My debt free diary... Unless I get scared!

clearing_out_my_pockets

Hi. I have decided to do a debt free diary because I find that writing things down makes them a little more real. I can't keep pretending if it's in black & white.

A bit of background.

Between 2000 and 2006, I was in a bad relationship; my partner had a habit of 'borrowing' my cash card and clearing out my account. (God, that sounds awful - why did I put up with it???) Anyway, to counteract the lack of funds in my current account, I used my credit cards (One with abbey, one with capital one). I closed the abbey account when they increased my limit to £15k against my salary of £25k.

When I split up with my partner, I don't know what level my debt was at. By January 2007, I had reduced it to about £6,600. By July, it had only reduced to £6,500; I was spending as much as I was paying off. Cue lightbulb moment.

Things I have done:

1) Open a 0% balance transfers CC with nationwide
2) Given said credit card to my fiance and shredded the pin without noting the number
3) Transferred balance from capital one to nationwide
4) Made minimum payments to nationwide to keep the introductory rate ticking over
5) Made massive over payments to capital one and cleared the balance :j
6) Continued making £300 payments into my ISA (Don't shoot me for having savings and debt - I have my reasons).

So... The crux of the matter is that I have reduced my debt by 47% to £3,450 in the space of six months. I aim to clear everything in the next six months.

I might not come back every day with an update, just when I think I need motivation.

hypno06

Looks as though things are going well - keep up the good work!

clearing_out_my_pockets

Thanks!

Lightbulb moment came in July when my partner proposed. We were trying to work out when it would be possible to set a date / move in together. We both sat down and totted up debt and worked out a plan together to clear all credit cards in 2009.

I've been quite strict with him, mind! Although I'm sure he doesn't mind though as any coins left in my purse at the end of the day (under £1, which I use for papers) goes into a pot then gets bagged up and given to him to clear his credit cards. I'd use it myself, only I have a stupid bank that only accepts 5 bags at a time. I hate queuing to pay in £5!

clearing_out_my_pockets

I've checked my capital one e-statement and (unless I can't read properly) they've reduced my APR! Every little helps!

clearing_out_my_pockets

Oh dear. Got into work today to be told that the company is making another 150 redundancies nationwide. We should be told by the middle of next month if we're going to be affected.

Fingers crossed. Otherwise it may be time for a career change as it's unlikely I'd find another job in my field...

Lemon_Tree

sorry to hear about the news you've just received, especially as you've made so much progress. I'm sure you'll be strong enough to survive this new challenge, although i hope you don't have to.

clearing_out_my_pockets

It has been confirmed that redundancies would be completed by end of April. So that would give me another 4 pay days if the worst were to happen. Continuing my debt repayment at current levels, that would reduce my debt to £1,246. I should then be able to clear it with redundancy pay, but I'll cross that bridge if I come to it...

Tomorrow's another day. Here's hoping my football team manage to cheer me up tonight.

leo1976

Also just wanted to say hello and well done on paying so much money off in the last 6 months. :T

Re job front - keep your chin up. You dont know who is affected at the moment so try not to worry (easier said than done I know). :A

clearing_out_my_pockets

Football team won - that's one foot in the final and something that made me smile

Job front - I work in construction. When there's a downturn, developers stop building. Also with falling house prices, developers aren't making the profit margins they need. We've had a lot of jobs dry up. This is actually the third round of redundancies since September. That noose just keeps getting closer!

We had a letter through today confirming sizes of selection pools and number of planned redundancies. There's a total of 48 in my 'pool' with 3 planned redundancies.

I'm very VERY glad I passed my professional qualifications and got promoted mid-last year - the pool one grade down from me is 52 with 10 planned redundancies :eek:

clearing_out_my_pockets

A little while since I posted...

I've been fretting about my job since they announced the planned redundancies. I've convinced myself that I'm not very good at my job, to the extent that I'm getting palpitations and cold sweats at my desk whenever I get an email, I feel physically sick in the mornings and I constantly want to cry.

I found a job in a completely different field last night that I was considering applying for - dad was supportive but mum was quite dismissive. Now I think that she thinks I'm not capable. Twisted logic, eh?

Incidentally at my last work appraisal, one of the key areas I was pulled up on is my lack of self confidence. Hmmm. Seem to have gone backwards there.

clearing_out_my_pockets

The good news:

1) Boss has put me forward for an internal transfer
2) Opened up a new savings account today
3) Found a house I like
4) Worked out my redundancy package just in case
5) Almost repaid 50% of debt

The bad news:

1) Number of proposed redundancies has increased
2) Found a house I like - if I'm made redundant, I can't have it