The Seven Month Challenge

Redthirteen

I have been living in debt for years which has meant I've not saved anything at all. I have a £2000 overdraft which I constantly use, and I never leave. I have a credit card which I have debts of £1400 on. I also owe my parents £2300.



That's:

• £2000 overdraft
• £1400 credit card
• £2300 parents

Total: £3900

I currently earn £18556 a year or £1546 a month. After tax, pension, gym membership (from work) is £1210 a month or £14520.

My debts equal 27% of my take home income.

I aim to severly cut these debts over the next 7 months.

I have two major options: one is to save more money. A second, less feasible option is to increase my income but that is more difficult. My biggest problem is not managing what I currently earn.

My plan will run from December until June. 7 months to dramatically reduce debts.

Overall Goals

1. To be fully accountable in my expenditures
2. To stop paying any interest on debt
3. To have a plan to repay credit debts in 7 months

December Goals

1. Plan a December budget and stick to it
2. Track EVERY expense made during December
3. To decrease my debt by the end of this month by £200
4. To get my Superfund back

I will update this diary twice weekly to make sure that the goals are being met and that I am on course to reach my monthly and overall goals.

Next post: I will have a budget in place by tomorrow for the forthcoming month.