Time for JimmyC to be Debt Free!

jimmy*c

Evening all,

A crude first entry into my Diary, but nonetheless, I'm here for the same reasons as everyone else, so I'm sure it's all been heard before. This will help me to keep track of my progress, and help motivate me when times look bleak.

I hope I'm not cheating, but it is only 3 or so hours until December

As of December 2014, total unsecured debt is as follows:

Barclays - £1,386.01 outstanding
Dad - £2,700 outstanding
Hitachi - £3,947.28 outstanding

My aim is to be debt free by April 2016, giving me 16 months to pay off £8,033.29

If I can manage to pay off a total of £502.08 each month, I will make it!

I would, however, appreciate someone's keen mathematics... I'm not sure which account makes up for "xyz" percent of my total debt, so a quick bit of help to get me started would be much appreciated. I want to give an equal percentage of this 500+ payment to each creditor, but I'm not sure how to work that one out...

Here's hoping!!

Mara_uk7

Is the interest frozen on your debts ?

jimmy*c

No, the numbers stated are the amounts owed, including interest, at this point in time.

Hitachi - 24 months left to pay @ 164.47/month
Barclays - 14 months left to pay @ 81.53/month
Dad - 12 months left to pay @ 150/month, 2 months @ 200/month

beanielou

No help with maths but wishing you well on your journey.

jimmy*c

Thank you Each little thing I do from now on will be mapped onto here, just to fully document my journey. Be it saying no to buying something, or paying a bit more off my debt with an overpayment etc, it'll all be here so that one day I can revert back to here and gain some confidence in the fact I CAN get my way out of this!

mrsmumbles

I was in a similar position a few years ago...is it possible to get a second job which pays cash? Makes a big difference to the accrued interest charges.

DawnW

Just a suggestion, rather than overpaying on a percentage basis would it not make sense to pay the most off the debt with the highest interest, while still maintaining the minimum payments on the others? Then, when that is paid off move the overpayments to the next highest etc. They call it snowballing on here - there is probably information on it on the main site.

jimmy*c

I had considered the snowballing method, but I'd find it easier on me personally to have a set amount each and every month to pay toward each debt.

And mrsmumbles, I would get a second job but due to work commitments (overtime) I wouldn't be able to. Besides, the overtime pays a heck of a lot more than a second job would.

jimmy*c

Well today I found a thing or two to sell, which so far has raised just short of £50

As soon as payday comes, I'll make sure to use this £50 toward an overpayment. Happy days!

StrugglingYouth

Even small amounts you turn into payments will make a difference!

For anyone to work out which order you 'financially should' tackle these debts in we will need the interest rates on each debt and if they are interest free when they start accruing interest. The snowball method will probably save you a lot of your hard earned!

Happymac

Good luck - slow and steady wins the race!