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    • psychopathbabble
    • By psychopathbabble 26th Jul 16, 12:03 PM
    • 5,856Posts
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    psychopathbabble
    Psychopathbabble's Path to Debt-Freedom
    • #1
    • 26th Jul 16, 12:03 PM
    Psychopathbabble's Path to Debt-Freedom 26th Jul 16 at 12:03 PM
    Good morning all,

    It's been quite a long time since I had any form of diary on here. I think it must be at least 6 years ago. In that time, I came this >< close to being debt free, only owing around £900 at one point shortly after I met my now husband.

    Fast forward 5.5 years since meeting him, a life full of adventure and new experiences and not worrying too much about money. In the last 15 months alone, we headed off on a big trip to the USA for my 30th, which included a complete surprise of a proposal, a wedding, a house purchase and now a baby arriving in November! You could say it's been one hell of a ride!

    Now, with maternity leave and part-time hours creeping up fast, it is time for us to face our debt full on and get our finances in order. Luckily, this has already started and we are making a significant change to our spending habits. We still have the bad days but in general we are so much better than we have been.

    Starting debt as at the beginning of July 2016:

    Loan (10.4%) - £7424.37
    RBS CC (19%) - 364.27
    Barclaycard (6.9%) - £1365.26
    Halifax CC (17.95%) - 1372.09
    MBNA (0%) - £1660


    This month we paid a lump sum of £3708 to the loan from DHs bonus. If we can stick to the plan, and there are no unplanned emergencies then we should be debt-free in March 2017!

    I have not included our mortgage or car finances in this. I hope to be able to make small monthly overpayments to the mortgage once we have our debt cleared.

    It helps that I finally have DH on board. Previously he has never worried, always justifying the money as we deserve it etc, he works hard and shouldn't have to scrimp and save. I think finally being in a position where my income will definitely be reduced has shown him we need to make changes. He gets embarassed when he tells people he can't afford to do XX but as I keep saying to him, we have got married, bought a house and have a baby on the way, all in 2016... so it's not shameful to admit we are having to be careful with our money! He also is keen for me to not return to work but there is no way we can afford for me to be a full-time SAHM, also I don't think I would want to quit work completely.


    I have set up this diary for my daily moans, updates and somewhere to vent

    Please feel free to join in


    ETA: Would like to keep a record of my credit score each month (i use a free website) and this month it is 569/710, 3/5, closer to poor than fair. I can't remember what it was previously, but a few months ago it was 1/5 so i'm getting there! DH is 601/710, 3/5 between fair and good.
    Last edited by psychopathbabble; 17-10-2016 at 11:08 PM.

    Became Mrs Scotland 16.01.16 Became homeowners 26.02.16 Baby girl arrived 27.10.16


    Debt Paid = £5040.27/£12,185.99 (41% paid off)
    RBS CC RBS LOAN MBNA 1 MBNA 2 BED FINANCE
Page 1
    • psychopathbabble
    • By psychopathbabble 26th Jul 16, 12:16 PM
    • 5,856 Posts
    • 38,806 Thanks
    psychopathbabble
    • #2
    • 26th Jul 16, 12:16 PM
    • #2
    • 26th Jul 16, 12:16 PM
    Update of payments this month:

    Loan - 3708 (waiting for interest to be added on)
    Barclaycard - 50
    Halifax - 50 (i use this card for petrol etc so waiting for all the balances and payments to clear for final balance!)
    MBNA - 25
    RBS - 364.27 PAID OFF

    1 debt down, 5 to go!

    Became Mrs Scotland 16.01.16 Became homeowners 26.02.16 Baby girl arrived 27.10.16


    Debt Paid = £5040.27/£12,185.99 (41% paid off)
    RBS CC RBS LOAN MBNA 1 MBNA 2 BED FINANCE
    • mummytogirls
    • By mummytogirls 26th Jul 16, 7:15 PM
    • 4,546 Posts
    • 11,848 Thanks
    mummytogirls
    • #3
    • 26th Jul 16, 7:15 PM
    • #3
    • 26th Jul 16, 7:15 PM
    Hey psychopath babble, lovely to hear from you today!! Wow you have a had a crazy few years!!

    Happy New Diary anyway xx

    Ps. your baby is due on my DD1s birthday! xx
    Mummytogirls x

    £23164.32 - 12/12/10
    £9104.15 - 15/11/16 - 60.70% paid off
    • psychopathbabble
    • By psychopathbabble 26th Jul 16, 8:15 PM
    • 5,856 Posts
    • 38,806 Thanks
    psychopathbabble
    • #4
    • 26th Jul 16, 8:15 PM
    • #4
    • 26th Jul 16, 8:15 PM
    Thanks mummy it's been a little hectic to say the least... But all good fun! Aw well I fully expect s/he to be late if they take after their dad!

    Became Mrs Scotland 16.01.16 Became homeowners 26.02.16 Baby girl arrived 27.10.16


    Debt Paid = £5040.27/£12,185.99 (41% paid off)
    RBS CC RBS LOAN MBNA 1 MBNA 2 BED FINANCE
    • beanielou
    • By beanielou 26th Jul 16, 9:25 PM
    • 44,843 Posts
    • 155,356 Thanks
    beanielou
    • #5
    • 26th Jul 16, 9:25 PM
    • #5
    • 26th Jul 16, 9:25 PM
    Good to see you
    Lou~ Debt free Wanabe No 55 DF 03/03/14.
    **Credit card debt free 30/06/10~** **Weight loss 2 stone 11 lbs **

    "A large income is the best recipe for happiness I ever heard of" Jane Austen in Mansfield Park.
    ***Fall down seven times,stand up eight*** ~~Japanese proverb.
    It starts with you, it starts from now. *** It is ok to be me.*** ***Keep plodding***
    • psychopathbabble
    • By psychopathbabble 26th Jul 16, 9:55 PM
    • 5,856 Posts
    • 38,806 Thanks
    psychopathbabble
    • #6
    • 26th Jul 16, 9:55 PM
    • #6
    • 26th Jul 16, 9:55 PM
    Hi Beanielou, hope you are well!

    Became Mrs Scotland 16.01.16 Became homeowners 26.02.16 Baby girl arrived 27.10.16


    Debt Paid = £5040.27/£12,185.99 (41% paid off)
    RBS CC RBS LOAN MBNA 1 MBNA 2 BED FINANCE
    • psychopathbabble
    • By psychopathbabble 27th Jul 16, 10:13 AM
    • 5,856 Posts
    • 38,806 Thanks
    psychopathbabble
    • #7
    • 27th Jul 16, 10:13 AM
    • #7
    • 27th Jul 16, 10:13 AM
    I have been looking at the 0% balance transfer cards that are currently a big thing on the MSE weekly newletters.

    Sadly I won't be eligible for them but ran an eligibility check and DH is pre-approved for quite a few. Hoping we can apply for one with the lowest fee and transfer the 2 cards I'm paying interest on over to a 0% interest rate.

    Currently I'm paying around £35pm in interest, we would pay around £17 in BT fee and then £0 interest which would save us overall around £150 in the timeframe we are looking at getting it all paid off. This doesn't include any interest we save by making overpayments on the loan as i'm not exactly sure what the figure is.

    Became Mrs Scotland 16.01.16 Became homeowners 26.02.16 Baby girl arrived 27.10.16


    Debt Paid = £5040.27/£12,185.99 (41% paid off)
    RBS CC RBS LOAN MBNA 1 MBNA 2 BED FINANCE
    • psychopathbabble
    • By psychopathbabble 28th Jul 16, 8:52 AM
    • 5,856 Posts
    • 38,806 Thanks
    psychopathbabble
    • #8
    • 28th Jul 16, 8:52 AM
    • #8
    • 28th Jul 16, 8:52 AM
    We were accepted for an MBNA card at 1.14% BT fee and 0% for 32 months!

    I have transferred the balance of £2764.30 from the 2 cards that were being charged interest, which saves me around £30-35 pm in interest. Every little helps as they say! Obviously once the balances have cleared, I will be calling and closing both accounts straight away!

    Became Mrs Scotland 16.01.16 Became homeowners 26.02.16 Baby girl arrived 27.10.16


    Debt Paid = £5040.27/£12,185.99 (41% paid off)
    RBS CC RBS LOAN MBNA 1 MBNA 2 BED FINANCE
    • psychopathbabble
    • By psychopathbabble 28th Jul 16, 8:58 AM
    • 5,856 Posts
    • 38,806 Thanks
    psychopathbabble
    • #9
    • 28th Jul 16, 8:58 AM
    • #9
    • 28th Jul 16, 8:58 AM
    Initial debt figures at 1st July:

    Loan (10.4%) £7424.37
    RBS CC (19%) £364.27
    Halifax CC (18.95%) £1372.09
    Barclaycard (6.9%) £1365.26
    MBNA (0%) £1660
    total - 12185.99


    Today:
    Loan (10.4%) £3388.88 (this does not include this months interest which should be added in the next couple of days)
    MBNA 1 (0%) £1660
    MBNA 2 (0%) £2764.30
    RBS (19%) £0
    Halifax (18.95%) £0
    Barclaycard (6.9%) £0
    Total - £7813.44

    Became Mrs Scotland 16.01.16 Became homeowners 26.02.16 Baby girl arrived 27.10.16


    Debt Paid = £5040.27/£12,185.99 (41% paid off)
    RBS CC RBS LOAN MBNA 1 MBNA 2 BED FINANCE
    • psychopathbabble
    • By psychopathbabble 1st Aug 16, 11:00 PM
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    • 38,806 Thanks
    psychopathbabble
    Confession time... we added to our debt today as we bought a new bed. Our current one is 10 years old and is in a pretty dire state. This has put our DFD back to August 2019 (August 2017 for credit cards and loans) if we leave the finance to run to full term but I plan to try and bring this forward! I have already shaved a year off this by playing around with our budget and overpayments. Am currently nitpicking our budget to find spare pennies where possible... Trouble is I have a feeling some of our costs may rise (groceries, energy bill) once baby arrives so I will have to keep juggling and switching round. I look at our budget all the time anywhere to tweak where possible and keep up to date!
    Last edited by psychopathbabble; 01-08-2016 at 11:13 PM.

    Became Mrs Scotland 16.01.16 Became homeowners 26.02.16 Baby girl arrived 27.10.16


    Debt Paid = £5040.27/£12,185.99 (41% paid off)
    RBS CC RBS LOAN MBNA 1 MBNA 2 BED FINANCE
    • psychopathbabble
    • By psychopathbabble 1st Aug 16, 11:09 PM
    • 5,856 Posts
    • 38,806 Thanks
    psychopathbabble
    Update including today's spending:

    Today:
    Loan (10.4%) £3441.41 (this does not include this months interest which should be added in the next couple of days)
    MBNA 1 (0%) £1635
    MBNA 2 (0%) £3764.30
    Bed finance (0%) £1700
    RBS (19%) £0
    Halifax (18.95%) £0
    Barclaycard (6.9%) £0

    Total - £10450.71

    Became Mrs Scotland 16.01.16 Became homeowners 26.02.16 Baby girl arrived 27.10.16


    Debt Paid = £5040.27/£12,185.99 (41% paid off)
    RBS CC RBS LOAN MBNA 1 MBNA 2 BED FINANCE
    • psychopathbabble
    • By psychopathbabble 17th Aug 16, 10:08 AM
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    psychopathbabble
    Why does payday always seem so far away? DH gets paid on Friday, meaning another chunk to the loan credit reports are out today on Noddle so I keep checking to see if it's available yet!

    Became Mrs Scotland 16.01.16 Became homeowners 26.02.16 Baby girl arrived 27.10.16


    Debt Paid = £5040.27/£12,185.99 (41% paid off)
    RBS CC RBS LOAN MBNA 1 MBNA 2 BED FINANCE
    • psychopathbabble
    • By psychopathbabble 17th Aug 16, 2:40 PM
    • 5,856 Posts
    • 38,806 Thanks
    psychopathbabble


    ETA: Would like to keep a record of my credit score each month (i use a free website) and this month it is 569/710, 3/5, closer to poor than fair. I can't remember what it was previously, but a few months ago it was 1/5 so i'm getting there! DH is 601/710, 3/5 between fair and good.
    Originally posted by psychopathbabble
    This month our credit scores are:

    mine: 568 3/5 but I think this is because my balance transfer card has shown up, but my two credit cards that are now empty still show a full balance

    DHs: 607 4/5 so his is improving

    Became Mrs Scotland 16.01.16 Became homeowners 26.02.16 Baby girl arrived 27.10.16


    Debt Paid = £5040.27/£12,185.99 (41% paid off)
    RBS CC RBS LOAN MBNA 1 MBNA 2 BED FINANCE
    • psychopathbabble
    • By psychopathbabble 19th Aug 16, 7:37 AM
    • 5,856 Posts
    • 38,806 Thanks
    psychopathbabble
    Just popping in to announce a payment of £796.68 to the loan this morning just got to wait for the penalty to hit the account now... I'm sadly wishing my life away via pay days at the moment! Hopefully this loan will be paid off in November pay day

    Became Mrs Scotland 16.01.16 Became homeowners 26.02.16 Baby girl arrived 27.10.16


    Debt Paid = £5040.27/£12,185.99 (41% paid off)
    RBS CC RBS LOAN MBNA 1 MBNA 2 BED FINANCE
    • psychopathbabble
    • By psychopathbabble 1st Sep 16, 8:51 AM
    • 5,856 Posts
    • 38,806 Thanks
    psychopathbabble
    Update:

    Loan - 2299.81
    MBNA 1 - 1610
    MBNA 2 - 4060.96
    Bed - 1700

    paid 2515.22/12185.99 (20.64%)

    It's gone up slightly on last month as we had a week off at the start of august and spent money on lunches etc. Never mind, it's still going in the right direction!

    Became Mrs Scotland 16.01.16 Became homeowners 26.02.16 Baby girl arrived 27.10.16


    Debt Paid = £5040.27/£12,185.99 (41% paid off)
    RBS CC RBS LOAN MBNA 1 MBNA 2 BED FINANCE
    • psychopathbabble
    • By psychopathbabble 17th Sep 16, 9:05 AM
    • 5,856 Posts
    • 38,806 Thanks
    psychopathbabble
    Credit report is 571 for me and 3/5... My credit cards are still showing the wrong balance from before the balance transfers which is frustrating

    DH has dropped to 580, probably because of the BT card he opened. He also has a ton of searches shown up for insurance companies and the BT card which doesn't help!


    Oh well, the loan should be paid off in November and I am closing my credit cards so hopefully that all helps.

    Became Mrs Scotland 16.01.16 Became homeowners 26.02.16 Baby girl arrived 27.10.16


    Debt Paid = £5040.27/£12,185.99 (41% paid off)
    RBS CC RBS LOAN MBNA 1 MBNA 2 BED FINANCE
    • psychopathbabble
    • By psychopathbabble 20th Sep 16, 2:54 PM
    • 5,856 Posts
    • 38,806 Thanks
    psychopathbabble
    Update on finances:

    Loan £2299.81
    MBNA 1 £1610
    MBNA 2 £4020.36
    Bed £1700

    Paid £2555.82/£12185.99 21%

    Became Mrs Scotland 16.01.16 Became homeowners 26.02.16 Baby girl arrived 27.10.16


    Debt Paid = £5040.27/£12,185.99 (41% paid off)
    RBS CC RBS LOAN MBNA 1 MBNA 2 BED FINANCE
    • psychopathbabble
    • By psychopathbabble 3rd Oct 16, 3:31 PM
    • 5,856 Posts
    • 38,806 Thanks
    psychopathbabble
    Now everything has been paid for the month, just thought I would update the totals. As we changed one of our cars this month, we didn't have to pay the finance, so I put that straight towards the loan. Meaning we get the loan paid off on the 21st of this month! A whole month earlier than I had planned in my debt repayment budget but we originally took it out over 3 years, and will have paid it back in 19 months!

    Loan - 1039.45
    MBNA 1 - 1585
    MBNA 2 - 4020.36
    Bed - 1652.78

    Paid £3888.89/£12,185.99 (32%)

    Hopefully we will get pay another 10% off next payday, and settle the loan DH should also get his car allowance increased this month (it should have been increased from July) so that will help!
    Last edited by psychopathbabble; 03-10-2016 at 3:37 PM.

    Became Mrs Scotland 16.01.16 Became homeowners 26.02.16 Baby girl arrived 27.10.16


    Debt Paid = £5040.27/£12,185.99 (41% paid off)
    RBS CC RBS LOAN MBNA 1 MBNA 2 BED FINANCE
    • psychopathbabble
    • By psychopathbabble 17th Oct 16, 4:56 PM
    • 5,856 Posts
    • 38,806 Thanks
    psychopathbabble
    I may not get time to post on Friday as we will be at a wedding, but this Friday we will be making the final payment of £1046 to our loan. Yay!

    we have racked up small amounts on our 'daily' cards, so need to get those paid off next month. Once those are paid again, our only debt is 0% credit cards and bed finance. Am planning to pay off the smallest credit card by Christmas and then relax a little... Will still make over payments to the final credit card, but also want to try and make some savings too... With having baby arrive, I fee uncomfortable not having any buffer in case of emergencies. Seeing as our debt will be 0% interest, it won't cost us any more to slow down a little. Our loan will have been paid off in 19 months instead of 36, and my credit card (MBNA 1) will have been paid off in less than 6 months.

    Became Mrs Scotland 16.01.16 Became homeowners 26.02.16 Baby girl arrived 27.10.16


    Debt Paid = £5040.27/£12,185.99 (41% paid off)
    RBS CC RBS LOAN MBNA 1 MBNA 2 BED FINANCE
    • Katzen
    • By Katzen 17th Oct 16, 5:13 PM
    • 499 Posts
    • 1,604 Thanks
    Katzen
    Wow! Good work on clearing so much so fast. Seems you don't do anything be halves. Do you currently do swag bucks and surveys? If not, get signed up before baby arrives because you will probably spend hours in the first few months sitting cuddling a sleepy bundle with tv in the background. I'm kicking myself that I forgot this, I got through the entire gossip girl back catalogue in that time!!
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