Newbie hello

nikdebtfree2010

Hi there

I've been reading this forum on and off for a really long time now and have found some great tips on here and more than anything it was nice to see that I wasn't actually alone!

Lightbulb moment occured when struggling back in Feb 2007, was offered a half paid for holiday and was dealing with 2x cc's at about 6k each, 2 loans one joint and one individual totaling around 18k, 2 overdrafts at 1.5k and owed my sister 1000 for the holiday! Total around £32.5k.

Managed to pay off 9000 in just over a year and went on a cheap holiday that we paid for without borrowing anything (a first) and re arranged as much as possible onto 0% in Aug last year and was down to £24k. 12 months on we're down to 14000, all moved onto two 0% cards until middle of next year. I've also got 3000 in sharesave accounts (and growing) and money for a holiday saved. The aim to be completely debt free by Xmas 2010. Am currently paying £650 a month off cards, and am due two bonuses by 2010 completion (SAVE is now 175 a month and not touchable!)

I know I could be debt free earlier by not saving, but the way I've looked at it is that, apart from being a great tax fiddle, I don't feel the urge in any way to think about borrowing again for things like a new car as will be due to be paid out £6-7k in 2012 and £4k a year for every year afterwards if I stick with the savings now as we've been opening a new SAVE each year which after 5 years pays out.

We've also been putting money away each month into funds for things like car tax and even Christmas, so we always have the money up front rather than having to borrow anything.

My tricks to avoid unnecessary spending were exercise, budgeting for EVERYTHING, and sandwichs to take to work. I also try to avoid having change in my purse during the week - we get free drinks anyway, and that way I don't buy rubbish from the snack machine, no money - no spend it! So try to avoid spending anything during the week if possible. I also keep an eye out for free and really cheap tickets to theatre and nights out - comedy stores can be quite often free or about £3-5, matched with a 2-1 offer for a meal you've got a really cheap night out. At least if we still go out once in a while it doesn't feel quite so restrictive, even if your spending £30 for a night out between 2 of you, when before we would have easily spent £200!

Thanks for reading

Nikki

nikdebtfree2010

Whoops missed the 400 I'm paying from my sole account, the 650 is the joint account after everything else has been accounted for, so a total 1050 paying off debt. All other items have been reduced by switching to the minimum possible, mostly through tips on here!

Nik

shayshay

Look like you are winning against the debt, which is great. Shows it can be done and its as mcuh down to willpower as it is to actually having the cash to do so.