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  • FIRST POST
    • fourthtimelucky
    • By fourthtimelucky 24th Aug 16, 3:40 PM
    • 53Posts
    • 82Thanks
    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 3
    • fourthtimelucky
    • By fourthtimelucky 10th Apr 17, 3:02 PM
    • 53 Posts
    • 82 Thanks
    fourthtimelucky
    Decided to check in for a mid month update for a couple of reasons.

    Firstly I was beginning to have a wobble as far as credit card spending goes. I have a zero balance card that I keep open. I know the perceived wisdom is to close the cards when they are at zero but I keep it open. I often hire a car when travelling and a credit card is needed for the excess. The card has been at zero balance since it was cleared but recently I bought some tickets for a friend (I had the money prior to purchase but my membership was needed to buy them). With a small car hire charge I had a balance of £100.65 on the card. I had £85.00 for the tickets and £15.65 to pay for the hire fee yet found myself thinking about paying off only £50.00. I had all the money set aside for it yet found myself in this peculiar mindset. I am pleased to say I identified this as a trap I had fallen in many times previously and sorted my !!!! out and paid the full amount with the money budgetted.

    Secondly I decided to do a quick audit of my finances as it had been a while since I reviewed things. I pride myself on following a lot of the MSE principles but had been a bit lax. I spoke to the AA and renegotiated my breakdown cover from £16.90 a month to £10.65 which is a £75.00 a year saving. My car is ten years old and although well cared for, the cover is a necessary evil with a vehicle of this age.

    I have also began looking at car insurance as my renewal is due in a couple of months. I am hopeful of making a decent saving. This is my first year with my own policy as was previously a named driver. Updates on this in due course.

    Finally, I am expecting a cheque for my contribution for a recently published book in the next week or two. Every little helps...
    Last edited by fourthtimelucky; 11-04-2017 at 10:20 AM.
    Starting point Aug 2016 - £13,853.38
    Current total July 2017 - £9,285.20 - 32.97% paid off
    Debt free date (worst case) - December 2019
    • enthusiasticsaver
    • By enthusiasticsaver 10th Apr 17, 7:49 PM
    • 3,647 Posts
    • 6,513 Thanks
    enthusiasticsaver
    Sounds like you are doing really well. Saving up for things rather than putting them on credit is the way to go.
    Debt and mortgage free and saving for early retirement
    • fourthtimelucky
    • By fourthtimelucky 11th Apr 17, 10:42 AM
    • 53 Posts
    • 82 Thanks
    fourthtimelucky
    Thanks enthusiasticsaver, I am really pleased with the new regime and how it is working out.

    I am going away twice in the summer and instead of a lack of planning and budgetting I will have the money I need to pay for accommodation and spends as a result of eight months advance saving for it. If only '21 year old me' knew all this!!
    Starting point Aug 2016 - £13,853.38
    Current total July 2017 - £9,285.20 - 32.97% paid off
    Debt free date (worst case) - December 2019
    • fourthtimelucky
    • By fourthtimelucky 4th May 17, 3:08 PM
    • 53 Posts
    • 82 Thanks
    fourthtimelucky
    Time for the monthly check in. Nothing exciting to report at the moment. A few days in to the month and all of the regular payments have gone out. The contractual loan payment of £269.02 and £150.00 from the Barclaycard.

    The loan balance stands at £8,339.62 with 31 monthly payments remaining. The credit card balance is £1,758.62.

    My motivation is waning a little. I have had to make some tough choices that involve missing out on things I would normally have got involved with (utilsiing credit of course). I know it is the right thing and the best thing but it is still hard to miss out. I am sure a number of my friends are struggling to afford things and making bad decisions but I am still left with FOMO.

    Roll on my Debt Free Date when I can do these things guilt free and with forward planning.
    Starting point Aug 2016 - £13,853.38
    Current total July 2017 - £9,285.20 - 32.97% paid off
    Debt free date (worst case) - December 2019
    • fourthtimelucky
    • By fourthtimelucky 21st Jun 17, 8:52 AM
    • 53 Posts
    • 82 Thanks
    fourthtimelucky
    A little later than planned but thought I would drop in for my monthly update. Being honest, one of the reasons for the delay is that I am losing my debt repayment mojo. I've been going ten months and feel like the end is still an awful long way away. Without going in to too many reasons, I am paying off debt that was jointly accrued yet left to me following a relationship breakdown. The other person is now thriving and living well whilst I meander on slowly toward debt freedom. It isn't fair but it is what it is and I know I need to crack on.

    Anyway, the regular payments have been made this month and the good news is the magic number is down to four figures. From a starting point of £13,853.38 the current debt level is £9729.22. It is still a big old number but seeing it go to thousands from tens of thousands is nice.

    I need to focus and get my mojo back which I am aiming to do in the coming weeks. I am having to make hard decisions in relation to not doing things with friends this summer and focus on sorting this out. I know it will be short term pain but I know how good it will be once the debt is cleared.

    Onward and upwards...
    Starting point Aug 2016 - £13,853.38
    Current total July 2017 - £9,285.20 - 32.97% paid off
    Debt free date (worst case) - December 2019
    • fourthtimelucky
    • By fourthtimelucky 3rd Jul 17, 11:15 AM
    • 53 Posts
    • 82 Thanks
    fourthtimelucky
    Pay day has been and gone so time to bring the diary up to date.

    After not making an overpayment last month I have paid an extra £75.00 off my credit card bill (on top of the regular £100.00). The contractual loan payment has been made as well.

    Current balances are (starting figures in brackets):
    Unsecured loan - £7,801.58 (£12,913.02)
    Barclaycard - £1,483.62 £(3,353.62)

    In other news I have had my car insurance renewal through. The good news is it beats all the quotes I have had when I have been looking. The policy is dropping from £453.50 a year to £345.06 a year.
    Starting point Aug 2016 - £13,853.38
    Current total July 2017 - £9,285.20 - 32.97% paid off
    Debt free date (worst case) - December 2019
    • glass_half_full
    • By glass_half_full 3rd Jul 17, 7:12 PM
    • 77 Posts
    • 264 Thanks
    glass_half_full
    Hi fourthtimelucky,
    Just browsing diaries and came across yours. That's an impressive result in less than 12 months, its great how you have stayed focused.
    • fourthtimelucky
    • By fourthtimelucky 6th Jul 17, 1:19 PM
    • 53 Posts
    • 82 Thanks
    fourthtimelucky
    Thank you glass_half_full, nice to see someone is reading

    It is still a long way to go but I think more importantly than clearing the debt I haven't accrued any more and have changed my ways. There has been sacrifice but the thought of not paying out roughly a quarter of my salary each month is keeping me going.
    Starting point Aug 2016 - £13,853.38
    Current total July 2017 - £9,285.20 - 32.97% paid off
    Debt free date (worst case) - December 2019
    • JoJoC
    • By JoJoC 6th Jul 17, 1:40 PM
    • 1,039 Posts
    • 3,202 Thanks
    JoJoC
    Hi, just thought I'd stop by to say hello and wish you luck! Looks like you've made some great progress so far!
    CC1: 3,774.32/4,200 | CC2: 5,077/5,393 | Loan: 7,430/15,000
    Total: 16,292.57/20,032 Paid since Feb17: 3,739 or 18.66%

    Mummy of two boys - Working hard to make better financial choices!
    *My debt busting and savings diary*
    • glass_half_full
    • By glass_half_full 6th Jul 17, 8:49 PM
    • 77 Posts
    • 264 Thanks
    glass_half_full
    Thank you glass_half_full, nice to see someone is reading

    It is still a long way to go but I think more importantly than clearing the debt I haven't accrued any more and have changed my ways. There has been sacrifice but the thought of not paying out roughly a quarter of my salary each month is keeping me going.
    Originally posted by fourthtimelucky
    I can relate to that!
    • fourthtimelucky
    • By fourthtimelucky 7th Jul 17, 8:43 AM
    • 53 Posts
    • 82 Thanks
    fourthtimelucky
    Thanks JoJoC, always good to hear positive words. Was just catching up with your post and the news on child care seems positive. That money saved will make a big difference!
    Starting point Aug 2016 - £13,853.38
    Current total July 2017 - £9,285.20 - 32.97% paid off
    Debt free date (worst case) - December 2019
    • fourthtimelucky
    • By fourthtimelucky 13th Jul 17, 4:36 PM
    • 53 Posts
    • 82 Thanks
    fourthtimelucky
    A bit of a blow to the plans today when a letter landed from the Police advising I was rumbled doing 58 mph in a 50 mph zone. Whilst it is my first offence so I don't get the points and fine, it does mean an unexpected and un-budgeted £85.00 fee for the speed awareness course.

    I guess it serves me right for thinking I was sitting pretty with all the bills sorted for the month
    Starting point Aug 2016 - £13,853.38
    Current total July 2017 - £9,285.20 - 32.97% paid off
    Debt free date (worst case) - December 2019
    • fourthtimelucky
    • By fourthtimelucky 14th Jul 17, 4:13 PM
    • 53 Posts
    • 82 Thanks
    fourthtimelucky
    I've just been checking out my remaining credit card with regard to the remaining term on the 0% transfers I made on to it. The remaining balance is split between two offers with £480.97 at 0.00% until Dec 2017 and £1002.65 at 0.00% until Feb 2018.

    Would I be right in assuming my payments go toward the offer that finishes first or are they allocated equally between the two? The card is a Barclaycard Platinum Visa. Any advice appreciated, I have checked the T&Cs and it just says higher interest to lower interest under allocation of payments.
    Starting point Aug 2016 - £13,853.38
    Current total July 2017 - £9,285.20 - 32.97% paid off
    Debt free date (worst case) - December 2019
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