The Challenge - Debt free in two years!

Ceniza · 26 May 2010 at 12:49PM

Hey guys.

I hope it's okay to join you all here. I've been thinking on and off for a few months about seriously tackling my debt. I've been reading on the internet about ways to help me and came across this forum so thought I would join in and get this debt under control and paid off

Anyway, I read a lot of people have an SOA. I don't have one myself, as I don't believe my situation to be too serious, but I will detail at a high level my income and outgoings, and then how much I channel towards the debt. The plan is to make my final payment to my debt in two years on the 1st June 2012, which is going to be a huge challenge considering the debt levels I have.

I'm here for help, encouragement, and motivation.

I guess the main reason for my debt was my insatiable appetite for gadgets and always having to have the newest things. I guess my problems started when I was about 19 and somehow managed to take a hire purchase on an £8,500 car. From here, refinancing the loan, taking out credit cards and other elements meant that my debt soon soared over £20k. I'm now 27 and facing up to my debt, and my idiotic actions. I'm embarrassed like all people, but I admitted to my partner my troubles and she is standing by me by limiting our lifestyles to clear me from this mess.

Current Debt

Lloyds Loan - £18,831.22 @ 14.5%
Capital One CC - £968.83 @ 30%
Egg Banking CC - £943.30 @ 21.90%
Lloyds TBS overdraft - £2000 @ 12.3%
Loan from OH - £600 @0%

Total Debt: £23,343.35

The idea is to clear as much debt as possible, in the shortest amount of time. Whilst battling with my own gremlins to NOT buy anything I would usually impulsively buy. No more keeping up with my friends and having the latest gizmo, so here goes. More of my disposable income on debt, not toys!

I will update as often as I need to, but give a monthly update on what debt I've paid off, and what is outstanding. Hopefully by seeing it falling each month, this will give me the drive I need to continue.

Wish me luck... :beer:

[Deleted User] · 26 May 2010 at 4:38PM

I don't post very often, but didn't want to read and run Good Luck!

jtr2803 · 26 May 2010 at 5:38PM

Hi Adam,

Welcome to MSE and DFW! You will see from the number of diaries on here that are lots of us in the same boat! You seem to have a good income and there should be enough surplus there for you to make some serious headway into the debts

Try keeping a spending diary so you can easily see where you may have bought something that wasn't necessary. Have a look around at other peoples diaries to see how they manage their spending and budgeting, after all, a million heads are better than one :rotfl:

Good luck!

Determined_2b_Debt_Free · 26 May 2010 at 8:23PM

Hi there,

Good luck with your journey - we are in a similar position so I will want to keep a track of your progress and make sure you're not overtaking me

There are lots of ways to help you stay on track, many of which can be found on here. Might seem like a struggle to start with but once you've got used to it, you won't recognise yourself, this money saving thing can be just as addictive as spending the money!

Enjoy :beer:

Ceniza · 27 May 2010 at 1:25PM

Thank you for the replies and encorragement guys. I hope I can keep to this and finally start to enjoy the money I work hard to make

Determined_2b_Debt_Free wrote: »

Hi there,

Good luck with your journey - we are in a similar position so I will want to keep a track of your progress and make sure you're not overtaking me There are lots of ways to help you stay on track, many of which can be found on here. Might seem like a struggle to start with but once you've got used to it, you won't recognise yourself, this money saving thing can be just as addictive as spending the money!

Enjoy :beer:

Ooooh, I love a challenge. Although you have a huge head start over me! Time to play catch-up I think! Game on. 5 days until the next set of debt repayments. Let's make this interesting

Determined_2b_Debt_Free · 27 May 2010 at 6:24PM

AdamA9 wrote: »

Thank you for the replies and encorragement guys. I hope I can keep to this and finally start to enjoy the money I work hard to make

Ooooh, I love a challenge. Although you have a huge head start over me! Time to play catch-up I think! Game on. 5 days until the next set of debt repayments. Let's make this interesting

You're on!!!! I love a bit of competition :j

OrangeFairy · 27 May 2010 at 7:23PM

Welcome Adam...i hope you find a lot of inspiration in all these diaries!

After a day of perhaps feeling a bit beaten a quick gander over the boards can give you all the motivation you need

Good luck, seems like you have a fantastic income to work with and a supportive partner - recipe for success me thinks!

:D:D:D

Choc-addict · 27 May 2010 at 7:59PM

Hey,

Just wanted to pop by and wish you lots of luck on your journey. I'm sure you'll be debt free before you know it! It's always fab to have an understanding partner and not only that but you've realised the 'whys' to how you got in debt so hopefully no chance of ever going back there.

Good luck, have subscribed so will pop back and catch up on your progress x

mrs_robinson_3 · 27 May 2010 at 8:08PM

Hi Adam! Are you up to date with all your payments/have you had any late charges etc? If not, you might like to try to balance transfer those high rate APR cards somewhere else - I've just BT'd to Virgin which is 0% for 14 months ATM.....this site has all the details you'll need to look into it. You'll save so much if you can BT, it will all start to happen for you sooner than you think!

Best of luck

Mrs R

Ceniza · 28 May 2010 at 9:42AM

Thanks again for the words of encouragement! It's making me feel more determined to do this right

mrs_robinson wrote: »

Hi Adam! Are you up to date with all your payments/have you had any late charges etc? If not, you might like to try to balance transfer those high rate APR cards somewhere else - I've just BT'd to Virgin which is 0% for 14 months ATM.....this site has all the details you'll need to look into it. You'll save so much if you can BT, it will all start to happen for you sooner than you think!

mrs_robinson wrote: »

Mrs R

Thanks, I've looked into it but I was refused for some reason. I've checked my credit rating online, and I've made every payment on every piece of debt I've ever had. I've always borrowed within my means, but as my salary increased, so did my debt. Trying to live the lifestyle above my pay most of the time

I don't know the reason for the refusal, but Experian say the only bad point on my credit file is my high APR credit cards, which is the reason for me trying to BT... Go figure. I've also moved a lot in the past 5 years or so, which is also not a good thing to be doing. I get itchy feet, and love to change my scenery, as they say, a change is as good as a rest! I have a lovely little flat down on the seafront at the moment, so maybe I will stay here for a while - but I'm hoping I will have the cards cleared in the next couple of months anyway

I'm planning on clearing the Capital one credit card from this months pay, so that will eliminate that card. And next month, maybe get rid of the other card. Then work on the overdraft to get that down and remove it so I cannot go into it again. Then it's time to tackle that huge loan. Plan is for £1000 a month, but I'm sure if I work hard I can get more onto it.

Unfortunately, I'm a big of a gadget geek, and the new iPhone is coming out in the next month or so, and I'm struggling to convince myself that I don't need it. Especially since my current phone is on it's last legs. Maybe I can eBay some stuff I have stored in my flat. I have loads of electronics stashed in the cupboards that I never use, some of it worth quite a bit.

Anyway, thanks again for stopping in, and for the advice. Perhaps I will call someone for a TB and explain why I want it, to see if they can do it for me.

Determined_2b_Debt_Free · 28 May 2010 at 2:27PM

Hi Adam,

I got refused for a card for the first time a couple of years ago when I was trying to BT before my mum lent me the money. That led me to get my credit report and there was nothing bad on there at all. I strangely felt a bit miffed because I had only gone into the post office to do normal post officey things and they started selling me this 'amazing' deal, I felt that because I'd gone through it all and then been declined, that was a bad thing probably for my credit rating too. The plus side is, I've never been tempted by anyone selling me credit since! Every cloud...

If you're planning on paying off your capital one card this month you will seriously overtake me in the 'overpayment' stakes for June, think I'll manage £500 which is less than my target figure but still good... but get Ebaying and we'll have an Ebay-off! Although it sounds like you might overtake me in that as well if you have lots of gadgety bits to sell...

The Challenge - Debt free in two years!

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