FourthTimeLucky's 4th attempt to become debt free

fourthtimelucky · 8 September 2016 at 2:47PM

Perpetual_Miser wrote: »

Good Luck! You are in a very similar position to myself, so I'll be following closely.

Thanks for your reply. I have been following your diary and we do have a lot of similarities so it is good to know other people are working towards similar targets and dealing with the same amounts.

fourthtimelucky · 12 September 2016 at 3:08PM

Just thought I would check in with an update. After reading Dolly Rocker's diary I was inspired to put some key dates down in my debt-free journey.

March 2017 - increase payments on credit card from £100.00 to £200.00. This extra money will be available as I will have cleared a solicitor's bill.

November 2017 - open sealed pot following end of challenge (hoping for £200.00).

June 2018 - increase payments on bank loan from the contractual amount of £269.02 to £350.00 following the clearing of the aforementioned credit card.

July 2019 - DEBT-FREE DATE is the above plan is maintained.

December 2019 - Debt-free date if loan repayments are not increased from the contractual amount.

fourthtimelucky · 15 September 2016 at 9:53AM

Had a little bit of an epiphany this morning and thought I would share it. I was looking at getting some concert tickets and they were a little more than I was expecting and had planned for. I was literally in the process of getting my emergency credit card details (I have the card details even though the card is cut up) out of my wallet to put them on there and 'just pay it off next month' when I realised this is the first step to racking up another total. Five or six times I have cleared cards and gone down this route and decided this morning that I wouldn't do it again.

I made the decision not to go to the concert as it was more than I planned and that I need to make better choices than I have in the past.

Not usually one to brag and its quite disproportionate in the overall scheme of things, but I am feeling pleased with myself.

Dewdrop.ja · 15 September 2016 at 2:21PM

Well done you! It is so hard juggling between having an enjoyable life/the life you want and being debt free! I think having an end goal may make this a bit more exciting and more appealing (only 2 days in though so don't hold me to this!!)
I've found even just identifying and acknowledging where I am spending money is a huge help in itself.
Well done also on getting rid of the balance on your MBNA card. I'm a big fan of switching balances around to avoid paying interest and each time I do it I use a combination of balance and money transfers. Normally I absorb some into my bank account when I do this but last time I had to take another £2K to help towards my dog's vet bills!

Will be watching intently! x

fourthtimelucky · 19 September 2016 at 1:01PM

Afternoon all, thought I would check back in after a busy but relatively frugal weekend.

A bit of an update is that I have had received payment of £5,000 for my share of equity in a property. I was expecting this but not until early next year. The decision I have now is what to do with it. I plan on buying a property to live in soon and this would be the bulk of my deposit. I am aware it is often nonsensical to have savings and debt but this money isn't really usable for repaying my existing debt. It hasn't been factored in to my calculations so I think I will put it aside until I need it and use any negligible interest gained to make a payment off my CC.

Pay day is a week and a bit away and all my payments for the month have been made and I have over £100.00 left with no major plans. I will need to do a small food shop and top petrol up but that aside may well have a little carried over in to next month.

Dewdrop.ja · 20 September 2016 at 10:13AM

When I took my mortgage out I asked them the same - should I keep the savings of around £5000 or pay off a credit card with it. I was told it was better to have savings as opposed to clearing debts.

fourthtimelucky · 20 September 2016 at 12:43PM

Dewdrop.ja wrote: »

When I took my mortgage out I asked them the same - should I keep the savings of around £5000 or pay off a credit card with it. I was told it was better to have savings as opposed to clearing debts.

I had a feeling it was going to be the best option. If I used it to clear debts I would just have to save it back up again to put down as a deposit. None of my debts are accruing any interest (loan is fixed and credit card is 0%) so have decided to put it aside as I mentioned and utilise it when needed.

fourthtimelucky · 22 September 2016 at 12:54PM

I am starting to become obsessive (in a good way) about getting this debt shifted quicker than initially planned. I am in a bit of a quandary at the moment about whether to utilise the little bit of extra cash I have whilst living with parents to pay off the debt quicker or save for a deposit. If I was extra frugal I could clear maybe £1,000 above what I have planned before the end of the year.

The counter argument is the more I can save for a deposit the less my monthly mortgage payments would be, thus allowing higher payments from the debt.

My sealed pot is going very well. I have set myself an open date of November 2017 and am hoping for over £250.

I am still being silly and buying lunches out rather than bringing them in. This needs to stop as it is over £20 a week that could be put to much better use. My mission for next week is all lunches take in to work and none shop bought. I am going to start leaving my wallet at home to avoid the temptations of town.

fourthtimelucky · 3 October 2016 at 8:50AM

First working day of the month and my loan repayment and credit card payment have both gone out. I've updated my signature to reflect these payments.

It is days like this only a couple of months in that make me realise what a long journey it is going to be. December 2019 is my worst case Debt Free Date which seems an age away but on reflection I am dealing with 18 years of bad money management so a smidge over three years to sort it out isn't too bad.

The plus point is this is the longest period in that 18 years that I haven't added to my debt or taken on any more. A penny has dropped and I am continuing to make better choices which I am pleased about.

I still have plans and I am still spending money, but I am living within my means. I am saying no to things without having FOMO which was a major issue in the past. I am also budgeting in advance of trips I have planned. In February I am going to London so rather than be landed with a big hotel bill on arrival I am putting £17.00 a month away which covers it.

I've also had some good news that a couple of my outgoings for October are less than anticipated so I will use the difference in what I had budgeted to make a payment off the credit card and get the total paid off over 3.0%.

Thanks for stopping by and reading...

fourthtimelucky · 5 October 2016 at 8:06PM

A quiet day at work means I got the chance to redesign my debt planner spreadsheet today. It now auto updates from the new overpayments column. I do like a nice tidy spreadsheet.

Not wanting to let the column go unused I made an extra £30.00 payment off my credit card which takes my total paid so far to a nice round 3.0%.

I've sorted some gear to eBay at the weekend and any funds raised will go on the credit card too. On my spreadsheet I'm due to clear the CC balance in April 2018 but I discovered today my 0% balance transfer deal runs out in December 2017 so I'm going to aim to have it done by then.

Running totals now
Credit card - £3,123.62
Loan - £10,222.76

FourthTimeLucky's 4th attempt to become debt free

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