smartbear's road to debt freedom

schmickleicklepickle

Very well done Smartbear :beer: You should be proud of yourself! Just read through your diary quickly - have you budgeted now for the big one off payments like car tax etc? These are the things I would always put on CC without thinking but I am now putting some away each month to cover those kinds of things!

keep plugging!

smartbear1

Thanks Schmickle and yes I've got a little place set up to put back for the car tax and insurance in November this year. It might not be enough to cover it all but it will be a big chunk of what's needed - phew!

Keep going Schmickle - its the only way to do it!!!

smartbear1

smartbear1 wrote: »

October means spending I'm afriad in the house of the bear. Car insurance, mot, breakdown cover and tax. Yikes!

Well thankfully had some savings put away but my tesco card (used just for purchases) took a bit of a battering this month and I will be paying off what I've spent spread over the next two months. I daren't even put the figure in my signature. I'm in denial until its paid.

Finally braved up to the Tesco card figure and did something about that little blip of an overspend last year. Very pleased I made a bumper payment in the end and the balance has tumbled. If I could get Tesco down and out by the end of March that would be amazing and just in time for looming redundancy. Yikes! See new Tesco figure in signature for details.

smartbear1

It's a good news, bad news sandwich this month.

Good news! I've had a stay of execution as contact at work because my contract has been extended for another six months. :T

Bad news! I've been stung by an increase in payment to a 0% debt (one of my hidden unlisted student debts - still in denial about that one sorry:o). That's less money available to chuck at the interest incurring debts. At least all debts will be going down at the same time.

Good news! I've been paying debt off and Tesco card from this month will be under £2,000 - figure to be posted when the statement arrives. Also, I've done well with £1 a week challenge and this figure has taken a real boost.

Overall, I'm happy I've got a job - my heart goes out to all those money savers out there who have been made redundant or are going through the process right now. I'm now aiming to get both the Tesco and MBNA down and out by end of September. Slowly, slowly... as the saying goes!

smartbear1

Happy days!!!

:j:j

Time to celebrate as debt figure drops below £14,000 - another milestone in my debt free journey.

Proud to be dealing with debts and so far, I've managed to reduce my total debt figure by over £2,000. Not to mention the student loan payments and 0% student debt that's coming down every month.

Very very pleased this month!!!! Time for a small and well deserved treat and celebration I think - but not on credit card!

smartbear1

A gift from Tesco today arrived on my doormat. They are offering me 0% balance transfer on my existing credit card for 9 months, if I transfer before 31 April 2011.

I plan to clear as much debt of my Tesco card before the end of this month (won't be able to clear it all off first, but some interest free debt is better than none at all). This means I can say goodbye to the rate jack frozen MBNA card forever!!!! :j

I remember on the MBNA card I had a years interest free and then they wanted to rate jack within a month of the interest free period ending. I want to avoid Tesco doing a similar trick so paying off the tesco card within 9 mths will be a top priority.

smartbear1

No matter how bad the debts are and how low this makes us debt free wannabies feel sometimes there are always reasons to be cheerful this easter. Here are my top three:

Reason 1
:beer: Broke the £13k barrier with my debts and its a fantastic feeling to see visually in my signature and share with others how well I've done since my debt free journey began.

Tesco balance has lowered sufficiently now and once the 0% balance transfer is complete, I will have cleared the MBNA debt and closed that account down.

Reason 2

I don't feel the urge to go out and spend anymore. Being a debt free wannabe means I have short months and months where I treat myself. Spread out the treats. There's more to look forward to that way. I think of what I need for the home (when I need it) and 0% argos card it. But the day is coming.... when I will use cash. I know that day is coming at the end of the debt free road.

Reason 3

There's always an incentive to save a little money, even if its only pennies. I'm glad I took my head out of the bucket and switched the lightbulb on. I'm glad I quit smoking last year and I can feel the difference in my pocket. Now every time I see someone smoking I think, "so that's what a burning tenner smells like?" :rotfl:

Happy easter all you money savers and keep on moving down that road to debt free freedom.

smartbear1

I'm now aiming to get both the Tesco and MBNA down and out by end of September. Slowly, slowly... as the saying goes!

One out of two aint bad so far and wheels are now in motion to say bye bye to MBNA forever. Called made and waiting for final statement. Silly rate jacked card with silly payment plan. Got me out of a hole (I can't believe I'm typing that!) at the time but created a bigger one further on down the road. It was a hard lesson to learn and 0% balance transfers need to be paid first.

Tesco remains top priority for payment to make sure I don't get rate jacked after the 0% interest free period ends and have to freeze the card which limits any balance transfer possibilities. After that its Halifax and Sainsburys. Slowly, slowly... as the saying goes!

smartbear1

Well that's it for MBNA. Confirmed they've closed my account down this morning and they are refunding me £5.65. :rotfl: I laugh because it cost me so much in interest but something back is better than nothing.

Cancelling this card made me feel good after the rate jacking and their customer service rep didn't disagree with me - it was a bad deal. Never mind I promise i'm over that now. Feels good to get a card company off my back forever.

smartbear1

Almost a year since I started my debt free journey. I've paid off (so far) £3080 towards my total debt and I've learned some lessons along the way. Not sure how many of these lessons will be helpful to everyone, but its worth sharing my thoughts:

If you have the money pay something of a debt!
Fairly simple idea this one, and when I find myself wanting to splurge "spare" cash I tend to use it now to pay off a debt.

If its sat in the cupboard try and flog it, return it or gift it
Again a fairly simple idea but I've now come to the point where somethings don't sell on ebay or the car boot, so I ask neighbours or friends to make me an offer. :rotfl:I recently ashamedly took an item back to argos which had a week left to run on till receipt and I got credit which I used towards soemthing I really wanted.

Get something to save coins in
I used to do the £1 a day challenge but now I empty my wallet completely of all loose change and put this in the coin jar alongside the £1 coins. It does mean I'm mostly stuck for emergency cash but it does mean every note I withdraw from the bank, the change goes back into my pocket instead of a shop's hands. Recently used the coins to put towards car tyres, etc and replacing things but now I'm saving for a holiday. Its a long haul for coins now but over the past 12 months I've put them towards a new TV and paying off debt.

Always pay 0% balance transfers off first
This works for me but won't suit everyone. I had the experience of being rate jacked after a balance transfer period ended, so now I make sure if I'm not paying interest on something, that card gets paid off first.

Something will come up!
Don't rely on this one but I've found that when things are at their darkest something will come up and give you a break or a boost. For example, couldn't get cheap 0% long term deal on a new card, but an existing card holder came up with a great balance transfer deal eventually.

Focus on lifestyle change
Its hard to keep focus on the long-term benefits of becoming debt free when you've become used to the endless direct debits and card payments. I keep thinking about how nice it would be to pay cash for goods. I also look at the possiblity of a better worklife balance and how I might choose to work part-time if only I can get those debts off.

Give yourself a break
Not everything you choose to do will be moneysaving and its about the right mix and balance for you. For example, I know I pay more for broadband and phone but I have less headaches and good customer service with my existing providers than with so called cheaper alternatives.

Learn the art of compromise
Really compromise is an art form and it applies well to spending cash you don't really have. For example, I can treat myself to something once a month, or I can overspend in one month and pay for it the next two months. I treat myself once a month but yes, I do give into temptation and over spend a little if items are on sale. I then force myself to have a couple of short months to restore order to things.

Use the calculator on your mobile phone
This has been invaluable. You might look like you are texting round the shop but secretly you are adding up the price of your groceries and staying on budget.

I wonder what the next 12 months of money saving will bring and I hope to have a bit more paid off. I've got a target for end September of paying off the Tesco card. It might be over ambitious but what the hell, I can try it and see what happens!!!