I Just Want To Retire Debt Free

Purplebonnie · 29 September 2017 at 8:06AM

Four years ago I already had a fair few debts, but had a well paid job so it wasn't such an issue. Stress and bad management caused me to give up the job and I have spent the last four years in part time jobs, robbing Peter to pay Paul and adding to my debts, a situation which was basically unsustainable. I loved working part time and all I really want to do is retire, but that is impossible with all my debts.
Last month I was offered a fabulous new job on a great salary, which I have taken with the sole intention of paying off all my debts as quickly as possible. At the beginning of the month I collected together all the debts on a snowball app and came up with a total figure of £37,188.89 and a DFD of 01/05/22. I came up with a basic budget including food, petrol, presents etc. I have a 100 square grid and with each square representing £37.19 (0.1% of my total debt) which I will colour in every time I pay an extra 0.1% of my debts. A full grid is 10% of my total debts. Today was my first 'proper' pay day I have paid rounded up minimum payments to everyone. I have also paid an extra 0.1% total debt to the first credit card that I am going to concentrate on (the most expensive). To my amazement I have paid off over £1000 and my DFD dropped by a month. That felt sooooo good!
Well, that is my introduction and background. Now I am going to revisit my budget, look at where I can cut back or reduce outgoings and get ready for a frugal time ahead. I CAN do this!

September 2017 Total Debt £37188.89 / DFD 01/05/22
October 2017 Debt £36149.48 / DFD 01/04/22
0.1% = £37.19 Total paid 0.3%
MBNA - £5350.73

Purplebonnie · 29 September 2017 at 8:29AM

I paid an extra 0.2% off my credit card and so have coloured in 3 squares on grid today. I have changed my internet contract and saved £22 per month (that's £264 per year - whoopee) and will be able to change my mobile phone contract at the end of this month. Today I am going to do a stocktake of pantry & freezer and do a meal plan before I go shopping for the week. I am also going to sort out the bathroom toiletry stock cupboard as I seem to have an awful lot of toiletries that are not being used, but I keep adding to it. Small first steps, but I CAN do this!

HairyHandofDartmoor · 29 September 2017 at 8:32AM

You sound really focused purplebonnie and if you keep this up you will reach your goal. I love the idea of the grid as that sounds so motivating.

Good luck with your journey to freedom

.

[Deleted User] · 29 September 2017 at 8:36AM

Morning Purplebonnie,

Welcome to diaryland

Good luck on your journey x

UncannyScot · 29 September 2017 at 8:38AM

Hello and welcome

Sounding very well organised Purplebonnie.
I swear by using a combination of spreadsheets and OneNote to maintain my budgets.
Everything accounted for and no surprises...

Join in on here and enjoy the community

You are welcome to visit the diaries anytime

We are all here to help each other

Purplebonnie · 29 September 2017 at 9:11AM

Many thanks HairyHandofDartmoor, PurpleMumof2 and UncannyScot for your lovely welcomes. I will pop over to your threads later and have a good read, hoping to pick up some good tips from you &#55357;&#56832;

zenshi · 29 September 2017 at 9:15AM

I know it's early but to my reckoning 1% would be £371 not £37. Or is that for one debt rather than the whole amount

If my brains not working, apologies but I'd hate for you to think you're further ahead than you are

Purplebonnie · 29 September 2017 at 9:57AM

Hi Zenshi, you are absolutely right! My first hundred squares add up to 10% of total debt, so it should have read 0.1% (I think!!) Thanks for pointing that out

another_casualty · 29 September 2017 at 10:24AM

Howdy !

You seem very focused ,and having a well paid job ( hopefully one that you will like ) is a great incentive to pursue your journey free of debt .

I was wondering because of the title of your diary , how old you are/ are you married with children / mortgage etc . Have you contributed to a pension These things could be part of your spending etc .

I feel for you regarding the transformation of getting out of your stressful job situation and relying on temp work which although exciting , is insecure to pay bills and survive .

Wishing you all the best in your journey

Purplebonnie · 29 September 2017 at 10:54AM

Hi AnotherCasualty, many thanks for your welcome. I have another couple of years until I get my teacher's pension at 60, although I don't get a state pension until I am 66 or 67, not sure anymore on that! If we were debt free, my teacher's pension and a bit of part time work for both of us would give us a reasonable income until my (and hubby's) SP kicks in. Hence the reason I need to get rid of the debts.
My kids have all grown up and left home but I do have a rapidly growing amount of grandchildren that cost. My hubby and I downsized a few years ago and now we don't have a mortgage but we had to renovate our new place and so that is part of the debt situation. We live rather unconventionally so were not able to get a mortgage on our new home but it does mean our outgoings are very low

Purplebonnie · 30 September 2017 at 6:21AM

Morning All, Yesterday evening I did a little private job and this money is going in a pot for Emergencies. I often get bits and pieces of cash, so all this can go in the pot too.
I get petrol expenses from work and this covers my petrol with some left over. I have a Tesco CC and I always get my petrol at a Tesco garage. So, I am going to put all my petrol expenses into this CC each month which will cover the next month's petrol and any excess will help towards repayments along with the minimum payment being made and I get the points which always help towards Christmas.
I have an allotment that saves a huge amount of money in the summer but I have never really used it for the winter, but that is going to change. I have already planted Brussel Sprouts, Purple Sprouting Broccoli, Spring Greens & Pak Choi. I have lots of winter squashes in the pantry and I have a freezer full of prepared veggies such as runner beans & beetroot, that are all home grown. Garlic will go in next month along with Broad Beans (my favourite).
I am on grandchild sitting duty this morning, so will have a read of the diaries later which really are a source of inspiration and motivation.

I Just Want To Retire Debt Free

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