The amazing shrinking debt!

dreamdreamer

You'll have to let me know what it's like if you get one before me. I'm a bit worried it'll strain my eyes as I stare at VDU's a lot in my current job secondment anyway (in fact non stop for 12hrs!). I don't know anyone that has one so I can't test it out, which is annoying.

jwil

Hey dreamdreamer, was just flicking through your diary as when I updated the challenge list, I already had you down as having paid off £3071, yet it's now gone down to £3061. Is that right? It probably was my mistake

You've done so well with paying your debts off, that's brilliant!

I've got a kindle, and I :heart2::heart2::heart2: it! I'm not allowing myself to use it too much at the moment, as my piles of books are just too high, I need to read through them. But it is really easy to use and you don't get screen glare like you do from a PC so it shouldn't be a problem for you.

dreamdreamer

If I typed £3071 it was a typo, I was at £3011 after my massive payment and £3061 after the extra 50 quid!

The kindle is looking more inviting by the day. I think I'd fork out for the 3G one though as then I wouldn't need a flashy phone to use the internet on the move, could just use the kindle! Which means I could get a cheap sim-only contract and save myself a bundle every month.

jwil

I suspect I probably misread my own notes then! Doh!

I've just got the standard kindle, I figured I didn't need any encouragement to buy more books! I never thought about using it to access the internet though.

dreamdreamer

The internet on the go is a luxury I refuse to give up, 12hr night shifts can be very VERY dull!

I've just started a secondment at work and one of the girls I work with has the most awful financial habits, she's going to wind up in BIG trouble! She was telling me today how her mum had cleared £9k of credit card debt for her last year when she couldn't afford repayments, which was good as she could now put her 6 grand honeymoon on the cards! Lesson officially NOT learned. She's also got a £200,000 mortgage for a 4 bed detached house and has just put a £15k secured loan on it to pay for a wedding. I was cringing inside as she was happily telling me all this, thinking she's got it made. All I was thinking was "if she couldn't afford repayments on £7k how will she afford them on £21k?!". Yikes!

dreamdreamer

Not much to report in my financial world, or world in general. Now down to £140 for two weeks, should be easy as I'm at my parents mon-fri this week so no spending!

dreamdreamer

Well... OH got back from his deployment yesterday evening. This morning I was woken at 8am by him presenting 2 boxes - a lovely fold out storybook Valentine's card... and A KINDLE!! It continually amazes me that I can mention once, in passing, that I'd like something, and a weeks/months later he remembers! He also made a lovely joint of roast lamb (I said I'd rather stay home than go out and pay a fortune for a meal that wouldn't be as nice as his) and got a bottle of champers. Bless him. So nice to have him home!

Off to the parents tomorrow until Friday.

dreamdreamer

Right, back from the parental unit! Cheap weak, spent £15 in 4 days (mostly on transport - london transport is a rip off!). Had to do a supermarket shop today, now down to £50 in the bank and £13 in the purse. 6 days until pay day, but I'm on leave with the boy until thursday so we'll mostly be sticking to home, maybe a few strolls on the beach!

Nearly another month closer to my DFD! 8 paydays to go! (hopefully!)

dreamdreamer

I was bored tonight so I've sat and worked out all my interest saved:

SCENARIO 1: With all starting debt on old cards/loans paid over 29mths (for original DFD), total interest = £4884.70
SCENARIO 2: Consolidation loan paid at normal rate to 29mth term, total interest = £1125.34
SCENARIO 3: Overpayments to loan to be DF by 25/09/11, total interest = £335.20

So my LBM and my finding this site, and my willpower to get this paid off, should hopefully result in £4.5k of saved interest!! That's quite amazing.

dreamdreamer

I have exciting yet scary news. I was accepted for a credit card this evening (don't panic!). I was going to wait until September to apply (my DFD) but I did barclaycard's "pre-application" check on a whim and passed so thought sod it, I'll apply and see what happens and if it gets rejected it'll be over 6mths old by the time I'm debt free.

This is NOT a credit card to rack debt up on - I have well and truly learned my lesson with that! But I will need to use some form of credit when I'm debt free, otherwise my credit report will be devoid of any active credit accounts (I have no current CCs or overdrafts), which I don't think will fare well when we come to moving mortgages etc. I will use this card to pay for the Tesco shops (roughly £120-£150 a month), then pay it off every payday by direct debit.

SO I will be finding out what the limit is within 5 days - and then promptly lowering it to £250! I deliberately went for the simplicity so I had no "0% on purchases" deals to tempt me into using it or not paying it in the first year. It'll charge interest from the day I get it (7.9%) if I don't pay it off every month!

I think I've made this as idiot-proof as I can... it does worry me slightly having credit in my power again having not spent a penny on credit in nearly 2 years, but I feel like I've come on far enough that I can be trusted with a little bit! And I have to test the water sometime...

I have got a teeny swell of pride that 5 years ago all I could get was a Vanquis card at 59.9% - and now I've got a 7.9% card! Get me all financially responsible! Hehe.

Wish me luck!