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2006 the year for debt busting!!
minisaver
Posts: 22 Forumite
Hi everyone - this is my first post on this forum after spending lots of time recently reading peoples' posts and the articles etc.
Having had a change of circumstances recently, I have taken a reality check and decided that I need to face up to my debts and pay them off asap, so I can start fresh with nobody chasing after me! I have been living with various debts for the past five years and until recently, never really thought there would be a time when I could really concentrate on nailing them and becoming debt free. I am sure this is a feeling that a lot of people can associate with. I have been lucky because I have never felt the despair of some people with debt - more I have been used to maintaining the interest payments and having a loan/credit card was part of normal life for me. Maybe this is why debt is so common amongst us? Anyhow, enough of the ramblings...
Until a couple of months ago, my debts were spread across an overdraft, Egg card, Barclaycard, Virgin int-free credit card and a personal loan. I was drifting along making minimum payments etc, never making any real difference to my overall debt.
In December I had a clear out, transferred all my card debt onto an AMEX card, and tied up the loose ends. I have closed a lot of old credit card accounts, now leaving me with a few for necessary spending and debt of the following, to date:
AMEX - (4.9%) £5000
Personal flexi loan (8.5%) - £5020
I am putting all my energy into saving money and budgeting every penny to make payments. I am paying minimum payment on my AMEX card and putting everything else into wiping out my loan as quickly as I can. It's been a lot easier now that I have got organised and mapped out all my money -incoming and outgoing. I now check my balances regularly and keep well on top of payments and statements etc. This is a big change from when my credit cards were on minimum payment direct debits and I never used to like looking at the total!
I am very lucky that my job is well paid and that my current personal circumstances are allowing my to pay off between £800 - £950 each month. This feels like a massive amount to be paying off, which is a mix of very positive and slightly scary feelings! My aim is to be debt free by the end of 2006. To be realistic, it might spill into 2007, as holidays and a few other essentials will cut into my funds for repayments, but I really am channeling so much energy and determination into paying things off. I am not at a great age so it will be nice to have done the debt thing at an early age and hopefully I will be able to manage it well for my later years.
Having got organised and looked at ways of ending my debt, rather than simply making payments and living alongside it, I feel much happier and in control. I realise my problems are very small in comparrison to many people on here, so I do not want to come across the wrong way. It took me a long time to face up to sorting my finances out, but now I am in control I feel a real buzz from chipping away at my debts. A friend suggested that when I am clear, I should treat myself with something expensive that I really want, but I think that when I get to the end of the tunnel, I am going to start saving, not burning more cash. That was afterall how I got to owe the cash in the first place.
Good luck to other debt busters and if anyone has any tips on how to keep the momentum going, they would be much appreciated!
Having had a change of circumstances recently, I have taken a reality check and decided that I need to face up to my debts and pay them off asap, so I can start fresh with nobody chasing after me! I have been living with various debts for the past five years and until recently, never really thought there would be a time when I could really concentrate on nailing them and becoming debt free. I am sure this is a feeling that a lot of people can associate with. I have been lucky because I have never felt the despair of some people with debt - more I have been used to maintaining the interest payments and having a loan/credit card was part of normal life for me. Maybe this is why debt is so common amongst us? Anyhow, enough of the ramblings...
Until a couple of months ago, my debts were spread across an overdraft, Egg card, Barclaycard, Virgin int-free credit card and a personal loan. I was drifting along making minimum payments etc, never making any real difference to my overall debt.
In December I had a clear out, transferred all my card debt onto an AMEX card, and tied up the loose ends. I have closed a lot of old credit card accounts, now leaving me with a few for necessary spending and debt of the following, to date:
AMEX - (4.9%) £5000
Personal flexi loan (8.5%) - £5020
I am putting all my energy into saving money and budgeting every penny to make payments. I am paying minimum payment on my AMEX card and putting everything else into wiping out my loan as quickly as I can. It's been a lot easier now that I have got organised and mapped out all my money -incoming and outgoing. I now check my balances regularly and keep well on top of payments and statements etc. This is a big change from when my credit cards were on minimum payment direct debits and I never used to like looking at the total!
I am very lucky that my job is well paid and that my current personal circumstances are allowing my to pay off between £800 - £950 each month. This feels like a massive amount to be paying off, which is a mix of very positive and slightly scary feelings! My aim is to be debt free by the end of 2006. To be realistic, it might spill into 2007, as holidays and a few other essentials will cut into my funds for repayments, but I really am channeling so much energy and determination into paying things off. I am not at a great age so it will be nice to have done the debt thing at an early age and hopefully I will be able to manage it well for my later years.
Having got organised and looked at ways of ending my debt, rather than simply making payments and living alongside it, I feel much happier and in control. I realise my problems are very small in comparrison to many people on here, so I do not want to come across the wrong way. It took me a long time to face up to sorting my finances out, but now I am in control I feel a real buzz from chipping away at my debts. A friend suggested that when I am clear, I should treat myself with something expensive that I really want, but I think that when I get to the end of the tunnel, I am going to start saving, not burning more cash. That was afterall how I got to owe the cash in the first place.
Good luck to other debt busters and if anyone has any tips on how to keep the momentum going, they would be much appreciated!
0
Comments
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congratulations on making the first steps to be debt free :j
all i have to add is if it takes you one year or two just be satisfied with yourself that you have decided to get rid of this debt instead of not facing it - well done
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Well Done, the site is brilliant, loads of info/advice and lots of very helpful people too. A lot of posts in the Money Savers Arms can make you chuckle or laugh out loud too when you want to lighten/brighten your day. Best of luck with everything.“Ordinary riches can be stolen, real riches cannot. In your soul are infinitely precious things that cannot be taken from you.” - Oscar Wilde0
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good on you for taking that all important first step !
i began facing my debt in Novemver 2005, its gone so quick - the months fly by !Debt at highest £16k+
Debt at lightbulb moment £14,800
Current debt £6336
Cleared £4206 in November 05 How ? Bye Bye PPI0
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