Enjoying the journey to becoming debt free - paying back the credit cards

HOK3Y

Hey Fedup, would love to see how far you've come in the last year. Will keep an eye here for your numbers and happily join you in a victory jig!

fedupandskint

Here is my yearly update as promised

Below is where I was one year ago

fedupandskint wrote: »

Still the thought of how much debt I owe nibbled away at my mind, knowing how much I owe on a long term loan which has 2yrs to go and the credit cards full of debt. As I faced up to so many parts of my life and changed them for the better I'm now at the point where I know, I need, I want to and will repay these debts to achieve my aim of being debt free from CC and having my money for myself.

This is the focus for this diary - repay the credit cards and improve my credit rating from satisfactory to good.

What's going to help me?

1. Work out a repayment plan
2. Contact the CC companies to ask them to lower the APR and possibilities of a BT - no chance at the moment, doesn't hurt to ask
3. Rejoin NSD challenge - it helped me before
4. Set monthly and weekly budget for food shopping
5. Write a shopping list for each week and stick to it
6. Eat the food I have in the cupboards and freezer
7. Write a list of things I don't need at all and keep it handy to remind me
8. Don't buy any clothes or shoes at all for the rest of Sept and all of October
9. Remember I don't need any skincare, haircare or make up until I have run out
10. Continue low cost exercise - its worked to get me here and remember I did it without joining a gym and paying for that

This is where I am now

• 2 credit cards closed down
• 1 card on 0% APR until March and July
• 1 card 25% on 0% APR and 75% on 28.9% APR
• In 12 months time the long term will be paid off and I will have the cashback payment in my bank account
• Overdraft repayment plan 50% paid off - 2 more months to go to get back in credit
• Saving for insurance, Christmas, birthday, car pet and healthcare budgets and costs
• Set food and petrol budgets
• Daily completion of NSD challenge per month - gone from 7 NSD per month this time last year to 30 NSD last month
• Sticking well to clothing budgets and have 4 no clothes spend months under my belt

Total debt owed in Oct 2012 = £16207.69
Total debt repaid in 12mths = £5699.79
Total debt owed in Sept 2013 = £9904.92

In 12mths time:

• £3000+ will have been repaid to the loan and it will have been repaid in full
• Aiming to pay off at least £3000 of credit card debt
• Close one more credit card down
• Shuffle all debt onto one long term 0% credit card deal in 6mths from now
• Continue all budget plans and stick to them
• Continue savings plans as now and add extra
• Get back in credit and stay in credit from that point

Well, that is a lot of excellent progress and I can see the light shining at the end of the tunnel. A year ago that seemed a long way off, 6mths later I could see the progress I had made, 12mths later I can see the end point.

In a year's time I might have reached this point and if not I will be very close to it and I'll be happy with that.

fedupandskint

Check me out what a saturday night!

Nothing exciting, just half the housework done while feeling at a little loose end.

Chrysalis1976

wow that is amazing progress, you should have a mse toast of congratulations of just a bit of toast! So pleased for you, well done.

C x

fedupandskint

Chrysalis1976 wrote: »

wow that is amazing progress, you should have a mse toast of congratulations of just a bit of toast! So pleased for you, well done.

C x

Thanks! I did have a slice of celebratory toast this morning!

fedupandskint

A busy morning

Windows washed
Long dog walk
Washing done and on the line
Ebay relisted and 8 more listings added
Butter bean soup made for freezing and lunch

Will be having a lunch break and then decide what to do this afternoon - floors and long dog walk, HHI, get work stuff done, fill out PPI form

A NSD here today making it NSD 8 and no clothes spend day 8

fedupandskint

All done from the above apart from floors

Relisted all items plus another 8 this time around, need to take some more photos next weekend ready for the next free listing weekend.

Friend popped around for a chat, PPI form filled in ready to send off this week and butter bean burgers made which used up the rest of the pack of dried beans.

Out of one bag 10 portions of soup and 4 cheesy bean burgers - not bad considering how long they had been in the store cupboard along with using up the last of a bag of curry powder which had also been in there a long time. using up the stocks in going well over the last few weeks which is a good result there.

Ebay sales parceled up ready to post and work stuff ready to go. Still feeling tired and snotty again so will have an early night as there's no way I want another cold, virus or infection after the last 12mths

fedupandskint

I've just a great idea that never occured to me before - to use the monthly payments for water and council tax to pay off credit card debt once the breaks come in after they are paid off for this year. This will pay an extra £240 towards the repayment of this debt, along with the repayments I currently make.

While working out some figures for repayment I have worked out I could get the total credit card debt down to under £2000 from where it is now. It's another hard year ahead but to get to that point in 12mths time will be more than worth it. It might well be another hard year with little disposable income and so on but to get there will be some result to have paid off £14, 000 in 24mths. If you'd have told me that this time last year I would have snatched your hand off while not believing it was possible to do it.

Well, it is possible. All you have to do is take that first step and face up to it. Face up to what you spend, what you owe and take it from there - any steps are progress and its better than sticking your head in the sand like I did for all those years. Do it sooner rather than later, take a deep breath and be brave. If I can do it so can you. And, it is possible to pay it back.

You know all those people that talk about eating baked beans and other frugal meals to cut back to pay debt off, well I never thought I would do that. Guess what I have? What's the point of having food in the cupboards and freezer if its not eaten? None! Get it eaten and stop spending on food you don't need - it works and the end result of paying the debt back is more than worth eating meat for every meal in my opinion. I have to be creative with my meals and the food budget but I'm managing and it is worth it to the end of this debt repayment plan. Another 12mths and I will nearly be at the point of paid it all back!

fedupandskint

A very very boring training day at work today - hey ho so feel very tired after being stuck in a stuffy room all day

Happily a NSD though today which was good as I took all my food and snacks with me as usual and didn't need to pay for parking either.

Letter received about another PPI investigation I sent off a couple of weeks ago looking like will take 8 weeks to investigate and then let me know the outcome.

Not much else to report apart from looking forward to picking my new door at the weekend and get this week out of the way, it will go quick this week as have a lot on with another training afternoon at the voluntary work place then a long day at work and an afternoon off on Friday which I'm looking forward to!

Might do a bit of finances work this evening to firm up where I will be in a few months time as its nice for me to have something to aim towards

NSD 9 and no clothes spend day 9 - no clothes spend days are going well at the moment, makes it easier when I have no pennies to spend!

Chrysalis1976

What great words, paying your debt a little at a time can be a long journey but as a well known sports brand keeps advertising on my fb page take a few steps, then add a few more, keeping adding and eventually you'll achieve what you thought was impossible.

That's the gist of it anyway, good thinking r.e. council tax and water we pay our tax over 12 months anyway but certainly we should use the free months where we don't pay water.

I'm stuck in the office all day tomorrow so I feel you today, must get out for a breath of fresh air!

C x