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  • FIRST POST
    • Exerbusi2
    • By Exerbusi2 3rd Jan 17, 10:53 AM
    • 232Posts
    • 152Thanks
    Exerbusi2
    I'm Back - and better! Final Push to Go...
    • #1
    • 3rd Jan 17, 10:53 AM
    I'm Back - and better! Final Push to Go... 3rd Jan 17 at 10:53 AM
    It's the start of a new year, so as per every year I take a look at my finances!

    When I first joined this forum, I was in £8000 of debt with no savings and no others assets. Not any more.

    My current situation is....


    Debts

    Credit Card: £5,500

    Assets

    Savings: £3,500
    Stocks and Shares Portfolio: £4,600

    I've been there and back when it comes to debt. At one point I was in £8,000 of debt with an income of £15,000.

    Not good.

    I grew a business, started to take more care of my finances and with the help of this forum, I chipped away at it.

    You can do it too. Just stay disciplined.

    My Current Situation

    So my current situation is simple. I have cash in the bank, I have a small share portfolio and I have a much larger income than I used to have (I also have larger outgoings though!)

    The obvious thing to do is to use my cash to pay my credit card. There are two reasons why I won't do this though...

    1. My cash is my buffer. It's also there to help with business expenses.
    2. My credit card is 0% for 32 months, so it costs me no more than it should.

    My Plan

    The reason I have a £5,500 credit card balance is because I took out the 0% credit card to pay off my car loan. The loan was £5,700, but I saved £230 by closing it early.

    My plan is to pay off the card within 22 months. To do this, I'll have to pay £250 per month (more than the £183 I was paying off my loan), but I will be doing this by cutting other expenses I don't need.

    I'm having a shed built at home (necessary, not indulgent) and I plan to (in time), make gifts to sell from there (I'm a woodwork fan!)

    If I can make this side business pay for itself, I shall be channelling all of that money into debt repayment.

    I also have a website that I earn a little money from. All of my website earnings will go towards credit card repayment.

    I'm going to take a good look at the finances this year. I have the means to get rid of this credit card, I just have to do things sensibly.

    I'm looking forward to seeing this debt disappear!

    Steve
Page 8
    • Exerbusi2
    • By Exerbusi2 6th Apr 17, 11:34 PM
    • 232 Posts
    • 152 Thanks
    Exerbusi2
    Hi Zippy!

    The project has been better than expected actually. I was confident going into it, but it's exceeded my expectations!

    So there's now no need for my dilemma - the £2k project can't happen. That's fine though, I've got a chance to run the same project I currently have going on again in October. If I can repeat the same model, I'll make around £2000 again. I'll have higher costs next time (my girlfriend will come with me, costing around £300), but it'll still be profitable!

    I've got a new client starting with me soon, so that'll also be handy. If I divert all of that income into tax savings, it means I can pay the CC debt off sooner.

    So, current state of play is this...

    I've paid the £500 bonus off the CC, bringing the balance down to £3800.
    I've put £1500 into tax savings account.
    I'm due to be paid £2000 in April, which I'll probably put it all to the credit card.

    If I do that, in May I'll be down to around £1800 on the CC and will have still managed to save a decent sum for tax!

    At this rate, the CC will be gone in 2017!
    Loan £5000 £0; Overdraft £700 £0
    Savings £0 +£1500; Share Portfolio £0 +£4000
    £0 Credit Card £6800 £1700
    • Exerbusi2
    • By Exerbusi2 11th Apr 17, 10:46 AM
    • 232 Posts
    • 152 Thanks
    Exerbusi2
    Just paid my tax bill - ouch!

    Actually, it's not all ouch. For the first time in 6 years of self-employment, I had saved more than my tax bill. This means that despite me paying my tax bill in full, I still have around £1500 in cash sat in the account. This will be a great start for my tax savings for next year.

    I'm due to be paid around £2000 this week for a project I've just run, so I will pay all of that off the CC.

    That'll see me down to a balance of £1800, which I will aim to get rid of within 6 months - hopefully less!

    At that point, I'll be DEBT FREE!

    Well, apart from my mortgage, but for some reason I don't really see that as a debt, more a life expense.
    Loan £5000 £0; Overdraft £700 £0
    Savings £0 +£1500; Share Portfolio £0 +£4000
    £0 Credit Card £6800 £1700
    • beanielou
    • By beanielou 11th Apr 17, 11:52 AM
    • 47,244 Posts
    • 169,810 Thanks
    beanielou
    A life expense is a good way to describe a mortgage
    Lou~ Debt free Wanabe No 55 DF 03/03/14.
    **Credit card debt free 30/06/10~** **Weight loss 2 stone 2 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***
    • Exerbusi2
    • By Exerbusi2 12th Apr 17, 9:14 PM
    • 232 Posts
    • 152 Thanks
    Exerbusi2
    That's right, Lou!

    The mortgage for me is a funny thing. Of course it's a debt, but it's so massive (£178k) that even if I had £50k in the bank it wouldn't even get close to paying it all off.

    I overpay my mortgage every month, so it's a lot lower than it would otherwise be. I'm also allergic to the idea of extending the mortgage in the way a lot of my friends have to extend houses etc.

    Of course with no debt to pay off (almost there on that front), I can put more towards paying off the mortgage quickly!

    For now though, it's not a debt in my head - it's a life expense in the same way water, electricity, gas, council tax etc are!
    Loan £5000 £0; Overdraft £700 £0
    Savings £0 +£1500; Share Portfolio £0 +£4000
    £0 Credit Card £6800 £1700
    • zippygeorgeandben
    • By zippygeorgeandben 15th Apr 17, 9:33 PM
    • 661 Posts
    • 755 Thanks
    zippygeorgeandben
    Hi Exerbusi2 it's me! Remember me? I'm back in good old Blighty after a week in the sun. Well, when I say sun, I say 4 and a half days sun, 2 and a half days overcast weather not impressed!
    Anyway, came back today, paid £2000 with the loan from my sister off the Zopa debt. This debt is now under £2k. It's saying monthly repayments are roughly £85 and coupled with the £133 I will be paying my sister, it's still less than my usual monthly repayment.
    End Sep 2016 End August 2017
    £8236.57 £4876.49
    (Tesco 4.8%) £222.61pcm
    £6185.75 £851.34 (Zopa 4.0%) £48.99pcm

    £5344.50
    £2890.04 (Sainsburys 0% until 06/19) £140pcm
    £2000.00 £1333.35 (Sister 0%) £133.33pcm

    Total debt
    £19.766.82 £11499.70 Original DFD May 2019.
    • Exerbusi2
    • By Exerbusi2 17th Apr 17, 8:40 PM
    • 232 Posts
    • 152 Thanks
    Exerbusi2
    Hi Zippy!

    How was your week in the sun? Good I hope (well, when it was sunny anyway!)

    Fantastic news that the debt is down and the repayments have been reduced - will you be able to transfer any money across to further debt repayments elsewhere?

    I've had good news today - the money from my project has been transferred today, so I hope that reaches the bank tomorrow. It's always confusing with the bank holidays, so I'll keep my eyes peeled over the next day or two.

    When that money comes in I'll be paying it straight off the CC, which should bring my balance down to £1800, which would be nice!
    Loan £5000 £0; Overdraft £700 £0
    Savings £0 +£1500; Share Portfolio £0 +£4000
    £0 Credit Card £6800 £1700
    • zippygeorgeandben
    • By zippygeorgeandben 18th Apr 17, 6:21 PM
    • 661 Posts
    • 755 Thanks
    zippygeorgeandben
    Yes the week was relaxing thank you!
    I think that I might be able to throw an extra couple of £££s at the Zopa loan. Thing is, since the BT to the sainsburys card, the first payment of this isn't until 2nd May. This means that I won't be paying any in April. Just the way it works I guess!
    When it gets to the 30th April, hopefully I'll be able to take a look at the signature, reduce it etc.

    Great news about the project money! very impressed! It looks like we'll be in competition to reduce that CC debt as I think mine might be around £1800 at the end of this month. It certainly can get addictive can't it? Trying to sort finances out! I have this sketchy laid out plan in my head which goes something like this..
    A) Pay ZOPA
    B) Pay CC
    C) Pay Tesco Loan
    D) Pay Student Loan
    E) Increase Pension contributions
    F) Get a LISA and start contributing a regular sum
    G) Emergency 3 month fund
    H) Help partner with debts
    End Sep 2016 End August 2017
    £8236.57 £4876.49
    (Tesco 4.8%) £222.61pcm
    £6185.75 £851.34 (Zopa 4.0%) £48.99pcm

    £5344.50
    £2890.04 (Sainsburys 0% until 06/19) £140pcm
    £2000.00 £1333.35 (Sister 0%) £133.33pcm

    Total debt
    £19.766.82 £11499.70 Original DFD May 2019.
    • Exerbusi2
    • By Exerbusi2 19th Apr 17, 7:39 AM
    • 232 Posts
    • 152 Thanks
    Exerbusi2
    I suppose in the grand sheme of things it doesn't matter that there isn't a repayment in April really - it's just the way the payments have fallen. You're still on track.

    I've had my payment money come through this morning, so that has all been paid off the CC - £2,000 in one go!

    I'll be so happy to see the balance down to £1,800, but it's a bizarre number - it's small enough to be able to clear relatively quickly, but it's big enough that it's still pretty large amount of money (that probably doesn't make sense, but it does to me!)

    Your plan sounds great - how much of a difference can you make to your partners debt?
    Loan £5000 £0; Overdraft £700 £0
    Savings £0 +£1500; Share Portfolio £0 +£4000
    £0 Credit Card £6800 £1700
    • zippygeorgeandben
    • By zippygeorgeandben 19th Apr 17, 6:14 PM
    • 661 Posts
    • 755 Thanks
    zippygeorgeandben
    You're right about £1800... it's small enough yet big enough!

    Hmmm to be honest, I'm not sure how much of a dent I could make. He's not really bothered about debt and quite frankly, I'm not going to push him into sorting it. I'm just hoping I can sort mine out and then help him out!

    Weekend of nothing coming up and then the 29th April is a charity quiz night which will be a few drinks I guess.
    I was meant to sell £100 of candles on Monday but she went quiet on me, another time waster!
    End Sep 2016 End August 2017
    £8236.57 £4876.49
    (Tesco 4.8%) £222.61pcm
    £6185.75 £851.34 (Zopa 4.0%) £48.99pcm

    £5344.50
    £2890.04 (Sainsburys 0% until 06/19) £140pcm
    £2000.00 £1333.35 (Sister 0%) £133.33pcm

    Total debt
    £19.766.82 £11499.70 Original DFD May 2019.
    • Exerbusi2
    • By Exerbusi2 23rd Apr 17, 9:19 PM
    • 232 Posts
    • 152 Thanks
    Exerbusi2
    So I'm due to be paid a £100 fee tomorrow, which I may put towards the CC debt. That will knock a little off it and keep the momentum on the payments.

    I'm also due £800 soon, which will be split £100 off CC, £300 into savings and £400 towards my living expenses.

    Took on some new work this week too, which is a nice little bonus. Not a huge amount of money, but it'll add up over the course of a year.
    Loan £5000 £0; Overdraft £700 £0
    Savings £0 +£1500; Share Portfolio £0 +£4000
    £0 Credit Card £6800 £1700
    • zippygeorgeandben
    • By zippygeorgeandben 23rd Apr 17, 10:11 PM
    • 661 Posts
    • 755 Thanks
    zippygeorgeandben
    Yup good news - I decided to pay a cheeky £116.89 off the Zopa yesterday just to make the monthly payments at £85.00 (like you, I like round numbers!).
    Have a great week!
    End Sep 2016 End August 2017
    £8236.57 £4876.49
    (Tesco 4.8%) £222.61pcm
    £6185.75 £851.34 (Zopa 4.0%) £48.99pcm

    £5344.50
    £2890.04 (Sainsburys 0% until 06/19) £140pcm
    £2000.00 £1333.35 (Sister 0%) £133.33pcm

    Total debt
    £19.766.82 £11499.70 Original DFD May 2019.
    • Exerbusi2
    • By Exerbusi2 23rd Apr 17, 10:38 PM
    • 232 Posts
    • 152 Thanks
    Exerbusi2
    That's good news! All progress is good progress!
    Loan £5000 £0; Overdraft £700 £0
    Savings £0 +£1500; Share Portfolio £0 +£4000
    £0 Credit Card £6800 £1700
    • zippygeorgeandben
    • By zippygeorgeandben 23rd Apr 17, 11:23 PM
    • 661 Posts
    • 755 Thanks
    zippygeorgeandben
    My original payments per month were £653 back in September.
    These were broken up as follows;
    £200 Virgin CC
    £230 Tesco Loan
    £223 Zopa Loan

    6 months later these will be as follows:
    £135 Sainsburys CC
    £230 Tesco Loan
    £85 Zopa Loan
    £133 Sister Loan
    New total - £583 pm
    This is £70 less per month on debt repayments which obviously I will throw extra per month at the Zopa Loan.
    I also have the knowledge that the CC is interest free for the 2 years and I also have a 2 year 0% CC on purchases (Nationwide) for my Summer holiday.
    Hopefully, I'll sell more candles too!
    End Sep 2016 End August 2017
    £8236.57 £4876.49
    (Tesco 4.8%) £222.61pcm
    £6185.75 £851.34 (Zopa 4.0%) £48.99pcm

    £5344.50
    £2890.04 (Sainsburys 0% until 06/19) £140pcm
    £2000.00 £1333.35 (Sister 0%) £133.33pcm

    Total debt
    £19.766.82 £11499.70 Original DFD May 2019.
    • Exerbusi2
    • By Exerbusi2 24th Apr 17, 10:00 AM
    • 232 Posts
    • 152 Thanks
    Exerbusi2
    I think the candle sales will be your biggest help, Zippy - it's money you didn't have beforehand so is all a bonus!

    Of course it's a limited resource, but milk it as much as you can!

    I received my £100 today, so £50 of it has gone on the CC...
    Loan £5000 £0; Overdraft £700 £0
    Savings £0 +£1500; Share Portfolio £0 +£4000
    £0 Credit Card £6800 £1700
    • Exerbusi2
    • By Exerbusi2 24th Apr 17, 10:04 AM
    • 232 Posts
    • 152 Thanks
    Exerbusi2
    Mini update...

    I noticed on my CC statement that a DD payment of £43 was taken, so I upped my repayment to make it a collective £100 off the bill.

    New balance, £1700.
    Loan £5000 £0; Overdraft £700 £0
    Savings £0 +£1500; Share Portfolio £0 +£4000
    £0 Credit Card £6800 £1700
    • Exerbusi2
    • By Exerbusi2 25th Apr 17, 10:59 AM
    • 232 Posts
    • 152 Thanks
    Exerbusi2
    Potential hiccup...

    Car has a problem with the steering column. Could be an expensive job - I'm hoping it won't be!
    Loan £5000 £0; Overdraft £700 £0
    Savings £0 +£1500; Share Portfolio £0 +£4000
    £0 Credit Card £6800 £1700
    • zippygeorgeandben
    • By zippygeorgeandben 25th Apr 17, 8:14 PM
    • 661 Posts
    • 755 Thanks
    zippygeorgeandben
    Noooooo!
    Doctor Doctor I've got a steering wheel lodged in my pants. It's driving me nuts!
    End Sep 2016 End August 2017
    £8236.57 £4876.49
    (Tesco 4.8%) £222.61pcm
    £6185.75 £851.34 (Zopa 4.0%) £48.99pcm

    £5344.50
    £2890.04 (Sainsburys 0% until 06/19) £140pcm
    £2000.00 £1333.35 (Sister 0%) £133.33pcm

    Total debt
    £19.766.82 £11499.70 Original DFD May 2019.
    • Exerbusi2
    • By Exerbusi2 26th Apr 17, 8:30 AM
    • 232 Posts
    • 152 Thanks
    Exerbusi2
    I like it!

    Soooo, massive game-changer here...

    It turns out that my car has a few underlying faults. They've been cleared for now, but the mechanic (who doesn't sell cars, only repairs them so has no financial interest in this advice) has suggested that I get shut of the car pretty quickly, otherwise I'll have to spend serious cash on it in the near future, which just isn't worth it.

    This is a bit of a dilemma for two reasons...

    1. It temporarily destroys my debt free mission.
    2. I'm so close to being debt free, but I absolutely need my car to work (I have to travel to various sites per day with my work, so I need a reliable car).

    I could keep going with this car, hoping that it would pass its MOT (due in July), but if it doesn't I'll risk having a car without an MOT that isn't worth much.

    Instead (the mechanics advice), I could part ex it whilst it's still a viable trading car and has 3 months MOT.

    I'm not a car trader - I buy cars and keep them for a while, so even if I did spend on a new car, I'd throw money at it to get the debt down ASAP.

    Intellectually, it's a no-brainer. Buy a much newer car that won't cost the earth but would put me in a lot more debt than I'm currently in, but could easily afford in terms of repayments.

    Emotionally, it's a bigger problem - I'm SO CLOSE to being debt free that it's actually clouding my decisions. I'm probably too focussed on the debt free thing, meaning I'm not thinking practically.

    In reality, being debt free was going to be a temporary thing anyway - I always knew my car wasn't going to last too much longer, so it was a case of getting debt free simply in order to allow me time to save up part of my next car purchase.

    My girlfriend understands my issue, but her thinking is that it's not such an issue if the car I buy is worth more than the loan attached to it. I get that and agree, but I've made being debt free such a part of my identity that I want to achieve the goal.

    The most pragmatic approach is to buy a nice, well-engineered car that won't break the bank. I have a couple in mind and have been pleased by what I've seen so far - in terms of fuel economy, the cars I'm looking at will quite easily save me over £100 per month, which could be thrown at repaying a debt quicker.

    I'll buy the car using my CC and will qualify for cash back, which may be handy too!

    Just reading this post back shows how muddled my thinking is on the issue at the moment! I'll sleep on it again and see what my thinking is again in the morning...
    Loan £5000 £0; Overdraft £700 £0
    Savings £0 +£1500; Share Portfolio £0 +£4000
    £0 Credit Card £6800 £1700
    • zippygeorgeandben
    • By zippygeorgeandben 26th Apr 17, 7:39 PM
    • 661 Posts
    • 755 Thanks
    zippygeorgeandben
    Ok - had a good read of your post.
    1) The word 'destroy' is extremely misleading. It's like when people say 'oh the concert is cancelled' when actually it has been 'postponed'. It's just been delayed, perhaps a little like your debt repayments. I don't want you using that word again!
    2) I can totally see your point of view here. It must feel like you've made these constant payments/over payments to bring your debt free date closer and it's now all seems a waste of time and perhaps not worth all your hard work.

    This is where you are wrong. Stuff happens, emergencies happen and hey, it's not like you've suddenly got to pay for life saving surgery. It's a car. It's also a vital aspect of your life which you need for work/business.
    The reality of you knowing your car wasn't going to last forever means that even though you weren't prepared for it, the car was!
    But hey, you've been pragmatic, finding cars which won't break the bank and also looking at savings in the long run.
    I absolutely get and understand your frustration but the reason you've been paying back these debts quickly is, whether you like it or not, for moments like these.
    All you need to do is look at posts on MSE from people who have consolidated debt and then been thrown an emergency like yours, i.e. a new car. You don't have to consolidate, just put the debt repayments on hold for a little while.
    I'm rambling.
    It'll be fine but yes, I understand your frustration.
    End Sep 2016 End August 2017
    £8236.57 £4876.49
    (Tesco 4.8%) £222.61pcm
    £6185.75 £851.34 (Zopa 4.0%) £48.99pcm

    £5344.50
    £2890.04 (Sainsburys 0% until 06/19) £140pcm
    £2000.00 £1333.35 (Sister 0%) £133.33pcm

    Total debt
    £19.766.82 £11499.70 Original DFD May 2019.
    • beanielou
    • By beanielou 26th Apr 17, 8:08 PM
    • 47,244 Posts
    • 169,810 Thanks
    beanielou
    Another way to look at it is to continue to pay down your current debt & see the car loan as a so called 'good' debt as it is a neccessary evil if you get my drift.
    Lou~ Debt free Wanabe No 55 DF 03/03/14.
    **Credit card debt free 30/06/10~** **Weight loss 2 stone 2 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***
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