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    • Ammeretto
    • By Ammeretto 2nd Jun 16, 10:38 PM
    • 152Posts
    • 338Thanks
    The long and winding road to debtfreeness
    • #1
    • 2nd Jun 16, 10:38 PM
    The long and winding road to debtfreeness 2nd Jun 16 at 10:38 PM
    It's been quite a while since i last posted on this forum. I quite often pop in to read posts i'm subscribed to though

    Warning - i will be rambling quite a bit below but i just need to get my thoughts down

    I was looking at my total debt this month and when i compared it to the total i had as my starting debt i though !!!!. i haven't been doing very well at all.
    Now i have re calculated some of the amounts it is looking a little better.

    At LBM in March 2014 i had a total of £29,981.66 on various credit cards and a loan. What i also forgot to consider was that we also owed £6,261.84 on a car loan (hp). So in Mar 14 our total debt was £36,243.50.

    When the loan finished in July 15 and we owed £18,429 on the cards and £3,385 on the car = £21,814

    so in 16 months we cleared £14,429 (£901 per month) not too bad.

    At this point I thought fab we can now pay what we were paying on the loan onto the cards. That worked for a few months until OH had the opportunity to enter into a share save scheme with work.
    We can buy the shares at 2p a share and at the end of the 3 years we can either get all our money back if the share value is less or we can keep the shares and then sell them and make a profit if they are higher.
    So we basically looked at it like a savings plan with no risk and a potential nice payout at the end. If we are struggling at any time we can stop the scheme and get back everything we have paid into it.
    We are now paying £362 per month into this instead of paying onto the cards.
    At the end of the three years we will have at least £13k back (total contributions) We should have payed of the cards by then so we will have a nice lump sum. We hope to pay a chunk off the mortgage. If the shares double to just 4p we are looking at £26k (less tax)

    In Oct 15 i did a balance transfer to clear the remaining car loan so the credit card increased but the car loan was paid off.
    Debt at Dec 15 was £20,811 so in the 5 months from the loan ending we only cleared £1k

    Debt at May 16 is now £18,629 so total cleared since LBM is £17,794.50 which is 48.6%
    So almost half in just over two years. Im quite pleased with that.

    So going forward - The plan is to carry on paying £700 per month to the debts plus any overtime the OH gets. We are hoping to be clear in Sep 18 with the shares due to mature in Nov 18 so if there is a small balance left we can clear it then.

    Now OH has a bike on pcp that is due to end in Aug and the payment due is £2,360 - I did have this saved up to pay it off but then last month OH saw the bike of his dreams so he used the money to buy it

    So come Aug we had two options - hand the bike back so no money to pay.
    or pay the £2360 to clear the finance and then sell the bike privately as its worth about £3k

    now we were going to just hand the bike back as we couldn't raise over £2k in just a few months but my barc card has offered a
    cash balance transfer 0% for 15 months
    so we are going to get £3.5k on the 0% use some towards the bike and then some to pay onto another c/c that has just started charging interest.
    then when we sell the bike the £3k will just go straight onto the c/c so we should be in profit by £500 at the end (after the BT fee)

    so although debt will increase this month it should go right back down in aug/sep time when we sell the bike.

    that was a huge post.
    Well done if you read through it all.
    Debt at LBM (Mar 14) - £29,981.66 + £11,320.91 Car & Bike HP + £799.78 HMRC tax credits = £42,102.35
    Credit card Debt Jul 17 - £18,900
    PAYDbyXMAS2017 #142 - £4,950 / £10,000
Page 2
    • Ammeretto
    • By Ammeretto 2nd Jul 17, 8:25 PM
    • 152 Posts
    • 338 Thanks
    Not too much to report. I went to bodypump thursday night (i was still aching yesterday) and MIL is came over to colour my hair for me.
    Had my bloods taken Friday morning. I need to ring up on Wednesday for the results.
    I also had my crossfit consultation on Friday. Part of the package also includes a meal plan / diet to follow but it's for the Paleo diet and i'm not sure.
    I might try it for a week and see how i get on. If not i'll just go back to calorie & macro counting.
    First crossfit session is tomorrow straight after work.

    yesterday i had to buy a new washing wirlygig as mine broke. It used to keep dropping and i would go out to find half the clothes dragging on the grass but yesterday it died completely. I got a 50 meter drying area one for £29.99.

    My mum invited us over to theirs for a BBQ last night so that was a nice free dinner.

    Today saw another spendy day. £37.99 in sports direct - shoes and socks for DS1 (he keep growing. His feet are now bigger than mine) and OH got a bag for the gym.
    We also spent £78.45 in Argos - cube storage unit, mirror and stool (To store towels and to have a shelf for my make up - all budgeted). I also picked up a bike helmet for DS2 as his current one is broken and also some rechargeable batteries.

    Thinking financials again - for the last few years we have done all of our grocery and fuel spending on two credit cards (fuel on OH Egg card and groceries on my Lloyds card) and pay it off in full each month.
    The reason behind this was 1) to help with our credit rating before getting our remortgage and 2) because it keeps it separate from my main account. I could see at a glance how much we had spent each month on fuel or food etc (this was implemented long before i started to use YNAB). It also helps keeps the main account tidy of lots of transactions.
    Anyway I have a n/wide credit card that was opened last year for a Balance transfer. The 0% has just come to an end and the remaining amount was transferred over to my B/Card. This leaves the balance on the n/wide card at zero. I have only just realised that they offer 0.5% cashback on all purchases. (i did try getting the natwest rewards one as that has a higher % but i was declined)
    So I have requested a new card and pin for myself (the original one was cut up as soon I received it) and another card for OH and we will now be doing our grocery and fuel spends on the N/Wide. It has a £1.5k limit which is more than enough for our monthly spends. We are only looking at getting around £40 - £50 per year but its money for nothing, and as i use YNAB i still get to see the groceries / Fuel spends split.

    Right bed time for DS2 and then a bath for me i think.
    Night all.
    Debt at LBM (Mar 14) - £29,981.66 + £11,320.91 Car & Bike HP + £799.78 HMRC tax credits = £42,102.35
    Credit card Debt Jul 17 - £18,900
    PAYDbyXMAS2017 #142 - £4,950 / £10,000
    • Ammeretto
    • By Ammeretto 5th Jul 17, 8:32 PM
    • 152 Posts
    • 338 Thanks
    So i went to crossfit on monday. It was fab, but i'm still in pain today. My thighs hurt soooo much.
    It hurts to stand up, walk and sit down.
    IT should be better tomorrow but i'm going to cross fit again after work so will be aching again on Friday.

    Had the results from my blood test today. Everything was normal apart from the test for B12. I have to go in tomorrow morning for another blood test.

    It looks like i might have overestimated the amount that i thought OH would get from his shares if the company is sold.
    We are now looking at around £6 to £6.5k - which is still a fantastic amount.
    Obviously it all depends if the company is sold.
    Debt at LBM (Mar 14) - £29,981.66 + £11,320.91 Car & Bike HP + £799.78 HMRC tax credits = £42,102.35
    Credit card Debt Jul 17 - £18,900
    PAYDbyXMAS2017 #142 - £4,950 / £10,000
    • Ammeretto
    • By Ammeretto 10th Jul 17, 8:26 PM
    • 152 Posts
    • 338 Thanks
    It's been a busy and quite expensive weekend.
    Took DS2 and my sister and two of her kids to margam park on saturday.
    It was lovely but i forgot the new parking season had started so i bought a season ticket - £28. We were also there a lot longer than we expected to be so we ended up buying lunch in the cafe. £9.10 spent.
    Sunday Me and OH took the kids to the bridgend county fair. It was free entry but i spent a fortune on rides, food, sweets etc. OH bought some local craft ales. Spent a total of £46

    Driving home from work on friday and my car beeped at me and told me i needed to check tyre pressures. I filled them up and all was good. Sunday on the way back from the show and it beeped again. OH took a look and there was a screw in my tyre. The only place open was kwik fit. They managed to repair it rather than fit a new tyre but it still cost £25.

    DS has been struggling in school with his reading for quite a while. He has loads of help in school and we read loads with him. We mentioned our concerns to his teacher and she shared the same view so he was out forward to be tested.
    We found out thursday that he has been diagnosed dyslexic.
    I'm relieved that we now know what is causing his difficulties with his reading and we can find ways to help him. He asked me if it would go away when he gets bigger. I explained to him that it wouldn't as it's a part of him, and that its not bad it's just his brain sees things in a slightly different way.
    Debt at LBM (Mar 14) - £29,981.66 + £11,320.91 Car & Bike HP + £799.78 HMRC tax credits = £42,102.35
    Credit card Debt Jul 17 - £18,900
    PAYDbyXMAS2017 #142 - £4,950 / £10,000
    • Chandelier.
    • By Chandelier. 10th Jul 17, 8:45 PM
    • 459 Posts
    • 1,206 Thanks
    Sorry to hear about your boys diagnosis of dyslexia. At least school have been proactive and it's been spotted earlier on. Hopefully you'll recieve help and learn ways to support him as much as possible.

    It also sounds as if you had a great weekend minus the tyre issue. I am quite guilty of unexpected spends on weekends... and maybe some week days
    Check out my Diary
    • Ammeretto
    • By Ammeretto 10th Jul 17, 10:02 PM
    • 152 Posts
    • 338 Thanks
    Thanks for popping in Chandelier.

    Yes it's good that it was picked up early. I think we were lucky he was tested now. His teacher was saying that quite often requests for testing are postponed until the child is in at least Year 4 (ds2 is in year 3). I think that the fact that he has had so much help in the past two years with one to one reading, lexia etc and he was still not improving despite being really good at all his other lessons (he's in the top set for maths, does really well in science) led them to believe that something was off, so they agreed to test him.
    The school are going to draw up an IAP for him and we can look at ways to help him at home.

    I am kinda gutted for him. I love to read and always have done. It makes me sad to think that he might not get as much enjoyment out of it as he finds it so hard. He loves books. He always want to get books from the library but when it comes to read them he struggles so ends up getting frustrated. He will quite happily sit there and listen to me read to him or listen to an audiobook though.

    The weekend was good. It was nice to get out as a family on Sunday too, especially as DS1 (who is 14) is at the age now where he quite often would prefer to go out with his friends.
    Debt at LBM (Mar 14) - £29,981.66 + £11,320.91 Car & Bike HP + £799.78 HMRC tax credits = £42,102.35
    Credit card Debt Jul 17 - £18,900
    PAYDbyXMAS2017 #142 - £4,950 / £10,000
    • Ammeretto
    • By Ammeretto 20th Jul 17, 9:07 PM
    • 152 Posts
    • 338 Thanks
    The past week or so has been quite quiet.
    Just plodding along, going to work and crossfit.
    Spent some time at the library with DS2 looking for books that are dyslexia friendly.
    The Summer reading challenge starts on Saturday so we will prob end up there again.

    I was panicking a bit as the renewal for our car insurances came through and the quote was for £712 (for both cars) (up from £550 last year) and i only had £550 saved.
    We had a look around and managed to get insurance for the both cars for £400.
    £100 has been moved to the summer holiday spending pot and £50 has gone in the christmas pot.
    Debt at LBM (Mar 14) - £29,981.66 + £11,320.91 Car & Bike HP + £799.78 HMRC tax credits = £42,102.35
    Credit card Debt Jul 17 - £18,900
    PAYDbyXMAS2017 #142 - £4,950 / £10,000
    • Ammeretto
    • By Ammeretto 20th Jul 17, 9:12 PM
    • 152 Posts
    • 338 Thanks
    forgot to add

    the last of our monthly payments has gone out so July debt total is now £18,900 - so £700 paid this month.

    Balances are now
    MBNA - £2,900
    Halifax 1 - £1,600
    Halifax 2 - £960
    Creation - £4,200
    B/Card 1 - £5,555
    B/Card 2 - £3,695
    Debt at LBM (Mar 14) - £29,981.66 + £11,320.91 Car & Bike HP + £799.78 HMRC tax credits = £42,102.35
    Credit card Debt Jul 17 - £18,900
    PAYDbyXMAS2017 #142 - £4,950 / £10,000
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