On a mission to free myself of debt...

lucielle

Well done you in such a short space of time you have made big inroads. Keep going.
L

busymumof2_2

I have been reading this thread with interest, I too have just decided that it is time to address my debts and hope to be debt free in 2010. My total debt is smaller (£2200) but I'm a stay at home Mum so my income each month is just £260. I do mystery shopping too when I can and this helps a little.

Your daily updates are quite inspirational, keep it up, and all the good work. Its not easy, but every little bit helps!

BusyMum (also aged 25)

Exerbusi

Thanks guys!

Largely a NSD today, but I may have to nip to Tesco for coffee - kind of important! Other than that, I managed to eat a meal I prepared a few days ago and have a few days worth of food left.

Trying to hold off with the outgoings as long as possible, waiting for the boost to my account that will come at the end of the month. Timing isn't great for the outgoings, but as long as I am strict I can get away with it.

So much to do as well, which means I am too busy to be going out spending money!

News on my job situation...

My immediate boss has been offered a new job. It isn't a promotion, just a sideways move. It means there will be a job above me that will be available. I am not sure how it will affect my situation, and here is why....

I head up a team of 12 staff, and one of my best staff has been given a job in another dept of my company. With my boss and one of my best staff leaving, there are two pretty big holes in the department. This may make my boss reluctant to give me my new job yet, whilst we wait to fill the open positions.

The obvious career progression for me is to my boss' job, but the new job I have been offered is a new position, created due to the growth of a particular sector of our business. It is the perfect next step for me, but it may only come along next year. I was told with good authority that I would have the job before the end of the year, but that may not happen now.

Fingers crossed the job will come quickly!

Exerbusi

I have totalled up my 'extras' forms for this month and I have worked out that after tax I should receive around £300-£350 extra this month. Next month a few staff are taking holidays, meaning I may be able to snag a bit of extra overtime for myself, adding to the debt free casue!

I have changed my attitude to money competely - inthe past overtime was funds for another night out. Now extra money is more off the credit card or a reduction in the overdraft!

I am convinced now that wealth and its accomplishment is actually a state of mind for those of us without a lottery ticket or a rich family. The actions you take, decisions you make and the way you think all contribute. Since I started to see my debt as a challenge, my competetive nature has taken over and I want to win, to beat my debt!

Exerbusi

For some reason my post from yesterday hadn't saved. No idea why.

Yesterday I had to spend £1.70 on lunch as I didn't have anything with me. On the plus side, I earned just over £31 in overtime, so it wasn't so bad!

This morning I nipped into work to pick up £15 for 45 minutes worth. I have realised that pre-tax I have at least £100 per month available to me in extras, so I am aiming to ensure I make the most of this every month. If/when I get my new job, this may increase, meaning I will be able to earn more money.

Spending money may be unavoidable today - I have to re-tax my car! That will cost me approx £100. I have managed to reduce an outgoing that was £440 down to £350, which I will pay in a £300 installment, followed by a £50 installment. I will be getting to real seat-of-the-pants stuff this week and next if I am not careful!

I have timed my bills so they are all due out around about now, so my account will be looking slightly dodgy. As long as I don't go over my overdraft limit, I am happy. I have the extra £300 or so from a maturing savings account coming my way soon, and I should be looking at about £1400 going in next month.

I have worked out my 'life' costs me around £100 per month, so it means I will (fingers crossed) be able to pay off my overdraft and remove it once and for all. I will then put any emergencies on the credit card as I have managed to get a low interest rate.

I need one or two essentials at home - toothpast is running low and coffee is out, but I will buy those tomorrow as it is my shopping day. May have to budget more than £10 as toothpaste and coffee aren't cheap! Either that or I will have to be creative. I don't need meat though, so I may get away with it. If I can get a bargain on my bread again, I will be fine!

Petrol has gone down again, so that means I will get extra mileage from my £10 budget!

MummyOnAMission_2

Well done on all you have done so far! Makes me feel very motivated towards my debts when i read it. Little did you know you would be helping others too!! Thanks

Keep posting!!

Exerbusi

Thanks Mummy!

We are all in the same boat here, and I have learnt lots from this site, so anything I can put forward and pass on is a bonus! It is hard, there is no doubting that, but I tend to think that most things worth doing are hard!

My main thing tokeep me motivated is visualisation - I visualise the life I want. Where I want to live, the life I want to lead. They are all modest ambitions at present, but when I reach them, I will move the goalposts. It is a trick I have used in many areas of my life, and it has worked so far!

My current vision is to buy an apartment in a particular building I love, and generate an automated income. I want a life where I can pay cash for things like holidays and cars!

Better keep saving....

busymumof2_2

Well done, you're doing really well and your enthusiasm is contagious! You have inspired me to start my own DFW diary, I hope it will help keep me motivated, it really seems to be doing the trick for you.

Well done again and I'll log in daily to check on you!

BusyMum

Exerbusi

I was going to update last night, but I was too tired when I arrived home so went to bed!

I eneded up spending quite a lot yesterday - £101.75 taxing the car, £11.15 on shopping and £1 on lunch. Quite an expensive day!

Whilst taxing my car I had a bit of a 'moment'! My cheapest debt is now my CC at 4.9% interest. It is also a debt I can over-pay, unlike my loan which means I can clear it sooner, should i have the funds. Available to me now on the CC I have about £550.

My next move is to take the £550 and put it all into my current account and to remove the overdraft (which is charged at 8%). Once that is removed I will only have my loan and CC to pay back. The loan is paid back monthly anyway, so that doesn't really matter - it will be chipped away at.

Once I am in credit in the bank, I will be earning interest on the account - something for which I am charged at when in my overdraft. I can now play the bank at their own game, and have them help me to pay off the CC with interest!

As my debts are now automated, I wont miss a payment. It also means my credit rating is going to be repaired, meaning in 6 months when my 4.9% deals runs out, I will be in a much better position when I apply for a 0% balance transfer! Any spare cash I have can go to the CC, hopefully removing it quicker. I am hoping to pay about £130 per month off it, occassionally more when I get the chance. The target is still debt free within 18 months!

I went slightly over budget in Tesco yesterday, but I did have to buy toothpaste and coffee which aren't cheap. Overall, I managed to save a few quid!

Decided not to get a haircut until next week now, unless I look particularly scruffy!

So, my plan for now is to take all of my money from my credit card and putting it in the bank, removing my overdraft facility completely and earning 8% interest on all credit whilst paying back 4.9%.

I will then set up an automatic payment of £130 from my account to the CC every month, and when I manage to earn more money I will simply pay more off it. If I take the money from my maturing savings account and pay that off the credit card, it will make a dent of arounf 10% of its balance. Happy days!

Today I am officially off work, but I will be going in as I have lots to do and a few personal clients I need to see. Great sleep last night though, so am feeling refreshed!

It's going to be a good day!

Exerbusi

Well I didn't have a NSD today - I paid out £3.70 for snacks when I went to visit a friend!

I am having second thoughts about my plan to max the credit card and clear my overdraft - I think the interest I would pay on my CC would negate the benefit of being in credit at the bank.

I had a call today from HSBC wondering why I hadn't paid my CC bill - it was automated so it should have been paid! They admitted fault and have since put it right. I set up a standing order to pay £100 off my CC bill every month. Any extra money I have will be put towards that.

The phone call was not all bad though - I asked the lady on the phone to confirm my level of interest on the car and she said it was 2.5% - lower than I expected! Happy days!

I am becoming a money bore now, telling anyone who will listen about my new found love of money saving!

I am booking an appointment to see a house I love next week - I am not in a position to buy it just yet, but I am doing my research and thinking if I see the prize at the end of my money saving then it might inspire me to work even harder towards my goal!

Any motivation is good motivation!