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  • FIRST POST
    • Newstart3
    • By Newstart3 16th Sep 17, 1:50 PM
    • 24Posts
    • 29Thanks
    Newstart3
    Journey to debt free awesomeness
    • #1
    • 16th Sep 17, 1:50 PM
    Journey to debt free awesomeness 16th Sep 17 at 1:50 PM
    I've decided to start a diary to keep track of my journey to debt free awesomeness and my attempt to repair a seriously damaged credit file, in the hope that one day I may be able to buy my own home.

    I am 30 and live with my partner and our dog. In January 2017 I owed a staggering £21,500 of unsecured debt to 12 creditors. Wow...

    TSB Overdraft £3,303
    MBMA £4,315
    Barclays £4,463
    Argos £1,246
    Hitachi (CCJ) £3,050 - target date to pay Jan 18 F&F accepted £1000
    Littlewoods £796 F&F £550 Sept 17
    Lloyds CC £1,534 F&F £1000 Sept 17
    Next £510 F&F £400 Mar 17
    Wonga £123 F&F £100 Jan 17
    Ikanco £1,509 F&F £400 Aug 17
    Lending Stream £130 paid Jan 17
    Lending Stream £255 F&F £144 paid Jan 17
    First Capital £158 paid Aug 17

    My ex and I ran up this debt over a 2 year period, when he convinced me to leave a very well paid job in London and move to Cumbria. The majority of the money was spent on furnishing a rental property and he bought himself a £7000 watch (yes you read that right) When the credit was all used up and I couldn't get more, he kindly started relationships with other women on the internet and slept with them. We broke up in 2014 and I couldn't meet the minimum payments so the accounts went into default. I had a brief stint in a debt management plan but ultimately I decided to go self managed, which resulted in me getting a CCJ. I'm embarrassed to say that I was so angry and upset at the situation that I didn't open any post for over a year! He's never made a single payment towards any of the debt since we broke up and needless to say, he kept the watch.

    My overall plan is to be debt free in 2018 using full & final settlements, however I realise that as my credit file is badly damaged and for at least 1 of the larger accounts, it may be worth paying a set monthly amount for the foreseeable future. My long term goal is to buy my own home, however I realise this may not be possible until the CCJ is removed from my file in 2021 (ouch!).

    Earlier in the year I was offered a credit card with Capital one with a £200 credit limit. In September, I was offered a credit card again with Capital one with a £500 credit limit. I plan to use this to improve my credit file with lots of lovely little green ticks, by using the card for food shopping once a month. I get paid weekly so there's always 1 week where I'm more skint than others around the 15th, due to my direct debits. So far my credit file has stayed roughly the same and I haven't been tempted to use the card (in fact, I always forget I have it lol).

    Overall I'm feeling pretty positive about my progress to date and I had a lovely realisation yesterday that I'm over halfway to the majority of my defaults falling off my credit file My biggest regret is not starting to deal with the problem back in 2014 as I could have paid it back by now!
    TSB £3,303, MBMA £4,315, Barclays £4,463, Argos £1,260, Mortimer Clarke CCJ £2,174, Lloyds CC £1534, Littlewoods £796, Next £510, Wonga £123, , Lending Stream 1 £130.87, Bensons for beds £1509, Lending Stream 2 £255.96, Lloyds CC £1,534, Total Jan £21,908, Feb £20,412 Sept £15,515 Debt repaid in 2017 = £6,393 TARGET DFD APRIL 2018
Page 2
    • Hiddenidenity
    • By Hiddenidenity 12th Oct 17, 12:47 PM
    • 5,074 Posts
    • 23,365 Thanks
    Hiddenidenity
    I'm just moving to monthly pay from weekly.

    First payday 18th October last weekly income was first week in September.

    Meal plan. Sit down work out how many days you need meals for until your new payday.

    Mine was around 45 I think. I listed 45 main meals, 45 lunches, 45 days worth of breakfast.

    Make sure you take into account what's already in.

    Then I knew where I was with groceries and how much I needed to eat. BTW your SOA shows £300 a month for groceries we were a family of 5 until recently and not spending that. Now there is 4 of us it's around £120 a month including toiletries/nappies/cleaning products.
    Planning is the key!

    See how many DD you have going out. What day, how much. Put this money to one side.

    DON'T borrow unless its a life or death situation. You don't need the coffee out/the nice shiny things/the odd lunch or takeaway etc.

    Its worth the struggle or you will always feel like you're a month behind.

    Congratulations and good luck on your journey.
    DFW £1388.71/£7348.71 Rent Arrears £511.28/£3381.28

    Rock bottom became the solid foundation on which I rebuilt my life.
    • debtfreeforlife
    • By debtfreeforlife 12th Oct 17, 6:14 PM
    • 60 Posts
    • 210 Thanks
    debtfreeforlife
    Congratulations on clearing so much debt - you're well on your way!

    Everyone else has made the points re. food shopping and planning for the next month - what I would say is think about how you are using your car as well, since you're already concerned about that and looking at a long commute. Firstly - don't fill the tank all the way up! A full tank is heavier and means you'll end up ultimately using more fuel. I fill mine up in £15 increments (about a third of a tank) unless I'm doing a long journey. Make sure you're shopping around for the best fuel deals in your area. And be sensible when driving so that you're minimising your fuel usage. Also, if you're going to be using it more often, it's well worth spending 50p at the local petrol station to ensure that your tyres are at the correct pressure and add more air if not.
    GC Oct 17: £164.78/£200
    2017 MFW #130 £6599.86/£250
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