My Debt-Free Journey - The Final Push

GirlyGirl30

Thank you both.

Mrsb83 - I very much appreciate your advice. It's already been a tough two years on that budget, so perhaps I have a bit more wiggle room now! I will do a new snowball later today and see how it looks. My entertainment is usually one night out a month with my friends - this month's is this Friday and I'm really looking forward to it! Maybe I can afford to give myself an extra night out a month... date night maybe!
I'll try to post back later with some revisions.

Skintas - Unfortunately I don't own very much, I don't even have a TV any more, I use my parents'! All that went when I moved back in at home and went to paying off debts. I do have a stack of books, CDs and DVDs which I will be going through in the next few weeks and working out what I can flog. I'm sure I have a couple of old mobile phones I might be able to get a few quid for too. I was thinking about going through my wardrobe, but to be honest I haven't bought anything new in the last two years really so most of my clothes aren't even fit for the charity shop!
I have thought about an extra job, but as I have to do out-of-hours work in my current job it would have to work around that. A bar job might be good though, socialising and tips all in one! Thanks for the suggestion, I will ask around and see if anywhere is taking on staff.
I can't get at my shares for another 2 years unfortunately, but as soon as I do that will be going towards the debt! I do love paying off big chunks it's so satisfying (but rare!!)
In my spare time I tend to read a lot of books, watch films, go running and walking and cook! I love cooking! My life is pretty full and very happy but I just feel trapped by all this debt. It's like a big weight hanging over my head constantly and stopping me from doing what I want to do - not a nice feeling but at least I know what I need to do to get rid of it!

GirlyGirl30

Well, I must say I've been incredibly lax with my diary - I haven't been quite so lax with my DF journey, although my circumstances are about to change a bit.

I posted earlier as I have been trawling the site for an answer to one of my huge fears... my partner has asked me to move in with him. No wait, that doesn't sound right! I'm incredibly happy and excited to be moving in with him, and as he has a mortgage it will just be a split of the bills that we will do. So it may delay my Debt Free date very slightly as I will be paying more bills than I currently do at home, but it's still very do-able.

My big fear was his desire to open a joint account to pay our bills out of and to do the shopping from (i.e. so we can each go shopping independently for groceries etc but use the same account). However, I don't know if I want him to be financially linked to me. I'm terrified that my debt might have an adverse affect on him should he decide to remortgage in the next couple of years. I have never missed a payment on my debts and have never had a default or anything so I don't *think* I would, but I'm panicking (it's what I do best!). If anyone knows for sure and could let me know, I would be eternally greatful.

Anyway, over the last six months, I've done pretty well. I've spent a bit more than I wanted to on entertainment, so I've tried to put a more realistic figure in there (this month for example, we've had two weddings to attend so that's why it's so high). And I've managed to get a 0% 17 month card and transfer a good portion of my CC debt onto that (I was so shocked when I got accepted!). I've re-jigged my SOA based on the half of everything I will be paying when I move in, and it's still looking pretty ok, with enough left to overpay my remaining Barclaycard.

As you will see, I have paid off two credit cards and my current account overdraft in the last 6 months and my salary has increased.

Comments/stern words/advice all very welcome indeed:

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household.........
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1695
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1695
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 45
Electricity............................. 17.5
Gas..................................... 17.5
Oil..................................... 0
Water rates............................. 10
Telephone (land line)................... 10
Mobile phone............................ 21.3
TV Licence.............................. 6
Satellite/Cable TV...................... 26
Internet Services....................... 14
Groceries etc. ......................... 150
Clothing................................ 5
Petrol/diesel........................... 40
Road tax................................ 10.5
Car Insurance........................... 39.55
Car maintenance (including MOT)......... 5
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 3
Pet insurance/vet bills................. 8
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 40
Haircuts................................ 10
Entertainment........................... 150
Holiday................................. 0
Emergency fund.......................... 170
Total monthly expenses.................. 798.35

Assets
Cash.................................... 1100
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................ 0
Total Assets............................ 2100

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
NW Loan 1......................203.2.......67.75.....0
NW Loan 2......................628.2.......69.8......0
Tesco Loan.....................1848......154.8.....0
Ex Joint Account OD............1654......60........18.9
Student OD.....................1575......60........18.9
NW CC..........................3027......70........23.9
Asda CC........................2623......78........18.9
BC.............................824.......25........24.9
Creation CC....................3500......100.......0
Total unsecured debts..........15882.4.....685.35....-

Monthly Budget Summary
Total monthly income.................... 1,695
Expenses (including HP & secured debts). 798.35
Available for debt repayments........... 896.65
Monthly UNsecured debt repayments....... 685.35
Amount left after debt repayments....... 211.3
Personal Balance Sheet Summary
Total assets (things you own)........... 2,100
Total HP & Secured debt................. -0
Total Unsecured debt.................... -15,884.2
Net Assets.............................. -13,782.4
Created using the SOA calculator at
Reproduced on Moneysavingexpert with permission, using IE browser.

Permanently_confused

Wow! You are doing so well, congratulations on staying so determined and paying so much off.

Someone very wise once told me that relationships should be entered into with eyes open and bank accounts separate. It's good advice. I know plenty of married couples who have always had their own individual accounts and it works well for them.

Keep going with your DF journey!

GirlyGirl30

Thanks so much for the advice. It's what I'm leaning towards myself as I know plenty of people (myself included) who have ended up in a mess or having rows because of joint finances.

My old joint account with my ex (pre-2008 credit crunch) just allowed my ex to continually up the overdraft limit until it was about £2500 with only my wage going into it every month and the bills coming out. He just took the money and spent it as though it was his! Obviously rows followed, but you can't get blood out of a stone (although I was sorely tempted to take some of his blood in payment for all the BS he put me through!)

And a good friend of mine added her ex to her account and he paid in a set amount each month to cover bills and expenses while she was on mat leave. It just caused endless rows when he could see she was spending the money (i.e. "what did you need that £30 for?" etc). When they split she had real difficulty removing his details from her account as he wouldn't consent to it.

Maybe I'm better just suggesting I pay him a set amount each month to cover the bills and we do a weekly shop alternate weeks?

By the way, thank you for being so encouraging about what I've paid off so far. It's around £5k, so I am on target for 2 years if I keep it up. It just doesn't seem fast enough!! I cannot wait until the end of the year when it will be under £10k

Maybe a long lost relative could die and bequeath me their estate? Or a lottery win? Just 5 figures, that's all I need, I'm not greedy...

mrsb83_2

£5k is an amazing achievement! And congrats on your living situation - yes it may extend your DFD a bit, but life is for living and you'll still be maing excellent progress. Since I last posted on your thread my monthly payments have gone up another £100 and my DFD is very close - you never know what'll happen with salary or expenses is my point, so there's no purpose to putting life on hold whilst you have debt.

Hate to say I told you so but I knew that entertainment budget wouldn't last long!

Glad to see you're so positive and that things are working out for you. Good luck!

GirlyGirl30

Hehehe! It's ok, you can say "I told you so", you were right!

It was fine when I was single, and over the winter when I didn't really go out and do much, but now my social life is a little busier and to be honest I do think I deserve a little break! It's the first time in a while I've felt like I've actually deserved to enjoy my money a little bit, instead of throwing every spare penny at the debt.

Looking at your auto-sig is amazing though! That's seriously impressive what you've done in such a short space of time. It does give me inspiration and hope that I too can do this. Hopefully the 0% balance transfer will help me a bit. It's nice to know that what I'm paying on that card is actually bringing me closer to my target more quickly, as opposed to mostly being interest.

One of my loans finishes in Sept and my student loan will be paid off in August (effectively giving me a payrise, whoo!). The other loans don't finish until next April and June respectively, however when they do I should have a reasonable amount of extra income available that can really make a dent in those expensive CCs. Maybe then I can pull my DFD a little closer...

mrsb83_2

It's actually hard to believe that I'll be DF come September...

It was really hard work there for a while, but now it's just second nature. I can honestly say that the whole experience has changed my life. I'm so much happier and in control, and I've really educated myself about personal finance.

Before you know it you'll be attacking those CCs - I found that really satisfying!

GirlyGirl30

It's an absolutely monumental achievement and you should be so proud of yourself! I can only imagine what it's going to feel like when that day comes

I'm already 100% happier than I ever was before, when I had such a huge amount hanging over my head. However, it's never fast enough for me - nothing is, I'm so impatient! I always had it in my head that I would be debt free by the time I was 30. And I won't be, but I keep having to remind myself that I've already paid off over £20k so a little bit further will take me to my goal.

Sometimes I get a bit down (which isn't like me, as I'm naturally a positive person) when I think about the things I could've done if I hadn't been so stupid. If I'd just kicked that loser out after 5 years instead of 10, I would probably be debt free by now. I might own my own home, who knows where I would be. But on the other hand, I know myself a lot better now, and I do believe that everything happens for a reason.

I was bought a bottle of champagne for Christmas last year. It's sitting in the cupboard waiting. It's my DFD champagne and when I reach my goal I am going to open it. There's nothing I want to celebrate more, and for that reason I need to keep going, no matter how I feel - and those bubbles will taste amazing.

NewLeaf_2

you are doing amazing. i can't wait to be where you are

GirlyGirl30

Thanks NewLeaf. I'll admit I've read your diary and if anyone can clear those debts then you can! You sound like an extremely organised and motivated person - something I am sometimes and need to be ALL the time!

Anyway, something happened to me today that has never happened to me before in all my life.... I had a letter from my Natwest Credit Card telling me they're DROPPING my interest rate! Eh?! I only ever get letters telling me they're hiking it up and to stop that I must never use the card again, blah blah blah (yeah, like I haven't used it in 2 years!). But no, they've suddenly decided to drop my interest rate to "offer me more flexibility". Well. I. Never.

Ok, they've only dropped it from 23.9% to 21% but it's still a drop which is incredible!

Apart from that what have I been up to this last week or so? Well I've been PAD-ing my Barclaycard a fiver a day and I have had a massive clear out. My university text books will be going to Fatbrain.org (they offered me sixty quid for one of them!) :O and lots of my beloved shoes are going to the charity shop. That's pretty much it. Have spent nothing this week and didn't go anywhere at the weekend so apart from a bottle of wine for me and my lovely mother I didn't spend anything then either.

I'll get there in the end!

Hope everyone's ok if anyone's reading my ramblings!