Alcohol free and focussed 27 January 2014 at 11:49PM edited 28 January 2014 at 12:41PM in Debt free diaries 12 replies 1.1K views

FiNakoma

Hi All,

Starting a diary of things will check in from time to time.

Here's what I owe

Tesco Credit Card = £2,384.15 (9 months interest free left)
Barclay Credit Card = £4,135.50 (Paying 22% interest)
HSBC Overdraft = £1400 (Paying interest not sure how much)
Student Loan = £3494.26
Ride To Work Scheme = £326

Action I've taken so far

- Added up my debt so I know exactly where I am
- Gone through and calculated all my outgoings
- Given up alcohol (27 days and counting to stay in control)
- Started planning and bulk cooking all my food for the week on Sunday
- Scouring all the shops for reduced food
- Ebay'd al the stuff I never use (DVD's, TV in Bedroom managed to raise £230 so far this month doing this)

I've got to the point where I've had enough of the debt. I feel physically sick when I think about it. I have a good job luckily so I can still afford rent / food and still pay off a decent chunk off my debt each month.

Any advice support for however long it takes to get this cleared is much appreciated.

RainbowBridgeReturns

Well done on staying off the alcohol for 27 days, that is a real achievement.

It sounds like you have had a very productive month, keep up the great work and all the best on your diary journey.

FiNakoma

Update

- Sold Halloween costume not needed £10
- Sold 32" LED in bedroom no longer needed £170
- Sold WD Live TV £40
- Balance transferred from Barclays to Tesco card which is 0%
- Set payments to the 0% card to minimum
- Pay day next month I'll pay off what I have left over (so paying the maximum I can off the highest interest card)

I'm trying to think of ways of making extra money. Possibly thinking of doing some up cycling stuff and make a small project out of it.

I can't be bothered with the internet stuff earning pennies a click.

I've budgeted myself £35/week for food. I eat pretty healthy and don't want to remove cut back much more. Last 2 weeks I've bulk cooked all my food for the week. Means I don't need to go shopping or snack in shops its all done. Also I list out exactly what I need for the recipe not wander round grabbing random things that I don't need.

Any ideas for other ways of upping income that don't involve penny schemes?

FiNakoma

Since last update

- Sold DVD's £12
- Sold Ipod £52
- Sold some old clothing £6
- Agreed repayment plan for some money owed to me £50 direct debit set up
- I've been living out my cupboards and freezer buying essentials only E.g. Milk and some fresh vegetables.

- I'm still not drinking
- Found out the interest rate on my overdraft is 22% variable and it averages costing me about £12/month for the facility (at least I know where i stand)
- Figured out when all my bills go out every month
- Paid off £1125 off my Barclay card this month and £29 off the Tesco interest free

Tesco Credit Card = £4469 (9 months interest free left)
Barclay Credit Card = £1000 (Paying 22% interest)
HSBC Overdraft = £1400 (Paying 22% interest)
Paid off since Jan 1st = £1300
Total = £6869 reduced from £7919


Excluding other long term debt (0% or low 1.5% interest)
Student Loan = £3332
Ride To Work Scheme = £326 (First payment not gone yet)

By pay day on the 26th this month I'll be able to clear the Barclay Card so will be paying no interest credit cards anymore (Woohoo)

Next I'm debating whether to clear out my overdraft first THEN start paying off the Credit card as this is 0% interest.

laurag89

Well done on your giving up drinking, im doing the same this month.... or at least cutting right down.... it really doesnt work well with me... and I turn into a completely different person that I dont like.

Your doing well with keeping a track on everything!

Keep going

FiNakoma

I've been thinking about giving up drinking about a year now.

I gave up for 2 months before Christmas but it slipped again over that period.

I'm finding it easier and easier now. When I'm out with friends and they are drinking i don't find it too bad now. I approach it with the mindset that I'm with people who I like spending time with and I'm having a good time, why do I need anything more than that?

Its during stressed times that I most think about drink. Bad day at work or argument with someone. I don't drink for a number of reasons also not just one. Money is one of the contributing factors, however for the time being I just want to stay in control of things.

FiNakoma

Well here's a quick update and some amazing news that is going to make a massive dent in my debt !

So far since Jan I've managed to pay off £1680 roughly. Also I've only got £400 left on a credit card with interest which is the best bit so the debt isn't racking up interest like it was before. I would have paid off more however this month I've had to pay for a holiday that I'm going on in September that cost £500.

The other bit of amazing news is that I realised something today. I've been on the wrong tax code since I started my job 18 months ago. It's been on 0T emergency tax code. So I've phoned up got it corrected and the difference will e paid back in my next pay packet. So I've got 11 months over taxed pay due back to *hopefully* make a dent in the debt..

If its interest free, would you set it to pay off evenly over the remaining months or just pay it off as quickly as possible? I guess in long run it doesn't really matter.

Total Paid Off = £1680
Tesco Credit Card = £4445 (8 months interest free left)
Barclay Credit Card = £400 (Paying 22% interest)
HSBC Overdraft = £1400 (Paying 22% interest)
Paid off since Jan 1st = £1300

sassychick2014

Evening

Sounds like you're doing really well with everything. The whole no-alcohol thing is easy as pie once you've done it a few months - I've been tee-total for about 4 years now and it's great. The only pain in the behind is other people not believing you don't drink though!

With your tax rebate - that too is brilliant! If it was me I'd throw as much as I could towards the remainder of the Barclaycard and then start on the HSBC overdraft. Although saying that, how much is the interest on the interest free card once the 8 months is up? If it's more than 22% it may be worth throwing some money that way instead?

Hopefully you'll get a fair whack back though. Have now subscribed and look forward to hearing how the debt-cleaing, alcohol-free life is treating you!!

[Deleted User]

Good luck on becoming debt free and well done for giving the booze up.

Before you decide between paying off the OD or interest free credit card first, find out;

1) will the OD charge less as the balance reduces, or is it a set fee?

2) What will the interest charged on the CC be once 0% ends?

Also, if your credit rating is good, your outstanding balances and available credit (assuming when cards are paid off you are cancelling them?) are reducing - you are likely to get balance transfer from fee charging to 0% or low interest cc?

(I'm quite tired so I hope I'm making sense)

D9

FiNakoma

Domino9 wrote: »

Good luck on becoming debt free and well done for giving the booze up.

Before you decide between paying off the OD or interest free credit card first, find out;

1) will the OD charge less as the balance reduces, or is it a set fee?

2) What will the interest charged on the CC be once 0% ends?

Also, if your credit rating is good, your outstanding balances and available credit (assuming when cards are paid off you are cancelling them?) are reducing - you are likely to get balance transfer from fee charging to 0% or low interest cc?

(I'm quite tired so I hope I'm making sense)

D9

1) Yes the OD charges get less as the balance is less. E.g. I've used my overdraft ALOT and at most I've been charged £14 interest. Which I guess is where I need pay off next.

2. The interest on the Tesco Card once the 0% ends is 16.8% for balance transfers. So yes will need to throw something at this.

I will probably cancel the cards I have (so I can get the new customer advantages if I need to in the future) and get another card as a back up and just spend a little bit on and pay if off in full each month to keep my credit rating up. (Like I used to before I got in to debt and lost my job). If that's the right thing to do?

Unfortunately I broke on the no drinking front. However still staying focussed on the paying off the debt. I've had 2 drinks since New Years..both of which were at home with friends so didn't waste a fortune going out.

FiNakoma

Hi All,

Just a quick update, I've had my £2.2K tax rebate from being on emergency tax for 18 months. Which has helped out quite nicely. So advise anyone to check their pay package and see if they are on a 0T tax code to get it checked!

So I've now managed to pay off £4919.15 in 3 pay checks and a tax rebate. (I've also paid for a holiday in September)

I aim to be debt free by June 26th which should be feasible as long as nothing unexpected comes up.

I'm already thinking about what I want to do next. My list of things I'm looking to do / buy.

- 2 Industry qualifications to further my career
- Replace my wardrobe as nothing fits due to losing over 2 stone
- Start saving a deposit for buying a house next year


My current finances are as follows

Tesco Credit Card = £3000 (6 months interest free left)
Barclay Credit Card = PAID OFF ! (Paying 22% interest)
HSBC Overdraft = PAID OFF (Paying 22% interest)
Total = £3000 (Originally owed £7919.15)
Paid off since Jan 1st = £4919.15