Debt free by Christmas 2013!!

timetogrowup89

I haven't got as much debt as some of the people here do, but its a lot too me, so I am starting a diary today and ending bad spending habits now!

I started my debt free mission this month and have taken lots of extra shifts at work so that in April I can make big overpayments and give myself a big boost to start me off!

I was hoping christmas 2013 would be my DFD but after phoning the student loan compnay yesterday this might of changed.. No idea how all that student debt added up!

So here I am, day 1 of the diary and Ive gotten up early, cooked tonights tea so its ready for getting in from work and made an extra payment of £20 that was meant to be spent on a bottle of wine and curry last night, but due to the snow I couldnt be bothered going to the shops. Maybe it will snow the first week after payday every month and then I will clear my debts quickly haha..

Good luck to everyone else on their debt free journey

x

beanielou

Welcome to MSE
Happy shiney new diary
You will soon be free of the two smallest debts which will give you a great boost.
Keep posting!

timetogrowup89

Today I was up nice and early to push on with the debt free road..

-made a shopping list, not sure how this will go at supermarket as usually throw everything in. Not really sure how to set a shopping budget as actually have no idea how much I spend on groceries due to going shopping randomly, sometimes 2 or 3 times a week.
Taking clubcard vouchers with me, another thing that I never use..

-Taking £5 in 5p's to the bank then making this as an extra payment to my store card, along with another £10 that I found in between my many cards in my purse. Still can't get my head around taking £5 into the bank to put into my account, wondering if they will think Im stupid.. (obviously they wont, I think I just need to change the way I think about money and see £5 as more significant)

Anyway after this plan to bulk cook (scary) and freeze meals for the next week. Then should be able to have some no spend days as will have all I need..Not sure about having all I want tho as you never know what temptation might be thrown up!

Have a nice day all

x

timetogrowup89

£15 paid to store card and seeing that it only has £15 left has made me feel like i MUST pay this by the end of the day, so going to make sure that these clubcard vouchers are put to good use. Im determined to save £15 at supermarket now!!

x

timetogrowup89

Store card paid off!! Debt one gone!! Bring on payday x

beanielou

Good news on the store card.

timetogrowup89

Who wouldve thought paying back could feel like an achievement. Looking forward to getting more scored off!! Lots more overtime for me i think....

shinner

Well done you. i paid £8.20 off a card today as i had that left in my account silly amount but took my balance below another £10 lol. Next week going to pay £1 a day off each card going to be my reward for no smoking lol. Keep up your good work
x

timetogrowup89

Well done, any payment brings it down a bit..

Think the store card people thought I was mad.. "You do realise you paid £15 this morning" hahaha

I quite like the idea of a payment a day, like a daily achievement. Everytime I resist something I was going to buy might pay that off debt instead.

Not sure what to tackle next? Family is really important one, but the other ones are so much smaller that I could probably clear them in just a few months... Dont want to tell my family about this situation Ive gotten into.

Other dilemma is that I would liek to buy a house in the future, maybe 5 years time and cant decide if my student loan is a debt I should tackle before a house deposit or do I let it just come off my wages for the rest of time?

Hmmm, got time to decide while I pay the rest of the debt off I suppose.

How long have you not been smoking for?

x

postingalwaysposting

Hi TTGU, I saw you post on another thread and thought I would come and find your diary. Huge congratulations to losing your first debt :j I have put some points below about your last post... Hope they help.

timetogrowup89 wrote: »

Not sure what to tackle next? Family is really important one, but the other ones are so much smaller that I could probably clear them in just a few months... Dont want to tell my family about this situation Ive gotten into.

The general feeling on DFW is that you pay the min on all your debts but overpay the one costing you the most interest. Therefore if you were paying your family £10pm @ 1% and a the CC £20pm @ 3% and you had a £50 overpayment to make you would chosse the CC. Only tell the family what they need to know. If however you are not paying them anything maybe you should reevaluate that. Have you used the snowball?

timetogrowup89 wrote: »

Other dilemma is that I would liek to buy a house in the future, maybe 5 years time and cant decide if my student loan is a debt I should tackle before a house deposit or do I let it just come off my wages for the rest of time?

If I am correct Martian classes a student loan as a 'better' debt. By this he means that it is such low interest and one of the best forms of borrowing out there. Therefore it would be a good idea to let that one run its course and not overpay. I think it also shouldn't effect your chances of mortgage as it is not taken into account on your credit score. Don't quote me on that but what I have read seems to indicate that...

Edit - Read this 'should I pay off my student loan' article written by Martin.

So if I was in your position once you had made it debt free I would just bumble along paying your student loan from your wages and save, save, save! Don't forget when you start saving you then have to become saving savey

Take care and good luck with your remaining debts, I shall be following your progress!

timetogrowup89

Thanks for your advice..

The family loans are interest free. The larger one has an agreement that I will pay £100 a month minimum which I manage fine.

Both other accounts are with DCA so no interest being charged. I guess I will just need to make a decision on payday of how much goes where.

Just about to read the link about student loans now

"When you start saving" hehe. Makes me feel funny, never thought I would hear that in a conversation to me.. How things can so quickly change