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  • FIRST POST
    • Nicnak
    • By Nicnak 10th Sep 17, 8:30 PM
    • 379Posts
    • 1,522Thanks
    Nicnak
    Debt Free Year
    • #1
    • 10th Sep 17, 8:30 PM
    Debt Free Year 10th Sep 17 at 8:30 PM
    Hi,

    I've pretty much buried my head in the sand over the past 15 years about debt and what it means. I've always seen it as 'normal' to have debt for things, and never thought twice about it. Recently though, I have wanted to think about cutting down my work hours, and I just can't. I can't be the mum I want to be to my 4 year old because I need to work to make sure I can pay the bills and debts. That is when it hit home, that I can't continue like this. I am having a wedding reception in December, which I know is going to take up most of my 'spare' cash, but from January 2018, I will make a difference to my debts.

    Currently have
    £485 0% credit card. It was £2000 in July, So I have been ensuring that I am working on it.
    £7500 Tesco loan at 3.2% - Paying £220 a month and due up in Three years
    £17,450 car loan. Car is in negative equity and I'm stuck in the PCP. The car also is over mileage and has damage. I am 10 months away from handing it back, but with excess mileage and damage, I am thinking this might not be the best idea. Currently paying £351 a month for this luxury that I am thinking I don't need. (I shouldn't have got it, but I did, I can't change what I have stupidly done, and now need to work on the best options).
    I spend money every month on things I don't need, and really need somewhere to record and focus on what it is I am doing, and the inspiration to keep going when I see progress is being made.

    I've started a written diary as well to try to help. If I pay off these debts, then I know that I will be £500 better off. In April, my phone is due up for renewal, and I have already looked at the SIM only deals which will take it to the £500 a month mark.

    i am going to try to earn some extra per month to pay off the debts, which in the short term might reduce the time I have with my daughter.

    Here goes...

    I really need to do this now.
Page 3
    • Nicnak
    • By Nicnak 19th Sep 17, 8:24 AM
    • 379 Posts
    • 1,522 Thanks
    Nicnak
    I had to buy fuel yesterday as I was on the red so put £30 in to last me around 10 days.

    I have made extra money this week rather than spending it, which is a bit of a novelty.

    I sold an old bracelet on ebay for £50
    I have also got a tutoring session tonight for £30

    I'm going to use the £30 to do my weekly shop and not take my card so it has to go under that.

    The £50, I'm going to pay directly off my loan.
    If it's out of my account, I can't spend it.
    September 6th 2017 start Updated 4th NOV 17
    Credit Card £430 now: £0 Tesco Loan £7500 = £6891 Car loan £17450 = £16,748 Total = £25,330 £23,749 EMF #252
    Sealed pot challenge #589
    Pay off all your debts by Christmas #170
    • Nicnak
    • By Nicnak 21st Sep 17, 6:22 AM
    • 379 Posts
    • 1,522 Thanks
    Nicnak
    Yesterday wasn't as good as it could have been.

    I had £30 in my purse so went food shopping. I had a goal of £20 as I just needed the basics.

    I went hungry, which is never a good idea, and with my child, also not a good idea.

    She doesn't get everything she wants, she was just asking for strawberries and raspberries, which were quite expensive. I could have said no, but bought them instead.

    Shopping came to £34

    Some of that was me being hungry and not using my head.

    Next cash shopping trip will be a list for the hubby till I can safely go in and do what I want to.
    September 6th 2017 start Updated 4th NOV 17
    Credit Card £430 now: £0 Tesco Loan £7500 = £6891 Car loan £17450 = £16,748 Total = £25,330 £23,749 EMF #252
    Sealed pot challenge #589
    Pay off all your debts by Christmas #170
    • Nicnak
    • By Nicnak 22nd Sep 17, 10:01 AM
    • 379 Posts
    • 1,522 Thanks
    Nicnak
    Last night I set up a standing order on my account to pay a little more off my loan each month.

    I put the £50 I made off the bracelet Off it as well. It doesn't look like it has gone down much at all, but I guess if I keep doing it then it will make a difference.
    September 6th 2017 start Updated 4th NOV 17
    Credit Card £430 now: £0 Tesco Loan £7500 = £6891 Car loan £17450 = £16,748 Total = £25,330 £23,749 EMF #252
    Sealed pot challenge #589
    Pay off all your debts by Christmas #170
    • Nicnak
    • By Nicnak 23rd Sep 17, 9:34 AM
    • 379 Posts
    • 1,522 Thanks
    Nicnak
    Yesterday I made an error.

    I was down to meet my friend for a drink. I decided not to do that to save money. Instead, I invited her here, went to Lidl and got a few bottles of wine and some snacks.

    It cost £42. I'm pretty sure I could have gone out of cheaper than that. I've got some food and snacks left, but I was not expecting it to come to £42.

    The last few times I've been shopping, I've noticed the cost increasing on products. It makes all of this more difficult.

    I think, in order to avoid this in the future, I'll need to weigh up the cost of each. If I would have drove, I could have managed this evening for £10.

    Huge lesson learnt. Look into things in depth. I've spent £30 more than I wanted to.
    September 6th 2017 start Updated 4th NOV 17
    Credit Card £430 now: £0 Tesco Loan £7500 = £6891 Car loan £17450 = £16,748 Total = £25,330 £23,749 EMF #252
    Sealed pot challenge #589
    Pay off all your debts by Christmas #170
    • Nicnak
    • By Nicnak 23rd Sep 17, 7:55 PM
    • 379 Posts
    • 1,522 Thanks
    Nicnak
    NSD Woohooo

    After yesterday, it was needed. I'll need fuel on Wednesday this week, but other than that, hoping for another few NSDs.

    I did the demotivater as well. I looked at little things as I think I have stopped the big things. It's amazing how the little things add up to huge amounts over the year.

    I'll just keep working on it. Slow and steady as they say.
    September 6th 2017 start Updated 4th NOV 17
    Credit Card £430 now: £0 Tesco Loan £7500 = £6891 Car loan £17450 = £16,748 Total = £25,330 £23,749 EMF #252
    Sealed pot challenge #589
    Pay off all your debts by Christmas #170
    • Nicnak
    • By Nicnak 23rd Sep 17, 9:10 PM
    • 379 Posts
    • 1,522 Thanks
    Nicnak
    How do people get out of debt?

    I'm two weeks in and already feeling disheartened by how hard it is and how long it will take.

    I have a condition that sometimes makes me feel !!!!, and today is one of those days. I just waste money because I want to feel good and look forward to something.I have to break this cycle. I have already promised myself that this is my last year of working the job I am working.

    Either I make this work, or I spend another year battling with my health and work and feel guilty because I don't get time with my daughter.

    I feel so angry at myself and so helpless at the same time.
    September 6th 2017 start Updated 4th NOV 17
    Credit Card £430 now: £0 Tesco Loan £7500 = £6891 Car loan £17450 = £16,748 Total = £25,330 £23,749 EMF #252
    Sealed pot challenge #589
    Pay off all your debts by Christmas #170
    • Nicnak
    • By Nicnak 24th Sep 17, 2:20 PM
    • 379 Posts
    • 1,522 Thanks
    Nicnak
    I have a Tesco loan at £7500, and a 0% credit card for 37 months at 6k.

    Is it worth transferring as close to the 6k as possible into the 0% Apr credit card? I'm paying 3.2% interest on the loan.
    I'll be paying some off one and some off the other for a few months, but I guess it makes more sense to pay no APR.
    September 6th 2017 start Updated 4th NOV 17
    Credit Card £430 now: £0 Tesco Loan £7500 = £6891 Car loan £17450 = £16,748 Total = £25,330 £23,749 EMF #252
    Sealed pot challenge #589
    Pay off all your debts by Christmas #170
    • DebtFreeDuo
    • By DebtFreeDuo 24th Sep 17, 2:34 PM
    • 442 Posts
    • 2,143 Thanks
    DebtFreeDuo
    I have a Tesco loan at £7500, and a 0% credit card for 37 months at 6k.

    Is it worth transferring as close to the 6k as possible into the 0% Apr credit card? I'm paying 3.2% interest on the loan.
    I'll be paying some off one and some off the other for a few months, but I guess it makes more sense to pay no APR.
    Originally posted by Nicnak
    If its going to save you money then go for it, as long as you can still pay it off within the 37 months you have at 0%. You will have a penalty for paying back early and a balance transfer fee usually but I imagine the savings on the interest will be bigger than this, give Tesco a call and find out how much they will charge, plus the balance transfer fee against the interest saved on the loan.

    This debt malarky is hard, be gentle on yourself and just try and remind yourself that after you have achieved your goal then you will be able to make yourself feel better with money that is all yours and you won't have any debt hanging over you whatsoever.
    LBM 20/9/17 5101.55/5690.50 = Loan: 1923.70/2207.38 Car Loan: 2166.87/2419.64 0% CC: 1010.98/1063.48 DFD Oct 18.
    SPC 586
    • TheMoonandBack
    • By TheMoonandBack 24th Sep 17, 2:38 PM
    • 31 Posts
    • 38 Thanks
    TheMoonandBack
    How do people get out of debt?

    I'm two weeks in and already feeling disheartened by how hard it is and how long it will take.

    I have a condition that sometimes makes me feel !!!!, and today is one of those days. I just waste money because I want to feel good and look forward to something.I have to break this cycle. I have already promised myself that this is my last year of working the job I am working.

    Either I make this work, or I spend another year battling with my health and work and feel guilty because I don't get time with my daughter.

    I feel so angry at myself and so helpless at the same time.
    Originally posted by Nicnak
    Hi I think you've been doing great so far. It is hard and painful but if you can get into it you will change your entire life.
    You really need your partner on board, it will be so much easier with both of you pulling in the same direction.
    Car wise, I was £5k in negative equity on a pcp. I put it on a 0% card then sold the car back to the garage it came from. Then I bought a decent 10 year old car. Honestly, doing this was the best move I made.
    Build up £1k in an emergency fund, then do a budget and stick to it - religiously. I had never done a proper budget in my life before but it makes so much difference.
    He's not everyone's cup of tea, and it's very American but Dave Ramsey definitely changed my life.

    https://m.youtube.com/user/DaveRamseyShow

    All the best and keep going
    When you get to the end of your rope, tie a knot and hang on

    Proud to be dealing with my debts
    • Nicnak
    • By Nicnak 24th Sep 17, 2:53 PM
    • 379 Posts
    • 1,522 Thanks
    Nicnak
    Thank you,

    I feel totally useless for getting like this, and being so passive for 25 year.
    I feel like my daughter is suffering because I can't afford to work part time.
    September 6th 2017 start Updated 4th NOV 17
    Credit Card £430 now: £0 Tesco Loan £7500 = £6891 Car loan £17450 = £16,748 Total = £25,330 £23,749 EMF #252
    Sealed pot challenge #589
    Pay off all your debts by Christmas #170
    • TheMoonandBack
    • By TheMoonandBack 24th Sep 17, 3:14 PM
    • 31 Posts
    • 38 Thanks
    TheMoonandBack
    Get rid of the car, even if you have to borrow £5k to do it, and you've turned -£25380 into -£12930 that's nearly halved it. You can then start using the £351 car payment to attack your remaining debt.
    You could pay off £12k in 3 years with the car payment alone.
    When you get to the end of your rope, tie a knot and hang on

    Proud to be dealing with my debts
    • Nicnak
    • By Nicnak 24th Sep 17, 3:16 PM
    • 379 Posts
    • 1,522 Thanks
    Nicnak
    Get rid of the car, even if you have to borrow £5k to do it, and you've turned -£25380 into -£12930 that's nearly halved it. You can then start using the £351 car payment to attack your remaining debt.
    You could pay off £12k in 3 years with the car payment alone.
    Originally posted by TheMoonandBack
    I'm looking at this. I need to do something.
    September 6th 2017 start Updated 4th NOV 17
    Credit Card £430 now: £0 Tesco Loan £7500 = £6891 Car loan £17450 = £16,748 Total = £25,330 £23,749 EMF #252
    Sealed pot challenge #589
    Pay off all your debts by Christmas #170
    • crunch_time
    • By crunch_time 24th Sep 17, 4:42 PM
    • 1,027 Posts
    • 2,757 Thanks
    crunch_time
    Hi nicknak

    I understand the spending to make yourself happy. I've recently come to the conclusion that my job makes me unhappy which makes me spend and for various reasons felt crap about myself which has led me to spend money on books, wine and magazines which make me feel great for a minute or two. We paid back all our £20k plus debt in April but have since racked up more due to unhappiness that I need to tackle so I'm facing my habits now and hopefully this will make a difference!

    All the best with your journey. I'll be following you!

    Crunchy xx
    LBM June 2014. Original debt £23,555 vs Now £0 Paid off in April 2017. Since then lost my way a bit and then decided to move house and start a new course...
    NEW LBM: 16/9/17 NEW DEBT: £7232 Now: £7112 Paid off £120
    HMRC Savings £3222 £0 Long term savings (finally) £840
    • Nicnak
    • By Nicnak 24th Sep 17, 5:42 PM
    • 379 Posts
    • 1,522 Thanks
    Nicnak
    Hi nicknak

    I understand the spending to make yourself happy. I've recently come to the conclusion that my job makes me unhappy which makes me spend and for various reasons felt crap about myself which has led me to spend money on books, wine and magazines which make me feel great for a minute or two. We paid back all our £20k plus debt in April but have since racked up more due to unhappiness that I need to tackle so I'm facing my habits now and hopefully this will make a difference!

    All the best with your journey. I'll be following you!

    Crunchy xx
    Originally posted by crunch_time
    Thanks, it's definitely emotion linked for me. My job can be incredibly stressful and I'm just riding the high all the time. I looked at reducing my hours, and realised I couldn't. I either change how I love, or I'll be working and living like this forever. X
    September 6th 2017 start Updated 4th NOV 17
    Credit Card £430 now: £0 Tesco Loan £7500 = £6891 Car loan £17450 = £16,748 Total = £25,330 £23,749 EMF #252
    Sealed pot challenge #589
    Pay off all your debts by Christmas #170
    • Nicnak
    • By Nicnak 24th Sep 17, 6:35 PM
    • 379 Posts
    • 1,522 Thanks
    Nicnak
    Today has been a NSD for me.

    I had the realisation earlier as well that I can balance transfer onto a 0% Apr now as well. I have decided to attack the loan first. I am using the car, it has damage that needs fixing as well, and it's the one thing that causes me a massive amount of stress. I know it's strange that I am leaving it when I have said all of the other things, but I just don't feel strong enough to tackle it at the minute. I'm emerging my head from the sand at the minute and dealing with things bit by bit. I have done the credit car, now it's the loan, and then in April when the car is due up, I'll consider it then.

    I am so confused as to what to do for the best that I am just going to stick to paying off the loan. I will do a transfer onto the credit card, as much as I can, and then work on the rest.

    This is going to be a long long journey. I have realised that although I am facing my debt, I am still scared of what I need to do in order to get there, and struggling with tackling some of them.

    I am reading and taking on board all of your advice. It takes me time sometimes to think things through and process things and then work out a plan of action.

    This time next year, I will not have the loan.
    x
    September 6th 2017 start Updated 4th NOV 17
    Credit Card £430 now: £0 Tesco Loan £7500 = £6891 Car loan £17450 = £16,748 Total = £25,330 £23,749 EMF #252
    Sealed pot challenge #589
    Pay off all your debts by Christmas #170
    • Nicnak
    • By Nicnak 24th Sep 17, 8:07 PM
    • 379 Posts
    • 1,522 Thanks
    Nicnak
    I'm looking through the house at things I can sell,
    I have a collection of Jane Austen books that are quite rare.
    I paid around £1250 for them a few years ago. I've been offered £750 for them by a dealer. I've tried selling them on eBay and via other collectors but never been at the right price.

    The £750 is the best offer I've had. I'm not sure whether to take it, or hold out. I don't need to sell to make payments, so feel like I shouldn't sell at a loss. I know they're worth more than the £750 but they need to make a profit too.
    September 6th 2017 start Updated 4th NOV 17
    Credit Card £430 now: £0 Tesco Loan £7500 = £6891 Car loan £17450 = £16,748 Total = £25,330 £23,749 EMF #252
    Sealed pot challenge #589
    Pay off all your debts by Christmas #170
    • Nicnak
    • By Nicnak 25th Sep 17, 6:58 PM
    • 379 Posts
    • 1,522 Thanks
    Nicnak
    Another no spend day. That's three in a row!
    I will have to buy fuel either tomorrow or Wednesday (I think tomorrow).
    I pay at the pump to avoid having to go in and see something and buy it.

    I'm wanting chocolate tonight, but going to have a biscuit instead.

    Feeling very tired today. Work and then a training session after work meant it ended up a late one.

    I had a huge row with hubby this morning over my car. This is why i avoid having conversations with him about debt. He really can't handle the talks about money and gets stressed out so I just think it is easier if I really tackle this head on and then show him what I have achieved. That is all he needs.

    Approaching the car issue is not something he wants to address so I think I have made the best decision in reviewing it in January once I have sorted the other loan out and worked out the best option for that.

    Today I am moving onwards. Each month brings me closer to leaving my career and being debt free.
    September 6th 2017 start Updated 4th NOV 17
    Credit Card £430 now: £0 Tesco Loan £7500 = £6891 Car loan £17450 = £16,748 Total = £25,330 £23,749 EMF #252
    Sealed pot challenge #589
    Pay off all your debts by Christmas #170
    • Happierdays
    • By Happierdays 25th Sep 17, 7:40 PM
    • 153 Posts
    • 451 Thanks
    Happierdays
    You seem very motivated! Keep going.... you will get there! Cheering you on!
    • Nicnak
    • By Nicnak 25th Sep 17, 8:04 PM
    • 379 Posts
    • 1,522 Thanks
    Nicnak
    You seem very motivated! Keep going.... you will get there! Cheering you on!
    Originally posted by Happierdays
    Thank you. It's still very daunting and lots of dark times to get through. Mostly in my head trying to decipher what is best...
    September 6th 2017 start Updated 4th NOV 17
    Credit Card £430 now: £0 Tesco Loan £7500 = £6891 Car loan £17450 = £16,748 Total = £25,330 £23,749 EMF #252
    Sealed pot challenge #589
    Pay off all your debts by Christmas #170
    • Tea&Kittens
    • By Tea&Kittens 25th Sep 17, 8:35 PM
    • 153 Posts
    • 569 Thanks
    Tea&Kittens
    Well done on your NSDs Nicnak. Keep going
    October: NSDs 6 / 17 NSDs in a row: 1 / 5
    I started my debtfree journey on 07 September 2017: Total: £20,521 £19847
    Barclaycard: £14659 £14435 Oct 2017 HSBC Credit Card : £3112 £3012 Oct 2017
    Overdraft: 350 £0 Oct2017 MBNA : 2400
    A journey of a thousand miles starts with a single step. I'm on my way!
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