Driving Down Debt

ThatKiss

Hello!

I've been lurking around these parts for what seems like forever, so I guess it's time to bite the bullet and start a diary to keep the momentum going.

I'm more doing the diary to keep me on track with my targets rather than for advice, although of course any words of wisdom will be heeded!

A bit of background:

I had my LBM around 2 years ago, but have since increased my debt as I needed a more reliable, modern car than the classic I was previously using day-to-day. I've kept the classic on as a weekend car, and it will become a project car once the debt has gone and I can spend some pennies on it.

By way of explanation as to why I NEEDED a reliable car - where I live, public transport is not the greatest, and before getting the classic (and subsequently learning how to drive the blasted thing!) I would spend 3+ hours a day travelling which was affecting my health as well as being a massive pain in the bum.

I'm living with my parents after a flat-share came to a natural end, and trying to focus on paying these debts while my living expenses are relatively low as a result.

Anyway...

I'm currently in debt to the tune of £8395, consisting of £1800 to Barclaycard cc and £6335 to Virgin Money cc (interest free until June 2013), plus £250 to the Bank of Mum - which I've been told I don't need to pay back, but intend to anyway.

The initial outlay on the modern car is the largest - but not the only - factor in my debt.

I regularly BT to keep things interest free - unfortunately Virgin didn't come up with an offer in the period around the last Barclaycard offer ended.

I have a third card - with Bank of Scotland - which I rarely use, though any spend does tend to go on this to keep separate from the main debt.

I'm currently paying off around £400 a month, and top this up with any spare funds sloshing around before payday - I know I could save this to build up a buffer, but it's debts first as far as I'm concerned.

I don't plan to post an SOA at this stage as, although I'm aware I could probably pay this off quicker and save some money on the Barclaycard debt in terms of interest, I'm comfortable/happy enough with what I'm paying at the moment.





In terms of targets:

• Decrease debt by at least £4800 in 2013 - By this, I mean my overall debt should, by the end of the year, be no more than £3595. This is to encourage me to avoid unneccessary spending, and to pay off additional sums where possible.
• Pay off BC in full - I want that £1800 to disappear completely, not just a chunk of it. Any extra payments will target this first.
• Cut credit limits by 50% - This will kick in once I've made enough of a dent in the existing balances. I've got far too much credit available and it makes sense to take away the temptation to use it.
• Make PPI claim - One of the reasons I don't use the BOS card as much is that it has a PPI policy against it. I need to take the bull by the horns here, cancel the policy and whack in a claim. I want to have this done by the end of January. Neither BC or VM ever had PPI cover.
• Cancel a card - Once I've cleared the balance on the BC and submitted my BOS PPI claim, I'll cancel one of the two.
• Have a holiday abroad - I've never been abroad, so this is the year to sort that out. May involve the classic car (that would be a story...).
• Lose some weight/become fitter - these two go hand-in-hand. A man of my build should not be even approaching 12st! :rotfl::rotfl:

Phew! That turned into a bit of a ramble! Thanks for reading...

ThatKiss

Oh, and I must say thanks to MSE/MSE-ers for the advice I've picked over the last couple of years on a number of topics.

Apart from car costs, my main outgoing until recently was my mobile phone, on a ridiculous £50/month contract.

I'm now paying £16.50/month and bought a new handset outright. It works out roughly the same over the first year, but given contracts are generally 18-24 months these days, I'm well on top

cazzyd

Found it, I'm a fan of cars myself, though it racing cars for me, and what you plan to do with a car is what I plan to do with a house. My idea is to get a relatively run down house at auction, and do it up....this wil need a LOT of money, and is hinged on me winning the euro millions lol.

Good luck *subscribes*

ThatKiss

Glad you found me! What kind of racing are you into? BTCC & rallying for me. Used to be really into F1 but I've fallen away from it, especially with the splitting of the coverage.

I really need to look into getting somewhere of my own, but the classic (as it will hereby be known) needs to undergo some restoration in the next couple of years, so that'll have to come first.

I like the Euromillions plan - might have to try that one myself

ThatKiss

So, my debt at the start of 2013 (Happy new year!) is exactly as it was in my first post. Total: £8395. Target: £3595. Had a slight maths fail in my first post, which I've now edited to reflect

ThatKiss

Slight setback today - I noticed the exhaust was blowing on Modern Car (The Tank) a couple of weeks ago, and took it into the garage to be checked today. New part = £525.

...so of course, I bit their hand off when they said they could do a repair to the existing part for a hell of a lot less. Still cost over £200, but some of the horses I'd lost are back, and it's a lot quieter

The bad news is that I'll also need to replace at least two tyres when payday comes around. I knew this was coming as it was flagged at MOT time, but it's a bit more painful when parting with cash is involved. I'll shop around and see what kind of deal I can get.

It's my birthday this weekend so tomorrow night is going to involve a meal and some light refreshments - I never make a big deal of it because people are always skint after the festivities, but it'll be good to get out without having to put up with seasonal drinkers.

Monday is the first card payment of 2013, so it's then I'll really see how today's unexpected payment affects things.

ThatKiss

Well well well then! How are we all?

First payment to debts of 2013 sees £200 knocked off the Barclaycard - albeit, this is the account I'm currently paying interest on, so I'm waiting for the statement to be generated in order to pay that off separate from the main payment. Should be by the end of the week.

The finances aren't in too bad shape after the exhaust repair last week, though I'm not sure how much, if any, additional payment I'll be able to make to Barclaycard this month.

I've been suffering from the lurgy over the past couple of days. I thought I might have just overdone the birthday celebrations, but alas it turned into a full-blown sweat and shiver at the same time man-flu ordeal. Seems to have been short-lived, thankfully.

I need to start thinking about how to get a bit fitter and hopefully lose some weight at the same time. I play football at least once a week, and tend to be a bit more active in those games while we have colder weather, so I'll hopefully see some effect there. I do need to do more, though.

I also need to stop being awake until ridiculous times of the morning!

ThatKiss

Ridiculous time of the morning? Check. So here I am again...

Virgin statement has been generated, but they've not emailed me yet to tell me. That will be paid next week, either on payday, or before depending how bank balance looks.

Still no sign of the barclaycard statement - I'm intending to pay the interest and a rounding payment to bring the balance to exactly £1600.

I started budgeting at the start of the month, although I'm still picking up the ins and outs of the software I'm using - and sussing out payment dates on DDs to factor these in properly.

The Tank is having a pricey month - road tax is due at the end of the month, on top of the new tyres I have to buy, and the exhaust repair. The classic's trip to sunnier climes looks like being on hold, especially since it's MOT is due at the start of March.

Once I get that out the way, there's no more scheduled until August, when the classic needs taxed, the tank needs MOT'd and both need insured. Saving for that little lot begins shortly, I guess!

ThatKiss

BC statement finally generated, so I've paid off the interest generated and a rounding payment. Sig updated to reflect.

ThatKiss

Ah, that's better. I thought I'd requested a name change just before I started this thread - alas, the email hadn't actually sent and only did so this morning. So, new name, same me!

ThatKiss

Payday yesterday, so payments made to both credit cards. And more cash than usual left at the end of the month. YAY!