Gingernutbizkit's Debt free by 12/12/12 diary - AKA how to get rid of £178k debts!

gingernutbizkit

Hello.

Welcome to the start of my brand-spanking-new debt free diary. Many of you may have seen my previous diaries and will know that I have already paid off a fair amount of my debts..... this diary marks the next step in my debt free quest.

So Why a new diary?
Basically because my situation has changed over the past few months and therefore so has my goal. Originally I was just looking to get rid of my debts as quickly as possible.

What's the goal now?
I have joined the MFiT T2 challenge and decided to totally pay off my mortgage and debts by 12/12/12. This is a really steep challenge for me but definately a goal I want to achieve. The official challenge starts on 12th dec this year but if i'm going to stand any chance then I need to get going right away. Imagine being financially free aged 30 .

About me.......
I am happy married to Mrs Ging who I have been with for the past 8 years. We are very lucky to have two gorgeous foster children who I am a STAH mum to. Mrs Ging works full-time and I am currently looking at going back to uni in September part-time. We have a lovely home (which is part of the reason for the massive debt in the first place ) and don't have any plans now to move in the next 5 years. I deal with all the finances now which Mrs GIng is more than happy about :rotfl:.

So the next posts will what we have done so far about our debts, what the financial details are and then a post to record our achievements as the challenge goes on.

All supporters and advisers welcome to join me!!!!!!
Ging x

gingernutbizkit

Starting Point......
I had my first Lightbulb Moment back in March 2007. I did start to work on my debts and at that point would say that I had £150K of debt. Who was I kidding!!!! Obviously the bulb in my second lightbulb moment (October 2008) was some-watt (get it!) brighter because added all together my total debt was actually nearer £180K.

What's been done so far?
In the past nine months I have really scrimped and saved and either cleared debts and moved them to lower interest products. In total I have reduced our debts from £178,137.10 to £158,030.13 :j.
How?
Mostly by continuing to pay off the same amount each month even after the debts had gone. For instance the Northern Rock and Car loan payments were over £800pcm and once they were gone we continued paying that £800 to our other debts.
Also switching most of the amount (exc mortgage of £150,000) to 0% credit cards meant that we could focus our repayments on the debts at higher interest rates.

gingernutbizkit

Our Statement of Affairs

Income.
My Income: £2250 paid fortnightly
Mrs Ging's Income: £1700 paid monthly
Total: £6200 (based on two fortnightly payments in the month).

Expenditure.
Mortgage Interest payment: £300.00
Bills: £600.00
Credit Card (food,petrol, living expenses): £1500
Personal Spending: £300
Total: £2700

Remaining for Debts: £3500

Mortgage Details
We are currently on a £150K interest only tracker which is now at 1% . This is due for renewal in March 2010 and I know we unlikely to find such a good deal so I want to pay as much as possible off by then. I have already asked Nationwide to take the extra £500 overpayment we are allowed to pay (without charges) each month by direct debit.
Current Debts
Mortgage: £150,000
Student Loan @ 1.5%: £7323.88
Virgin 0% CC: £2386.31 - due May 2010
Virgin 0% CC: £5164.80 - due June 2010
[STRIKE]Homebase @ 0%: £800[/STRIKE] PAID OFF :j
Current Savings
2008/2009 ISA @ 5.2%: £5819.85
2009/2010 @ 2.5%: £1500

Plan: At the moment it is best for us to save our ISA yearly allowance asap and save for our mortgage change in 8 months, meanwhile to make small payments to our other debts (except homebase which is due in Sept). This is because our savings earn us more interest then our debts cost us.

gingernutbizkit

:j:j:jAchievement Record :j:j:j

Month..........Total Debt..........Total Paid Off.........Goal...................... Achieved?..........Difference
Jun-09............£157,247.13.......£20,889.97...............£20,000.00............Yes.......................+ £889.97
Jul-09 ............£155,618.14.......£22,518.96...............£23,500.00............Yes...................... + £18.96
Aug-09 ..........£153,116.34 ......£25020.76................£27,000.00............No....................... - £1979.24
Sep-09 ..........£149,965.02........£28,172.08..............£30,000.00.............No....................... - £1827.92
Oct-09 ......................................................................£34,000.00
Nov-09 ......................................................................£37,500.00
Dec-09 ......................................................................£41,000.00
Jan-10 .......................................................................£44,500.00
Feb-10 .......................................................................£48,000.00
Mar-10 ......................................................................£51,500.00
Apr-10 .......................................................................£55,000.00
May-10 .....................................................................£58,500.00
Jun-10 .......................................................................£62,000.00
Jul-10 ........................................................................£66,000.00
Aug-10 ......................................................................£69,500.00
Sep-10 .......................................................................£73,000.00
Oct-10 .......................................................................£76,500.00
Nov-10 .......................................................................£80,000.00
Dec-10 .......................................................................£83,500.00
Jan-11 ........................................................................£87,000.00
Feb-11 ........................................................................£91,000.00
Mar-11 .......................................................................£94,500.00
Apr-11 ........................................................................£98,000.00
May-11 .......................................................................£102,000.00
Jun-11 .........................................................................£105,500.00
Jul-11 ..........................................................................£109,000.00
Aug-11 ........................................................................£113,000.00
Sep-11 .........................................................................£117,000.00
Oct-11 .........................................................................£120,500.00
Nov-11 .........................................................................£125,000.00
Dec-11 .........................................................................£128,500.00
Jan-12 ..........................................................................£132,000.00
Feb-12 .........................................................................£136,000.00
Mar-12 ........................................................................£140,000.00
Apr-12 .........................................................................£144,000.00
May-12 .......................................................................£148,000.00
Jun-12 .........................................................................£152,000.00
Jul-12 ..........................................................................£156,000.00
Aug-12 ........................................................................£160,000.00
Sep-12 .........................................................................£164,000.00
Oct-12 .........................................................................£168,000.00
Nov-12 .........................................................................£172,000.00
Dec-12 .........................................................................£178,137.10

Double_Trouble

Hi gingernut I have subscribed to your new diary.

You asked about free scratchcards on the PAD thread.

You need to go to Quidco and check the cashback arrangements for Virgin Bingo deposit whatever you need to get the cashback play the scratchcard and then withdraw all your money except 10p as you need a cash balance to play the scratchcards you will lose the bonus they give you but that is a must as you use real money before bonus money and you don't want to risk real money. Every time you get to over £5 withdraw that making sure you leave 10p in. Scratchcards are once a day.

Similarly you need to do the same for one of the St. Miniver accounts I use Littlewoods you are only supposed to have one miniver account but some do open more than one but you risk having them close your accounts do as above but this time after your initial withdrawal you have to wait until you balance goes over £10 before you can withdraw you can play scratchcards twice on a Sunday with St. Miniver sites.

There is a Take a Break scratchcard but they have recently changed by making your free scratchcards winnings bonus money which you can't withdraw so all you can do is let it build up a bit and then try and win something on bingo which pays as real money and then withdraw that. More of a gamble but you have nothing to lose you don't need a real cash balance to play TAb scratchcard.

It takes a couple of minutes a day and it is surprising how it mounts up.

There is a bingo and scratchcard thread except I am hopeless at doing links. Hope this helps.

DTxx

gingernutbizkit

Hey DT, that's great..... really helpful, thanks :beer:. I'll look into the scratchcards today. I've done bingoport before but never got anywhere with it really. Like you said though a few things done everyday would soon mount up. Think I will join the PAD challenge and focus those efforts on my debts whilst paying my larger sums to my mortgage.

My next fortnightly income payment is on Wednesday so I'm off to plan where I will be sending it.

Ging x

Double_Trouble

gingernutbizkit wrote: »

Hey DT, that's great..... really helpful, thanks :beer:. I'll look into the scratchcards today. I've done bingoport before but never got anywhere with it really. Like you said though a few things done everyday would soon mount up. Think I will join the PAD challenge and focus those efforts on my debts whilst paying my larger sums to my mortgage.

My next fortnightly income payment is on Wednesday so I'm off to plan where I will be sending it.

Ging x

That is my plan as from December as all CC are at 0% I am going to use PAD for them and BT as necessary and let them take their own course and concentrate larger payments on the mortgage as I have to remortgage July 2010 and as interest rates can only go up now I want to get the mortgage licked into shape. I am not going to clear all debts and the mortgage by 12/12/12 as I have a higher total than you but it is good to see someone (in the nicest possible way I don't wish huge debts on anyone) that has debts that equates somewhat to mine as it can be a bit lonely otherwise but everyones debts are relative to their income and we do have a decent income but many mouths to feed I sound like the old woman in the shoe :rotfl:feel like it sometimes:D

I am assuming you foster for a private agency as we at the moment only receive fostering allowances and my income is nowhere near yours they have just started fee based fostering system but we are in dispute over that as after 6 years of fostering they have placed us on the bottom level for which no fee is paid we don't do it for the money but I felt undervalued to say the least.

DTxx

gingernutbizkit

You guess correctly. I am fostering with a private agency. We considered going with LA but I have previously worked in County Children's Homes and never felt that foster carers got the support and respect that they deserved. Like you, we are not fostering for financial reasons. We didn't even know what we were going to be paid until a week after our first child was in place. When I read what had gone into the bank I thought they must have made a mistake and rang up to check!
Ironically what we thought was going to be a big reduction in pay for us has now given us the biggest income we've ever had.:D

Ging x

Raini

Hello :hello: Just read through your thread with interest as I also have a 150k mortgage which I would love to clear - although we'd never be able to afford it in 3yrs. Also, I've always wanted to foster but always assumed I couldn't afford the pay cut ... maybe there is a way?

Have subscribed & will watch with interest! Good Luck

gingernutbizkit

Thanks Raini.
Our goal to pay off the full £150K in three years is beyond us too and will take a lot of sacrifice and self control. We are going to really have to think about our spending. Think I need to spend a little time thinking of some goals to get me started......
Ging x

gingernutbizkit

Started on the PAD challenge. Decided to move the £490 I had saved for next years holiday to my debts..... probably look to go camping instead of abroad again like this year.
Also opened up four bingo accounts for the free daily scratchies.... every bit helps I guess .

Ging x