2014 Debt Busting - 37.4% clear

mr2jay

Another year, another attempt at becoming debt free....I did make good headway back in 2012 but since then, we have a new daughter arrived into our lives and things slipped quite a bit. Not only that, I lost my job and things have slipped quite badly.

So, time to grab things back.

Now working in the big smoke which, although takes a lot of my time with travelling as well as 45 hours a week, is actually giving us a chance to get on track. Rather than trying to tackle everything, I am breaking this down into urgent debts first, ignoring the overdraft for the time being and concentrating on the main debts and other bills that come in. In my mind, as soon as a bill arrives, it becomes a debt - not a nice way to think about things but at least it means I ensure that all the debts and bills are accounted for....

So, what do we owe? I am going to start this from where we were at the beginning of the year. We managed to get one month behind on the rent as well which, as we have calculated, will take us 3 months to clear off. As a result, I have calculated the TOTAL rent arrears at 3 months (the time it takes us to get back on track and in advance again).

So, what do we owe?

Rent Arrears - £2385
Council Tax - £125
Eon Energy - £346.66
Anglian - £211.74
Car Loan - £1200
Lloyds Credit Card - £4370.36
Personal Debts - £1100
Wage Advance (To Start Work) - £400

Grand Total - £10,138.76

As I say, that is based on the balances from 1st January 2014.

Now, I started work on the 13th January 2014 so in effect, I have now had 6 wage packets through the door. In this time, I have now cleared off £2620.75 from this, making a new total of £7518.01 left to pay - not bad going

The trouble is, I know this is going to grow as I'll be adding in the 2014-2015 Council Tax bill, there will be interest on the credit card and more utility bills in so although it looks like I can hit this really hard, I have to be realistic. I am hopting to have all of this cleared, plus the additional by August this year.

As a rough estimate, I am looking to pay back around £400 a week spread across bills - This leaves enough to cover my travel expenses, food and general living expenses.

So, wish me luck. Time to make a difference

Magsnoodle

Hi mr2jay,

Good luck with your plans. Looks like you and I had the same idea to put a new post on here today. If your OH is on board that will definitely make it easier and with a battle plan and determination you can do it. Have you looked at whether you can get the interest rate down on the CC or is it as good as it gets? Lloyds are not always that great - my bank I should now.

Good luck and welcome

mr2jay

Thanks Magsnoodle

At the moment, we are just keeping the credit card in check as we do want to keep this one going as a "Just in case" source. So we won't rock the boat there. Thankfully the interest doesn't actually equate to much so I think the rate is pretty good

The OH is definitely on board, she loves to see the numbers go down and each week is making her feel a little better about things. £10k is a big number no matter which way you look at it but it isn't insurmountable

We'll get there, I'm just grateful that I have the capability to make sizable dents each week

mr2jay

So Friday is my payday and Friday is the day I pay things off.

Been a bit slack this week - too many other things to pay (such as mobile phone bill and tv license) but still managed a cool £250 off the debts.

Will get there but weeks like this are frustrating as I can't wipe off as much as I would like

mr2jay

Another Friday, another hit off the bills....

A good one today - grand total of £431.66 today

Hitting them hard again

in_need_of_direction

I'm so impressed at your progress so far. Will lurk and see how it goes but you've already knocked more than a quarter off your debts. Amazing

mr2jay

Thanks - just updated my figures though. We have just had the next council tax bill through which has knocked the totals a bit

Oh well, can't avoid that one. Planning to obliterate that one. I don't like the powers they have over you if you fall behind

mr2jay

Yet another Friday

Added on the interest to the Credit Card and adjusted the figures to suit....

Managed another £325.99 again this week - over 30% paid off now

mr2jay

Woohoo!!!

Another Friday!!!

Another £350 paid off

mr2jay

WOOHOO!!!!

Another one paid off!!!!

Anglian officially gone now

Another £330 off our total today

mr2jay

Feeling a little frustrated this morning to be honest with you all....

Despite getting another strikethrough on my debt list, all I can do is sit here and think "I am 3 months in and only cleared off 2 of these debts" It's true that in these 3 months, I have now cleared over £4k from my total but I am starting to feel a bit frustrated about the numbers....

Been looking at my spreadsheet and unfortunately I can't really see any way I can improve on this either. I think on average I am clearing £350 a week, sometimes a little more when I can afford it, sometimes a little less when I can't. I think what is getting to me is that I am paying a little off a load of things rather than a lump off one. As a result, the numbers don't seem to be falling as quickly as the total suggests. I know that they must be coming down but I keep looking for those little dashes in my spreadsheet indicating a debt busted and only spot 2.

It's purely psychological - if you look at the debt total and the amount paid off, overall we are talking about 36% clear which is not to be sniffed at.

It is so tempting just for one week to go "To Hell with it, let's go shopping" but we are both being strong. On the one hand, I feel like I am working my backside off and have nothing to show for it but falling digits on an electronic piece of paper but if I am sensible, I have to realise that I already have had this life I am paying for, I'm just paying for it later.....

This is hard, there is no getting away from that