What are you doing?

darrenwis

Hi Guys,

I have read in the forums but there seems so many, I want to try and clear atleast 2.5k of my loan by the end of 2010.

Just wondering about the best plans people are using. I know some of you are hoping to save 10k in 2010 but don't think i can reach that.

What are others doing? What are the best ways to go about it

Thanks
Darren

Sublime_2

Hello Darren, I haven't got any advice to give you so I am bumping this.

BUMP!

Tixy

Hi Darren

Whatever challenge people set themselves essentially the key is a combination of:

-earning more
-using less
-and getting things cheaper.

So this year
- I'm hoping to earn more by joining the world cup countdown challenge - http://forums.moneysavingexpert.com/showthread.html?t=2170421 by increasing the little money making things I do (see post 2 of the challenge)

- using less/getting things cheaper - I haven't joined a specific challenge for this but my aim is to spend 10% less in every category of expenditure (based on the makesenseofcards SOA categories) over this year (both each month and overall for the year).

Whatever your goals you can still pick up lots of tips from the £10k challenge or similar to see what specific things people are doing.

I have found that the best way to go about debt busting (for me) is to make small long lasting changes to how I think about money and to make sure I really keep track and control of my debts/spending etc via spending diaries and spreadsheets. When it feels like progress is slow I remind myself that there are no quick fixes or easy answers but every step in the right direction to being debt free is also 2 steps away from the wrong path.

niksyg

Hi Darren,

I need to clear about £1500 this year and so I have decided to take part in some of the smaller more manageable challenges like £365 in 365 days and Virtual Sealed Pot to try and save up some cash so that I know I have savings for Christmas/Birthdays etc and can then easily set myself solid payment targets without thinking "should I try and save a bit for next year or pay off the debt?". I know you should pay off debt with savings, but I need a small stash saved so this way I can keep better track of what's going where and still have money to get rid of debt and for special occasions!

You just need to be really anal about money - like writing down ALL spending so that you know exactly where the money you could be paying off debt with is going and then adjust your spends accordingly. Visit Old School for some tips on cutting back and then use money saved that way to pay debts, eg meal planning makes you really save on food bills so more can go on getting rid of that £2500. It also helps to make yourself join a challenge on here and update your signature etc as you become really aware of your spending/saving and what you are managing to pay off.

Whether you pay off £1000 or £5 in a lump it all helps and like Tixy said every step counts!

Good luck with it and let us know how it goes and what you think may help you!