Debt Free by 30

antonia1

Right, I'm back and more determined than ever! I have a good job, a new (rented) house we're moving to in 2 weeks (eek), and there is no reason I shouldn't be debt free before I'm 30 (August 2015).

This is probably going to be an epic story so I'm going to split it into 3 - the current situation, how it all began, and how I'm going to fix it.

As it stands:
CC1 £9408
CC2 £800
OD £1343
Total £11551 :eek:

Seeing it all added up like that is quite scary, and I'm now convinced that I need to deal with it - or it'll just get worse!

antonia1

How it started.

Initially it all started at university. Being in debt was a way of life - max out overdraft, work in hols to pay it off, max in out again. Just a horrid cycle.

And then it got worse.

I got offered a job 200 miles from home and took out a loan to cover moving costs, first month living and (supposedly) pay off overdraft - loan cost £3200.

And then it got worse.

As I was proud of myself for paying off my loan, I allowed myself to continue using my overdraft, then started using a credit card to get the cashback. I really enjoyed the lifestyle, and was totally oblivious to the realisation that it wasn't my money I was using. Total debt £4500.

And then it got marginally better.

Moved home to my mum's for a new job and to save money. Debt £3500.

Then it got worse than ever.

Dad lost his job, so I started paying a lot towards household costs, and gave some money to my siblings cos they were really struggling at uni. Debt £4500.

The last straw.

My sister needed some quick cash to escape her husband and set up a home with her two children so I transferred another £5000 from my credit card to her.

Combined with general overspending since I moved out of mum's, My total debt is now over £11000.

But enough with the introspection, onwards and upwards.

antonia1

Looking to the future.

I have dreams and aspirations that I need to be debt free in order to properly focus on. These are the goals that will keep me going on my journey.

1) Marriage. My partner and I have been talking about getting married, but we both have debts that must be a priority.
2) Children. Again, we both want kids but don't want to have debt stress at well as all the other stresses that come with ttc.
3) Home. We would like to be able to provide a home for our children where we are not at the mercy of landlords who can make you move at short notice (a couple of bad experiences recently).

So, in order to fulfil my life plans I MUST be debt free. I'm 30 in August next year, and that seems like a good aim.

To get there, I will need to use money my grandmother left me (£5000, can't access until December), and put £440 per month towards my debt.

I currently get £1345 pcm after tax, national insurance, student loan and pension payments. I pay £600 into a joint account which covers rent, bills (inc phones), food, gifts for birthdays and Christmas. My car costs £150 per month in tax, insurance, petrol and my uncle is a mechanic so he sorts out repairs and MOT. Recently all the excess cash has gone on rubbish (wine, clothes, nights out, coffee etc). However, organised properly £440 of this is going on debt, which leaves £155 for spending.

I think the secret to most people's success on DFW is to post every day, and set mini challenges. So my current mini challenges are:

1) Write on here EVERY DAY
2) Last the next two weeks on the money in my purse (a little over 20)
3) Make Mon - Thurs my no-spend days

Finally, I am considering taking a 6-month break from pension payments, but this will have to wait until I am convinced that I can keep my spending under control.

DawnW

Good luck Antonia, it sounds as though you are determined, and have made a good start

rokat

Good Luck Antonia with your journey! I'm also aiming to be debt free by 30 but have a bit longer to go than you

antonia1

Thanks for the support! As you can see I have been RUBBISH at posting on here everyday. However, I have been AWESOME at moneysaving! I have literally spent £2.45 since last post (4 days ago), though that could was a waste really cos I bought a sandwich at work when I forgot my lunch.

But my mini victories this week are mostly about saying no to things, such as:
- having mum over for lunch on Friday when we would normally go out
- saying no to going out for a drink after work on Friday
- volunteering as designated driver at a Christening on Sunday so I had my soft drinks bought for me by the people I was driving, and we took my bf car so he paid the petrol

These are all things that I wouldn't have even considered doing a month ago, and even just a week ago I'd probably still have spent the money and worried about it afterwards! It might be silly cos they're only mini victories, but I'm still feeling smug as heck.

My difficulty over the next week or so is going to be a staff night out which is planned for next Friday. I've said no since it was first arranged on Monday, but I've been under lots of peer pressure to change my mind - I feel like I'm back in school. I have explained to two of my work friends that I just can't afford it, and they were really nice about it, but they suggested they'd pay for me, and although its a kind offer I'd just feel bad letting them pay and end up paying myself. So at the moment I'm staying strong. I have the excuse that I'm moving house the next day, so will have loads of last minute packing to do, and I am determined to stick to my guns!

Further ahead, June is going to be a difficult month cos I have loads going on - my sister's 18th birthday and cousin's First Holy Communion, but I'm certain I can stick to my budget. I am mostly looking forward to payday so that I can transfer money to paying off my credit card!

I heard a quote recently that "the grand essentials of life are something to do, something to love, and something to hope for". For me today, those things are:
- return some clothes that I bought last month and haven't worn
- the feeling of knowing that I have taken control of my circumstances
- that the online clothes company repay my money quickly so it can go straight off my credit card

antonia1

Also, a few more decisions I've made:

Pay off CC1 first as this is the same interest as my OD and less than CC2. I think if I pay off OD first I will always have the temptation to spend the money if it is available in my bank, whereas I have a strict no-CC rule now.

Get fit and thin! I can't believe how much I've let everything slide in the last year, I'm now 2 stone heavier (I think) than I was this time last year, and I just need to be more organised with my meals - which will also help with cutting down spends on food.

No more drinking. My bf had too much on Sunday, and I think its the first time in years I've been totally sober when dealing with a drunken person - I don't EVER want to be in that state again, and I think cutting it out altogether is the best option, especially when combined with my moneysaving and get fit plans.

I will also update my debt totals on my signature once a month. That way it will feel like I'm getting somewhere and gives me something to really look forward to at the end of each month.

I am also trying to decide whether to take out cash each week and then have a savings jar for leftovers which will get paid straight to the credit card, or to just leave it all in my bank unless I need something - if I really want it I will be bothered enough to go to the cash machine. Hmm, I will post the dilemma on the main DFW board later to get some input.

misstara

Hi Antonia :hello:

Good luck, you seem to be very organised. Well done on all your mini victories so far this week and stay strong over the work night out. I have to admit this is my weakness - I really struggle saying no to social stuff.

My goals are fairly similar to you (although I've just turned 30) but also need to get rid of the debt first. I certainly find that posting every day helps to keep me on track - I post all my spends as I find it makes me think before I spend as I know I have to confess all