Debt free by Summer 2012 (if not sooner!)

Mrs_Tradition

Well where do I start.

Back in 1999 I started getting into debt and by 2010 I started to sort it out. I have just realised how long it's taken me to start getting my bottom into gear. Shocking!

My debt is as follows:

Barclays Loan 4574.65 (was 6000) DFD according to bank:Feb 2014
Virgin Credit Card 7281.06 (was 7300) APR apx 16%
Cap1 Credit Card 4363.03 (was 4400) APR apx 22.9%
Tesco Credit Card 2480.04 (was 2500) APR apx 16.9%
Loan 7350 (was 8000) APR o% for life
OD 500

Total Debt 26548.78

Well hasn't that made my day!!!!! I am actually serious in a way as seeing it wriiten down like that seems different to having it in my spreadsheet and I feel like I can tackle it.

The plan is to tackle the highest owing first which I know some people won't agree with but my reason being is I am basically only paying the interest off each month presently and no I am in a position to do this.

My income is 1793 a month all being well (first payment end of the month will confirm this) and my non debt bills come to 920 a month. I have set all my bills ups to come out of account 1 which is purely for that purpose. Account 2 is where my wages go in and my overdraft is.

So looking at that you'd think I have 873 month to debts which is why I am doing this diary as I just don't end up paying that a month to debts - life seems to get in the way.

From that 873 I have a fixed loan payment of 167.63 going out taking it to 705.37 a month remaining that I want to pay to debts/savings.

Also this month I am paying 20 to my savings, 50 one off repayment and 100 towards my daughter's bithday. Leaving me with 535.37.

This is to be paid to my 3 credit card and over draft. The min payments for the cards are around
Tesco 53
Virgin 113
Cap 1 130 leaving 239.

Now I don't know whether to leave that in bank thus reducing overdraft by nearly half or whether to pay it to a credit card this month. This is assuming no big payments are required elsewhere and my groceries stays on budget which i am trying my hardest for.

I will have a think.

Goals for this year are to reduce the Virgin credit card to 2.5k. Tesco should be around 2283 and Cap1 4000 (which is shocking given how much I will have paid!).

I was refused a BT card and the reason guessed on my credit file was that I have too much credit so won't give me more - go figure when I am wanting one for a BT not more credit?! I can understand why but it frustrates me!

So i can't apply for more credit as wanting to wait 6 months or so to reduce it and try again.

Does anyone know if my credit rating will affect my partners who has no debt etc? If he tries for credit will he be refused because i have too much (even though i pay it all etc)?

Many Thanks for reading and I am going to do some number crunching to see what will benefit me more, paying CC or OD.

Mrs_Tradition

Actually, I have already decided. I am going halves.
I missed off another 60 that I owe end of Jan so I am going to not pay anything extra this month and let things settle first. Then in February whatever I have left to take me to my OD limit I am going to half and put half towards Virgin.
Reason being, in March I will be in the black in OD anyway following my new budget. I should have 88 to my name, first time in AGES lol.

Of that I aim to put 50 extra to Virginso as to keep me in the black.

Going to be a tight few years.

DebtFree2012

Right, last day of the first week back. Having been off work for most of last year it's a shock to the system and having 2 little ones to get organised, lets's just say I am glad it's Friday and week one is over!

This month's going to be a LONG one 18 days until pay day and no grocery budget left. Plenty in freezer and storecupboard to take us through though. I need to do my menu plan for next week at some point today if I can to save me doing it at the weekend. Also need ingenius ideas for packed lunches.....

I keep looking at my spreadsheet wishing I could make a payment or do something today so I am a step closer to being DF - so frustrating having to wait until pay day. i am not patient at the best of times haha!

Tomorrow will be batch cooking with my 3 yr old, she loves helping out and it's a nice way to spend time together. An hour or so in the kitchen will do us good. We enjoy it so bonus!

I have a cheque to put into the bank for £25 which I have taken into account on my SS already so I must get my bottom down there and cash it in. Won'tbe going into any shops though!

Must get car checked over this weekend too as it's hardly been used last year and now it's going 40 miles a day or so and by the sounds it is making it doesn't like the new form of exercise it's being made to do! People (who have no idea of situ) keep telling me to get a new one etc etc but I love my old car, even if it isn't top of the range and follows the old style of number plates lol. It does everything I need and has a boot that accomodate my 2 kids (not literally, their stuff I mean ) and my dog). I hope it'll be ok and doesn't need any work doing.

Right, off to do my menu plan to see if I can reduce my grocery budget accordingly.

I've also hope I have over budgeted in petrol and that I will have residual from that - we shall see!

Back to work for now I guess.

DebtFree2012

How strange - yesterday it picked up my old user name....i tried to post using it and it said I am not allow to do so, hence a new account. O well, my new name stands and is appropriate too.

DebtFree2012

Hmmm - My car's cutting out when clutch is in sometimes - I may have jinxed myself....

DebtFree2012

Right I have done a snowballinig estimation on whatsthecost website and it's saying it'll cost me 3k more if i pay off by balance opposed to by insterest so that will have to be the way forward. I want to clear my OD first though as worried that is seen negatively by creditors. Although I am not applying for credit I don't want to have a negative impact on my husband's credit because I have a high amount myself. It's all in my name though, we only have a mortgage in both names and a bank account which we never use and has a 0 balance.

Off to do some number crunching if time.

DebtFree2012

I was refused credit around 6 months ago and I daren't re-apply for a 0% in case I am turned down again and I do more harm than good with credit rating and so on. However the interest I pay a month is ridiculous so I just don't know what's best. I really want to get my credit rating back into a good situ again. It seems to take so long to do this that I just daren't apply.

Lottery win may help? Lol.

It is so frustrating when I am just waiting for pay day to pay more debt off? Crazy.

DebtFree2012

Well today is another day and I have decided to call the bank to see if they can offer me a better rate on the loan as it's 22.9% - here's hoping.

DebtFree2012

Oh well - I have rang the bank and they said there's nothing they can do with loan and not entitled to a new one at lower rate. So suck it and see as I won't get credit elsewhere either. Why on earth have I got myself in this mess? I suppose the only positive thing about it is my respect for money now and how hard earned it is. I have always worked and earnt my keep but lived outside my means stupidly.

I will never ever get myself in this situation again. I can see light at the end of the tunnel however the tunnel is very long and the light is a pin !!!!!! I am not wishing my life away by wishing the debt to be gone as that means a couple of years will have passed so I am making the most of now, enjoying life but without spending stupidly. I will make sure my family have happy days too and then once the D is paid off I can treat them to something special which I wish I could now.

DebtFree2012

Still hate being in debt lol - but today's a positive one. Not sure why, just "because".

Enjoying life and the lovliness I have in my family and friends.

I haven't been able to meet 2 min payments this month, well one have paid £90 off and owe another £40 on that, plus £113 to Virgin so I told them I will be paying on 25th double the amount. Virgin have said ok but will be charged which I know and capital one said tough, get it paid, well they can't have what I don't have can they. I haven't missed a payment for 1.5 years so it is not a normal thing and I am gutted about it but refuse to chew myself up over it as nothing i can do.

12 days until next payments to the big D.....

Touch wood my car's doing ok still so I haven't had to pay out anything towards that. Going to list my things in the paper tonight that have for sale.......

DebtFree2012

What a wonderful day today is!!!

I started off feeling a bit glum thinking about some things that happened to us last year and wishing they hadn't this that and the other BUT then as I was driving into work I saw 2 horses galloping around their field looking like they were having all the fun in the world and it made me smile big time.
The sun is now out and the sky is blue and it's actually not even that cold so spirits are high today.

I have taken the time to read (nearly complete) a truly inspirational diary - woowoo - and in doing so have given myself a virtual kick up the butt. I am paying my debts off with every spare penny I have - literally.

Found around £6 in my drawers last night in copper so going to cash it in at the bank Tues next week when I can get down then going to pay it straight off CC.

Have also created a new sparkly 2011 spreadsheet dedicated to this year only and re assessed everything - just as well as my interest on capital one had gone up and they told me about it but in my old day style, i ignored it - as long as i met the min payments i wasn't bothered - so wrong.

So i thought goal one is to pay off the highest interest card but then realised the balance on this one (cap1) is lower than virgin and pay virgin £3 more a month interest so I am gointg to get that down so my interest is less than £100 a month and then go for cap1 as virgin's interest will then be lower all being well.

I couldn't meet 2 min payments this month after being on maternity leave and xmas etc but I managed to scrape £90 together to pay part of 1, now managed another £26.11 so have £12.90 left to find.

The chq I put in today was for £25 so I will have £12.10 next week for petrol. Not good as I will need around £20 next week so will have to juggle something somewhere. No chance of walking as I drop the kids off first before work.