A Return to A Debt Free Mission

jonjamie1970

As you say, with some back up savings then its much easier to break down the debt and clear it, I'm tempted with my small savings to clear the credit card Ive built up but its an equal amount meaning no back up, and Ive now cut up[ the credit card so there is no way out if I have an emergency. Another month and I should have another £750 saved and then the Capital One card will be gone.

Exerbusi2

Is your CC on 0%? That way you could do it in 2 hits - half one month, then half the other. It then allows you to save and pay off bigger chunks of debt simultaneously, which is what I am doing.

Technically, I could remove the CC debt right now, but I really don't want to remove all of my savings - it is my 'money magnet' and will pay my tax bill when I get it!

jonjamie1970

The credit card Is on 34.08% so rather nasty, Ive bitten half the bullet and decided to pay off £500, leave £1k in savings, that takes the card down by a third and below the £1k mark. This way I still have a little saving "magnet" if I need it. Next £500 I get will be the 15th and then I will do the same again. £500 off the card and leave £1k savings minimum.

Exerbusi2

Well done mate! The great thing about what you have done is that 34% of £1500 is a lot more than 34% of £1000! Is there any chance you could push it to £750 next time? That way you would be really reducing your payments.

I keep pushing myself and stretching it as far as I can. My logic is that the sooner I am away from the debt, the better!

jonjamie1970

Exerbusi2 wrote: »

Well done mate! The great thing about what you have done is that 34% of £1500 is a lot more than 34% of £1000! Is there any chance you could push it to £750 next time? That way you would be really reducing your payments.

I keep pushing myself and stretching it as far as I can. My logic is that the sooner I am away from the debt, the better!

We are in a similar boat, and to be honest I could push myself much more than I do, I take home £2800 a month, out of that I pay for a car £400 and Child Maintenance £500. After that the rest is for bills and fuel, food etc. I live with a wealthy woman so no real bills there despite me offering all the time. The £400 car is a car allowance of work of £450, there are certain guidlines I have to follow, 4 door, under 3 years old etc etc.

Exerbusi2

You are laughing then! Could be rid of it all within a few months!

I am trying to remove all of my debt ASAP as we are having our first baby in July, so I want to be in a very comfortable position outgoings-wise. If I could reduce my debt repayments to my loan (£200+ whatever extra I want to pay per month), we will be in a much more comfortable position and could afford a decent life.

We still live well now - a couple of holidays per year, days out etc. I would just like to be able to continue having a nice life when the baby arrives!

jonjamie1970

Been there done that, two girls now aged 10 and 8, I see them every 2 weeks as they live 200 miles away but try to make it good when I see them. Don't forget the costs of the baby and all the things they need, formula, buggies, nappies, etc etc, great position to be in though with little debt, your doing it all exactly the right way !!!

Exerbusi2

I have been hearing the rumours about the cost of kids!

Luckily it is the first Grandchild for both of our parents, so we have been offered lots of help! Mum is knitting all kinds of blankets, and putting savings away every week for the baby. My GF has around £9k in savings (but we will be using that to supplement her losing a full time salary for statutory mat pay for 6 months).

We are going to be stockpiling stuff now, meaning it isn't such a financial shock nearer the time. Friends who have had their kids are offering us some of their old stuff, like prams. We will make a decision on those nearer the time though!

jonjamie1970

Exerbusi2 wrote: »

I have been hearing the rumours about the cost of kids!

Luckily it is the first Grandchild for both of our parents, so we have been offered lots of help! Mum is knitting all kinds of blankets, and putting savings away every week for the baby. My GF has around £9k in savings (but we will be using that to supplement her losing a full time salary for statutory mat pay for 6 months).

We are going to be stockpiling stuff now, meaning it isn't such a financial shock nearer the time. Friends who have had their kids are offering us some of their old stuff, like prams. We will make a decision on those nearer the time though!

My one tip !!! go for the lightest McClaren buggy !! you dont need these 3 wheelers or expensive ones as they grow up, the McLaren you can sling over your shoulder and throw in the boot, perfect.

Exerbusi2

Todays update...

The payment I made on the credit card has gone through, leaving me with only £91.02 to pay to clear that balance. I will then move another £380 onto 0% and continue to plough through that!

Next pay day is the 14th, then another on the 15th. I am going to try to stretch my fuel until then, but my chances are between slim and nil.

May be out for a meal this weekend, but don't mind that as I have managed to throw money at my debts this week.

Aims for the rest of this month are to hit the £1800 savings target, get my CC debt below £1500 and put myself in a position to pay off my overdraft on the 1st of March.

Solidly-booked day today. Off for my first appointment soon, and I finish my last one at 7.15. After that it is off back to the gym with my GF, before we head home to watch Friday night TV!