Debt busting into 2015, but not beyond!

PiggyBankShaker

So this will be my third and final debt busting diary here on MSE. In the words of Freddie Mercury "I've got to break free!".

It's been a roller coaster 4 years but I'm determined that 2015 will see the back of our debt for good.

I've got the tools, I know what to do - I've just got to bl00dy do it!

:money:

PiggyBankShaker

So, have far have we come?

LBM Dec 2010 - I had my LBM in Dec 2010 when I had NO money at all left after making debt payments and things were getting worse and worse each month.

We owed:

• Me CC £6942 @ 6.5%
• Me OD £1400
• DH CC £3300 @ 0%
• Joint finance £1238 @ 0%

Total = £12880! :eek:

During 2011 I paid off £1400 overdraft, then changed banks. I also paid off £5,347 CC debt at 6.5%. Also paid off £1238 finance. (63% reduction in debt:T) And all of this at a time when my income was the lowest it had been for over 5 years.

However, 2011 wasn't just raw finances.

• We had a baby.
• I got a second part time job.:T
• We started and failed at two business ideas.
• We made an extra £3,000 income through selling our old crap on ebay. :T :beer:

This extra money paid for a wood burning stove and it’s installation, a reclaimed parquet floor, a box of victorian floor tiles, half the work on our backyard and a replacement flat roof on our extension.

PiggyBankShaker

2012

Started out with:

• Me CC £1595 @ 6.5%. Paid this off on 10 / 2 / 2012 :T
• DH CC £3000 @ 0%

Total = £4595

HOWEVER...

Spent £4650 on french doors and kitchen window (£4000 on 0% finance) :eek:
Spent £4300 on second hand car (£2000 on DH 0% CC)

Debt at end of 2012 =

• DH CC £2800 @ 0%
• Joint finance £4000 @ 0%

Total debt = £6800 (28% increase during 2012)

We carried on making extra money. We made an extra £1300 income from mystery shopping, ebay, surveys etc.

However, a lot happen that year that affected our finances.

• My Post-Natal depression returned.
• One of my part time jobs was made full time, but then had hours reduced after nine months.
• I lost my second part time job. DH also lost his job in the same month and our income went down by £27,000.
• I had 12 failed job interviews.
• Then DH got temp part-time job in July (3 days) and was made permanent in Dec on four days a week.

PiggyBankShaker

2013

Started out with:

• DH CC £2800 @ 0%
• Joint finance £4000 @ 0%

Total debt = £6800

Paid off the finance £4000.

Debt at end of 2013 =

• DH CC £2778 @ 0%

Total debt = £2778 (63% decrease during 2013)

What else happened?

• I gave up working in about February because of my depression.
• My mother was diagnosed with aggressive breast cancer.
• Then I got better and started a new full time job in October.
• We made an extra £1176 from cashback, mystery shopping, ebay etc

PiggyBankShaker

2014

Started with:

• DH CC1 £2778

Added

£2070 to DH new CC for essential bathroom repairs
£6720 - New kitchen

Total today

£10830 (290% increase)

All our debt is on 0% and we are saving up to pay the debts off when the 0% deals run out, which is February, August and September next year.

What else has been happening?

• DH got a new job in April. It pays much better (about £14k payrise) but he has had to travel quite a bit including 6 weeks in the US.
• I have overpaid the mortgage by £2000 :j
• My Mum beat her cancer and has been discharged! :A
• We have made a total of £673 extra income this year :T

NoOneAround

Hi PBS (have a preferred short name?)
What a great summary of the last few years! So many ups and downs with health and finance and family but you have dealt with it all so there is every reason to be confident that you will very soon be debt free:T:j
All the very best from me to you on the last league of your debt journey


xx
NOA

DebtFree2012

Hi there

I will follow your progress and hope you make it as soon as possible Well done on the summary - it's nice to know where you have come from.

PiggyBankShaker

NoOneAround wrote: »

Hi PBS (have a preferred short name?)
What a great summary of the last few years! So many ups and downs with health and finance and family but you have dealt with it all so there is every reason to be confident that you will very soon be debt free:T:j
All the very best from me to you on the last league of your debt journey


xx
NOA

Thanks NOA!

To be honest, I was a bit inspired by your diary. It made me realise that I need to stop coasting and to pull my finger out and get cracking.

When I see the numbers getting quite low I ease up and don't make so much effort. I need to think and act like I have huge debt and really knuckle down!

Hope you are enjoying having DD home!

PiggyBankShaker

DebtFree2012 wrote: »

Hi there

I will follow your progress and hope you make it as soon as possible Well done on the summary - it's nice to know where you have come from.

Thanks DebtFree2012,

Looking where we came from and what got us into debt helps to keep me on the straight and narrow.

Our original debt in 2011 of £12,000 I couldn't tell you a single thing that we had spent it on.

We owe £10,000 now, but it is mostly our new kitchen, essential bathroom repairs and half our car.

Still - it's got to go!

Whitefeather8

I really admire how you have managed to reduce your debts in some extraordinarily difficult years.

It looks like the tide has turned for the better and I am sure that you will nail that last debt and then wipe out your mortgage.

All the best as your journey continues on.

PiggyBankShaker

Whitefeather8 wrote: »

I really admire how you have managed to reduce your debts in some extraordinarily difficult years.

It looks like the tide has turned for the better and I am sure that you will nail that last debt and then wipe out your mortgage.

All the best as your journey continues on.

Hey WhiteFeather!

Thanks for the encouragement. I guess they have been quite a difficult couple of years, but other than a few scary patches, they haven't seemed THAT bad to us. We've always managed to pull through.

Even though it was the worst on paper, I think 2011 was actually the best for us as we really pulled together and worked as a team on our problems. We need to rekindle that mindset and really get back to the debt busting in earnest.

PBS