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  • FIRST POST
    • fourthtimelucky
    • By fourthtimelucky 24th Aug 16, 3:40 PM
    • 20Posts
    • 25Thanks
    fourthtimelucky
    FourthTimeLucky's 4th attempt to become debt free
    • #1
    • 24th Aug 16, 3:40 PM
    FourthTimeLucky's 4th attempt to become debt free 24th Aug 16 at 3:40 PM
    Hi all, thanks for taking the time to stop by and have a nosy at my diary.

    This is my third or fourth attempt at clearing a nagging debt that has accrued steadily with very little to show for it. Before I explain where it came from I will put the figures out there so it is out of the way.

    Unsecured loan - £10,760.80 (40 payments remain Ė last one December 2019)
    Barclaycard - £1,102.65
    MBNA Credit Card - £1,989.93

    The unsecured loan is with my bank and was to consolidate previous debts on a lower interest rate. I stupidly didnít include the two credit cards that were 0% so rather than having one payment I have three outstanding debts. Barclaycard remains at 0% and I have a standing order of £100.00 in place which means it will be cleared July 2017 as it stands. The MBNA is at a standard rate and I have recently been clocking up extra spends on which I need to put a stop to. I have just this second cut the card up and popped it in to five different secure waste sacks in my office!

    I plan to leave the loan to its own devices for now as the payment comes out of my account on payday. I also plan to leave the Barclaycard at £100.00 per month as it remains interest free for the life of the balance.

    My first decision is whether to transfer the MBNA balance to the Barclaycard where I have a 0% offer for fifteen months with a 2.9% fee (which would equate to £57.70). I am currently making minimum payments of around £40.00 and the interest is around the £25.00 mark each month so I am leaning toward making the transfer and closing the account down. In the past I have been guilty of keeping the card and account Ďfor emergenciesí which obviously leads down the wrong path.

    Having reread when Iíve typed so far I am pretty sure that transferring to 0% is the way forward as the balance transfer fee is just over two monthsí worth of interest alone.

    My circumstances have changed somewhat in the last three months. I now live back with my parents which whilst not being ideal in my mid-thirties does allow me to attack these debts with my outgoings somewhat reduced.

    I will be attacking them a little less full on that some of the people here on the boards. I have had a pretty grim few months and have decided to allow myself to enjoy myself a little whilst addressing the outstanding balances. That said, I am not going to book for a month in the Bahamas; just allow myself some of the things I already have in place such as a tennis club membership, a football season ticket and some pre-planned trips away (within the UK).

    I plan to adopt the MSE mantras and reign in my often unnecessary spending. I have an addiction to eating out, whether it be restaurants or lunches at work. I totalled up a weekly spend last week and it came to over £70 with two meals out and four out of five lunches at work. Whilst every week is different, it is sobering to know that at that rate I would be spending £3,640.00 a year.

    I will update as often as I can and also want to get involved in and around the boards again. I used to be quite active on a previous username so will do what I can to contribute. Thanks again for reading.
Page 1
    • fourthtimelucky
    • By fourthtimelucky 24th Aug 16, 11:31 PM
    • 20 Posts
    • 25 Thanks
    fourthtimelucky
    • #2
    • 24th Aug 16, 11:31 PM
    • #2
    • 24th Aug 16, 11:31 PM
    Back again with another post.

    Just to add some meat to the bones; I work full time earning around 30k per year. My outgoings are the loan, sports and gym membership, car insurance, child maintenance, Amazon video, a mobile phone contract, token rent and vehicle recovery. My phone contract is due to end and I'm mulling over going SIM only which could more than halve my payment.

    I do some freelance writing occasionally and have emailed previous editors to make some new pitches for next month. Fingers crossed that will bring in some money. I've also made a claim for delayed flights under the EU delay scheme. It is borderline but for the price of a stamp it's worth trying.
    Starting point Aug 2016 - £13,853.38
    Current total Sep 2016 - £13,845.40 - 0.06% paid off (I have an excuse for month one...)
    Debt free date (worst case) December 2019
    • Karonher
    • By Karonher 25th Aug 16, 12:22 AM
    • 311 Posts
    • 1,727 Thanks
    Karonher
    • #3
    • 25th Aug 16, 12:22 AM
    • #3
    • 25th Aug 16, 12:22 AM
    Good luck with the writing. I do a little but it is very small articles that pay a few pounds.

    You will probably feel better with one card gone.

    By the way, which team is the season ticket for?
    Getting ready for Christmas 2016

    Aiming to make £3,500 online in 2016.
    • fourthtimelucky
    • By fourthtimelucky 25th Aug 16, 9:10 AM
    • 20 Posts
    • 25 Thanks
    fourthtimelucky
    • #4
    • 25th Aug 16, 9:10 AM
    • #4
    • 25th Aug 16, 9:10 AM
    Thanks for the reply. I am 99% certain I will do a balance transfer and get rid of the second card. The fee only equates to two months interest so it makes sense.

    For my sins the season ticket is for Newcastle United; currently adjusting to new surroundings in the Championship!
    Starting point Aug 2016 - £13,853.38
    Current total Sep 2016 - £13,845.40 - 0.06% paid off (I have an excuse for month one...)
    Debt free date (worst case) December 2019
    • fourthtimelucky
    • By fourthtimelucky 25th Aug 16, 1:02 PM
    • 20 Posts
    • 25 Thanks
    fourthtimelucky
    • #5
    • 25th Aug 16, 1:02 PM
    • #5
    • 25th Aug 16, 1:02 PM
    Forgot to mention that I have a minuscule savings pot that currently stands at £145. I know the mantra is to pay debts with savings but I think I will stick with this. It is a regular saver with my bank and will be £355 minimum when it finishes. It is one of the few decent places left with a reasonable interest rate and psychologically I think it benefits me to put money aside and leave it untouched.

    I am going to take myself over the the challenges board for a nosy and see what I can get involved in.
    Starting point Aug 2016 - £13,853.38
    Current total Sep 2016 - £13,845.40 - 0.06% paid off (I have an excuse for month one...)
    Debt free date (worst case) December 2019
    • fourthtimelucky
    • By fourthtimelucky 26th Aug 16, 9:46 AM
    • 20 Posts
    • 25 Thanks
    fourthtimelucky
    • #6
    • 26th Aug 16, 9:46 AM
    • #6
    • 26th Aug 16, 9:46 AM
    Small update for today.

    I took some trousers back that I bought in two sizes (good news being the smaller size fitted) and got a refund on those (£20.00) and also was paid £23.15 x2 by friends for train tickets I bought last month. £66.30 that I hadn't accounted for that I will use to make an extra payment from the MBNA card to reduce the balance before I make the transfer.
    Starting point Aug 2016 - £13,853.38
    Current total Sep 2016 - £13,845.40 - 0.06% paid off (I have an excuse for month one...)
    Debt free date (worst case) December 2019
    • dawnybabes
    • By dawnybabes 26th Aug 16, 10:42 PM
    • 1,542 Posts
    • 3,620 Thanks
    dawnybabes
    • #7
    • 26th Aug 16, 10:42 PM
    • #7
    • 26th Aug 16, 10:42 PM
    Small steps make all the difference
    Sealed pot challenge 822

    Jan - £176.66
    • rockabillygirl
    • By rockabillygirl 27th Aug 16, 7:42 PM
    • 110 Posts
    • 672 Thanks
    rockabillygirl
    • #8
    • 27th Aug 16, 7:42 PM
    • #8
    • 27th Aug 16, 7:42 PM
    Didn't want to read and run. Good luck on your debt free journey.
    It will all be ok in the end - if it's not ok, then it's not the end!
    Working hard to be debt free...long road.
    Debt currently £21,398.39.
    Saving for Xmas 2016 #23. :
    Sealed pot challenge #32
    • fourthtimelucky
    • By fourthtimelucky 30th Aug 16, 8:45 AM
    • 20 Posts
    • 25 Thanks
    fourthtimelucky
    • #9
    • 30th Aug 16, 8:45 AM
    • #9
    • 30th Aug 16, 8:45 AM
    Thanks for the replies folks.

    I had a relatively cheap Bank Holiday weekend which makes a change from the norm. Also tomorrow is pay day and I am not in my overdraft so the frugal approach is paying dividends already.

    I have today requested to transfer the balance from my MBNA card that is accruing interest over to my Barclaycard where it will be at 0%. The fee was more than I had hoped as the offer changed from 2.9% to 3.9% from when I last looked but it will still be much more beneficial in the long run.
    Starting point Aug 2016 - £13,853.38
    Current total Sep 2016 - £13,845.40 - 0.06% paid off (I have an excuse for month one...)
    Debt free date (worst case) December 2019
    • Perpetual_Miser
    • By Perpetual_Miser 2nd Sep 16, 8:51 AM
    • 27 Posts
    • 28 Thanks
    Perpetual_Miser
    Good Luck! You are in a very similar position to myself, so I'll be following closely.
    DMP:

    Starting Total: £10,254.47
    /
    Remaining: £9397.47 = (8.36% CLEARED)
    • fourthtimelucky
    • By fourthtimelucky 8th Sep 16, 2:42 PM
    • 20 Posts
    • 25 Thanks
    fourthtimelucky
    Hi again. Bit of an absence as things have been manic but thought I would drop a quick update in. A little bit of bad news is that my debt total is slightly higher than I thought as there was a payment taken on one of the credit cards for a hotel stay that I already thought had been taken.

    I have transferred the balance from the card with the interest (and cut it up in to a million pieces before cancelling it) so the two figures are

    Unsecured loan £10,491.78 (39 payments remain)
    Barclaycard (0%) £3,353.62
    Total - £13,845.40


    It is a little bit of a set back to only be £7.98 better off than last month but I have now removed any interest from accumulating which will make a big difference. Just to demonstrate, the interest last month on the card that was cancelled and cut up was over £60.00. This means the balance transfer fee pays for itself after only one month.

    I have also started a sealed tub with an open date of November 2017.
    Starting point Aug 2016 - £13,853.38
    Current total Sep 2016 - £13,845.40 - 0.06% paid off (I have an excuse for month one...)
    Debt free date (worst case) December 2019
    • fourthtimelucky
    • By fourthtimelucky 8th Sep 16, 2:47 PM
    • 20 Posts
    • 25 Thanks
    fourthtimelucky
    Good Luck! You are in a very similar position to myself, so I'll be following closely.
    Originally posted by Perpetual_Miser
    Thanks for your reply. I have been following your diary and we do have a lot of similarities so it is good to know other people are working towards similar targets and dealing with the same amounts.
    Starting point Aug 2016 - £13,853.38
    Current total Sep 2016 - £13,845.40 - 0.06% paid off (I have an excuse for month one...)
    Debt free date (worst case) December 2019
    • fourthtimelucky
    • By fourthtimelucky 12th Sep 16, 3:08 PM
    • 20 Posts
    • 25 Thanks
    fourthtimelucky
    Just thought I would check in with an update. After reading Dolly Rocker's diary I was inspired to put some key dates down in my debt-free journey.

    March 2017 - increase payments on credit card from £100.00 to £200.00. This extra money will be available as I will have cleared a solicitor's bill.

    November 2017 - open sealed pot following end of challenge (hoping for £200.00).

    June 2018 - increase payments on bank loan from the contractual amount of £269.02 to £350.00 following the clearing of the aforementioned credit card.

    July 2019 - DEBT-FREE DATE is the above plan is maintained.

    December 2019 - Debt-free date if loan repayments are not increased from the contractual amount.
    Starting point Aug 2016 - £13,853.38
    Current total Sep 2016 - £13,845.40 - 0.06% paid off (I have an excuse for month one...)
    Debt free date (worst case) December 2019
    • fourthtimelucky
    • By fourthtimelucky 15th Sep 16, 9:53 AM
    • 20 Posts
    • 25 Thanks
    fourthtimelucky
    Had a little bit of an epiphany this morning and thought I would share it. I was looking at getting some concert tickets and they were a little more than I was expecting and had planned for. I was literally in the process of getting my emergency credit card details (I have the card details even though the card is cut up) out of my wallet to put them on there and 'just pay it off next month' when I realised this is the first step to racking up another total. Five or six times I have cleared cards and gone down this route and decided this morning that I wouldn't do it again.

    I made the decision not to go to the concert as it was more than I planned and that I need to make better choices than I have in the past.

    Not usually one to brag and its quite disproportionate in the overall scheme of things, but I am feeling pleased with myself.
    Starting point Aug 2016 - £13,853.38
    Current total Sep 2016 - £13,845.40 - 0.06% paid off (I have an excuse for month one...)
    Debt free date (worst case) December 2019
    • Dewdrop.ja
    • By Dewdrop.ja 15th Sep 16, 2:21 PM
    • 39 Posts
    • 58 Thanks
    Dewdrop.ja
    Well done you! It is so hard juggling between having an enjoyable life/the life you want and being debt free! I think having an end goal may make this a bit more exciting and more appealing (only 2 days in though so don't hold me to this!!)
    I've found even just identifying and acknowledging where I am spending money is a huge help in itself.
    Well done also on getting rid of the balance on your MBNA card. I'm a big fan of switching balances around to avoid paying interest and each time I do it I use a combination of balance and money transfers. Normally I absorb some into my bank account when I do this but last time I had to take another £2K to help towards my dog's vet bills!
    Will be watching intently! x
    Halifax: £4765.18
    MBNA: £6843.51
    • fourthtimelucky
    • By fourthtimelucky 19th Sep 16, 1:01 PM
    • 20 Posts
    • 25 Thanks
    fourthtimelucky
    Afternoon all, thought I would check back in after a busy but relatively frugal weekend.

    A bit of an update is that I have had received payment of £5,000 for my share of equity in a property. I was expecting this but not until early next year. The decision I have now is what to do with it. I plan on buying a property to live in soon and this would be the bulk of my deposit. I am aware it is often nonsensical to have savings and debt but this money isn't really usable for repaying my existing debt. It hasn't been factored in to my calculations so I think I will put it aside until I need it and use any negligible interest gained to make a payment off my CC.

    Pay day is a week and a bit away and all my payments for the month have been made and I have over £100.00 left with no major plans. I will need to do a small food shop and top petrol up but that aside may well have a little carried over in to next month.
    Starting point Aug 2016 - £13,853.38
    Current total Sep 2016 - £13,845.40 - 0.06% paid off (I have an excuse for month one...)
    Debt free date (worst case) December 2019
    • Dewdrop.ja
    • By Dewdrop.ja 20th Sep 16, 10:13 AM
    • 39 Posts
    • 58 Thanks
    Dewdrop.ja
    When I took my mortgage out I asked them the same - should I keep the savings of around £5000 or pay off a credit card with it. I was told it was better to have savings as opposed to clearing debts.
    Halifax: £4765.18
    MBNA: £6843.51
    • fourthtimelucky
    • By fourthtimelucky 20th Sep 16, 12:43 PM
    • 20 Posts
    • 25 Thanks
    fourthtimelucky
    When I took my mortgage out I asked them the same - should I keep the savings of around £5000 or pay off a credit card with it. I was told it was better to have savings as opposed to clearing debts.
    Originally posted by Dewdrop.ja
    I had a feeling it was going to be the best option. If I used it to clear debts I would just have to save it back up again to put down as a deposit. None of my debts are accruing any interest (loan is fixed and credit card is 0%) so have decided to put it aside as I mentioned and utilise it when needed.
    Starting point Aug 2016 - £13,853.38
    Current total Sep 2016 - £13,845.40 - 0.06% paid off (I have an excuse for month one...)
    Debt free date (worst case) December 2019
    • fourthtimelucky
    • By fourthtimelucky 22nd Sep 16, 12:54 PM
    • 20 Posts
    • 25 Thanks
    fourthtimelucky
    I am starting to become obsessive (in a good way) about getting this debt shifted quicker than initially planned. I am in a bit of a quandary at the moment about whether to utilise the little bit of extra cash I have whilst living with parents to pay off the debt quicker or save for a deposit. If I was extra frugal I could clear maybe £1,000 above what I have planned before the end of the year.

    The counter argument is the more I can save for a deposit the less my monthly mortgage payments would be, thus allowing higher payments from the debt.

    My sealed pot is going very well. I have set myself an open date of November 2017 and am hoping for over £250.

    I am still being silly and buying lunches out rather than bringing them in. This needs to stop as it is over £20 a week that could be put to much better use. My mission for next week is all lunches take in to work and none shop bought. I am going to start leaving my wallet at home to avoid the temptations of town.
    Starting point Aug 2016 - £13,853.38
    Current total Sep 2016 - £13,845.40 - 0.06% paid off (I have an excuse for month one...)
    Debt free date (worst case) December 2019
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