my debt free plan

debtfreewannab

hi all just wanted to post my debt free diary i have planned to throw spare money i have accumalated from money saving ideas. i wil list my debt from today and then every month on the same day. i plan to be debt free in 36 months excluding my mortgage and on that day i will start over paying on my mortgage, fingers crossed i complete my first hurdle, because debt has been a big headache in my life for as long as i can remember.
12th june 2009
overdraft 3709.15
credit card 3484.63
loan 15177
total exc. mortgage = 22370.78
i have the majority of my cc debt on 0% balance transfer for 14 months so i intend to clear my overdraft first and the remaining cc balance on my other card. then i will tackle the remainder of my cc debt on the new card by dividing the months left on my 0% deal by the balance, i am hoping to have no cc debt by july 2010. any suggestions and support would be much appreciated, i have real energy and determination atm. and hope i still do in the coming months thanks in advance.
paul

EssexHebridean

Hey Paul - welcome aboard!

First off you might be as well to post up your SOA - it's amazing how many small savings we don't think of ourselves but others will point straight to.....it can really help to see where the money is going to as well. You will get SO much help and support from the lovely people on here - it really helps.

Good luck with your mission!

debtfreewannab

thanks for your kind words i will post my soa on the 12th july as some of my suppliers are changing and i will have a better idea of my personnal budget.

debtfreewannab

i have just done my soa and a snowball plan according to them i could be debt free excluding my mortagage of course by march 2011. well ahead of schedule, as i stated above i will do a more up to date soa next month so it takes into account savings i will be making due to changing my elec. bb and phone suppliers. also some cut backs i have just implemented for myself. if the snowball plan is true i will be very very happy and begin paying my mortgage off earlier than i thought. i will keep posting on here because it keeps me motivated and i can also read other posts from people in the same boat.
LETS GET DEBT FREE TOGETHER:j

PAUL

epsilondraconis

That's great news about the debt free date of March 2011. It'll soon be here.

debtfreewannab

i wondered what people think about saving for a few months before tackling my debt as my cc is 0% untill july 2010 and could be switched before then. and my loan is fixed at £308 per month. first i am attacking my overdraft as this is costing me 50 per month then i dont know if to save for a while to get some back up or just go straight into my loan. what do people think, thanks in advance.
paul

debtfreewannab

change of tactics i am going to clear my overdraft first of all possibly november probably december. and then as my unsecured debts are quite servicable, meaning i can afford them. i am going to attack my mortgage as this is my biggest debt. i am hoping too reduce my mortgage by 15 to 20 k in 3 years and by then my cc will be finished and will have only 18 months or so on my loan. so i will continue to post on here in the meantime. the reason behind this is the savings in interest are larger by overpaying on my mortgage than they are overpaying on my loan. also i want to be in a position in 2012 where i can shop for a better deal on my mortgage and i may even add the remainder of my loan to the mortgage and use the £308 savings to continue to overpay i want to be completely debt free before august 2019.

Intergalactic_Floozie

debtfreewannab wrote: »

change of tactics i am going to clear my overdraft first of all possibly november probably december. and then as my unsecured debts are quite servicable, meaning i can afford them. i am going to attack my mortgage as this is my biggest debt. i am hoping too reduce my mortgage by 15 to 20 k in 3 years and by then my cc will be finished and will have only 18 months or so on my loan. so i will continue to post on here in the meantime. the reason behind this is the savings in interest are larger by overpaying on my mortgage than they are overpaying on my loan. also i want to be in a position in 2012 where i can shop for a better deal on my mortgage and i may even add the remainder of my loan to the mortgage and use the £308 savings to continue to overpay i want to be completely debt free before august 2019.

I never used to consider my overdraft as debt until I looked at the interest rate and nearly fainted when I saw it was 29.9% which was actually higher than all the credit cards I was so desperate to get rid of. I'd never realised the interest rates on credit cards was so high!

debtfreewannab

yeah im paying £50 a month on my o/d but my cc is at 0% so no rush there and my loan although i would like to pay it off early is not too much a burden. its the mortgage that pains me i owe 98k on a house that is worth not much more than 120k so i want to increase the equity to put me a better position to negotiate a better deal in the future. 2019 is a realistic target and i hope to hit or better it.

Intergalactic_Floozie

Good luck to you, and do keep posting - I love reading the diaries.

debtfreewannab

2 weeks down and i have made inroads into my debt already, i am editing my signature to update my situation. i can see the pounds coming off this way ,all my dds come out next week so i will update my od then but have worked out that almost as much going in as going out so wont be too bad.