Debt Free Date- Literally just set it and now pondering

Positive

Hello all,

As a long time lurker, I've really taken a lot of inspiration from this forum. I have 'manageable' debts, in that I always pay every month and am not totally skint, have done so for years. But I really feel that the time has come to get on with it and get them down to zero. I have paid off a lot of debt over the past 5+ years (10k+) and am now down to 3 debts: 1 loan, 1 student loan and 1 credit card. Approx £450 per month repayment.

I keep thinking that without setting a date to become debt free, I'll just end up with the credit card debt forever. I have never been good at paying much more than the minimum payment on this.

First steps :jToday I set up a standing order to start to pay the credit card off at £300 per month. This will make my finances tight, but just affordable still. This can rise to £500 per month when my loan ends later this year.

:jI have just been accepted for a 15 months zero percent balance transfer credit card.

If I am very strict with myself I feel as though my debt free date could be December 2011.

That will be paying off a debt of 11,697 in total.

This does not allow for any changes in circumstances though in terms of job, family etc.

In your experience is it better to set a strict date taking into account everything being well, or would you suggest I give myself some slack?

Any words of DFW advice gratefully received!

DVardysShadow

You'll have good months and you'll have bad months. You cannot program your expenditure to the last penny, so you need to leave yourself some slack. I'm not going to suggest you do a full Statement of Affairs, because you seem to be reasonably OK - once your loan is gone, you will have £500/month to throw at any emergency. I would suggest you recalculate on having the £200/month from the end of the loan and take your debt free date from there. At the moment you can afford £300/month to repayments - still repay your surplus - and recalculate your debt free date month by monthy. By doing that, month by month, the date should get nearer quite quickly. Psychologically it will be better to see the debt free date coming closer that to have a bad month and see your tight December 2011 date retreat.

Do a spending diary and watch where your money goes - you will probably start to find more surplus - which you can put to repayment month by month

Positive

That's really helpful.

My total repayments per month will now be £650 which feels a little scary, but is doable. But perhaps not every month as you point out.

I'll keep going with the NSDs and packed lunches and the like and any 'extras' I cqan throw into it I will.

Thanks.

Happytogetdebtfree

hey well done on the 0%good luck with it all xx