Driving Down Debt

ThatKiss

Additional income came in today and directed straight to Barclaycard. Balance now £3490!

ThatKiss

Another additional income payment came in through the week, so rounded up and paid off the card. Down to £3450 now

ThatKiss

2015 done, time for a quick review. The year started with a bit of a setback, with the Tank having confirmed as dead, which meant savings disappeared into buying a new car.

By the end of March, credit card debts were back up to £6k, which was far from ideal. However, by the end of the year, this was down to £3450 which I'm quite happy with, and which means I should be able to pay off the balance over the course of this year.

Savings goals have changed a bit. From hoping to get the classic done up, savings have been built back up and are now split between a relatively high-interest account, and a help to buy ISA.

The classic is off the road for the foreseeable, and will be returned to once the credit cards are paid off.

So, goals for the year:

• Pay off remaining credit card balance
• Build up £5k towards house deposit
• Get that £250 returned to the bank of Mum!

The £5k goal here is a touch ambitious, but I don't see what's to be lost by challenging myself!

ThatKiss

First payment of 2016 as the Barclaycard direct debit was paid this morning. £3300 is now the balance on that card, though I'm hoping to lower that before I balance transfer this over to Virgin Money at the end of the month.

ETA: just checked, and with additional income this month plus what's in the overpayments savings account, I can pay off an extra £250 in the middle of the month. I had intended to let this account grow to £500 before using it against the debt, but seeing the balance tumble is keeping me motivated at the moment.

ThatKiss

Another £250 paid off today, and kicked off the Balance Transfer process to avoid interest charges in the remaining balance.

Credit card now sits at £3050, pending the transfer completing, and roughly £106 of transfer charges.

ThatKiss

Balance transfer has completed and fee added to the balance of the Virgin card. I've made a rounding payment, so balance is £3150, with payments taken on the 1st of the month on the new direct debit.

ThatKiss

Vaguely successful six weeks following the balance transfer. A trip for two to London in November was booked, along with accommodation for a trip to Manchester in June (prices massive due to high demand/lack of forward planning), and insurance for the classic paid.

As such, card balance rocketed but is now back down to slightly below where it was after the balance transfer. Should be back on track by the next payment at the start of April.

There was a possibility of being forced into buying a house ahead of schedule, but no such issues have actually arisen, so deposit funds (including H2B ISA) steadily growing. Ideally I can pay off the credit card ahead of schedule and direct the payments that have been going to it, into deposit funds.

I've also started paying a heap of regular monthly outgoings by standing order instead of manually transferring the money which seems all very organised and adult :rotfl:

ThatKiss

So the latest credit card direct debit has gone out over the last hour, and by my calculations I'm £50 behind where I was projected to be had I not paid for the London trip and the classic insurance over the past couple of months. I'm hoping that by the time I get paid on Thursday, I'll be able to wipe that shortfall out and be back on track :-)

ThatKiss

Pay has been in the bank for mere minutes, and already March's slush has been directed towards Virgin Money. Another £100 off the debt, and motoring down towards the £2k mark now :money:

ThatKiss

It's that time of month again!

Regular credit card payment isn't until Tuesday so I've kept that in my account, but made an additional payment of £250. When the regular payment comes off, I'll be below the £2500 mark on the credit card.

Getting there!