Just Advice

Tixy

Hi Terry - as RAS suggests you really need to try to work out where the £660 suplus is going each month - are you currently paying more than the minimum on either card? if so this would account for some of it. If you don't know where else it is going try keeping a spending diary for a couple of months where you write down everything you spend.

From what you have put so far I'd guess some of it might be going on socialising and other entertainment (like hobbies etc)? Other areas people often forget to include are things like magazines and newspapers, takeaways, lottery tickets, cigs etc.

Once you know what you truly have left for debt repayments that should help you decide whether its worth trying to get a new 0% card or whether it won't be any cheaper than paying off the cards you have now.

I'd also try to cut down on your clothing spend if you can a little. Also is the car maintenance figure right? it seems a lot for MOT, servicing, tyres etc given the amount of petrol you use (and so mileage you are doing).

TerryTorque

Hi Y'all.

Well I ain't there yet but have been overpaying big time on the loan, so much so that Tesco have sent me a letter today telling me I have just 1 payment of 28.33 to make. That's be paid off 3 years early and it feels good, although to be honest still a bit strange, perhaps the euphoria will kick in when the last payment has gone.

Just 2.7k on the credit card remaining now.

I know this is nowhere near as big an achievement as others have but I wanted to post to give those starting out belief that it can be done. Especially those who throw money away like I did.


And of course massive thanks for all the advice.

Mara_uk7

WTg Terry ! Lovely to hear a good news story. Keep up the great work, You will be debt free in no time ! :beer:

quantic

Good going fella! Now just the credit card to go. Well done :-)

Trajal

Terrific stuff, I love reading stories like this.

There may not be any particular "euphoria" but you can smile contentedly to yourself and realise your accomplishment.

barlafumble

Really good to read about your success, well done!

TerryTorque

Debt free as of yesterday with money in the bank after making a final payment of £777.12 on the credit card. :beer:

Still doesn't feel real. I think next month when I have no payments to make I'll be really buzzing.

Looking at the timings of when I first posted this I think I could have cleared it within 12 months but it took me a while to get going.

Just want to say a big thanks to everyone who helped, posting and reading on here gave me the nudge I needed to finally pull my head out of the sand and start thinking about the future. :j

To anyone who is starting on the road - believe and you will get there.

I have a final question though if someone could help. I have the credit card still - not cut up but haven't spent on it since I got it for balance transfers nor will I be tempted to. It has a credit limit of 7.5k on it, I may keep this but I don't really want to.

The only reason I will to do is to maintain credit rating - at the moment it is excellent. If I did do this would it harm my credit rating by reducing the amount of credit available or similarly if I kept it at 7.5k could this be looked at negatively by mortgage providers?

The only other payments I make are phone bill at £20/month, gym £30 (although don't think this is a credit agreement as such), current account fee £10, phone insurance £2.99. Do I need to look at ways of maintaining score?

heartbreak_star

Congratulations!

I'd say ask them to reduce it a bit - lending companies have no idea if the card is paid off or maxed out I don't think.

HBS x

joedenise

In order to keep your credit worthiness I would put a relatively small spend on your CC each month and pay it off completely. When you need credit again creditors will see that you use a card sensibly.

Denise