A Return to A Debt Free Mission

Exerbusi2

Another significant day for me and my getting out of debt mission - today I cancelled my overdraft!

For the first time since 2001 my bank account now does not have an overdraft facility. This means if I don't have it, I can't spend it! Other than my flexiloan, all the money that I have is my own. depending on my financial state over the coming months, I will be firing big chunks towards my loan, hoping to have it removed by the end of the year!

jonjamie1970

Exerbusi2 wrote: »

Another significant day for me and my getting out of debt mission - today I cancelled my overdraft!

For the first time since 2001 my bank account now does not have an overdraft facility. This means if I don't have it, I can't spend it! Other than my flexiloan, all the money that I have is my own. depending on my financial state over the coming months, I will be firing big chunks towards my loan, hoping to have it removed by the end of the year!

Overdrafts are dangerous things and I hope you can manage without as the resultant costs are frustrating. I have an overdraft on all three of my accounts but one day I will get there, Im not using my current account one at the moment as I have a bit more cash in there.
Congratulations anyway and I hope you stay in the black, great feeling and one more thing the banks are not getting off you. Just imagine they will be providing a free bank account for you and doing all the work, they hate people like that lol

Exerbusi2

I agree totally mate - because it was a relatively innocent debt for me (in the sense that it was cleared every month) I never really bothered to make the big effort to clear it full time, and used it every month. Now that I have, I have a much better feeling about my banking, as I know I am always in the black.

After clearing the credit cards, I have reduced the limit to £500 which is the minimum limit I can have on it. I am keeping it there as a 'just in case' measure. I can trust myself to not use it any more, so having it there isn't a temptation.

I have always believed my debts weren't a result of obsessive spending, I just never really took the time to MANAGE my finances, and the debt just grew to a level that made me feel uncomfortable. As it stands, my debt now represents a total of about 8% of my annual income, and I am comfortable with that as I know I can pay it back - if we had a full joint income and I wasn't going to be the sole person responsible for our bills, I would have my loan cleared within 6 months.

rdchick

woooo! Well done! I have no idea how that feels... hate that my bank account never goes back in the black... wages go in... still nearly £2000 :eek: in the red...

It's the next big debt to pay though so gotta be done!!

Well done though hun :beer:

Exerbusi2

Well it will do one day - you just have to keep working towards that goal. It isn't always easy and there are times when you have to make sacrifices to get there, but the reward is worth it! I should have paid off my overdraft a long time ago but didn't stay disciplined. Now I have and I feel so glad I did.

The most interesting thing for me is now a change in my psychology - having battled with debt (and still am doing so) I don't ever want to go back into debt. I accept there will be times when mortgages etc come along, but I certainly don't want to have to divert a significant percentage of my income to credit card and loan repayments again.

My brother is in the every enviable position of not owing a penny to anyone - to me that sounds fantastic and is the next goal!

Exerbusi2

Today is all about planning....

How can I plan my day and my diary as green and cheap as possible? The biggest outgoing for my business is my fuel. I spend a lot of time on the road, and as we all know that isn't cheap! I have a bike, and I only have to take kit to a handful of clients - there are a significant amount that already have their own equipment.

My job today is to plan my diary so I can make it as fuel efficient (and therefore cheap) as I can. I estimate I could reduce my fuel bill by 20% at least if I cycle more. I think it can be done, I just need to prove it now!

Exerbusi2

Final payment of the month in today, other than one or two tokenistic payments (basically enough for fuel, and little else!)

The good news is that most of the major outgoings are done, and the account still looks healthy - plenty of emergency money in there. I have also updated my business account, and am pleased to see a good improvement in profit margin since the first month. I now earn around £400 per month more than I did when I started the company, which is great news. This, added to the fact that my CC debt has gone mean I have a bit more breathing space every month now.

The bad news is that my gf only has 2 more full salary payments before it is down to me to pay for almost everything. Whilst looking at the accounts it can be done, it certainly won't allow for any particular splurges.

Not to end on a negative, today has been a good day. I have managed to bring my business accounts up to date (I stupidly didn't update my accounts for 6 weeks, meaning I had a bunch of receipts I have to organise and file), I have managed to get an early training session in and I have built the cot for the baby. Now all I have to do is buy some food, take back the changing table (there is a crack in it - not our fault), make a few phone calls and start cooking. Busy night tonight!

Hope you are all well.

jonjamie1970

Keep going mate, I managed for 12 years bringing up 2 kids and a wife on just my income, we ran two cars and lived in a decent house so it can be done, budgeting is important and your wife will need to be on board. Mine wasnt :rotfl:

Exerbusi2

Thanks mate - sometimes I get a tad insecure about it, but it passes after a few minutes. I just look at the accounts and remind myself how far I have come in a short space of time. I have purposely removed the OD so I can't be tempted - if we don't have it, we don't spend it is the motto now! I will have to make life a little bit cheaper, especially with food, but other than that we aren't particularly big spenders. Luckily, my better half is on board with the money saving - she has £10k already put away for a deposit on a house, plus another £3k in her current account, so things are rosy for her!

We have decided to use the money if we need to, but if we can we will get by on my income where possible.

Just off out - I have to bank £50 that I forgot about this morning!

Good times!

jonjamie1970

Exerbusi2 wrote: »

Thanks mate - sometimes I get a tad insecure about it, but it passes after a few minutes. I just look at the accounts and remind myself how far I have come in a short space of time. I have purposely removed the OD so I can't be tempted - if we don't have it, we don't spend it is the motto now! I will have to make life a little bit cheaper, especially with food, but other than that we aren't particularly big spenders. Luckily, my better half is on board with the money saving - she has £10k already put away for a deposit on a house, plus another £3k in her current account, so things are rosy for her!

We have decided to use the money if we need to, but if we can we will get by on my income where possible.

Just off out - I have to bank £50 that I forgot about this morning!

Good times!

So nice when your money is working for you. For the first time I can remember I just purchased 12 months car RFL rather than 6 months and its not even due until the end of the month lol.

I would start a budget now mate If I were you for baby time. I have a good budget spreadsheet you can have if you want it. Factor in the nappies, get costs now and then nothing is a surprise. As you have your own business then get a Bookers Cash and Carry card and check out the price of buying boxes of nappies, you might find Tesco or Asda are cheaper but worth a try. Put some meal plans together and cook from scratch better for you and baby.

Have you thought about perhaps putting a cheap DVD together, say one for weight loss etc and sell them on top of the personal package to clients for when your not there ?