Good Bye 2010 (Good Bye Debt) Hello 2011 (Hello Debt-Free) - A New Years Resolution

armyoftwo

As we draw closer to the end of the 2010 (and lists begin to form) I thought it would be fitting to start a thread on wishes and desires of 2011. I will start off by saying, for 2011, I really want to clear my £9500 CC debt (thank you 2010:eek:) and also:

1. Apply for a new credit card with a healthier credit limit and APR
2. Apply for a new bank account, hopefully one which provides me with an overdraft (safety net)
3. Once applied for the above, to stop applying for further credit related products
4. Close down at least two of my credit cards
5. Close my dormant bank account
6. Save up for a deposit for a new car(so I am going to apply for many saving accounts:rotfl:)


I know some MSE users may think achieving and clearing all your debts by 2011 might sound like a rather ambitious target, however, I am going to stick to the following guidelines, which should hopefully put me on the right road (may even help other users):


A) Creating a budget - Firstly, create a budget - I know budgeting can be rather boring, but I am going to carry out the basics which should give me the best chance of reaching that all-important debt-free day. I will need to figure out how much cash I have available each month to tackle my debts. I am only going to repay an amount that’s affordable, and an amount which will not overstretch my finances further.

Keep it simple – These things should naturally be simple, but if you are like me, always seem to feel so difficult. It is important that I pay careful attention to my spending habits, work out how much I’ve got and how much I need, and even cutting up (or closing) old credit cards so that I cannot spend any more.

C) Small Sacrifices, Big Savings - Budget cutbacks will only get me so far, so the next action is to give my finances a good overhaul. I am seriously thinking about remortgaging, I know it may be a little trickier in the current economic climate, but as my introductory deal is about to come to an end, I may be able to make big savings by speaking to a broker for more help. The instant I have paid my very last repayment, I will hopefully enjoy a big boost to my finances, and the quicker that day arrives, the better I say. However, back to reality, and in the meantime, by making my debts as pain-free as possible, I could start off by moving credit card balances onto a 0% balance transfer credit card deals. I am also contemplating about switching my gas and electricity supplier, by carrying out some research and hopefully switching to a cheaper tariff, I could bring in some massive savings. Talking about savings, I really need to get saving, I am going open as many savings accounts that are necessary, and put any extra money into a high interest (I wish) savings account.

D) Every little REALLY does HELP

In hindsight, those little things we do, actually do help. There are literally thousands of ways I can think of which could make savings. From those the obvious things such as walking to work, cancelling an unused gym membership or even taking homemade lunches to work , to even the more obscure.

Please guys, if you have any more tips or ways in which you can save money, please do share it. Also, do share your all important DESIRES and WISHES for 2011 (finance related). Consequently that just leaves me to say best of luck with your resolution and here’s to a debt-free 2011.


xxx :money:

Galvin

if if go on writing wishes and desires , the space will be shorten
i always pray for a good life and that's it .

miccorel

I hope you will success with this ambitious target. Hope you will have a new nice car in 2010.

CLAPTON

quote
Save up for a deposit for a new car(so I am going to apply for many saving accounts:rotfl:)


strange ambition for some-one wanting to be debt free

BugsyBrowne

CLAPTON wrote: »

quote
Save up for a deposit for a new car(so I am going to apply for many saving accounts:rotfl:)


strange ambition fro some-one wanting to be debt free

Also when the OP states he/she want a new credit card with a higher credit limit.

armyoftwo

CLAPTON wrote: »

quote

strange ambition for some-one wanting to be debt free

Having looked at our finances, me and my partner are going to purchase a new car together. It is not a Ferrarri, so hoepfully it won't make us bankrupt.

armyoftwo

star-fire wrote: »

Also when the OP states he/she want a new credit card with a higher credit limit.

SHE is wanting to apply for a new credit card with a higher credit limit for this reason :-

"I could start off by moving my credit card balances onto a 0% balance transfer credit card deal".

And, opposite to what you may think, I am not wanting to get one for getting into more debt.

lisyloo

Having looked at our finances, me and my partner are going to purchase a new car together. It is not a Ferrarri, so hoepfully it won't make us bankrupt.

What do you mean "hopefully"?
Have you not done a budget for all the cost?
The insurance for example.
Insurance has gone up a lot recently, have you checked the cost of the new model.

Why not save up for it?
there are many advantages of waiting and saving the main two being

1) No interest costs
2) No insurance costs or risk of having debt when sick or redundant.

It's a much better way to live.

armyoftwo

We are purchasing the car from my OH's friend, who is a car trader. He has offered us a really good deal whereby he is going to allow us to pay the balance after paying the deposit, over a year interest free. Plus we really need a new car as our current car has had its time.

Insurance for this car is a lot cheaper than what we were paying on our current car (as the new car is only a 1.4).

I do agree that there are many advantages of waiting and saving. However, as it stands, our situation will include no interest costs and cheaper insurance. Me and my partner are on good salaries and are fortunate to even have some savings. We have already started to pay back our CC debts, and should have it paid off by mid 2011.

Thanks for your comments lisyloo