Nearly Debt Free, Just a Final Push!

Ok so I have been reading these boards for a long while, and now I think?! I finally have my debt under control I am brave enough to post myself! Sorry its a long one

Basically I left school at 16 and got a job, money was a novelty! Each payday I would go shopping and then it would be a long wait for the next one to come around. My parents never asked me for rent, and I never even thought about saving.

I turned 18 and passed my test, drove in an old banger for a year then saw a second hand car I wanted and took out a loan, was surprised how easy it was to get! Then came the credit cards, and a consolidation loan in the next few years.

I finally had my LBM about a year and a half ago. I want to start being more independant, get a mortgage etc with my partner. I had around 10k worth of debt at that time, plus I had a brand new car on finance. I realised I had to do something when I was refused for another credit card to do a balance transfer. I had 5 active (not all with balances on) at the time, and a personal loan as well. Things were very tight indeed.

Unfortunately my Nan passed away last year. I got 13k inheritance. It broke my heart to have to use the money, but I used 5k of this on the biggest credit card debt. As I was paying the minimum of approx 100 each month but getting nowhere. It disgusted myself that her hard earned/saved money had to help bail me out, although it has helped me out tremendously with the rest of my debt, I feel ashamed that I let it get that bad. If I had no debt, I would be looking at property by now, possibly could be a homeowner.

So now my exisiting debt is this:
Lloyds TSB Loan - £145 (has been £156pm but this is my last payment then its gone forever!!)
Tesco CC - £900 - Usually £50pm
Barclaycard CC - £1900 - Usually £200pm
Toyota Car Finance - Approx £6k including the final balloon payment which I am planning to refinance in Feb 2012 with Toyota when the car is 3 years old. I currently pay £191pm

I have just been awarded a backpayment of salary and some bonus at work this month. So I have got approx an extra £1000 than I would usually get. So my plan is to pay £800 off of the Barclaycard, and £200 off of the Tesco. Then I have my loan and my car finance payment. I now pay rent which I have also budgeted for. So in total that is approx £1400 I will be paying towards debts. That is more than I usually get paid!

From May payday I can pay around £600 towards my debts which should clear the CC's by September. And then from then I can put the money back into my savings instead. I know I have to take it a month at a time but I just cant wait to be debt free apart from my car! As I havent been debt free since I was 18 (6 years ago!)

So thats me, and my story, thanks for reading if you got this far! Just feel better by getting it all off my chest!

Sally x
Slimming World Member - Started 05/02/15

Replies

  • Sally22_2Sally22_2 Forumite
    677 Posts
    Just wanted to add, I can imagine that some people may ask me why I am refinancing the car and not giving it back and getting a cheaper one. Well my argument is this. Its a Toyota IQ 1.0 and the tax is FREE, the insurance is 450pa and I get 50mpg out of it. Also it has the benefit of being brand new and I have had it regulary serviced as per the guidelines.

    I have looked at cheaper cars but they wont have the reliability as my Toyota does, the insurance and tax will be more expensive and I wont get the same MPG. I also have the benefit of owning it since new, and know it has been treated well. Im very happy with my little Toyota and Im going to hang onto it for as long as I can :)
    Slimming World Member - Started 05/02/15

  • BILLIEBILLIE Forumite
    1.3K Posts
    Part of the Furniture Combo Breaker
    Sally, I am going to start by saying Well Done and secondly be careful. You are right in what you say that having to use your Gran's savings broke your heart, but she would be delighted to think that you had your LBM through it. BUT now is the hard part - once debt free make sure you keep your promise to stay that way and as you are not yet 25 that is going to be the hard part. I am due an inheritance shortly, don't know how much, but that is paying of as much debt as possible. My debt has accrued through life's hard blows. There is no new car (and don't think I am knocking you there because I am not), but once the debt and mortgage have gone that is where I intend to stay. You have the luxury of being able to save for the future, I am much older and some would say should know better, but none of us know how the wind of change will blow. I really do mean Well Done and Good Luck for your future. You can do it and I hope with you Gran in mind you will. Take care Billie xx
    :j I belong to Mike's Mob :j
  • Sally22_2Sally22_2 Forumite
    677 Posts
    Hey Billie, thanks for the post, Your right, Im just glad that I have got all this out of the way before Im 25, Ive had the new car, Ive had the extravagent lifestyle, the newest material goods, Its just not what Im into anymore! It really has changed my whole mindset towards money.

    xx
    Slimming World Member - Started 05/02/15

  • May2013May2013 Forumite
    423 Posts
    Wow Sally, what a set of circumstances!!
    A big well done on confronting your debts, you seem to have a plan in place that will allow you to move your life forward...I'm sure your Nan would be proud to think that her inheritance has helped you on that route.

    I understand where you are with the whole car thing, my daughter has a similar set up with her Peugeot 106, at the time we were worried sick about the commitment she'd taken on but it's proving to be much cheaper to run than her old car and that's including the finance.

    I would agree with Billies comments, try not to forget the enormity of this life changing gift that your Nan has left you...
    Sally22 wrote: »
    Unfortunately my Nan passed away last year. I got 13k inheritance. It broke my heart to have to use the money, but I used 5k of this on the biggest credit card debt.

    ...never forget these words, be true to what they say and you won't go too far wrong.

    Good luck...I look forward to following your story x
    LBM Aug '07 Debt [STRIKE]£52,615[/STRIKE] :eek: DEBT FREE Aug '12 :j
    Cap One CC £[STRIKE]5000[/STRIKE]/£0 - HSBC CC £[STRIKE]7500[/STRIKE]/£0 - HSBC Loan £[STRIKE]12,225[/STRIKE]/£0
    M&S CC £[STRIKE]11,500[/STRIKE]/£0 - Egg CC £[STRIKE]8750[/STRIKE]/£0 - Sains CC £[STRIKE]3000[/STRIKE]/£0
    HMRC £[STRIKE]3140[/STRIKE]/£0 - OD £[STRIKE]1500[/STRIKE]/£0
    Pay off ALL your debt by Xmas 2012 £14,128/£14,128 :j
  • Sally22_2Sally22_2 Forumite
    677 Posts
    Thanks for popping by May, appreciated :)

    Well I have just paid £1000 off towards the credit cards so thats going to be great when the figure updates! Just got to pay my rent, the final payment on my loan, my phone, and my car finance! But they are all direct debits. My OH does owe me £100 as I had to bail him out last month so will get that when he gets paid after the Bank Holiday.

    Going to sort my sig out now I think...
    Slimming World Member - Started 05/02/15

  • Sally22_2Sally22_2 Forumite
    677 Posts
    Havent updated for a while! I have updated my sig, under 2k to go as of 5 mins ago! My final Lloyds loan payment came out today which is such a great feeling! So that £156pm can now go on the CC debt. Found an old NS&I investment account book I had, which had £60 in it. Not much but I have applied to withdraw it and just paid that amount off of one of the cards.

    So pleased its nearly all gone, just got the car finance to sort out after that but Im hoping to refinance that in January with Toyota against the car. :)
    Slimming World Member - Started 05/02/15

  • Sally22_2Sally22_2 Forumite
    677 Posts
    I used to do Usborne and have loads of books under the table from my stock that has been siting there for at least a year! Tried ebay and Amazon but was really struggling to sell for what I paid for them. So I have decided to finally cut my losses and I would rather get something for them now than wait around for them to go at a higher price

    Sold £32 quids worth already so when I get the money for them that will go onto the credit card as well :)
    Slimming World Member - Started 05/02/15

  • Sally22_2Sally22_2 Forumite
    677 Posts
    Just updated my sig again. Sold another £4 quids of books so will update when I have the money and its banked!
    Slimming World Member - Started 05/02/15

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