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  • FIRST POST
    • Lacherlich
    • By Lacherlich 24th Aug 17, 4:42 PM
    • 122Posts
    • 176Thanks
    Lacherlich
    Debt free before 30?
    • #1
    • 24th Aug 17, 4:42 PM
    Debt free before 30? 24th Aug 17 at 4:42 PM
    Hi all.


    So I haven't actually been on here for a while - I did start a thread back in 2015 called 'A year to clear my debt' where at the time I had around £17k of debt which I worked out I could pay off within a year or so.... Well since I am back here now you can probably guess that didn't quite go to plan.


    After a break-up, selling of the house; and since moving into a new apartment - the situation is no better - if not worse! Total debt at the moment is at £25k. Surprised by how much it has shot up so much - combination of holidays; purchasing the apartment and new furniture etc.


    I am 30 next year and I really wanted to be clear of debt before then. Looking at my budget now it seems unlikely Ill be able to achieve this. I can pay off about £20k in a year - leaving me £4k short.


    There must be a way for me to get this extra cash - although I haven't yet worked out how! I am allowing myself £400 a month spending money; so maybe if I am really disciplined I can use some of this towards the debt too. But I know what I'm like and even with all the will in the world Ill probably still spend it; but hey it worth a shot!


    Anyway - ill start checking back here frequently to motivate myself and to get some tips!!


    But first step was to start this thread So more to follow!


    Thanks
    Last edited by Lacherlich; 25-10-2017 at 10:02 AM.
    *£10,000/ £9,166 = Tesco Loan.*/ * £9214/ £8012= Credit Cards.* / * £2,150 / £0 = Owed to Family/Friends =* * £4,419/ £4,119 = Furniture for apartment *
    (Starting balance £25,000 owed in July 2017 - Now £21,297)
Page 5
    • Lacherlich
    • By Lacherlich 25th Oct 17, 9:35 AM
    • 122 Posts
    • 176 Thanks
    Lacherlich
    October Update

    Hi everyone. I've been pretty quiet this month - partly because I was starting to bore myself with my ramblings which I'm sure having a similar effect on others! It's payday! So I have made my debt repayments this morning.


    Family/Friends - Paid off £345 so I now no longer owe them anything. This means ill be able to tackle my 'official' debt more aggressively from next month.


    Credit Card - This month Ill be making £530 of repayments to my credit cards (including the minimum repayments). I paid off a chunk this morning (£370) so will wait for the minimums to go out now.


    Everything else (loan, HPs etc) will come down with the usual monthly repayments meaning my debt now stands at £21,820! Okay - it is still a huge amount; but to see the figure starting with 21 rather than the £25k Im pretty happy! December will be the next big stage - dropping below £20k. Ive now paid off about 13%. But this will jump to nearly 25% by December!


    I managed to stick to my budget this month (minus a small overspend in Amsterdam) plus I finished paying off my new kitchen table (which Id already committed to months ago). My 'spend' budget was therefore a bit tighter due to these commitments but I still managed it Hopefully this month I can actually finish with money in my account to make additional repayments with.


    On to the next month..... I'm off work tomorrow thank God - I need a little break as im not sleeping so great. Then next weekend I am going to Lanzarote for 4 days (luckily this was paid for by my partners parents so I only had to buy the flight - again this was months ago). Plus spending money - but Ill try limit what I spend there. Its half board so I shouldn't need much. Also have a trip to London for a concert - staying in a cheap hostel and found a cheap train down. (concert was a birthday present). So I should be able to limit what I spend!
    *£10,000/ £9,166 = Tesco Loan.*/ * £9214/ £8012= Credit Cards.* / * £2,150 / £0 = Owed to Family/Friends =* * £4,419/ £4,119 = Furniture for apartment *
    (Starting balance £25,000 owed in July 2017 - Now £21,297)
    • EssexHebridean
    • By EssexHebridean 25th Oct 17, 3:18 PM
    • 8,232 Posts
    • 43,627 Thanks
    EssexHebridean
    Oh good work - you're doing so well!
    MORTGAGE FREE 30/09/2016
    Sainsbugs 0% card: 22/12/16 £1229.00/£702.45 (20/11/17)
    SOA Calculator for DFW newbies: Stoozing.com SOA Calculator
    • Lacherlich
    • By Lacherlich 25th Oct 17, 3:46 PM
    • 122 Posts
    • 176 Thanks
    Lacherlich
    Thanks! Im surprised I am feeling so motivated still! A bit impatient - but its in my nature.


    A total of £1200 paid off this month (give or take a few £). I think my mind set is gradually changing - Im not making silly decisions on spontaneous big spends. These can wait until I am debt free.... and only then will I purchase if I actually have the money!
    *£10,000/ £9,166 = Tesco Loan.*/ * £9214/ £8012= Credit Cards.* / * £2,150 / £0 = Owed to Family/Friends =* * £4,419/ £4,119 = Furniture for apartment *
    (Starting balance £25,000 owed in July 2017 - Now £21,297)
    • Mnd
    • By Mnd 25th Oct 17, 4:07 PM
    • 268 Posts
    • 291 Thanks
    Mnd
    Just read this, I think it's brilliant what you've done so far, and your whole attitude seems to be far more positive than post 1.
    I would say , don't not post in case it's boring, you have had wonderful advice and those people won't get bored helping you stay on the straight and narrow, it will keep you on your toes as well!

    What happened to getting this moved to diaries thread.

    We'll done so far, keep going
    Last edited by Mnd; 25-10-2017 at 4:08 PM. Reason: Auto spell!
    • Lacherlich
    • By Lacherlich 27th Oct 17, 11:10 AM
    • 122 Posts
    • 176 Thanks
    Lacherlich
    Hey


    Thanks Mnd. Im glad im actually finally doing something about it. I guess ive been lucky as the debt hasn't really had a massive negative impact on me - in the sense that I was able to keep up with repayments and still had enough money left each month to get by. But that's what I felt like I was doing. Just getting by - and any time I wanted to do something to treat myself I'd get further into debt. I was also quite limited when I bought my new apartment in terms of how much I could borrow based on my high personal debt level. Its still a decent place though - but I'm seeing it as a temporary home for a couple of years while I sort myself out. Then I can focus on somewhere I really want to live.


    I wanted to really knuckle down and throw everything at this debt - but I have found a balance that means I can still clear over a grand a month - but still have enough for small trips away etc. No point kidding myself and then wondering where the money has gone when I overspend! At least this way I can budget for those things and still make dent in the debt.


    I tried to move it over to the diaries- but when I searched for the person that was recommended to message - it wouldn't find them. Any suggestion of who to message? Thanks!
    *£10,000/ £9,166 = Tesco Loan.*/ * £9214/ £8012= Credit Cards.* / * £2,150 / £0 = Owed to Family/Friends =* * £4,419/ £4,119 = Furniture for apartment *
    (Starting balance £25,000 owed in July 2017 - Now £21,297)
    • Lacherlich
    • By Lacherlich 27th Oct 17, 4:00 PM
    • 122 Posts
    • 176 Thanks
    Lacherlich
    Just been thinking... although back in 2015 I had £17k of debt when I started my first diary.. I had the car on finance too. Which for some reason I decided not to include. So really I had £35k of debt!! So the £25k I started with this time doesn't seem as bad.... I definitely made the right decision in selling that car! Freeing up nearly £500 a month (including insurance and fuel on top of the monthly cost). I wouldn't have been able to overpay much on my debt repayments had I not sold it.
    *£10,000/ £9,166 = Tesco Loan.*/ * £9214/ £8012= Credit Cards.* / * £2,150 / £0 = Owed to Family/Friends =* * £4,419/ £4,119 = Furniture for apartment *
    (Starting balance £25,000 owed in July 2017 - Now £21,297)
    • Lacherlich
    • By Lacherlich 6th Nov 17, 2:45 PM
    • 122 Posts
    • 176 Thanks
    Lacherlich
    Mid month check-in. Ive just come back from my holiday to Lanzarote. It was sooo nice to be away. 25 degrees to escape the miserable UK winter. I've never been away in the winter before. I managed to only spend £80 which was far less than the £180 budget I set myself.


    Based on that and a surplus in my other account I reckon I can put another £100 on my credit card this month. I did make a small purchase on my credit card last night for a concert ticket... its an xmas present for my sister and there was only 2 tickets left. Ill pay it off next month from the xmas savings budget.
    *£10,000/ £9,166 = Tesco Loan.*/ * £9214/ £8012= Credit Cards.* / * £2,150 / £0 = Owed to Family/Friends =* * £4,419/ £4,119 = Furniture for apartment *
    (Starting balance £25,000 owed in July 2017 - Now £21,297)
    • therocket
    • By therocket 6th Nov 17, 5:09 PM
    • 13 Posts
    • 2 Thanks
    therocket
    Hi

    Very well done. Helping people with the life insurance one makes being ripped off for three years worthwhile! Glad you made a good saving. Looks like you are making good use of your bank holiday

    Bexster
    Originally posted by bexster1975
    Hi Bexter

    i too believe i was ripped off with taking a life assurance policy when i had my first mortgage and paid the monthly sum (stupidly) without checking for nearly 5 years! did you ever receive justice or get some/all of your money back?? i was told by my mortgage advisor at the time to take it out as it was cheap (obviously not now that i am wiser). i was single and had no dependants too!
    • Lacherlich
    • By Lacherlich 28th Nov 17, 9:20 AM
    • 122 Posts
    • 176 Thanks
    Lacherlich
    November Update


    Hi all. So the update for this month - I did pay off quite a bit on payday; c. £1,500. But that's mainly because I overspent last month. Obviously a bit annoyed with myself; but it wasn't frivolous spending. I needed to buy a few things for the apartment (stools for the table and a coffee table so we had somewhere to put food and drinks for a flat warming); I will be using my xmas bonus next month to catch up again. But still - realising that some of the money I paid of back in October was spent again was a bit annoying. My partner is also going to contribute some towards it next month. So by next payday ill be back on track again.


    Ill update the figures next month - but im now just over £21k so it still has come down about £700 since last month.....
    *£10,000/ £9,166 = Tesco Loan.*/ * £9214/ £8012= Credit Cards.* / * £2,150 / £0 = Owed to Family/Friends =* * £4,419/ £4,119 = Furniture for apartment *
    (Starting balance £25,000 owed in July 2017 - Now £21,297)
    • pennystretcher
    • By pennystretcher 29th Nov 17, 3:09 PM
    • 311 Posts
    • 1,329 Thanks
    pennystretcher
    you only have £339 to clear before hitting £22.5k mark

    You've done well so far. Mark in your calendar target dates too - £20k, £17.5k etc. Will help you focus when you check something else on it..ideally stick calendar on fridge or somewhere where you see it all the time..
    MFW Dec 2017 £290 (almost there!!!)
    • Lacherlich
    • By Lacherlich 30th Nov 17, 11:39 AM
    • 122 Posts
    • 176 Thanks
    Lacherlich
    Hi


    Ive updated my signature; debt currently at £21.2k now. I have the dates I expect to go below £20k; and when I pay off the first 10k etc. So smaller targets along the way to keep me motivated!
    *£10,000/ £9,166 = Tesco Loan.*/ * £9214/ £8012= Credit Cards.* / * £2,150 / £0 = Owed to Family/Friends =* * £4,419/ £4,119 = Furniture for apartment *
    (Starting balance £25,000 owed in July 2017 - Now £21,297)
    • EssexHebridean
    • By EssexHebridean 30th Nov 17, 11:49 AM
    • 8,232 Posts
    • 43,627 Thanks
    EssexHebridean
    Absolutely a good plan to note the landmark dates - we had all sorts of markers on the mortgage spreadsheet for when we'd reach certain points - it was such a motivator!
    MORTGAGE FREE 30/09/2016
    Sainsbugs 0% card: 22/12/16 £1229.00/£702.45 (20/11/17)
    SOA Calculator for DFW newbies: Stoozing.com SOA Calculator
    • Lacherlich
    • By Lacherlich 1st Dec 17, 9:51 AM
    • 122 Posts
    • 176 Thanks
    Lacherlich
    For sure! Especially when clearing debt takes so long - its good to have mini goals along the way. Next month is my first one - dropping below £20k Still a huge amount to go! Then April 18 when I have paid over £10k.


    Ohh it would be amazing to clear my mortgage... I did a calculator which says I could pay it off 26 years earlier if I overpay by £600 a month! That's crazy..... food for thought!
    *£10,000/ £9,166 = Tesco Loan.*/ * £9214/ £8012= Credit Cards.* / * £2,150 / £0 = Owed to Family/Friends =* * £4,419/ £4,119 = Furniture for apartment *
    (Starting balance £25,000 owed in July 2017 - Now £21,297)
    • blitzboy
    • By blitzboy 1st Dec 17, 2:21 PM
    • 430 Posts
    • 235 Thanks
    blitzboy
    Do you really get charged £84 a month for management of the freehold? Ours is £10 a year!
    • Lacherlich
    • By Lacherlich 1st Dec 17, 2:40 PM
    • 122 Posts
    • 176 Thanks
    Lacherlich
    No - its leasehold.
    *£10,000/ £9,166 = Tesco Loan.*/ * £9214/ £8012= Credit Cards.* / * £2,150 / £0 = Owed to Family/Friends =* * £4,419/ £4,119 = Furniture for apartment *
    (Starting balance £25,000 owed in July 2017 - Now £21,297)
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