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  • FIRST POST
    • Nicnak
    • By Nicnak 10th Sep 17, 8:30 PM
    • 539Posts
    • 2,651Thanks
    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 4
    • TheMoonandBack
    • By TheMoonandBack 25th Sep 17, 8:59 PM
    • 48 Posts
    • 82 Thanks
    TheMoonandBack
    Well done, every step in the right direction will eventually get you there
    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 26th Sep 17, 6:35 PM
    • 539 Posts
    • 2,651 Thanks
    Nicnak
    Today was a strange day for trying to sort out my debts.
    I've made a couple of payments on the loan I have and it seems to have caused huge issues.

    I'm going to use my 0% balance transfer to pay off the loan. I tried to call them today to do this, and there's an issue.

    The issue is that I have made an unexpected payment on the loan, and they have to do a few things before I can get a settlement figure.

    They were genuinely stumped on the phone as to what it was they need to do so I can pay it off. It looks like it will be at least Monday before I can phone them back and pay it off. The issue is that Monday my first payment is due. That therefore means that I can't really do it until next Friday.

    If this is so difficult then I am thinking that they aren't used to dealing with overpayments. I have never overpaid on a loan before, as I just paid the amount and carried on month by month. It was a real light bulb moment for me that they aren't used to dealing with things like this and are therefore just reliant on people paying month by month without doing anything extra.

    Hoping to be able to pay it off next week. Fingers crossed. I want rid of if now.
    September 6th 2017 start Updated 25th NOV 17
    Credit Card £430 now: £1181 Tesco Loan £7500 = £6700 Car loan £17,500 = £9,875 Total = £25,330 £17,756 EMF #252
    Sealed pot challenge #589
    Pay off all your debts by Christmas #170
    • Nicnak
    • By Nicnak 26th Sep 17, 6:46 PM
    • 539 Posts
    • 2,651 Thanks
    Nicnak
    I had to buy fuel today, so not a NSD. I did have to go into the shop to get a loaf, but knew if I went into Tesco physically, I would buy more, so instead I went into the garage. I paid a little extra for a loaf than my usual brand, but I know it saved me about £10 because I wasn't shopping around.

    I know I can't count it as a NSD, but I am pleased with what I ended up spending. It could have been so much worse.

    Aiming for another two days of no spending to take me to the weekend. I have done well so far this week.
    September 6th 2017 start Updated 25th NOV 17
    Credit Card £430 now: £1181 Tesco Loan £7500 = £6700 Car loan £17,500 = £9,875 Total = £25,330 £17,756 EMF #252
    Sealed pot challenge #589
    Pay off all your debts by Christmas #170
    • Nicnak
    • By Nicnak 27th Sep 17, 7:24 PM
    • 539 Posts
    • 2,651 Thanks
    Nicnak
    Another NSD.

    Yay!
    September 6th 2017 start Updated 25th NOV 17
    Credit Card £430 now: £1181 Tesco Loan £7500 = £6700 Car loan £17,500 = £9,875 Total = £25,330 £17,756 EMF #252
    Sealed pot challenge #589
    Pay off all your debts by Christmas #170
    • Nicnak
    • By Nicnak 28th Sep 17, 8:02 AM
    • 539 Posts
    • 2,651 Thanks
    Nicnak
    Hoping for another NSD today as well. I have a full day planned out and hubby is at a spin class tonight so I usually chill at home after little one is in bed. Fingers crossed anyway!
    September 6th 2017 start Updated 25th NOV 17
    Credit Card £430 now: £1181 Tesco Loan £7500 = £6700 Car loan £17,500 = £9,875 Total = £25,330 £17,756 EMF #252
    Sealed pot challenge #589
    Pay off all your debts by Christmas #170
    • Nicnak
    • By Nicnak 29th Sep 17, 5:35 AM
    • 539 Posts
    • 2,651 Thanks
    Nicnak
    I managed another NSD! Woohoo.
    September 6th 2017 start Updated 25th NOV 17
    Credit Card £430 now: £1181 Tesco Loan £7500 = £6700 Car loan £17,500 = £9,875 Total = £25,330 £17,756 EMF #252
    Sealed pot challenge #589
    Pay off all your debts by Christmas #170
    • Nicnak
    • By Nicnak 29th Sep 17, 7:43 PM
    • 539 Posts
    • 2,651 Thanks
    Nicnak
    Not another NSD today as I needed a few bits from Lidl.
    Last week I spent £42, this week I managed £11.

    I did go on with a £10 rough idea on what I needed so happy with the £11. Especially as I had to buy lemsips and throat lozenges as I'm full of a cold.
    The good point of this is that I won't be spending only tomorrow. It'll be a duvet day for me.

    Currently feeling sorry for myself drinking Lemsip. Gutted.
    September 6th 2017 start Updated 25th NOV 17
    Credit Card £430 now: £1181 Tesco Loan £7500 = £6700 Car loan £17,500 = £9,875 Total = £25,330 £17,756 EMF #252
    Sealed pot challenge #589
    Pay off all your debts by Christmas #170
    • Nicnak
    • By Nicnak 30th Sep 17, 6:49 AM
    • 539 Posts
    • 2,651 Thanks
    Nicnak
    Today could turn out to spiral if I'm not careful.

    Although I'm full of a cold and really don't want to leave the jouse, hubby has made plans for us to visit his parents and sister.
    They live 45 mins away so I'll be making sure we use his car.
    It often ends in going out for lunch (really don't want this).

    I do need to go to the post office and send something recorded. I don't normally have an issue spending at the post office other than the money I need to spend to post the item. Fingers crossed that I can keep today below £10.
    September 6th 2017 start Updated 25th NOV 17
    Credit Card £430 now: £1181 Tesco Loan £7500 = £6700 Car loan £17,500 = £9,875 Total = £25,330 £17,756 EMF #252
    Sealed pot challenge #589
    Pay off all your debts by Christmas #170
    • DebtFreeDuo
    • By DebtFreeDuo 30th Sep 17, 10:56 AM
    • 611 Posts
    • 3,002 Thanks
    DebtFreeDuo
    Good luck keeping to your target today, I'm not feeling too good today so I think I will definitely be having a duvet day, I think its just that time of the year when everyone comes down with something.
    Loan:1780.49 2207.38 Car Loan:2039.22 2419.64 0% CC:984.98 1063.48 Overdraft: 860 Overpayment:1781 Total: 7445.69 DFD Dec 18
    SPC 586
    • Nicnak
    • By Nicnak 30th Sep 17, 2:01 PM
    • 539 Posts
    • 2,651 Thanks
    Nicnak
    It wasn't as bad as I thought it was.
    The post office cost me nearly £8. I was thinking around £5, but they were important documents and I couldn't risk it going anything but special delivery.

    I bought a coffee on the way there that was £5 with a cookie for my daughter.

    Now I'm snuggled at home in pjs with a Lemsip for the rest of the day.

    No more spending today for me.

    Hope you feel better soon too x
    September 6th 2017 start Updated 25th NOV 17
    Credit Card £430 now: £1181 Tesco Loan £7500 = £6700 Car loan £17,500 = £9,875 Total = £25,330 £17,756 EMF #252
    Sealed pot challenge #589
    Pay off all your debts by Christmas #170
    • Nicnak
    • By Nicnak 1st Oct 17, 11:38 AM
    • 539 Posts
    • 2,651 Thanks
    Nicnak
    I needed shopping bits today.
    I went in with a budget of £30 and it came in just over £29.

    That's an improvement! It helped that I had a basket and not a trolley. I could obviously only buy what I could carry.

    I did need night time pants for the little one, which are expensive. I've switched from expensive brands to Lidl own and they do just as well. It's just that it's not a weekly spend for me so I knew I'd need the £30

    Hoping now for four NSD between now and next Sunday.
    September 6th 2017 start Updated 25th NOV 17
    Credit Card £430 now: £1181 Tesco Loan £7500 = £6700 Car loan £17,500 = £9,875 Total = £25,330 £17,756 EMF #252
    Sealed pot challenge #589
    Pay off all your debts by Christmas #170
    • Nicnak
    • By Nicnak 1st Oct 17, 2:02 PM
    • 539 Posts
    • 2,651 Thanks
    Nicnak
    A bit of a longer post with it being the 1st October. I guess to show the small steps and gains as this is going to be a long process.

    Small steps are that in the last week, I have cancelled my amazon unlimited subscription at £7.99 a month. I have also cancelled the National Trust membership at £5 something a month. just over £12 a month saving already. I guess it's not a huge amount, but every little counts.

    My NSDs have enabled me to seriously pay little its off here and there. To the point that the loan company didn't know what to do with my extra payment.

    I have read forums and taken on some little things that will add up. I am saving up my 1k for emergencies fund. I think I have about £400 in there at the minute. I am also rounding down on a Sunday and paying that off the loan.

    I also decided to use the 0% credit card and the 2.9% spending credit card to transfer the loan onto it rather than pay the 3.4% loan APR. It's a few hundred pound saving over the 3 years, but I also think that because it's a credit card that I can see every time I log into my account, that I will be more motivated when I see it decrease.

    I'm still writing things down in my written diary as well. It helps me to think things out.

    The car is a January job once I can comfortably see how much I can pay a month, and sort out the damage and excess mileage. At the minute, I just can't bring myself to deal with it. I'll keep focused on the loan and hopefully that will give me the strength to carry on and sort that out. It might sound so strange that I am wanting to deal with finances, but can't face that one. I always end up rowing my hubby over the car one, and also that I genuinely feel so trapped by it that trying to figure out an option has me going round and round in circles. I will deal with this, just not at the minute.

    Going to update my signature next week to reflect the new credit card value and that the loan is gone.

    Here's to another week of very little spending.
    September 6th 2017 start Updated 25th NOV 17
    Credit Card £430 now: £1181 Tesco Loan £7500 = £6700 Car loan £17,500 = £9,875 Total = £25,330 £17,756 EMF #252
    Sealed pot challenge #589
    Pay off all your debts by Christmas #170
    • enthusiasticsaver
    • By enthusiasticsaver 1st Oct 17, 2:28 PM
    • 4,827 Posts
    • 9,119 Thanks
    enthusiasticsaver
    Have you checked what the balance transfer fee will be if you move the loan to the 0% card? In theory what you suggest sounds a good idea but as it is a relatively low interest rate on the loan you may not save much on interest and the problem with credit card payments is unless you are disciplined you may be tempted to pay less than £220 per month. Are there penalties for early settlement?
    2 weeks to go until early retirement in December . Debt free and mortgage free.

    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
    • Nicnak
    • By Nicnak 1st Oct 17, 2:41 PM
    • 539 Posts
    • 2,651 Thanks
    Nicnak
    Have you checked what the balance transfer fee will be if you move the loan to the 0% card? In theory what you suggest sounds a good idea but as it is a relatively low interest rate on the loan you may not save much on interest and the problem with credit card payments is unless you are disciplined you may be tempted to pay less than £220 per month. Are there penalties for early settlement?
    Originally posted by enthusiasticsaver
    Hi,

    Yes it's £189 so cheaper than the interest over the 3 years. There's no early payment either.

    When it's a credit card, I tend to pay off more as I can see it in my banking. When it's a loan, and I don't see it daily, I just make the minimum payments.

    Over the next 6 months, I'm hoping I'll pay off triple what I would do keeping the loan.
    September 6th 2017 start Updated 25th NOV 17
    Credit Card £430 now: £1181 Tesco Loan £7500 = £6700 Car loan £17,500 = £9,875 Total = £25,330 £17,756 EMF #252
    Sealed pot challenge #589
    Pay off all your debts by Christmas #170
    • louby40
    • By louby40 1st Oct 17, 8:17 PM
    • 1,187 Posts
    • 3,261 Thanks
    louby40
    Just read through your diary. You’re doing so well. Look at it as a marathon not a sprint.

    You’ve had your light bulb moment and debt busting is at the forefront of your mind. It will be slow but you’ll get there!
    Parent loan PAID IN FULL
    Emergency fund £670/£1000. Christmas savings £50/£600 Car maintenance £100/600
    Kitchen July £12,493 NOV £10,493. 18% paid off
    Barclaycard £142
    Car loan £2696 Mortgage £94,992
    TOTAL DEBT (with mortgage) = £108,323 (without mortgage) = £13,331
    • Nicnak
    • By Nicnak 2nd Oct 17, 6:44 PM
    • 539 Posts
    • 2,651 Thanks
    Nicnak
    Thank you!

    Another NSD. I really messed up on trying to transfer the loan payment. I've been advised it'll be 6-8 weeks to fix!

    So annoyed that I tried to do the right thing and ended up making a mess of it.

    I'll just have to get on with it and deal with what happened.
    September 6th 2017 start Updated 25th NOV 17
    Credit Card £430 now: £1181 Tesco Loan £7500 = £6700 Car loan £17,500 = £9,875 Total = £25,330 £17,756 EMF #252
    Sealed pot challenge #589
    Pay off all your debts by Christmas #170
    • Nicnak
    • By Nicnak 4th Oct 17, 7:52 PM
    • 539 Posts
    • 2,651 Thanks
    Nicnak
    Not a spend day, and not a no spend day either yet.

    We have cake Friday at my work, and we all get out on a rota. This Friday I am down to buy the cakes. It's once every three months so i can live with it. My mum messaged me today to say she has gone to Costco and do I want cakes?
    Jumped on it as I am working late and don't fancy Tesco as I spend money!
    £24 later....

    I think I will go myself next time, it's easier to say yes when you're not there checking prices.
    September 6th 2017 start Updated 25th NOV 17
    Credit Card £430 now: £1181 Tesco Loan £7500 = £6700 Car loan £17,500 = £9,875 Total = £25,330 £17,756 EMF #252
    Sealed pot challenge #589
    Pay off all your debts by Christmas #170
    • Nicnak
    • By Nicnak 4th Oct 17, 7:53 PM
    • 539 Posts
    • 2,651 Thanks
    Nicnak
    I will pay her this weekend out of the £30 tutoring money I earned last night . I am glad it didn't come out of my bank, but still gutted it's a lot over my money.
    September 6th 2017 start Updated 25th NOV 17
    Credit Card £430 now: £1181 Tesco Loan £7500 = £6700 Car loan £17,500 = £9,875 Total = £25,330 £17,756 EMF #252
    Sealed pot challenge #589
    Pay off all your debts by Christmas #170
    • Nicnak
    • By Nicnak 6th Oct 17, 7:09 PM
    • 539 Posts
    • 2,651 Thanks
    Nicnak
    NSD! YAY!

    Not as many as I would have liked this week, but still better than no NSDs.

    I've had a look at a different union today than the one I am in. They have an offer on to pay £10 for the year, I currently pay £15 a month. I jumped on it, as I feel in my profession we should be part of a union, but also that I don't need to be paying £15 a month.

    We have avoided coffee at the weekend for the past month, which is an amazing achievement. I have also looked at the milk we buy from the milkman. I wanted to support small businesses and was paying for milk delivery several times a week, but I decided that it was adding up to double what I would spend at the supermarket.

    So far this month I have cut back and saved on the following:
    Union £14
    Coffee £20
    Amazon £8
    Milk £20
    National Trust £5
    total around £66 a month. That's just evaluating my direct debits, not even looking at my weekly shopping.
    September 6th 2017 start Updated 25th NOV 17
    Credit Card £430 now: £1181 Tesco Loan £7500 = £6700 Car loan £17,500 = £9,875 Total = £25,330 £17,756 EMF #252
    Sealed pot challenge #589
    Pay off all your debts by Christmas #170
    • DebtFreeDuo
    • By DebtFreeDuo 6th Oct 17, 7:27 PM
    • 611 Posts
    • 3,002 Thanks
    DebtFreeDuo
    Wow £66 extra every month that you can put towards debt repayments! You're doing great so far, keep it up and you could be debt free in no time.
    Loan:1780.49 2207.38 Car Loan:2039.22 2419.64 0% CC:984.98 1063.48 Overdraft: 860 Overpayment:1781 Total: 7445.69 DFD Dec 18
    SPC 586
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