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  • FIRST POST
    • Exerbusi2
    • By Exerbusi2 3rd Jan 17, 10:53 AM
    • 232Posts
    • 152Thanks
    Exerbusi2
    I'm Back - and better! Final Push to Go...
    • #1
    • 3rd Jan 17, 10:53 AM
    I'm Back - and better! Final Push to Go... 3rd Jan 17 at 10:53 AM
    It's the start of a new year, so as per every year I take a look at my finances!

    When I first joined this forum, I was in £8000 of debt with no savings and no others assets. Not any more.

    My current situation is....


    Debts

    Credit Card: £5,500

    Assets

    Savings: £3,500
    Stocks and Shares Portfolio: £4,600

    I've been there and back when it comes to debt. At one point I was in £8,000 of debt with an income of £15,000.

    Not good.

    I grew a business, started to take more care of my finances and with the help of this forum, I chipped away at it.

    You can do it too. Just stay disciplined.

    My Current Situation

    So my current situation is simple. I have cash in the bank, I have a small share portfolio and I have a much larger income than I used to have (I also have larger outgoings though!)

    The obvious thing to do is to use my cash to pay my credit card. There are two reasons why I won't do this though...

    1. My cash is my buffer. It's also there to help with business expenses.
    2. My credit card is 0% for 32 months, so it costs me no more than it should.

    My Plan

    The reason I have a £5,500 credit card balance is because I took out the 0% credit card to pay off my car loan. The loan was £5,700, but I saved £230 by closing it early.

    My plan is to pay off the card within 22 months. To do this, I'll have to pay £250 per month (more than the £183 I was paying off my loan), but I will be doing this by cutting other expenses I don't need.

    I'm having a shed built at home (necessary, not indulgent) and I plan to (in time), make gifts to sell from there (I'm a woodwork fan!)

    If I can make this side business pay for itself, I shall be channelling all of that money into debt repayment.

    I also have a website that I earn a little money from. All of my website earnings will go towards credit card repayment.

    I'm going to take a good look at the finances this year. I have the means to get rid of this credit card, I just have to do things sensibly.

    I'm looking forward to seeing this debt disappear!

    Steve
Page 1
    • Exerbusi2
    • By Exerbusi2 3rd Jan 17, 3:16 PM
    • 232 Posts
    • 152 Thanks
    Exerbusi2
    • #2
    • 3rd Jan 17, 3:16 PM
    • #2
    • 3rd Jan 17, 3:16 PM
    So my loan is paid off and the account is closed. I'm now about to attack the credit card...
    Loan £5000 £0; Overdraft £700 £0
    Savings £0 +£1500; Share Portfolio £0 +£4000
    £0 Credit Card £6800 £1700
    • Exerbusi2
    • By Exerbusi2 4th Jan 17, 8:39 PM
    • 232 Posts
    • 152 Thanks
    Exerbusi2
    • #3
    • 4th Jan 17, 8:39 PM
    • #3
    • 4th Jan 17, 8:39 PM
    So I've made a decision to cancel my iPad subscription. It's only £25 per month, but that's £300 per year, or a whole extra month's worth of credit card repayment.

    Beyond that, I'm going to re-instate my old NSD's I used when paying off the debt in the first place. The logic being if I could put £5 per day towards my credit card, that's an extra £1,825 per year!
    Loan £5000 £0; Overdraft £700 £0
    Savings £0 +£1500; Share Portfolio £0 +£4000
    £0 Credit Card £6800 £1700
    • LauraB89
    • By LauraB89 4th Jan 17, 9:10 PM
    • 158 Posts
    • 371 Thanks
    LauraB89
    • #4
    • 4th Jan 17, 9:10 PM
    • #4
    • 4th Jan 17, 9:10 PM
    Looks like you are making great progress!

    A good way of looking at everything - working out the annual equivalent, definitely need to try that more often

    xxx
    • Exerbusi2
    • By Exerbusi2 7th Jan 17, 12:15 PM
    • 232 Posts
    • 152 Thanks
    Exerbusi2
    • #5
    • 7th Jan 17, 12:15 PM
    • #5
    • 7th Jan 17, 12:15 PM
    Looks like you are making great progress!

    A good way of looking at everything - working out the annual equivalent, definitely need to try that more often
    Originally posted by LauraB89
    Thanks Laura!

    It's how I break down a lot of my spending - when you look at a one-off fee, it seems like such a small amount of money. Added up over the long term, it's a sizeable chunk.

    This year I've unsubscribed from a marketing group I used to be a part of, I've reduced my Virgin TV subscription to around £45 per month and I've gotten rid of my iPad fee. Collectively that's around £150 per month saved, or £1800 per year!

    I also made my first £100 payment off the credit card this morning, so I'm now eating into that debt!
    Loan £5000 £0; Overdraft £700 £0
    Savings £0 +£1500; Share Portfolio £0 +£4000
    £0 Credit Card £6800 £1700
    • Exerbusi2
    • By Exerbusi2 12th Jan 17, 3:58 PM
    • 232 Posts
    • 152 Thanks
    Exerbusi2
    • #6
    • 12th Jan 17, 3:58 PM
    • #6
    • 12th Jan 17, 3:58 PM
    So I've paid another £75 off the credit card today.

    I've got £135 to pick up this weekend, so half of that will go on the credit card.

    My aim is to get the credit card debt below £5k by the end of Feb - as of today it's £5,417.

    Little steps...
    Loan £5000 £0; Overdraft £700 £0
    Savings £0 +£1500; Share Portfolio £0 +£4000
    £0 Credit Card £6800 £1700
    • MrsTinks
    • By MrsTinks 12th Jan 17, 5:02 PM
    • 14,986 Posts
    • 23,009 Thanks
    MrsTinks
    • #7
    • 12th Jan 17, 5:02 PM
    • #7
    • 12th Jan 17, 5:02 PM
    What kind of wood working things are you planning on making? Sorry I'm frightfully nosy!

    And well done on working towards your totally debt free date

    I don't have the savings or stock, but I have invested in some very particular things which can be cashed in if need be and like you my debts are 0%. So I'm working towards paying off my stoozing too
    DFW Nerd #025
    • Exerbusi2
    • By Exerbusi2 15th Jan 17, 7:49 PM
    • 232 Posts
    • 152 Thanks
    Exerbusi2
    • #8
    • 15th Jan 17, 7:49 PM
    • #8
    • 15th Jan 17, 7:49 PM
    What kind of wood working things are you planning on making? Sorry I'm frightfully nosy!
    Originally posted by MrsTinks
    Ooh I don't see it as nosy at all!

    So I'm going to be making things such as coasters, chopping boards, serving platters, pen holders, shelves etc - basic things really. The idea is to make merchandise that looks great, doesn't cost much and can be made quickly.

    It will very much be a side-venture, but if it takes off, who knows?!

    UPDATE: So today I have paid off another £50 from my credit card, making my payment £225 for the month so far.

    I used this strategy to chip away at my much larger debt the first time - making small, regular payments added up over the long term.

    I earn a few pounds every now and then for writing about health and fitness, so any payment I get from there, I plan to pay straight off the debt. I'm awaiting £80 in payment, so all of that will go straight off the credit card.

    If I can get the card debt to below £5000 by my birthday (mid March), I'll be a very happy bunny!
    Loan £5000 £0; Overdraft £700 £0
    Savings £0 +£1500; Share Portfolio £0 +£4000
    £0 Credit Card £6800 £1700
    • Exerbusi2
    • By Exerbusi2 15th Jan 17, 9:03 PM
    • 232 Posts
    • 152 Thanks
    Exerbusi2
    • #9
    • 15th Jan 17, 9:03 PM
    • #9
    • 15th Jan 17, 9:03 PM
    That's a great idea skcollobcat! One of the reasons I think woodworking is a way to make money it's it's relatively cheap and easy, plus there's a great mark up on the products!
    Loan £5000 £0; Overdraft £700 £0
    Savings £0 +£1500; Share Portfolio £0 +£4000
    £0 Credit Card £6800 £1700
    • On my way
    • By On my way 15th Jan 17, 9:19 PM
    • 325 Posts
    • 399 Thanks
    On my way
    You can do it
    • Exerbusi2
    • By Exerbusi2 20th Jan 17, 8:56 AM
    • 232 Posts
    • 152 Thanks
    Exerbusi2
    So a further update...

    We put our family holiday on the credit card (but have the money to pay for it, so it's not too much of an issue).

    I will be paying my share of it today and my better half is giving me her share of the money over the next 2-3 months.

    That'll see me below £5k in 2 months.

    I've also just sold £630 worth of shares, so I'm going to use that to fund the holiday, meaning I'll be keeping up my 'normal' rate of debt repayment.
    Loan £5000 £0; Overdraft £700 £0
    Savings £0 +£1500; Share Portfolio £0 +£4000
    £0 Credit Card £6800 £1700
    • angelpye
    • By angelpye 20th Jan 17, 9:51 AM
    • 988 Posts
    • 3,706 Thanks
    angelpye
    Sounds like you are making great inroads! I am back on here after having a blip looking for inspiration to tighten the belt and be debt free again.

    Now my time to be nosy. Tell me about the shed! I too am looking to create from home - fabric based. Is someone building it for you or are you doing it? I really need one but can't afford a massive outlay and don't know where to start.

    Goodluck on your journey...this place is a great place to be supported whilst you make some changes
    Happiness is wanting what you have...
    Debt Jan 2017: £2589.22 DFD: Sept 2022 April 2022 but this Marching Minimalist can beat that!
    Use it or Loose it gym target: Feb'17 5/6 Mar 4/6
    EF £0/£4200
    • Exerbusi2
    • By Exerbusi2 21st Jan 17, 8:57 AM
    • 232 Posts
    • 152 Thanks
    Exerbusi2
    Tell me about the shed! I too am looking to create from home - fabric based. Is someone building it for you or are you doing it?
    Originally posted by angelpye
    Hi angelpye!

    So, the shed is a hybrid of necessity and profit!

    When we bought our house, we inherited 3 sheds in various states of disrepair. We also have a half-garage (the previous owners split the garage into two, giving half back to the kitchen and keeping half as a garage).

    Long story short, we don't have any real outside storage space.

    The size of the plot where this shed is going to live is pretty big, so I decided to put a large garage-sized shed on there. Having been quoted £3500+ by shed makers, I thought there'd be a cheaper way.

    I have an interest in woodwork anyway, so I explored the idea of building my own shed. I have the tools and (some of) the skills, so I contacted a friendly local carpenter and have asked him to help me. By buying the materials myself, rather than have a tradesman do it I have saved myself around £600!

    I can build the shed for less than £2000 and it will be big enough to act as both our storage for garden tools, kids bikes etc and still have space for a workshop at the end of it.

    Here's where the workshop comes in....

    Part of my psyche (and my being self-employed) means that I have to really justify an expense. My way of justifying this is double-headed...

    1. We need it. We currently have lots of our garden tools in a leaky, falling-apart shed and it's not safe.
    2. The shed will block a gap in our border with next door, making our property more secure.
    3. It's an investment that will make our property more valuable.
    4. By having a workshop, I can make things such as coasters, chopping boards, furniture and turn it into a profit-making enterprise!

    I take a slightly different approach to my debt repayment to many others. I notice most people try to cut, cut, cut expenses to get out of debt. I do that to a point, but it's a VERY limited approach - there is only so much cutting you can do.

    Instead, I try to grow my income. That's why I am willing to invest the money to increase my income. I calculate I can fairly easily make around £3000 per year from the shed, so it's my goal to have it pay for itself within a year !

    If you can find room for a fabric room, DO IT! It's a creative expression that you'll enjoy, plus you can earn more money! By earning more money, debt repayment is a lot easier!

    Which brings me on to my next point...

    I sold some shares yesterday, bringing in £630. That's gone straight on the credit card. I've also been paid £120 from a client yesterday, which will also go on the credit card. That see's my credit card debt down to £5450 (from over £7000).

    My girlfriend is transferring another £350 to me over the course of the next couple of months, which added to my commitment to pay at least £200 per month off the credit card should see the debt well below £5000 by March, possibly closer to £4500.

    Let's see!
    Loan £5000 £0; Overdraft £700 £0
    Savings £0 +£1500; Share Portfolio £0 +£4000
    £0 Credit Card £6800 £1700
    • Exerbusi2
    • By Exerbusi2 21st Jan 17, 9:00 AM
    • 232 Posts
    • 152 Thanks
    Exerbusi2
    On a whim, I've just paid an extra £50 off the card!

    It's all about momentum...
    Loan £5000 £0; Overdraft £700 £0
    Savings £0 +£1500; Share Portfolio £0 +£4000
    £0 Credit Card £6800 £1700
    • angelpye
    • By angelpye 21st Jan 17, 9:58 AM
    • 988 Posts
    • 3,706 Thanks
    angelpye
    Hi,


    I do have a tiny storage room in my house that I could convert only I don't think it would be big enough. I think I need to give serious thought to this though as I see it as having real potential...I have most of the equipment I would need for the business and a 'studio' would mean I could possibly go fully self employed by June 2018 - I am trying to balance debt repayment with quality of life. I don't want an extravagant lifestyle just a minimalist life that allows me to do what I love. Your thread gives hope.

    Wll done on paying more off - its all adding up!
    Last edited by angelpye; 21-01-2017 at 10:01 AM.
    Happiness is wanting what you have...
    Debt Jan 2017: £2589.22 DFD: Sept 2022 April 2022 but this Marching Minimalist can beat that!
    Use it or Loose it gym target: Feb'17 5/6 Mar 4/6
    EF £0/£4200
    • sourcrates
    • By sourcrates 21st Jan 17, 12:15 PM
    • 12,200 Posts
    • 11,656 Thanks
    sourcrates
    I don't have the savings or stock, but I have invested in some very particular things which can be cashed in if need be !!
    Originally posted by MrsTinks
    The mind surely boggles Mrs Tinks !!!!

    Does it involve spies and diamonds perchance ?
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. I'm a volunteer to help the boards run smoothly, and I can move and merge posts there, and delete spam.
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
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    • Exerbusi2
    • By Exerbusi2 22nd Jan 17, 8:30 AM
    • 232 Posts
    • 152 Thanks
    Exerbusi2
    I do have a tiny storage room in my house that I could convert only I don't think it would be big enough.

    I have most of the equipment I would need for the business and a 'studio' would mean I could possibly go fully self employed by June 2018
    Originally posted by angelpye
    This bit here is key - how do you know it's not big enough? Perhaps you should try at first and if it's not suitable, you can explore other avenues. Is there a local co-operative working space you can use? Could you rent a small space office somewhere?

    Register as self-employed and these will be business expenses, meaning you can write them off against tax.

    It's just an idea.

    I am trying to balance debt repayment with quality of life. I don't want an extravagant lifestyle just a minimalist life that allows me to do what I love.
    Originally posted by angelpye
    This is important too. I am a minimalist in my head (in reality my partner and our kids collectively have more 'stuff' than most small nations!)

    What this allows me to do is to only buy important or valuable items. Using the 'I only spend if I can justify it' chip in my brain, I typically buy items of high quality but make them pay for themselves - I'm writing this on an Apple MacBook Pro that cost me £1700. Yes, I could have bought a much cheaper laptop, but this is its 5th year of use and it's going great. It also made me earn money online and has paid for itself many, many times over.

    If all you do it cut away from your lifestyle, you'll end up in some cases getting rid of pastimes and indulgences you enjoy.

    Instead, cut away waste and explore using your hobbies and interests to a profitable advantage!
    Loan £5000 £0; Overdraft £700 £0
    Savings £0 +£1500; Share Portfolio £0 +£4000
    £0 Credit Card £6800 £1700
    • MrsTinks
    • By MrsTinks 22nd Jan 17, 4:32 PM
    • 14,986 Posts
    • 23,009 Thanks
    MrsTinks
    The mind surely boggles Mrs Tinks !!!!

    Does it involve spies and diamonds perchance ?
    Originally posted by sourcrates
    How did you know???

    Close though 😎
    DFW Nerd #025
    • Exerbusi2
    • By Exerbusi2 25th Jan 17, 12:02 PM
    • 232 Posts
    • 152 Thanks
    Exerbusi2
    So the £630 I committed to the credit card from the sale of my shares has finally cleared - that's a big help!

    I am trying to limit my weekly spending to around £50 (not including bills and fuel), which means I can commit a little extra each week to the payments.

    As it stands now the credit card balance is £5,349.71.

    When my better half pays me the next instalment of our holiday, that balance will be closer to £5,000. If I can keep up my current rate of repayment, I should see me below £5,000 when she pays.

    The iPad has been cancelled, saving me £25 per month. Additionally, I think I may have picked up £240 per month of extra work, which will be fantastic if it happens - that will all go on CC repayment too.

    This 'make it front and centre' approach to debt repayment has really helped me in the past and is working for me again at the moment, given I'll have paid over £1000 off the balance within the first two months, just by throwing bits of cash at it and not using that money on other things.
    Loan £5000 £0; Overdraft £700 £0
    Savings £0 +£1500; Share Portfolio £0 +£4000
    £0 Credit Card £6800 £1700
    • Exerbusi2
    • By Exerbusi2 28th Jan 17, 12:18 PM
    • 232 Posts
    • 152 Thanks
    Exerbusi2
    Today I paid another £100 off my credit card. That will see the balance down to £5,249 - before the end of Feb I should be under £5,000, which is a milestone.

    I have to pay my tax bill soon (which I have the money put aside for). I over-budgeted for my tax bill this year (for the first time ever), so I will have a little put aside. I'm thinking I will keep most of the excess in the bank to help with next year's bill, but I'll use about £500 to pay off the credit card.

    On a brighter note, I think I may have picked up a few new clients, meaning I could have around £300 per month in extra revenue coming in each month. That is fantastic and a big help - again I'll seek to divert 50% of that into savings, 50% towards paying off the credit card balance.

    By my calculations if I could do that, I'd pay off around £3,000 in a year which would make my balance a lot smaller!

    From there, it's a case of getting rid of all capital commitments where I can.

    I'm exploring the idea of leasing a car when my credit card balance is fully paid, but there'll be more on that when I update next!
    Loan £5000 £0; Overdraft £700 £0
    Savings £0 +£1500; Share Portfolio £0 +£4000
    £0 Credit Card £6800 £1700
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