Jon Jamies Debt Free Diary

jonjamie1970

Ive managed to contribute to various posts on here over the months but realised that writing this might help me push on and clear my final remaining debt this year.

In 2004 I split with my wife and children and was left in the house on my own with a ton of debt and not all of it run up by myself, I also managed to get a default after my wife opened a Next card in my name and failed to make the repayments, she also hid the paperwork, the default happened in 2006 and I will be rid of this in September next year.

I used this period on my own to basically make more of a mess of things, out with friends, new clothes and burying my head in the sand, I had a good job, thought I had money and owned my own house. I had around £60k equity in it.

I then did a silly thing and remortgaged to clear around £20k in debts left over that I and my wife had run up, nothing to show for it really and she had the car and took the furniture, I was living in a 4 bed house with 1 bed, 1 sofa and 1 TV on a box.

Remarkably in 2006 we got back together after 18 months apart and with now a higher mortagage and, yes youve guessed it, more credit card debt I then managed to budget everything and managed fairly comfortably.

Fast forward to 2010, once again the marriage finally broke down again, we relocated in 2008 to the other side of the country in a new job I had to take and my wife couldnt settle, In July 2010 we agreed she should go home. She rented a house for herself and the children. We also agreed that things were not working and agreed to seperate and eventually divorce.

In October 2010 I managed to sell my house that had been on the market for 2 years, empty, and gave all the money to my wife to pay some rent and whatever she needed, this was nearly £20k and I took on the debts left over and moved in with my parents, very difficult time and I am still living there.

So again, another jump to today and where am I, I have met a new lady and stay there a few nights a week and live at my dads. I take home a decent salary and predominantly try to put as much of it as I can into clearing my debts, I will not find myself a new place until these are cleared and never again will I use credit cards.

I have managed to clear over £1800 of debt since January this year and feel empowered, my credit rating has also risen from 359 in 2009 to 900 this week and thats with a 5 year old default on my file still.

The final push is causing me some issues, there are things I want to buy but am trying to focus on the debt clearing, I need a new tyre for the car, desperate for some new clothes and underwear.

It feels good to share this but I will reach the debt free goal this year and then finally for the first time in my life all my salary will be my own (apart from child maintenance of course)

Good luck to you all on your own personal missions and I wish you love and success.

Exerbusi2

Well done JonJamie1970!

Now you have it all in one thread you will be able to see how you are progressing on the debt free mission!

My aim is to have it gone by my birthday next year - March 2012. If I could have it gone sooner, brilliant!

Good luck, and I will be contributing to this thread regularly!

jonjamie1970

Morning, thanks for dropping in mate, not a lot to report today. Cancelled the direct debit for the repayments on Scottish Power so thats finished and complete, another thing paid, my focus needs to be on the Capital One Card this month.

However, I did notice on the Cap One website that I get a partner discount at Holiday inn hotels this month on a 2 nights for one, this would mean I will save 1 nights accom when I visit the girls as I always stay at the Holiday Inn Express. I wanted to close the account but I may use it to pay for this room deal and then clear it straight away, if I have the willpower to do it.:rotfl:

Exerbusi2

Would it be worth keeping it open, using it on occassion to see if this deal keeps coming up? You could keep a tiny balance on the card that you pay off in full each month?

jonjamie1970

Exerbusi has shamed me into updating my diary, he's done a decent job on his and I'm sure its kept him motivated, his diary also kept me motivated. Since my last diary entry I have done nothing more than to view my accounts on line each day and plan for next Tuesday when I will clear my Capital One credit card, that means I will have paid off 35% of my debt in 3 months, Im happy with that and means I should be on target to clear everything by the end of the year.

Ive sold a few bits on ebay and Amazon this week which I need to add to my total. The best was a Blackberry which went for £51, this is staying in the paypal account though and going towards my daughters birthday present at the end of the month.

Yargo1

well done jonjamie1970 - U are doing really well.

steveos

Execllent JJ...very inspiring . Seems like you have done really well with what I consider quite difficult circiumstances. It's these kinda posts that people should read if feeling some self-pity and down in the dump. It wont fix there problems..but hopefully make them feel better.

I did note one point (tongue in cheek) and have made a note to myself: ##never marry the same woman/man twice##

All the best on your journey:beer:

Exerbusi2

That's awesome news about clearing the Capital One card - removing a debt completely (no matter how small) will be a big boost to you as it knocks another thing off the list. Taking advantage of the Holiday Inn offer is also a good tactic - means you will be saving on an essential spend!

When is pay day for you?

jonjamie1970

Exerbusi2 wrote: »

When is pay day for you?

I get paid twice a month, 15th and then the last working day.

The Capital One card was still at £1600 early February so I'm pleased. I obviously havent been able to save any money but at 34.08 % there was not point in having the money elsewhere. When this has gone my worst APR after that is 19% on the overdraft and I can clear that by 15th April I think.

Some updates, I did a check of my Experian file again today and have seen that some files have been updated menaing that it shows I am using 88% of my available credit which has dropped from 95%, happy with that, I'm told a good figure is 20% and that this available credit should be no more than half your annual salary.

jonjamie1970

steveos wrote: »

Execllent JJ...very inspiring . Seems like you have done really well with what I consider quite difficult circiumstances. It's these kinda posts that people should read if feeling some self-pity and down in the dump. It wont fix there problems..but hopefully make them feel better.

I did note one point (tongue in cheek) and have made a note to myself: ##never marry the same woman/man twice##

All the best on your journey:beer:

LOL, make of it what you will but I should have learned my lesson, but when you love someone then you cant help it, my heart rules my head every time.

Exerbusi2

That experian report sounds pretty cool - I don't have one, but will do eventually. I too read a similar figure - that your debt (other than a mortgage) should be no more than 30% of your annual salary. It was a big deal for me getting to below that figure.

The 34% card was a big drain, so to wipe out £1600 of debt on that was a really good move! Next target OD then eh?

I just checked my online HSBC account, and there are too many accounts with a 'D' next to them, and not enough with a 'C' next to them - removing my CC with bring the balance back towards where it should be!