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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 2
    • 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
    • Exerbusi2
    • By Exerbusi2 5th Feb 17, 8:35 AM
    • 232 Posts
    • 152 Thanks
    Exerbusi2
    I've just paid another 70 off my credit card today, which has seen my balance down to 5,179.71.

    I'm owed about 500 from a couple of clients, so when that is paid I'll push my balance below 5,000 - my first big milestone.

    My girlfriend will be paying me 200 this month, so if I can pay 400 off this month it'll feel like a successful month on the credit card front.

    This week, I'm going to explore selling things via the Facebook Market Place to see if I could raise some extra money - has anyone done this before?
    Loan 5000 0; Overdraft 700 0
    Savings 0 +1500; Share Portfolio 0 +4000
    0 Credit Card 6800 1700
    • Exerbusi2
    • By Exerbusi2 10th Feb 17, 9:10 AM
    • 232 Posts
    • 152 Thanks
    Exerbusi2
    So my February goal was is to be under 5,000 on the credit card.

    I've just paid off another 109, which brings me down to 5,070. I'm owed another 70 from a client this week, which I will use to pay down my credit card to 5,000.

    I've also sold some shares I owned in RBS. They are worth more than I paid for them, they aren't exactly a growth share and they don't pay a dividend, so I've sold them to raise 130. That will all go on the credit card, which should see me hit 4,940 of CC debt within the next week or two.

    I will be receiving a small payment for some writing (around 50) next week, which will also go on the CC, putting me in the 4,800's - far enough below 5k to feel 'good' about it!
    Loan 5000 0; Overdraft 700 0
    Savings 0 +1500; Share Portfolio 0 +4000
    0 Credit Card 6800 1700
    • angelpye
    • By angelpye 10th Feb 17, 10:54 AM
    • 995 Posts
    • 3,627 Thanks
    angelpye
    Popping in to cheer you on...making great progress and sounding really focused! Well done!
    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 10th Feb 17, 3:21 PM
    • 232 Posts
    • 152 Thanks
    Exerbusi2
    Thank you angelpye!

    I've become tunnel-visioned about this, so any extra cash I get goes on paying it off!
    Loan 5000 0; Overdraft 700 0
    Savings 0 +1500; Share Portfolio 0 +4000
    0 Credit Card 6800 1700
    • enthusiasticsaver
    • By enthusiasticsaver 10th Feb 17, 3:43 PM
    • 3,421 Posts
    • 5,747 Thanks
    enthusiasticsaver
    Good progress being made there. I too believe in less material possessions but those we have are high quality and last.
    Debt and mortgage free and saving for early retirement
    • Exerbusi2
    • By Exerbusi2 12th Feb 17, 9:18 PM
    • 232 Posts
    • 152 Thanks
    Exerbusi2
    Good progress being made there. I too believe in less material possessions but those we have are high quality and last.
    Originally posted by enthusiasticsaver
    Thanks enthusiasticsaver!

    It's only over the last couple of years I've really bought into the philosophy, but it's working well for me so far!
    Loan 5000 0; Overdraft 700 0
    Savings 0 +1500; Share Portfolio 0 +4000
    0 Credit Card 6800 1700
    • Exerbusi2
    • By Exerbusi2 12th Feb 17, 9:25 PM
    • 232 Posts
    • 152 Thanks
    Exerbusi2
    I found out today I have been paid slightly earlier than I expected by a client, so I have managed to pay off another 70.

    This is a big deal - it brings my CC debt to 5,000 exactly. That means anything I pay off extra now will see me below the 5k which was such a big deal to me at the start of this process.

    I wanted to be below 5k by the end of February, so I'm very happy with this progress.

    It means I've paid off 1800 since early Jan and whilst this (possibly) isn't sustainable in the long term, it'll see me eating into the CC debt at a rate I'm happy with.

    I've got a new project starting later on this month, plus I have a significant payment coming to me in April. My plan is to use as much of that as I can (all of it if possible) to pay off the credit card. If I can do that, I'll be closer to 2,000 by the summer.

    If I can get the bill down to 2k by the summer, I should be able to pay if off completely this year, which would be amazing!

    It'll leave me with only a mortgage as my debt then!
    Loan 5000 0; Overdraft 700 0
    Savings 0 +1500; Share Portfolio 0 +4000
    0 Credit Card 6800 1700
    • zippygeorgeandben
    • By zippygeorgeandben 12th Feb 17, 11:27 PM
    • 503 Posts
    • 571 Thanks
    zippygeorgeandben
    Hello Exerbusi2 I have just stumbled across your thread and I'm loving your enthusiasm! Keep on going!
    If I may sabotage your page with my situation. In July/August I paid 3700 for 3 adults to go away on holiday (I was one of them don't worry!) and I stuck it all on the CC. My sister paid 1250 for her share but it never actually went off the CC, just in my account (naughty me I know). In September though, my sister suddenly was given notice to leave her work in 6 weeks. She has no savings, lots of HP and CC debt repayments and it made me think, well, hang on, if that happened to me how would I cope with repayments and rent etc. and the answer was not very well. I also stumbled across a money blog where someone said they pay 50% of their salary on 'needs', 20% on debt repayments and 30% on 'wants'. A simple yet effective way to manage money. Well I'm loving it. Since September I've been paying off the loans and hitting the CC with 200 a month instead of the minimum 50. I paid an extra 450 off the CC last month and I'm now transferring this with no fee to another 0% card which is 25 months long (my current one runs out in July). Plus I got through Christmas without over spending!
    I've also started to sell some of my beloved candle addiction and made about 200 on that so far. Straight off the debts. Don't get me wrong, I still go out etc but I know I'm spending within my means.
    With the snowball calculator it says I'll be debt free by March 2019 but I'm determined to try and do that by end of 2018. The CC has gone from 4200 to 3200 in four months and currently this month I'm at 9 spent and I normally have 850 to spend on myself so I'm hoping I'll kick a few hundred more off the CC.
    Sorry once again to hijack your thread but yours oozes positivity and I wanted to feed off that!
    Ben
    PS here is a link to my original thread i started in December with debts laid out.
    http://forums.moneysavingexpert.com/showthread.php?t=5567669
    Last edited by zippygeorgeandben; 12-02-2017 at 11:30 PM. Reason: adding link
    • Exerbusi2
    • By Exerbusi2 13th Feb 17, 4:00 PM
    • 232 Posts
    • 152 Thanks
    Exerbusi2
    Hi Ben!

    Thats fantastic progress - well done you!

    I think you're right about the 'how would I cope' question. It's a reason I put a cash buffer away and if nothing else, it gives you peace of mind.

    I'm self-employed and for the first time ever, I'd over-saved for my tax bill! This means I have a little extra cushion (around 1300) to go towards next years' bill, so I don't have to stress about it too much at this stage. If I put 300 per month away towards my tax bill, I should be fine again next year. It also means I can divert a little extra money towards my savings.

    I've got a share portfolio worth around 4000, but given the Trump/Brexit/China Crisis/Isis/Russia situation I may sell some of those - if I do so I'll put all of the profit on the CC.

    Selling the extra candles is a great idea. I've mentioned in this thread that I believe in raising income rather than stopping spending as a more favourable way to pay off debt. It's certainly what I intend to do and it's worked so far!

    I'd love to be debt free this year - that's my aim!
    Loan 5000 0; Overdraft 700 0
    Savings 0 +1500; Share Portfolio 0 +4000
    0 Credit Card 6800 1700
    • zippygeorgeandben
    • By zippygeorgeandben 13th Feb 17, 6:09 PM
    • 503 Posts
    • 571 Thanks
    zippygeorgeandben
    China Crisis! Wishful thinking!
    Perhaps we could challenge each other! I'll beat you to being debt free!
    • Exerbusi2
    • By Exerbusi2 13th Feb 17, 8:01 PM
    • 232 Posts
    • 152 Thanks
    Exerbusi2
    Well, it's all a bit of a lash up, politically - that's about as far as my expertise goes anyway!

    A debt free challenge sounds like a great idea! I'm up for that!
    Loan 5000 0; Overdraft 700 0
    Savings 0 +1500; Share Portfolio 0 +4000
    0 Credit Card 6800 1700
    • zippygeorgeandben
    • By zippygeorgeandben 13th Feb 17, 11:43 PM
    • 503 Posts
    • 571 Thanks
    zippygeorgeandben
    Although I have considerably much more to pay off than you!
    • Exerbusi2
    • By Exerbusi2 15th Feb 17, 4:13 PM
    • 232 Posts
    • 152 Thanks
    Exerbusi2
    Although I have considerably much more to pay off than you!
    Originally posted by zippygeorgeandben
    You may have a higher income than me!

    On that note, I've paid off another 50 today, which brings my CC debt down to 4,950 - below the 5k target for February, so I'm happy about that!
    Loan 5000 0; Overdraft 700 0
    Savings 0 +1500; Share Portfolio 0 +4000
    0 Credit Card 6800 1700
    • zippygeorgeandben
    • By zippygeorgeandben 15th Feb 17, 11:56 PM
    • 503 Posts
    • 571 Thanks
    zippygeorgeandben
    Exerbusi2 - I see you 50 and raise you 20!
    I rang Zopa today and asked them to change the date of my monthly payments from the 27th of the month to the 2nd of the month which was fine (wanted it to be just after being paid). This means though that I don't have a February payment to make as the next payment will be 2nd March. I want to continue to pay off monthly so I've made a one off lump payment, not of 229.10 (the regular amount) but 300.
    Well done on the CC debt being down.
    Anyway, I'm off to Hull for a couple of days. I'll be having a few drinks, couple of meals but it's all within my money. Although obviously, the less I spend the more I can hammer at the CC!
    Hope you're ok.
    End Sep 2016 End April 2017
    8236.57 6670.91
    (Tesco 4.8%) 222.61pcm
    6185.75 1779.78 (Zopa 4.0%) 85.00pcm

    5344.50
    3394 (Sainsburys 0% until 06/19) 76.00pcm
    2000.00 (Sister 0%) 133.33pcm

    Total debt
    19.766.82 13,844.69 Original DFD May 2019.
    • Exerbusi2
    • By Exerbusi2 16th Feb 17, 9:09 AM
    • 232 Posts
    • 152 Thanks
    Exerbusi2
    Exerbusi2 - I see you 50 and raise you 20!
    I rang Zopa today and asked them to change the date of my monthly payments from the 27th of the month to the 2nd of the month which was fine (wanted it to be just after being paid).
    Originally posted by zippygeorgeandben
    Good move, this - when I was employed (rather than self-employed), I made all of my repayments immediately after pay day. Then, if I had a little spare before my next pay day I'd throw it at the debt and start the cycle again.
    Anyway, I'm off to Hull for a couple of days. I'll be having a few drinks, couple of meals but it's all within my money. Although obviously, the less I spend the more I can hammer at the CC!
    Hope you're ok.
    Originally posted by zippygeorgeandben
    Enjoy - capital of culture and all that!
    Loan 5000 0; Overdraft 700 0
    Savings 0 +1500; Share Portfolio 0 +4000
    0 Credit Card 6800 1700
    • Exerbusi2
    • By Exerbusi2 16th Feb 17, 9:14 AM
    • 232 Posts
    • 152 Thanks
    Exerbusi2
    So today I will receive 120 from some shares I've sold, of which I'll use around 100 on the CC debt, seeing me down to 4,850 which is comfortably below my sub 5k target for February.

    March is a slightly more expensive month for me - I've got a trip planned, but I've also (hopefully) got the first of the payments from a new project I'm currently setting up. That'll be nice!

    My plan is to use the profits from a new venture to contribute to both my savings for tax and my CC bill, meaning I should be able to get rid of the debt far quicker. If this project goes as planned, I'll be making a nice little income from it which will give me a financial cushion that makes me feel more relaxed.

    In April, I'm hoping for a much bigger payment, so I'll have to see how I get on - if that payment comes through, at least 50% of it is going on the CC - possibly all of it.
    Loan 5000 0; Overdraft 700 0
    Savings 0 +1500; Share Portfolio 0 +4000
    0 Credit Card 6800 1700
    • zippygeorgeandben
    • By zippygeorgeandben 16th Feb 17, 10:25 AM
    • 503 Posts
    • 571 Thanks
    zippygeorgeandben
    Well I'm never going to get 50% off the CC! I'm not going back on the street again!
    It was sold to me as European city of culture. When it's actually the UK...
    End Sep 2016 End April 2017
    8236.57 6670.91
    (Tesco 4.8%) 222.61pcm
    6185.75 1779.78 (Zopa 4.0%) 85.00pcm

    5344.50
    3394 (Sainsburys 0% until 06/19) 76.00pcm
    2000.00 (Sister 0%) 133.33pcm

    Total debt
    19.766.82 13,844.69 Original DFD May 2019.
    • Exerbusi2
    • By Exerbusi2 16th Feb 17, 9:48 PM
    • 232 Posts
    • 152 Thanks
    Exerbusi2
    I forgot about a bill that had left my account today, so I ended up paying only 50 off the CC.

    Maybe I'll add an extra 50 from somewhere else next week!
    Loan 5000 0; Overdraft 700 0
    Savings 0 +1500; Share Portfolio 0 +4000
    0 Credit Card 6800 1700
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