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A new debt free journey

edited 30 November -1 at 1:00AM in Debt Free Diaries
654 replies 61.5K views
lcc86lcc86 Forumite
1.4K posts
Fifth Anniversary 1,000 Posts Combo Breaker Debt-free and Proud!
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edited 30 November -1 at 1:00AM in Debt Free Diaries
Hi all,

I'm a long time lurker but first time poster. I was reading the 1% challenge and it's inspired me. So here's the background...

Moved out of home aged 21 but stupidly thought I could keep spending as if I still lived at home. I wanted to maintain my lifestyle and social life! I ended up spending thousands on credit card and loans for cars, clothes, nights out, even my rent when I felt like it. I don't think I truly understood at that time how stupid it was to withdraw cash from a credit card to pay your rent, but we live and learn!

I was able to get a mortgage aged 25 due to some inheritance and then it really hit me that I needed to change.

I consolidated my debts into one loan, got a second job, and absolutely worked myself into the ground for 2 years to clear the best part of 10k in useless debt (with nothing to show for said debt either).

Then in March I was almost debt free when I was offered my dream job. The only catch was it was a 60 mile daily commute and my car was nowhere near economical enough. I worked out that I'd be better off borrowing than trying to save while paying out loads for fuel. So I reluctantly took the plunge, borrowing from parents and a 0% credit card.

I then decided my home really needed decorating as it was shabby and had nothing of my own personality in it, and I dont know what happened but I ended up putting another 2k on credit card. So, back there again, and I decided to consolidate as my 0% was due to end so now I've just got a loan, which will cost me all in £8624 inckuding interest over 5 years. But I worked so hard to be debt free and came so close that I want to do it quicker, and was inspired by the 1% challenge another poster has used.

I've decided to amend it a little and just save 1% whenever I can and pay it off while selling unwanted goods and taking on a little additional part time work. I can't work as much as I'd like due to studying, so progress may be slower than it was last time, but I'm desperate to be debt free again properly this time!

Yesterday was pay day so I set aside my first 1% (rounded it up to £87) and got it paid this morning! I'm £20 on my way to my second 1%. I've listed some things on Amazon to sell (I won't use eBay due to fraud), will put any work expenses towards my debt, any additional wages and money not spent from my petrol/food allowance. I'm not crafty at all so am mainly going to have to rely on selling stuff and working more to do this, but here's hoping I can do it forever this time!!

I hope you can join me on this journey :T
http://forums.moneysavingexpert.com/showthread.php?t=5124473 - my original diary :money:
Car debt total May 2020 £5,200 - July 2020 £4,358
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Replies

  • lcc86lcc86 Forumite
    1.4K posts
    Fifth Anniversary 1,000 Posts Combo Breaker Debt-free and Proud!
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    Also I meant to add that one of my biggest downfalls is never having any emergency savings, so whenever I have an emergency I end up using my credit card. This time I've got £300 set aside for emergencies and want to keep it rather than using it to reduce my debt. It's just over 3% so if anyone has any thoughts or advice on whether I'm doing the right thing I'm interested!!
    http://forums.moneysavingexpert.com/showthread.php?t=5124473 - my original diary :money:
    Car debt total May 2020 £5,200 - July 2020 £4,358
  • enthusiasticsaverenthusiasticsaver Forumite, Board Guide
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    10,000 Posts Seventh Anniversary Name Dropper I've been Money Tipped!
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    Hi


    I just read your first post and wish you well on your new debt free journey. You recognise the mistakes you made and deserve to be applauded for the changes you are making. Unfortunately credit cards are so available it is incredibly easy to ratchet up debt on them and before you know where you are you are owing thousands as you have found out.


    Yes, I believe you are doing the right thing in keeping £300 aside for emergencies and you should add to that every month particularly as you are a home owner and need a car for work. I would suggest that you do a monthly budget and build in an amount for putting into your emergency fund. Also do not be tempted to use the credit card now you have consolidated and have a loan.


    Good luck on your debt free journey.
    Early retired in December 2017

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to [email protected]
  • lcc86lcc86 Forumite
    1.4K posts
    Fifth Anniversary 1,000 Posts Combo Breaker Debt-free and Proud!
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    Thanks enthusiasticsaver, I've had a monthly budget spreadsheet for a while, finally getting on top of it. I've reduced all unnecessary expenditure with the exception of 2 donations to charity totalling £15 a month. I know I should cut them out but I'd feel guilty, and feel like I'd just spend that £15, so still wrestling with this idea! Off to post two dvds I sold on Amazon yesterday, £5 made already!
    http://forums.moneysavingexpert.com/showthread.php?t=5124473 - my original diary :money:
    Car debt total May 2020 £5,200 - July 2020 £4,358
  • I'm subscribing - we can battle through this together and it will be over before we know it :D
  • Lots of luck - I've subscribed x
    June 23.25/250 Monthly money making target
  • lcc86lcc86 Forumite
    1.4K posts
    Fifth Anniversary 1,000 Posts Combo Breaker Debt-free and Proud!
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    Thanks guys! I've just sat and looked at my bank accounts, closed my Santander accounts including an unused credit card, and opened a Halifax current account which gives £100 cashback for switching! That's just over 1% to add when it comes through. I also rejigged my fee savings about to get the best amount of interest from the accounts I have (still a pittance but every little helps!).
    http://forums.moneysavingexpert.com/showthread.php?t=5124473 - my original diary :money:
    Car debt total May 2020 £5,200 - July 2020 £4,358
  • edited 30 November 2014 at 1:52PM
    lcc86lcc86 Forumite
    1.4K posts
    Fifth Anniversary 1,000 Posts Combo Breaker Debt-free and Proud!
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    edited 30 November 2014 at 1:52PM
    Woke up really early today, and excited about a new commitment to repaying my debt (sad I know). It's been inspirational to read other people's diaries too to know I'm not alone (far from it). My family don't know about my debt with the exception of £1200 which I owe my parents so this is my outlet.

    Really desperate to get my second 1%. So far I've got:

    £20 left over from last month's unused fuel budget
    £23 not spent from this week's budget
    £5 to be paid from Amazon
    £20 to come from work expenses
    £?? In my money pot

    Should be up to my next 1% sooner than I'd thought. Going to smash the money pot open later, I have no idea what's in it.

    I also got an email this morning from the National Lottery telling me they're transferring some money into my account as the debit card I have registered with them has just expired. I can't even remember my log in details as I haven't bought a lottery ticket online for well over 18 months, but even if it's just a couple of pounds, it still helps.

    I've found a part time job but after emergency tax it's likely to only give me £20-£30 a month. Still, every little helps! :money:

    Finally I have a little dilemma. I paid a deposit to go to Glastonbury next summer. The remaining £150 is due in April and I'm just not sure if I should treat myself as a reward for debt repayment or just forget it. It's a bit of a once in a lifetime thing for me, but my head says I shouldn't go as it'll doubtless run into £300-£400 once travel, food and drink is accounted for... :eek: Any thoughts and suggestions are greatly welcomed!!
    http://forums.moneysavingexpert.com/showthread.php?t=5124473 - my original diary :money:
    Car debt total May 2020 £5,200 - July 2020 £4,358
  • Morning neighbour!

    Followed you over from my diary. Glad to see you have started one, it will be a really big help in your debt free journey; keep posting and it will keep you on track!

    Have you tried mystery shopping? I always find it good for a few extra pennies.

    Also, what about Swagbucks? Depending on how much effort you put in you can get about £20 each month.

    Also, do you use can cashback sites?

    Also re. Glastonbury. Your in this for the long slog, your loan term is 5 years. That's a long time with no treats! IMHO as long as you don't add to you debt situation and you can raise some extra cash so it doesn't affect your budget then go for it. 5 years without treats, you're in debt - not jail!
    Paying off debts so we can build a new life
  • lcc86lcc86 Forumite
    1.4K posts
    Fifth Anniversary 1,000 Posts Combo Breaker Debt-free and Proud!
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    Hi Piggybankshaker,

    I've not tried mystery shopping or cashback sites, I've heard of both through this website, but have no idea how they work, which ones are best etc. Any advice?

    I definitely want to be debt free sooner than 5 years, I initially thought by 30 but that's only 18 months away and, while I'm working towards a promotion, I don't want to make projections based on things that haven't happened yet! I might look at splitting my efforts into my two separate debts and look at reducing the lower amount first, making my 1% a much more manageable £12. One debt at a time seems so much more achievable!
    http://forums.moneysavingexpert.com/showthread.php?t=5124473 - my original diary :money:
    Car debt total May 2020 £5,200 - July 2020 £4,358
  • stiltoncheesestiltoncheese Forumite
    351 posts
    Part of the Furniture Combo Breaker Debt-free and Proud!
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    Well done on starting a new diary. I was similar to you 4.5 years ago...about £800 away from clearing my debt for the first time since I was 18 and then decided I needed something and increased my loan instead of saving up :mad:. I finally only have 5 payments left to make now until I am finally debt free and I can't wait.

    I do think you shoud keep the Glastonbuty plans as even 2 or 3 years of debt-busting can feel like a long time if you have no treats at all. You can always try and set yourself a mini-challenge to see if you can do it on the smallest budget possible to still enjoy it, but without busting the bank.
    [FONT=&quot][FONT=&quot][FONT=&quot][FONT=&quot][FONT=&quot][FONT=&quot]D[FONT=&quot]ebt free since May 2015[/FONT][/FONT][/FONT][/FONT][/FONT][/FONT][/FONT][FONT=&quot][FONT=&quot][/FONT][/FONT]
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