Debt free in 23 (months)

pinkgiraffe2014

I'm new here but over the last couple of days I've read some very inspirational threads that has given me a very much needed kick up the bum to sort my finances out.

I sat down yesterday and looked at the balances on my credit cards and loan. The details are in my signature. Whilst they may not be huge, they are definitely more than I am comfortable with. I also owe my parents quite a bit from them helping me out with my first house. I am slowly chipping away at this, currently £100 per month (for the rest of my life!)

If I continue to make my current repayments (with the exception of the loan, slightly more than minimum) then I will be debt free in 23 months. However, my bathroom desperately needs re-doing as I can no longer use the shower due to it leaking into the kitchen below and the toilet is on its way out too. Luckily I have one downstairs so can make do with this.

If I can clear my credit cards (currently 0%) and my Next account then this will give me the much needed spare cash each month to increase the payments to my parents and also start to put some away for the bathroom.

My other problem is that my fixed mortgage rate is up in 2 years and whilst I have these debts, I wouldn't be eligible for the size of mortgage I would need.

I realise my problems are pretty insignificant compared to some but I decided to start this diary in the hope that it keeps me focused and on the right track. Most of my spending has been frittered away on things that, looking back, I didn't really need. I have an awful attitude of 'its only' 8 quid here, 12 quid there etc. And that it's how I've ended up in this situation. I also need to stop buying on eBay!

I have started putting things on eBay but its not going fantastically well to be honest. But I have decided to get up in the attic this weekend and have a bit of clear out to try and boost my sales. I also have my old car to sell, it's only worth a couple of hundred at the most but it all adds up, right?

I also like the idea of rounding down your bank account at the end of the week and paying the oddments off your card/s. I will definitely use this. I am going to stalk some of the other boards for reducing my weekly shopping bills.

If anyone happens to read this and has any other ideas I've not come across then they will be gratefully received. One thing I will ask, people keep referring to their spreadsheets, are these ones they've set up themselves or is there a generic one available anywhere?

I can't do much until payday but I will update as I go along.

Redemptionsong

Hi Pink and welcome, am sure they will be some expert money savers along soon with great advice and motivations!
I'm new to this too and got similar amount of debt that I would like rid of ASAP!! So i will join you on your journey - all the best

pinkgiraffe2014

Thank you for the welcome. I hope you have success with your debt clearing - Will you be writing a diary too?

I've had a semi productive day. I've scavenged round the house for loose change, it's everywhere as my daughter loves to empty purses and handbags. I've found a total of £11.21! Granted it is all my money but since it's been lying round the house for god knows how long then im treating as found today!

I've also had some items finish on eBay today so that's £32.03 but I've got to deduct postage costs from that yet. That'll be tomorrow's job.

Checked my quidco account, £11.34 ready to be paid and another £15.26 still being tracked.

I've looked on the comparison tool on here for selling an old mobile phone and I can get £21.00 for that!

I've been thinking today, I might tackle my Next account first as I'm obviously paying interest on that. So all that I've mentioned above will go straight to them. My loan is also racking up interest but I'm unable to make ad hoc payments. Monthly payment or balance in full. That's it. I had thought of saving to pay it all off but I'd end up spending it before I got to the full amount. Maybe once I've reduced the credit cards I could move it onto a 0% card then I can chip away at it like the others. I currently have 2 0% cards so I don't think I'm likely to get another just yet!

Have found some bits that I can put on gumtree and/or eBay. I have an old Ikea unit that's no longer in use and they always seem to go down on eBay so will try and clear a bit of space to be able to take pics of it!

Redemptionsong

Well done Pink, your off to a flying start :j particularly impressed with £11.34 find!

Don't think I be doing a diary just yet as am still finding my way around here, but am so inspired by people's debt free journeys and its really motivating me!

Changes been made so far:

Big shop being done at aldi with flexi menu plan for week. I always hated shopping in tesco anyway. So far going well, saving a fortune and not doing as many top up shops, as trying use what I've got in already. Am also very impressed with quality. Nearest one 28 miles away but one opening 15 miles away this week so save a bit on fuel.

Cutting back on driving, I walk to work/nursery - mostly! And am not driving miles to lovely and varied locations to walk the dog on days off we staying local! No sure he appreciated the effort anyway - seems just as happy at local woods!

More A/F evenings - joined a thread for this to keep motivation up! Only 2 far this month - will do better.

Need to sort out stuff for eBay, I'll venture up the loft when I pluck up the courage!

So I really want out of the OD, even when I get paid it doesn't cover it, so in a vicious circle of paying charges etc. If I can pay off barclayCC and close account, I can hopefully get another 0% and move Santander balance onto it, then tackle OD and take it from there.

Like you said in op this may seem an insignificant amount compared to some here, but mine has been steadily spiralling since on Matty leave (dont get me started on nursery fees) and needs nipped in the bud!! But seeing how others have managed against the odd and come thru the other side gives me the motivation to suck it for a while and get back in black!! We can do this, and being on here venting and getting support will make it easier.

Good luck on your debt free journey - may it be a smooth one and keep posting :beer:

GunWharf

Greetings from The South Coast

Well done on the start of your Journey! A few months ahead your be looking back with good progress.

All the best

Redemptionsong

Wow Gun, that's a mighty impressive dent in your debt so quickly - well done - and very inspiring to those of us at the starting line

pinkgiraffe2014

Yes I was too. Just need to get it banked now. Will have to pop in for some money bags at some point.

I've also started shopping at aldi but I do pop elsewhere for the bits I can't get in there.I also need to look at what I'm buying. I do seem to waste quite a lot unfortunately.

Redemptionsong, I built up a lot on maternity leave and also on my daughter's birthday.

I agree, that is some very impressive progress you have made Gun.

Whilst I was full of enthusiasm last night I got a couple of bits listed on gumtree. Just hope they sell now.

I did complete a SOA last night. I won't bother posting it yet as I be obviously missed a LOT out. Apparently I should have approx 250 a month free. I wish! Not quite sure what I'm frittering this (and more) away on every month. I'm not on a great wage so I obviously need to be more careful. I have thought about changing career paths but I would need to re train, something I cannot afford at the moment.

I did request extra hours at work though and I know my manager wants to discuss this with me. It wouldn't be until the new financial year but fingers crossed. Only downside is I would need an extra days childcare but I think I will still be better off.

pinkgiraffe2014

Made an extra payment on the Next account today. Also the last of my sale items arrived today which I'm going to return! That's definitely a first! Normally I would just think 'oh what's an extra X amount'... Nearly don't recognise myself!! lol.

Redemptionsong

Well done pink, it will all add up. Looking at your CC balances you could pay off little CC from sales/pay and have one whole debt cleared. Might be psychological boost but sounds like your doing great so far, also suppose highest interest is priority!

I checked Santander statement today and turns out I've got 0% till June 2015! When i applied for it few months back my credit rating on noddle was 2/5 and they weren't willing to give me deal but since we have mortgage with them they offered a lower balance n 0% time - think they extended it so will check. My credit rating gone up to 4/5 so got Halifax 0% last week no problem! But it all helps and feel there is some breathing space to concentrate on O/D (as my pay doesn't even cover it am paying charges ever month and getting no where with it).

Fridge looking bit empty but plenty in freezer - so that was tonight's tea. Store cupboards are bursting so need to meal plan around this - got plenty pasta, rice, noodles, sauces, tinned toms, pasatta, etc to do for while - just need to figure what to do with it! Am not a great or adventurous cook!!

But small changes are being made, hopefully this will have a snowball effect!!

All the best x x

Chrysalis1976

Good luck with your journey, it looks like you've made a great start. I agree about paying off and closing cc3 as that would be a whole debt less then concentrate on Nxxt as I would imagine that has a high interest rate.

Well done on the money finds, I found £1.16 in the tumble dryer yesterday and 70p under the sofa today, it all adds up!

C x

Redemptionsong

Chrysalis - I'm inspired - this ole house needs a right good going over - I could be rich on hidden treasure if I ever get round to it!