Paying off a debt a month......

Ruby_Pudding

I've been SO inspired by some of you over the past 2/3 months that I too made it my goal to pay off 1 or a huge part of 1 debt per month in 2006. For the past 2 years I have made payments on time each month on all outstanding debts but a lot of them were just for the minimum amounts, so of course I wasn't really getting any where fast. But, after years and years of really, really appalling money management and countless defaults etc I was happy that at least I had things under control and was able to meet all my commitments on a monthly basis. Looking back I don't regret this approach because it's given me the time and space to learn the basics and build a solid financial basis for the rest of my life.

However, in January of this year, I realised that the time had come to be a little more pro-active. Luckily for me a lot of others here were also beginning to follow the same path which made it easier for me to believe it may just be achievable. I'm not talking about huge debts here but it's been pyschologically important for me to have paid them off because I really feel like I'm getting somewhere.

I started a spending diary to keep track of where my money was going each month and I also sat down and broke each debt down to see what I could afford to pay off and in what order

Here's what I've achieved so far this year:

January

Paid off 1 Comet Card (29%). Only £60 but I was making the minimum payments and according to whatsthe cost.com it would have taken me 2 years to pay off if I'd have continued at that rate.

Paid 2006/2007 Car insurance in full (£240). Not a debt as such but this was a huge thing for me as I have never been able to pay up front for stuff like this before. Saved a 29% interest charge so was chuffed to be able to do this

February

Paid off the 2nd Comet Card (29%) £172.70. Was making the minimum payment on this again - according to whatsthecost.com it would have taken 5 years to pay off. Both Comet accounts closed for good.

Paid 2006/2007 RAC cover in full - again, a huge achievement for me to be able to do this

March

Just paid off £143 Halifax Credit Card!!!!!! (Account now closed)

Just rang the Student Loan Company and asked to pay off the outstanding £557 in 5 monthly payments instead of 10 so that will be paid off in August and I will have paid off my Student Loan for good!!! :j

Alongside this I have also managed to save £750. I know that I should probably use this to pay off some of the Visa card but I've never, ever had savings before and it's really important to me to be able to learn the discipline of putting a set amount aside each month because I WON'T be relying on credit to get me out of trouble ever again.

Sorry for the long post but I was bursting to share my good news. Thank you to all of you who post encouraging words and advice because it really makes all the difference to those of us who are trying to get back on track to hear how well others are doing :T :T

dinkylou

Well done Ruby Pudding!

You're doing a great job and are really fighting that debt.

Just think of all the interest you'll be saving and how much spare cash you'll have at the end of it all.

x

*zippy*

:T :T Well done ruby pudding :T :T

You have achieved alot in just 3 months. It must be a huge relief to get rid of those 29% cards. Very inspiring keep us posted.

Verbatim

Keep it up Ruby. You've done so well and have a really solid achievement there. :T

scottishspendaholic

Congratulations Ruby P - I love posts like these - you are doing SOOO well!

scottishspendaholic x

Ruby_Pudding

Ooh forgot to add that I'm also throwing all loose change and any other spare bits of money at the debts to get them paid off asap - it seems to help me to have a 'plan' otherwise the spare money tends to get spent on chocolate

Littlemiss-lotsofdebt

Well done Ruby:money:. I'm really pleased for you, it's lovely to hear some good news.

moozie_2

:T :T :T Way to go! You are doing brilliantly!!! :T :T :T