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  • FIRST POST
    • fourthtimelucky
    • By fourthtimelucky 24th Aug 16, 3:40 PM
    • 46Posts
    • 76Thanks
    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 – 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 didn’t 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 ‘for emergencies’ which obviously leads down the wrong path.

    Having reread when I’ve typed so far I am pretty sure that transferring to 0% is the way forward as the balance transfer fee is just over two months’ 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 2
    • fourthtimelucky
    • By fourthtimelucky 5th Oct 16, 8:06 PM
    • 46 Posts
    • 76 Thanks
    fourthtimelucky
    A quiet day at work means I got the chance to redesign my debt planner spreadsheet today. It now auto updates from the new overpayments column. I do like a nice tidy spreadsheet.

    Not wanting to let the column go unused I made an extra £30.00 payment off my credit card which takes my total paid so far to a nice round 3.0%.

    I've sorted some gear to eBay at the weekend and any funds raised will go on the credit card too. On my spreadsheet I'm due to clear the CC balance in April 2018 but I discovered today my 0% balance transfer deal runs out in December 2017 so I'm going to aim to have it done by then.

    Running totals now
    Credit card - £3,123.62
    Loan - £10,222.76
    Starting point Aug 2016 - £13,853.38
    Current total Apr 2017 - £10,517.26 - 24.08% paid off
    Debt free date (worst case) - December 2019
    • Perpetual_Miser
    • By Perpetual_Miser 11th Oct 16, 8:07 AM
    • 36 Posts
    • 40 Thanks
    Perpetual_Miser
    Glad to see you're making progress.

    Little and often really can make a huge difference. Not just in terms of getting the overall debt down, but also psychologically.

    Seeing the debt reduce each month is a great feeling. I'm finding I'm already starting to see the snowball effect.

    Keep going and good luck.
    DMP:

    Starting Total: £10,254.47
    /
    Remaining: £7381.40 = (28.02% CLEARED)
    • fourthtimelucky
    • By fourthtimelucky 1st Nov 16, 3:52 PM
    • 46 Posts
    • 76 Thanks
    fourthtimelucky
    After a bit of an absence I am back with a little update. Loan payment and credit card payments have been made for this month. I paid an extra £40.00 off the credit card as I had some overtime payments from work. Rather than use it to bulk up my current account I have put them to good use.

    I have also devised a beast of a spreadsheet that details the separate debts and takes in to account the end of interest free periods and also any overpayments.

    My outstanding loan balance is now £9,953.74 from £10,760.80 when I started my diary. It is nice to get it under the £10k mark although still a long way to go. The credit card balance is now £2,983.62 from £3,353.62 when I transferred the balance over. I guess that is another threshold now its under the £3k mark. Time to update that signature now...
    Starting point Aug 2016 - £13,853.38
    Current total Apr 2017 - £10,517.26 - 24.08% paid off
    Debt free date (worst case) - December 2019
    • fourthtimelucky
    • By fourthtimelucky 30th Nov 16, 2:49 PM
    • 46 Posts
    • 76 Thanks
    fourthtimelucky
    Back for a monthly update and this one contains some good news. Today is pay day so out goes my loan repayment and my £100.00 off my credit card bill. In addition to this I have paid an extra £400.00 off my credit card. I won £378.00 in the union raffle at work for the first time. I have five lines a month at the cost of £1.00 and this was my first ever win.

    Rather than be tempted to keep it for Christmas or a rainy day or even treat myself to a little bit of it I instead topped it up to £400.00 and paid it off my credit card. I did regret not keeping a little aside but would have just frittered it and my Christmas plans are all budgeted.

    Signature updated to show recent payments. It is nice to see a jump like that in the percentage paid off.
    Starting point Aug 2016 - £13,853.38
    Current total Apr 2017 - £10,517.26 - 24.08% paid off
    Debt free date (worst case) - December 2019
    • Perpetual_Miser
    • By Perpetual_Miser 2nd Dec 16, 4:13 PM
    • 36 Posts
    • 40 Thanks
    Perpetual_Miser
    Glad to see you're making great progress.

    Don't forget to enjoy Christmas, though, and be careful not to underestimate how expensive it can be! (speaking from experience here!).
    DMP:

    Starting Total: £10,254.47
    /
    Remaining: £7381.40 = (28.02% CLEARED)
    • fourthtimelucky
    • By fourthtimelucky 4th Jan 17, 11:19 AM
    • 46 Posts
    • 76 Thanks
    fourthtimelucky
    It has been a while but back to update my DFD.

    Christmas went really well and was actually relatively frugal. I was in the surprising position of having some money left over come pay day which was nice.

    I have reverted to my standard £100.00 payment from my credit card (plus £25.00 as an extra) and the contractual loan payment of £269.02. I plan to check my pennies toward to end of the month and see if I have scope to pay any more off the credit card balance.

    This month's payments take the total debt under £12,000.00 which is another milestone met and the fact it is now 2017 means I will be debt free the year after next!.
    Starting point Aug 2016 - £13,853.38
    Current total Apr 2017 - £10,517.26 - 24.08% paid off
    Debt free date (worst case) - December 2019
    • fourthtimelucky
    • By fourthtimelucky 9th Jan 17, 8:44 AM
    • 46 Posts
    • 76 Thanks
    fourthtimelucky
    I have just checked my internet banking after the final bill for the month went out and I am in the unusual position of having a lot more money left that I am used to. I think my frugal ways are starting to pay off.

    I also upgraded my phone without having to pay any more. I got a new handset and an even better tariff for the same price I was paying previously. It is relatively expensive at £37.40 a month but its an iPhone 7 with 20GB of data and I more than get my monies worth. I am on a staff tariff as a friend works for the phone company which I guess is Money Saving right?

    I plan to continue with frugal January and then pay some more off my credit card balance. I was tempted to do it now but don't want to leave myself short.

    It finally feels like I am getting somewhere..
    Starting point Aug 2016 - £13,853.38
    Current total Apr 2017 - £10,517.26 - 24.08% paid off
    Debt free date (worst case) - December 2019
    • fourthtimelucky
    • By fourthtimelucky 9th Jan 17, 2:45 PM
    • 46 Posts
    • 76 Thanks
    fourthtimelucky
    Two more bits of good news.

    1 - I have sold my old mobile phone for £100.00 which will be going straight off the credit card once the money clears.

    2- I have contributed to a book that was released at the weekend and will be receiving 10% of the royalties on a bi-monthly basis. I have no idea how much this will be but 72 hours after release my share stands at £18.55 which is better than a kick in the teeth.
    Starting point Aug 2016 - £13,853.38
    Current total Apr 2017 - £10,517.26 - 24.08% paid off
    Debt free date (worst case) - December 2019
    • fourthtimelucky
    • By fourthtimelucky 12th Jan 17, 9:41 AM
    • 46 Posts
    • 76 Thanks
    fourthtimelucky
    Looking for a quick bit of advice if anyone can help;

    Now things are getting on to an even keel and I am managing my money a lot better I was toying with the idea of reducing my overdraft. It is £900 at the moment and has been since I finished university many moons ago. I haven't been in it for over a year and feel I would benefit psychologically from reducing it.

    Is there anything obvious I am missing when considering this?
    - will it affect my credit/show as a search?
    - could it be refused and withdrawn totally?

    I bank with HSBC and the process of changing it appears to be an automated process.

    All advice welcome...
    Starting point Aug 2016 - £13,853.38
    Current total Apr 2017 - £10,517.26 - 24.08% paid off
    Debt free date (worst case) - December 2019
    • fourthtimelucky
    • By fourthtimelucky 18th Jan 17, 9:57 AM
    • 46 Posts
    • 76 Thanks
    fourthtimelucky
    I've just had a little bit of good news so thought I would share it.

    I contributed toward a book that was published at the start of the year. It is selling well and looking like netting me over £100 for the first month which will go straight off my credit card balance.

    It has set my mind away thinking I could write more and add to my sole self-published title to try and rake some more money in. I need to balance that with the time it will take but it is definitely something I am going to give a little more thought to.
    Starting point Aug 2016 - £13,853.38
    Current total Apr 2017 - £10,517.26 - 24.08% paid off
    Debt free date (worst case) - December 2019
    • fourthtimelucky
    • By fourthtimelucky 31st Jan 17, 9:42 AM
    • 46 Posts
    • 76 Thanks
    fourthtimelucky
    Pay day again and another round of payments from the ongoing debts.

    These are the difficult days when the thrill of being organised and making a dent in the debt is countered by the monotony of it all and the realisation that I'm less than a fifth of the way through money wise and a quarter of the way through time wise.

    I've made the standard payment of £100.00 plus an extra £50.00 off my credit card. The extra payment is from money left over in my current account at the end of January which was a pleasant surprise.

    The credit card balance is currently £2,308.62 from a high of £3,352.62 which means I have now cleared over £1,000.00.

    The current state of play is £11,455.30 remaining which breaks down as £2,308.62 on the 0% credit card and £9,146.68 remaining on the loan.

    I am expecting the payment from my contribution to the published book sometime this month and think I will pay that off the credit card once it arrives. I am also due some back pay for some overtime at work. It has been delayed by two months which is kind of a pain but also means the figure will be higher when it does eventually arrive. I think I will throw that at the CC too in an effort to get it down ASAP.

    Cheers for reading and good luck in your endeavours.
    Starting point Aug 2016 - £13,853.38
    Current total Apr 2017 - £10,517.26 - 24.08% paid off
    Debt free date (worst case) - December 2019
    • FridaFrugal
    • By FridaFrugal 31st Jan 17, 11:43 AM
    • 11 Posts
    • 27 Thanks
    FridaFrugal
    Agree that when something becomes monotonous it is more difficult but you are doing really well, so keep your eye on the prize. The time (and debt) will go quicker than you think...
    • fourthtimelucky
    • By fourthtimelucky 31st Jan 17, 2:59 PM
    • 46 Posts
    • 76 Thanks
    fourthtimelucky
    Thanks for the reply Frida, I know I am on the right track and the prize will be more than worth the monotony, its just sometimes it seems a way off.

    I wlll get there though. A more positive way to look at it is the fact that four years to get rid of 18 years of accrued debt isn't all that bad...
    Starting point Aug 2016 - £13,853.38
    Current total Apr 2017 - £10,517.26 - 24.08% paid off
    Debt free date (worst case) - December 2019
    • BettyBones
    • By BettyBones 31st Jan 17, 6:17 PM
    • 133 Posts
    • 231 Thanks
    BettyBones
    Hi FTL You're doing really well. Just stick to the plan and your DFD will come round soon enough. When I had my LBM in 2013 I was in debt to the tune of around £20k Then I wrote a proper plan and started attacking it with gusto and by April last year I was down to just under £10k. Now I'm just 4 payments away from being debt free (May 2017) and the time seems to have flown by. The trick for me was to not focus on my DFD, which was years away, but instead just try and focus on getting through one month at a time. Each pay day I pay all my bills, make my debt repayments, set my budget for the month and then just try to forget about it until the next payday rolls around. Now and again the monotony of it all gets to me but I think if I'd have spent too much time dwelling on how many months/years lay ahead of me till I was debt free then I'd have driven myself nuts and gone on a spending spree with my credit card long before now!

    Good Luck with your journey... you can do it... and you'll be posting on the Debt Free Roll of Honour before you know it! x
    • fourthtimelucky
    • By fourthtimelucky 28th Feb 17, 9:31 AM
    • 46 Posts
    • 76 Thanks
    fourthtimelucky
    Almost time for the monthly update but thought I would post this as a precursor.

    After a planned frugal February I was left with around £200 extra to clear from my debt. For some reason I am having a psychological block and finding it hard to actually make the payment from my CC. I have been paid and that £200.00 will not be needed elsewhere, I just keep finding myself waiting to make the payment "just in case something comes up". I have put the extra payment in to my spreadsheet and seen the difference it will make, I just can't figure out where my subconscious reluctance is coming from.
    Starting point Aug 2016 - £13,853.38
    Current total Apr 2017 - £10,517.26 - 24.08% paid off
    Debt free date (worst case) - December 2019
    • fourthtimelucky
    • By fourthtimelucky 28th Feb 17, 12:56 PM
    • 46 Posts
    • 76 Thanks
    fourthtimelucky
    Last day of the month equals pay day and also payment day.

    I have paid the standard £100.00 from my credit card plus £150.00 on top of that from money left over at the end of the month. I did have £200.00 and have put the remaining £50.00 aside to pay later in the month as long as the budget is going to plan.

    The contractual payment has gone toward the loan as well leaving £8,877.66 outstanding. The only reason I am posting the balance in my post rather than signature is that I like it as the numbers are heading the same way as my debt - DOWN.

    Feeling motivated today and have been sticking to budgets well for the last few months even with the likes of Christmas, a car MOT and a trip away. Hopefully the penny has finally dropped!

    33 months (maximum) to go...
    Starting point Aug 2016 - £13,853.38
    Current total Apr 2017 - £10,517.26 - 24.08% paid off
    Debt free date (worst case) - December 2019
    • angelpye
    • By angelpye 3rd Mar 17, 7:52 AM
    • 995 Posts
    • 3,546 Thanks
    angelpye
    Hi forthtimelucky, you are doing really well! Well over the £1000 paid off mark! I can sympathise with the reluctance to pay money off just in case, I don't know if its because I was so disorganised before that I am used to something cropping up, or if its because I have very little in way of an emergency fund? Well done for keeping on keeping on, like you said 4 years to pay off 18 years of debt is not a lot. You can do this!
    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
    • fourthtimelucky
    • By fourthtimelucky 3rd Mar 17, 12:57 PM
    • 46 Posts
    • 76 Thanks
    fourthtimelucky
    Thanks for the reply angelpye, always good to get words of encouragement. It is good to know I have now paid off a fifth of the starting balance.

    Another liberating thing is planning for social occasions and budgetting in advance for them. I have a trip to London planned for September when I will need £200.00. Old me would use whatever money was in my account and top up with drinks etc on a credit card where as new me is saving £30.00 a month and will have £210.00 ready to delve in to at the time.
    Starting point Aug 2016 - £13,853.38
    Current total Apr 2017 - £10,517.26 - 24.08% paid off
    Debt free date (worst case) - December 2019
    • fourthtimelucky
    • By fourthtimelucky 7th Mar 17, 1:06 PM
    • 46 Posts
    • 76 Thanks
    fourthtimelucky
    Just checked my CC to see when the 0% runs out on it. The current balance is £2,058.62. Of that amount £1,055.97 is at 0% until December 2017 and the remaining £1,002.65 is at 0% until February 2018.

    I have a set payment of £100.00 per month off the credit card with extra payments being made as and when. I am toying with the idea of tightening the belt a little and doubling the monthly payment to £200.00. It will be just about affordable and will mean that the balance is cleared just as the second 0% period runs out.

    Will mull it over a little more as don't need to decide just yet. I would rather do this than look at another balance transfer as I want to get away from that cycle. It has been juggling balances and not closing cards down that landed me in hot water previously.

    In better news I am expecting a cheque for £100.00+ for some freelance writing I did which is a nice little bonus.
    Starting point Aug 2016 - £13,853.38
    Current total Apr 2017 - £10,517.26 - 24.08% paid off
    Debt free date (worst case) - December 2019
    • fourthtimelucky
    • By fourthtimelucky 31st Mar 17, 8:49 AM
    • 46 Posts
    • 76 Thanks
    fourthtimelucky
    Time to post the updates now that pay day has finally arrived.

    I have paid an extra £50.00 from the credit card balance which is now under the £2k mark for the first time. I am almost a quarter of the way through the journey as well which is another nice milestone to reach.

    Updated signature shows the current state of affairs.

    I have a quiet April planned so hopefully will have some more cash to throw at this at the end of the month.
    Starting point Aug 2016 - £13,853.38
    Current total Apr 2017 - £10,517.26 - 24.08% paid off
    Debt free date (worst case) - December 2019
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