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  • FIRST POST
    • Shelbi
    • By Shelbi 13th Nov 16, 9:21 PM
    • 672Posts
    • 1,594Thanks
    Shelbi
    3rd Time Lucky?!- Attempting to clear £6645.93 of debt in 105days (3months+13days)!!
    • #1
    • 13th Nov 16, 9:21 PM
    3rd Time Lucky?!- Attempting to clear £6645.93 of debt in 105days (3months+13days)!! 13th Nov 16 at 9:21 PM
    Ok so have kinda messed up turns out Haliwax (cc2) have started charging interest 2 this month...seriously confused thought it had a much longer 0% interest term. So have stupidly opted for a 3 month 0% Interest balance when I should've got a longer term...only a £4 interest on a 3.5k balance but damn Im so annoyed with myself for this!! So basically both cards need to be paid off ASAP. so far daily payments made have been £2.11 pathetic I know but something at least. I think this shows me how much I need to sort this out. Im ready! So my plan is to pay 3 monthly instalments of £1048.64 to cc1 and 3 instalments of 59.01 to cc2 (£1107.65 total to be paid on the 1st each payday) I have to try to live on the rest £1237.39- maybe a little tricky but needs to be done. After the remaining balance of £3322.96 will be paid with February's pay (assuming I receive a bonus this year) New goal DFD 26 Feb 2016...105 days from now so google tells me (3months & 13days from today)...New Challenge..new diary...here goes!! *crosses fingers*....3rd Time lucky?!
    Debt at 5th attempt
    Step 1-1 debt vs 100days chpt27- £4603.46/£4603.46 (100%)- deadline 29.12.17- Done!!
    Step2- cc £2,861.22/£5482.83 (51%) deadline 01.05.2018-new dfd goal date:31.03.2018
    Save £2 for Xmas 2018- £0/£668
    £10 a day challenge Jan #23- £65.08/£310
    NST Jan challenge #40 NSD-14/18
Page 8
    • enthusiasticsaver
    • By enthusiasticsaver 31st Jan 18, 11:50 PM
    • 5,689 Posts
    • 11,243 Thanks
    enthusiasticsaver
    Evening all...

    so I've had 3 NSD and had some great news I received my bonus letter from work, I've been awarded the full 15% £6430 so I'm really happy and extremely grateful!!

    I will get it in 80% in February's paycheck & 20% in March though ill be taxed 40% &11% NI on it as I've gone over the £40k earnings bracket... reducing my pension deductions earlier this year means I have no buffer from the 40% tax. Speaking with my other half he says that I should put it in my pension to save the tax building up my pension and continue with my current debt plan of paying £1300 in Feb and £1300 in March to clear it.

    My suggestion was to keep following Dave Ramsey's baby step plans and take it now even with the tax deducted to clear my debt asap. Then put the remaining 20% (March money) into my pension (tax saving) and boosting my pension contribution to 15% (as Dave suggests) as I'll be debt free then concentrating on my 6 month emergency fund (£5k) and house deposit. Id rather pay off the debt asap but I do understand where hes coming from...Any advice here would be greatly appreciated please guys as I'm torn.

    Another quiet weekend though welcomed this week as I'm shattered OH and pals are doing DIY all I can hear is @%$£! so all going well I guess worried to see what damaged they've caused. X
    Originally posted by Shelbi
    Your OH is right and the most tax efficient thing would be to put your bonus in your pension. It is a large amount though which could obviously clear the debt and go someway towards building your savings. 51% deductions is a lot so I would work it out as it depends on how close to the £40k you will be as to whether you pay HR tax on all of it or some of it.
    Debt free and mortgage free and early retiree. Living the dream

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • Magpie100
    • By Magpie100 1st Feb 18, 1:28 PM
    • 85 Posts
    • 197 Thanks
    Magpie100
    I absolutely think giving yourself £150 a month for socialising from March onwards is the right thing to do. You are doing brilliantly and have really changed your habits, but you won't want to stay in for ever! It's 'easy' (I mean it isn't, but it's easier!) to stay in in January when everyone else is also hermit-like and Dry January-ish - but once it gets to longer days and better weather you will want to go out and do things. And that's fine, as long as you budget for it!

    I'm not expert enough to advise on what to do with your bonus - if it were me I would split it between emergency fund, clearing a bit of debt and starting to save for a deposit. Just because I think putting it all in to your pension when it is so many years before you'll see it again is psychologically demoralising. HOWEVER, if you think you might be tempted to 'dip' in to your emergency fund/house deposit fund then perhaps locking it away would be the best thing. Your OH is no doubt right about being tax efficient, but you are a person, not a multimillion pound corporate entity. I just wonder if the feeling of having started to save for a deposit and emergency fund might be more fulfilling at this stage than locking it away in your pension.

    You've shown how determined and disciplined you can be, though! And dare I ask...are you still buying branded cleaning stuff?

    Keep going, you are doing so much better than a few months ago - think what you can achieve in six months' time!
    • enthusiasticsaver
    • By enthusiasticsaver 1st Feb 18, 1:48 PM
    • 5,689 Posts
    • 11,243 Thanks
    enthusiasticsaver
    If you salary sacrifice your bonus then the whole £6430 will be free of tax and NI I think although the pensions forum may be the place to post a question. That saves you 51% or £3279 and your pension will be boosted by this plus however many years until you draw it so assuming average return of 4.5% this will be worth £13300 in 20 years.

    If you take it now you just get £3151
    Debt free and mortgage free and early retiree. Living the dream

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • Shelbi
    • By Shelbi 11th Feb 18, 9:13 PM
    • 672 Posts
    • 1,594 Thanks
    Shelbi
    Hi Magpie100 & Enthusiasticsaver,

    Thank you so much for your replies they were super helpful and gave me alot to think about. Im sorry for the delayed reply- part me thinking on what i was going to do and part me being out and about (dont worry still on the dfw wagon, just a couple of dinners, nights out to celebrate making it through a very dry January!!

    I wrote a mahoosive post but I guess I took to long and it got lost, so take 2 and will copy and paste just in case...I reworked my figures, found out that the 40% fresh hold is £45k not 40K which gave me some relief. In the end I decided that id take as much as I could before hitting the 40% tax marker which was £3k the rest I gave instruction to put in in pension- It'll be enough to clean up my debt and get my emergency fund started. My pension is also underfunded- Its only worth £37k...but that's something else to worry about in the future.

    I think clearing up the debt the most important part, but even with my newly found discipline I dont think ill be able to not spend the rest of it...and if im completely honest im enjoying the challenge, its helping me not fall into the same pattern ive been in for the last 35years I wasnt MSE ways engraved in me, I can still spend stupid amounts when Im out, as these couple of weeks showed me. Ive not gone into further debt and I have about £60 to live on until payday so Ive still got some money but its another shoe string month- 15 days of rice and beans.

    Magpie I had a look around and confess domestos, flash wipes have made it back into the flat- I can hand on heart say they didnt come from me, thats OH doing, we have a comfy blend of Aldi and basics and brands here- just depends who picks up the shopping..but its OH money for those, I laugh as whilst hes buying all these things as he likes brands he seems to have no clue or mention that I switched his regular coffee for a basic brand (the beauty of decanting good).

    This weekend was a spend free one, I cooked the turkey we got for Christmas and we had it today, will make soup with the left overs, if OH leaves left overs-perhaps tomorrow. hmm what else went out for dinner with OH and his family last night. which was lovely. Have Valentines day sorted, think i said that in my post before. Have done zero clothes shopping only real vices have been drinks after work and dinners...back to my hermit life for now I've had a good little cut loose session now back to cracking down.

    Gosh I cant wait till payday...Hope you have a wonderful weekend guys! sorry for the ramblings and the absence...right I best go catch up on some diaries...

    Shelbi x
    Debt at 5th attempt
    Step 1-1 debt vs 100days chpt27- £4603.46/£4603.46 (100%)- deadline 29.12.17- Done!!
    Step2- cc £2,861.22/£5482.83 (51%) deadline 01.05.2018-new dfd goal date:31.03.2018
    Save £2 for Xmas 2018- £0/£668
    £10 a day challenge Jan #23- £65.08/£310
    NST Jan challenge #40 NSD-14/18
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