DaringToDream of a Debt Free Life!

So here goes with a shiny new diary. I had one previously but seeing that i hadn’t posted for years and my circumstances have massively changed (new job, new house, different (but not that new) partner), it seemed sensible to start afresh.

I’ve been a diary stalker (in a healthy way) for years, and a few of you have really helped and inspired me over the past few months. In particular- Bobarella, Louby, Poor Single Lady, Coastal Chick, Mummy2Girls- thank you!!!

I have debt, and as hard as it is admitting it myself, have been in debt since i graduated uni almost 10 years ago. This includes still being in my student overdraft (which is thankfully still interest free) which is something i’m not proud of.

So i have a few debt goals to keep me focused:

Goal 1) Pay of student overdraft by end of July 2017 (10 years after i graduated!!!) This one may actually slip a bit depending on how well i do with other debts as the first £1000 is currently interest free so it makes sense to throw this money at other debts first, but paying it off is my goal, or at least reducing it before the interest free level drops to £500 at the end of July.

Goal 2) Pay off cc’s

Goal 3) Save to pay off my car finance. It’s currently sitting at £11,200. I stupidly took it out on PCP and what a stupid decision - totally think this is the next misselling scandal. I paid off a lump sum thinking i could keep my monthly payments the same and just reduce my balloon payment, but apparently this isn’t allowed, so of the £120 i now pay each month, £110 is interest and only £10 capital repayment :eek:, so this loan has to go ASAP. Unfortunately the balloon payment is £11000 so it’ll take me a while to save this up, but i reckon if i can get close-ish i can get a 0% card or lower interest loan and pay it off and save paying so much interest. I commute a minimum of 300 miles a week though so a comfortable and reliable car is a must- just need to pay it off.

That's probably long enough for an opening post. Will post more debt details below.

DTD xx
Loan £13,339.81 (4.9%) Current End Date Dec 2020
CC1 £3496.00 (0% for another 20 months)
CC2 £2500 (0% for another 20 months)
Total: £19335.81:eek:
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  • UncannyScot
    UncannyScot Posts: 2,070
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    BUGGRITMILLENIUMHANDANDSHRIMP I TOLD EM! - Foul Ole Ron
    It is important that we know where we come from, because if you do not know where you come from, then you do not know where you are, and if you don't know where you are, then you don't know where you are going. If you don't know where you're going, you're probably going wrong.
    R.I.P. T.P.
  • Ok so a bit more about me and my debts.

    I’ve been in and out of debt for all of my adult life. Some of this hasn’t been my fault (redundancy whilst living in London hit me hard), but most of it is my fault, living beyond my means, squandering money on pretty things. I’ve actually done really well over the last few years and reduced my debt, whilst also being a student. But now i’m working again and it’s crept back up due to buying our first home (which is totally worth getting into debt over-i love it!!). I like to think i’m good with money, i use cash back sites (currently got over £200 tracking), sell old stuff on eb@y and generally count the pennies. I transfer £400 ‘fun money’ a month for all my expenses except household bills. This helps to cover the massive amount of weddings, hens and christenings i seem to be invited to at the moment!

    I live with my OH and my stepson, although he is barely here at the moment as OH works on oil platforms offshore so comes and goes. As a result i live like a hermit and save save save when he is away, and then when he is back we tend to treat ourselves. I think this is important to really enjoy our time together, and we do try to do it in an MSE way so tend to cook at home rather than eat out lots.

    Our current debts stem from the fact we moved out of a rental property so have had to spend quite a bit furnishing the new house- tables, curtains, wardrobes- they all add up to more than i had thought! We have invested in quality however rather than cheap tat that won’t last. The good news is that our mortgage payments will be about £150 a month less than our rent was. This includes the increase in council tax as we now have 3 times as much space as before ( :eek: at the thought of cleaning it all though). I bought the final curtains in the sales today so that is the last big expense done and now we can focus on paying it down!!

    Current totals are:

    OD: £990/2000 (first £1000 interest free)
    CC1: £3200/3400 (17% APR)
    CC2: ££1800/2500 (19% APR)
    Car finance PCP: £11200

    Total (not inc car finance) is £5990. I will tackle these cc's first and once they are paid off will start saving the debt repayment money with the aim of paying off the PCP ASAP!

    My aim is to pay of £750 a month which is do-able. I do have an emergency fund of £3000, but seeing as i am now a home owner i would rather keep this for unforeseen expenses. I also have a second job which pays every 8 weeks or so, so that will be a nice little extra. I tend to work extra shifts when OH is away so should have £750 due this month which will be a definite help.I’ve worked the last few weekends too so should get a bit more next month. So that should mean that i can pay off £1500 this month, probably split between the 2 cards. I also have £90 of ‘fun money’ left so will try and have as many NSDs as i can this week and then hopefully pay off a bit more.

    8 days til payday so onwards and upwards (or downwards for the debt!)

    DTD
    Loan £13,339.81 (4.9%) Current End Date Dec 2020
    CC1 £3496.00 (0% for another 20 months)
    CC2 £2500 (0% for another 20 months)
    Total: £19335.81:eek:
  • And thanks UncannyScot!
    Loan £13,339.81 (4.9%) Current End Date Dec 2020
    CC1 £3496.00 (0% for another 20 months)
    CC2 £2500 (0% for another 20 months)
    Total: £19335.81:eek:
  • Hello and welcome. :hello:
    I am humbled at the name check.
    Hope the diary helps. And good luck with getting everything paid off. sounds like you are on-track.
    2017- 5 credit cards plus loan
    Overdraft And 1 credit card paid off.

    2018 plans - reduce debt
  • Thanks PSL- for the inspiration and the warm welcome.

    Wins today:

    -Worked this morning so that will make some more £
    -£1.47 payable in cashback so transferred to OD
    -Got home and watered the garden, done laundry and tidied house ready for the week.

    Bad things today:

    -Was up at the crack of dawn for work and a 40 min drive there so stopped in at McD's for brekkie so spent £3.99
    -OHs birthday is coming up and need to get his pressie which will mean spending
    -found a massive spider in my house :-(

    I'd be interested in knowing how other people find balancing repayments and living life. I sometimes feel that between the 2 jobs that I'm barely living, just working. Now it's Sunday afternoon and I'm shattered having worked all weekend, and it's straight back to the 9-5 tomorrow! And then when I do go out or treat myself I just feel guilty for spending money.

    Plan for the evening is to do some eb@y listing tonight which will hopefully cover some of the birthday pressie cost. And then chill out and have a cheeky glass of wine!

    DTD
    Loan £13,339.81 (4.9%) Current End Date Dec 2020
    CC1 £3496.00 (0% for another 20 months)
    CC2 £2500 (0% for another 20 months)
    Total: £19335.81:eek:
  • I think if you have some fun money set aside and budgeted for that you shouldn't feel guilty for spending :). As long as you're living within your means and managing the debt, you are allowed to have fun too. I sometimes struggle with having a studying/life balance (full time job/part time MA/life) but I have decided that I just want to do my best and my brain needs a rest too :).
  • Thanks Blue Eyed Girl, I think you're definitely right, as long as the fun money is budgeted for then I really shouldn't feel guilty spending it. Enough of my income already goes to paying off debts already so I shouldn't feel guilty for spending a little on myself. Plus most of it actually gets spent on traveling to see friends etc- last month over half of my fun money went on paying for a hen do. Not sure quite when they got so expensive but seems to be £200 minimum now and a whole weekend away, which also means I'm not earning in my other job. But it's a good friend who is going through some tough times at the moment so I think it's important I'm there. Definitely starting to realise that all work and no play is making me a very dull girl though, need to pay off this debt so I can start having guilt free fun!!

    Working In london today so will be able to claim for any expenses I spend. Counting it down already until the bank holiday weekend!
    Loan £13,339.81 (4.9%) Current End Date Dec 2020
    CC1 £3496.00 (0% for another 20 months)
    CC2 £2500 (0% for another 20 months)
    Total: £19335.81:eek:
  • Hen dos are expensive. I think it's becoming the norm to view it as low-key if it's UK based.
    All that expense plus the actual wedding.
    Hope your friend enjoyed hers tho. And it's true sometimes it is important that you are at something even if that is expensive and painful.
    2017- 5 credit cards plus loan
    Overdraft And 1 credit card paid off.

    2018 plans - reduce debt
  • Hi DaringToDream, looking forward to following your diary - I'm in much the same position, graduated in 2008 and still paying off my uni debt (don't even get me started on the SLC, I'm going to be paying them in my 80s at this rate!)
    Definitely important to have fun even while being on a budget, it can definitely be done :)
  • Totally agree with the hen do thing, they can be so expensive. One I went to was a whole weekend at C3ntreP4rcs and I didn't even get to go swimming as I contracted a tummy bug :p. Hope your hen do attendance is more successful. What is the plan for the hen do?
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