Approx how soon to clear £3k debt?

Jarnie_2

I've just looked at the snowball calculator and assuming I've entered the data correctly(!), it has spurred me on to increase one of our loan repayments for March from £48 to £120 particularly because I have some extra money in my savings at the moment and it can be better used paying off the debt. I will keep tabs on it and hope to decrease it more rapidly from this day on. It reckons I can clear the two loans by Aug 09 just by increasing repayments by a few hundred £ a month (I'm now on a mission)

K9cuddles

Miffi.. don't worry we're all in the same boat!! When I think about all the money I have just wasted and I'm very much a person that likes to have something to show for spending!!!

Your on the right path... I just keeping staring at my snowball calculation and just think in Aug 07 I'll be free.. by Jan 09 my car will be paid and by 2012 I'll have a suitable deposit to buy my own place.. but by god 6 years seems so long!! I'll be 30!!!! If only I knew back then what I do now!!! But look for the future.. that's what it's all about!!

As you say.. I don't think I budget enough either..I'm more aware but I still buy stuff from the work canteen that's totally over priced!!! My shopping bill for 1 is hooge!!! But I'm working on that.. you can only slowly improve on what you know.. I don't wanna be thrify.. but I don't want to waste money.. just a happy balance would be nice!!!

topherxp

I currently owe £1973.15 and very lucky in that I don't have any interest on any of my debts, so am currently opting to pay them off over a longer period of time and live life a little, as I know that my debts aren't getting any bigger.

At my current rate they are due to be paid off within two years. I do make the occasional extra payment to pay it off faster. But by doing it this way It also means that my stress levels are lowered and I don't have to panic about making the payments.

Although I would love to get this paid off tommorow, as I really hate being in debt.

I certainly have learned a lot from my parents, who owe in excess of £100,000, in that even though I don't have as much stuff as the next person the chances are they are finanicially screwed and will sooner rather than later hit the wall and will spend much longer paying there debts off, whilst I live in freedom.

ms_london

Miffi wrote:

I want to get rid of the debt as soon as possible, I hate it, so I suppose I am going to have to really look at making some sacrifices. I would be interested to know what you earn and what your budget is, as a kind of guide.

I've only really realised that I need to buckle down in the last month or so, so although I've reduced my spending, I haven't yet felt or seen a big difference. It has taken me a while to change my mind set of going out and spending, but now I've cut up my credit card and I don't have that temptation anymore, I do feel a lot more confident about saving money.

Any more advice would be very welcomed - thanks!

Although I am earning £25,000 now - I was managing my debt on a wage of £20,000 - not bad, but I took a second job to bring in an extra £300-£350 a month, which made all the difference!! Since Jan 05 I was repaying £900 a month towards my debt, the rest of my wages covered my rent, flat bills, mobile, gym & travel - anything left was for me (food, social etc). If I knew I had a busy month social wise coming up then I would work extra hours at my 2nd job to compensate.. I also managed to save up £700 last year for a 2 week holiday (but come home with £200 of the spending money!!)..

It does take a while to stop spending on the plastic, or going into your overdraft - it takes a lot of re-training and can take a couple of months just to live within your wages each month. If the bank hadnt stopped all available credit to me I am not sure I would have been debt free quite as soon, but I HAD to live within my wages, and had no backup plan if I overspent!! Its definately taught me the meaning of money thats for sure!!

The best of luck to you, you can do it!! xx

ms_london

Miffi wrote:

I think about the money I owe and think what I could have done with that money instead of just squandering it. Makes me so :mad: when I think about it..

Dont we all!! I could have had my trip around the world & a deposit for a flat/house with the £19,000 I racked up. Grrrrr!! You just cant think about it, it doesnt un-do it, so you just have to accept you made a mistake & learn from it.

lottie26_2

I agree with you Ms London,

I think of if I didn't rack up debt we could of had our own house years ago, but now with prices rising it would'nt be for a few years before we can save enough deposit for a house around £30,000.

I am not letting it get me down I try to think that at least it is now I am paying this off and not a few years down the line when the debt would of been higher.

I also have changed my opinions before when I saw people with a nice big house and big car before I thought they must be well off and good with there money, I am sure a few are but I think about 99% of them will have debt.

moozie_2

ms_london wrote:

I could pay off £3,000 in 3 months, but thats my circumstances, and takes into account what I earn, the bills I take, the budget I live on etc. It depends if you want to get rid of it sooner rather than later. How do you want to live in the meantime? Would you rather be debt free & live a little tight until it is paid off? Or live with a few luxuries and take a little longer to pay it off? Its up to you hun!! Good luck & let us know what your plan of action is :0) xx

What a motivating post! Thank you very much. It really puts things in perspective for me.