.
Page 15
    • DebtFreeDuo
    • By DebtFreeDuo 11th Nov 17, 6:19 PM
    • 449 Posts
    • 2,184 Thanks
    DebtFreeDuo
    Well done on the car, I know how difficult it must have been for you. You will definitely make a saving on fuel too which I think could get you to the £200 saving per month, an extra £2400 every year!
    LBM 20/9/17 5101.55/5690.50 = Loan: 1923.70/2207.38 Car Loan: 2166.87/2419.64 0% CC: 1010.98/1063.48 DFD Oct 18.
    SPC 586
    • TheMoonandBack
    • By TheMoonandBack 11th Nov 17, 6:22 PM
    • 31 Posts
    • 38 Thanks
    TheMoonandBack
    Well done with the car, it’s a massive step to take I know.
    Once you start this debt free thing then big car payments just keep weighing you down, and nagging away in your mind.
    You’ve freed up a lot of money each month which will make things easier.
    Enjoy that dinner and selection boxes
    When you get to the end of your rope, tie a knot and hang on

    Proud to be dealing with my debts
    • Nicnak
    • By Nicnak 11th Nov 17, 6:59 PM
    • 406 Posts
    • 1,653 Thanks
    Nicnak
    Thanks everyone. I am feeling very emotional.

    Not for the car, but because I have actually stood up and dealt with everything face on rather than hiding behind it anymore.

    I have had to take a loan on it rather than a PCP, or HP. I will own the car after 60 months, but this then gives me the option to over pay. The amazing thing is the APR is 3%. That's even lower than my loan payment.

    I was chatting with my neighbour earlier. The car currently costs me
    £351
    £44.51 insurance
    £125 fuel a month
    £20 a year road tax (nominal really).

    around £521 a MONTH. my mortgage payment is £620.

    My new car
    £189
    £140 tax a year
    £23 car insurance
    £100 a month fuel (estimate).

    Total £324 - saving £197 a month.

    I know it will eventually get better as I hit the car loan and negative equity that I will be doing over the next twelve months. The £197 I am used to paying will not be wasted. It needs to go off my other loan first.

    I am still in negative equity no matter which way I would have done this. Either having to pay for damage and mileage, or trading it in. At least this way, I cut my debt by, i think around £6300 after the deposit has come out.

    My total debt has reduced by other 25%. I will soon be moving 25 of the 1% little things I have into the paid off jar.

    In other good news, I paid £1000 deposit on my credit card. They didn't get a settlement figure, and went off my estimate. Turns out my estimate was £281 out, so that will be refunded to me.

    I also think, from swapping cars before, that because I pick up the car on the 30th, it's usually a month before the new payment is set up and taken out of my account. That means that I will have a 'month off' a car payment. That means that £351 will be left in my account for Christmas. I wrote that I wanted to have at least £500 extra for Nov 15th-Dec 15th. With this, it is looking more and more likely. I can then use that to pay off half the deposit I will have paid. So the 1k original debt I had, will only be around £350. Nowhere near as bad as I thought.

    I am so proud of myself today. I feel very emotional about it all.

    Hubby is a little gobsmacked at my behaviour. This isn't like anything I have ever done before. I think he thought I was all talk about it. I must admit I have done that before.

    December:
    So, pay rise of 1% extra £20 a month
    Car £197 per month
    £217 better off in December.

    Phone bill and gym membership in April will take that to around £320 a month.

    Hope everyone else has had a good day?
    September 6th 2017 start Updated 4th NOV 17
    Credit Card £430 now: £0 Tesco Loan £7500 = £6891 Car loan £17450 = £16,748 Total = £25,330 £23,749 EMF #252
    Sealed pot challenge #589
    Pay off all your debts by Christmas #170
    • Nicnak
    • By Nicnak 11th Nov 17, 7:01 PM
    • 406 Posts
    • 1,653 Thanks
    Nicnak
    Forgot:

    Spends for today
    £1000 car deposit
    £20 TESCO- USED £11 in vouchers so £9 overall (selection boxes weren't on offer
    £15 fuel to get me to Wednesday before payday.

    Total without deposit. £24 (didn't include voucher spend as that isn't out of my account). £2.50 was on a bottle of cherry beer for me and hubby to share. The rest was a Christmas present, bread, pizza, some chicken, and some sandwich bits for little one's lunch box next week. x
    September 6th 2017 start Updated 4th NOV 17
    Credit Card £430 now: £0 Tesco Loan £7500 = £6891 Car loan £17450 = £16,748 Total = £25,330 £23,749 EMF #252
    Sealed pot challenge #589
    Pay off all your debts by Christmas #170
    • DebtFreeDuo
    • By DebtFreeDuo 11th Nov 17, 8:11 PM
    • 449 Posts
    • 2,184 Thanks
    DebtFreeDuo
    Amazing! You really are doing so well!
    LBM 20/9/17 5101.55/5690.50 = Loan: 1923.70/2207.38 Car Loan: 2166.87/2419.64 0% CC: 1010.98/1063.48 DFD Oct 18.
    SPC 586
    • Nicnak
    • By Nicnak 12th Nov 17, 8:17 AM
    • 406 Posts
    • 1,653 Thanks
    Nicnak
    Morning diary,

    I had a few drinks last night- half a bottle of beer, and a small honey JD. I then opened the Chocolate orange I had as a Christmas present for someone. That's 99p I need to replace.

    Today we are going on a remembrance walk with the little one, and then it is my nephew's birthday so we are going to his house after dinner for an hour to give him his presents. That should mean a pretty low spend.

    Hubby can do some studying, and I should be ok for spending as I won't have any opportunity to do it.

    I've had another dilemma for a few months now that I don't think I have shared on here. I started a doctorate in Education a few years ago, and had to drop it because of lack of time. I am wanting to pick it up again, but I know it will cost me financially. The one I want to do has no funding, I have checked, and checked. I have a few weeks left to apply to start in May. I'm thinking that the best thing for me to do is to wait 12 months and apply next November to start May 2019. It's so complicated!!

    Have a fantastic day everyone. I will need a top up shop in the next two days as I need about £15 worth of fruit, veg and fridge things. I bought the meat yesterday.

    I have around £40 in the bank account (Bank account login is down for routine maintenance at the minute). Tuesday night is tutoring night for me too. Here's seriously hoping that I stay out of my overdraft. Even if it is just by a few pounds.

    I will then need to target set for the 15th Nov- 15th Dec.
    I still have two main presents to buy for my parents, and some little bits for little one. I can use the amazon vouchers to buy the little bits. x
    September 6th 2017 start Updated 4th NOV 17
    Credit Card £430 now: £0 Tesco Loan £7500 = £6891 Car loan £17450 = £16,748 Total = £25,330 £23,749 EMF #252
    Sealed pot challenge #589
    Pay off all your debts by Christmas #170
    • 117pauline
    • By 117pauline 12th Nov 17, 8:59 AM
    • 420 Posts
    • 5,172 Thanks
    117pauline
    Hi Nicnak

    Happy Sunday!

    Wow, what a rollercoaster week.

    Well done for going through with the car. You should be proud of yourself: you were honest with yourself; you weighed up the situation and then you went through with the hard decision. Brilliant.

    Most of your diary you have been worrying about the car so I think your stress levels will considerably reduce. It might not be the car you want BUT it is the car you need at this moment. When the debt is gone, who knows? But this way you get to own it at the end and you might come to love it as part of debt free journey.

    Personally I would wait a year to start your doctorate. Give yourself time to sort more of the debt before you take on another huge commitment. Get the good habits fully under control then start the new challenge.

    What date do you get married? I guess you must be getting excited now.

    And finally, it's really good that your other half is coming around to his own debt free journey. Then in the New Year you can come up with some exciting new plans together.

    Enjoy your day honey
    Pauline
    Don't get it perfect - Get it going
    Better Than Before
    • DebtFreeDuo
    • By DebtFreeDuo 12th Nov 17, 9:47 AM
    • 449 Posts
    • 2,184 Thanks
    DebtFreeDuo
    If the doctorate is going to cost you financially then I would also wait until I was in a better position financially. I'm not really sure how the finances work around doctorates. I think I will have that much student debt when I finish my degree that adding a loan on for post grad won't affect me at all.
    LBM 20/9/17 5101.55/5690.50 = Loan: 1923.70/2207.38 Car Loan: 2166.87/2419.64 0% CC: 1010.98/1063.48 DFD Oct 18.
    SPC 586
    • Nicnak
    • By Nicnak 12th Nov 17, 6:55 PM
    • 406 Posts
    • 1,653 Thanks
    Nicnak
    Another NSD as predicted. That's a nice feeling.

    I'm very tired now though. We've had a very busy day today.

    I think I knew the answer to the doctorate. I am not in the right place for it.
    I've had a huge chat with people about the car over the last day. I realised that you don't make memories in a car other than bad traffic ones, but you do make memories on holidays and with family time.

    I've changed so much over the last few weeks. I don't recognise myself as the person I was at the beginning of this year. I don't think Hubby recognises me at all.

    I want to update my signature, but I won't do until I safely have the new car and everything is sorted. I am going to do a SOA though, just to see.

    Hope everyone else has had a nice day x
    September 6th 2017 start Updated 4th NOV 17
    Credit Card £430 now: £0 Tesco Loan £7500 = £6891 Car loan £17450 = £16,748 Total = £25,330 £23,749 EMF #252
    Sealed pot challenge #589
    Pay off all your debts by Christmas #170
    • Nicnak
    • By Nicnak 12th Nov 17, 7:13 PM
    • 406 Posts
    • 1,653 Thanks
    Nicnak
    I have just redone my SOA. I have an underspend of just over £400 now. That can be purely on debt busting as the SOA covers absolutely everything that I spend.

    I just checked my earlier posts, and remember the £66 I had managed to save from the first month I was doing this.
    In the past three months with the new car price, I should save £263 a month.

    I WILL be the other loan free in 10 months time.
    I rounded down my bank account today and paid it off the Tesco loan £5 gone towards it. I also paid off £3.70 off the £1000 deposit I put down. Not huge amounts, but it helps. This is the one that will also reduce down by £281 anyway.

    Eek this debt busting is moving on. x
    September 6th 2017 start Updated 4th NOV 17
    Credit Card £430 now: £0 Tesco Loan £7500 = £6891 Car loan £17450 = £16,748 Total = £25,330 £23,749 EMF #252
    Sealed pot challenge #589
    Pay off all your debts by Christmas #170
    • Nicnak
    • By Nicnak 12th Nov 17, 7:39 PM
    • 406 Posts
    • 1,653 Thanks
    Nicnak
    Looking at the Christmas presents that i have left to buy.

    My dad, uncle and Charlotte's little tiny stocking fillers. I've added them to my Amazon basket and they come in at £51. I have a £10 voucher in there, £5 on the way, and I think I can earn at least another £10 before I need to order them.

    Here goes another ton of surveys to get as close to £50 as possible. Even if I get 50% of vouchers, it is better for me. x
    September 6th 2017 start Updated 4th NOV 17
    Credit Card £430 now: £0 Tesco Loan £7500 = £6891 Car loan £17450 = £16,748 Total = £25,330 £23,749 EMF #252
    Sealed pot challenge #589
    Pay off all your debts by Christmas #170
    • blue_eyed_girl123
    • By blue_eyed_girl123 12th Nov 17, 7:44 PM
    • 50 Posts
    • 100 Thanks
    blue_eyed_girl123
    Glad to hear it’s going well and that you’ve sorted out the car . Hope you get the Christmas presents sorted! Here’s to getting them for free
    • Nicnak
    • By Nicnak 13th Nov 17, 6:51 PM
    • 406 Posts
    • 1,653 Thanks
    Nicnak
    Thank you,

    Today was almost a NSD!
    Little one's school has posted the clubs on the website for After Christmas. The one she goes to is so popular that at 6.30 only 11 spaces were left for a class of 52 (double entry).

    I didn't want to risk it, so booked her on it. £20 for 12 weeks.
    Account stands at £24 without the £20 showing as coming out. I have tutoring tomorrow at £30 and payday on Wednesday.

    Wednesday is target setting day.
    September 6th 2017 start Updated 4th NOV 17
    Credit Card £430 now: £0 Tesco Loan £7500 = £6891 Car loan £17450 = £16,748 Total = £25,330 £23,749 EMF #252
    Sealed pot challenge #589
    Pay off all your debts by Christmas #170
    • blue_eyed_girl123
    • By blue_eyed_girl123 13th Nov 17, 7:54 PM
    • 50 Posts
    • 100 Thanks
    blue_eyed_girl123
    Good luck for target setting day - excited to hear about your targets
    • Nicnak
    • By Nicnak 13th Nov 17, 8:03 PM
    • 406 Posts
    • 1,653 Thanks
    Nicnak
    I'm excited to set them. I'm going to try to be ambitious and build on the law of attraction.
    X
    September 6th 2017 start Updated 4th NOV 17
    Credit Card £430 now: £0 Tesco Loan £7500 = £6891 Car loan £17450 = £16,748 Total = £25,330 £23,749 EMF #252
    Sealed pot challenge #589
    Pay off all your debts by Christmas #170
    • Nicnak
    • By Nicnak 14th Nov 17, 5:51 AM
    • 406 Posts
    • 1,653 Thanks
    Nicnak
    Day before payday. Can I stay out of my overdraft. Eek off to check.
    September 6th 2017 start Updated 4th NOV 17
    Credit Card £430 now: £0 Tesco Loan £7500 = £6891 Car loan £17450 = £16,748 Total = £25,330 £23,749 EMF #252
    Sealed pot challenge #589
    Pay off all your debts by Christmas #170
    • Nicnak
    • By Nicnak 14th Nov 17, 5:59 AM
    • 406 Posts
    • 1,653 Thanks
    Nicnak
    £23.42!!!!

    £20 is for gymnastics, but the other £3.42 is all mine!
    Bank charges of £3 came out for last month's overdraft. That won't be coming out next month.

    Woohoo!

    I actually did it. I need a NSD today too.

    Tutoring money has mostly been spent too, before I've earned it.
    £15 on school photographs
    £5 raffle tickets to sell.

    Car is due in three weeks and I can then move 26% off my debt into my paid jar. That's 33% since I started this journey.
    It will increase with the wedding whilst I sort things out, but not by 33%!
    September 6th 2017 start Updated 4th NOV 17
    Credit Card £430 now: £0 Tesco Loan £7500 = £6891 Car loan £17450 = £16,748 Total = £25,330 £23,749 EMF #252
    Sealed pot challenge #589
    Pay off all your debts by Christmas #170
    • Munchin
    • By Munchin 14th Nov 17, 6:54 AM
    • 2,102 Posts
    • 6,119 Thanks
    Munchin
    You are doing brilliantly
    • Nicnak
    • By Nicnak 14th Nov 17, 4:57 PM
    • 406 Posts
    • 1,653 Thanks
    Nicnak
    I bought a jar of curry-99p, but found the pound In My pocket so it wasn't a bank account spend. Not going to class it as a NSD, but glad I still have the money in my account.

    Last month was almost £100 into my overdraft. Here's hoping next month will be even better. Managing my money is hopefully getting easier.

    I can't believe most of my tutoring money has already been spent.
    In some ways though, at least that money, that I need to spend, isn't coming straight out of the bank. My account isn't touched

    Hubby and I have just had a real heart to heart. He's worried I won't bring in enough when I finish this job to pay the bills. I've now sat down and explained to him how I plan to ensure that we have enough money to see us till December as a minimum. He seems relieved!

    I just now need to ensure that I build up the joint account, and also my emergency fund whilst at the same time ensuring I have lowered my debts and bills enough so that it's minimum.

    I don't half like a challenge!
    September 6th 2017 start Updated 4th NOV 17
    Credit Card £430 now: £0 Tesco Loan £7500 = £6891 Car loan £17450 = £16,748 Total = £25,330 £23,749 EMF #252
    Sealed pot challenge #589
    Pay off all your debts by Christmas #170
    • DebtFreeDuo
    • By DebtFreeDuo 14th Nov 17, 5:34 PM
    • 449 Posts
    • 2,184 Thanks
    DebtFreeDuo
    Well done, didn't I tell you that you could do it this month! You are doing so well, you should be really proud of yourself, I feel proud of you!
    LBM 20/9/17 5101.55/5690.50 = Loan: 1923.70/2207.38 Car Loan: 2166.87/2419.64 0% CC: 1010.98/1063.48 DFD Oct 18.
    SPC 586
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