Pay ALL your debt off by Xmas 2015!

Wanna_Bee_Free

Pepperoni wrote: »

I'm thinking that I might not pay anything off the debt in the first few months of 2015. Its 0% and for another 25 months. We need to save for new central heating and potentially a car too, so I think I'm going to start those savings pots then when I'm back at work and earning more money than statutory maternity pay, start throwing money at the 0% credit card also.

Make sense, or am I going to regret this way of thinking?!

Hi Pepperoni, I have struggled sometimes not to empty my savings pots in a tight month or when my wish to spend is high. I've found it easier when it was in a totally different bank account too so it was more out of sight out of mind. Plus then I had to remember my log-ins etc which put me off/bought me time. A bit like moving your money around in your handbag.
Good luck!!

Wanna_Bee_Free

PS congrats on that windfall Winds of Change. That's a lovely big chunk off the debt to start the year well!

Pablosammy

I've done my detailed budget for the next month, and should have a nice chunk to dedicate to the debt by January payday. So, I've decided to put another £300 into my savings account, and that should leave plenty of room for unexpected bits and bobs in January without having to backpedal. According to the all-knowing spreadsheet of [STRIKE]doom[/STRIKE] debt, that brings my repayment total to...

£1671.79/£15,000 11.1%

amr547

I don't even know how to budget for the next Month! Fortunately I have all I need for food this week, plus Christmas dinner and my birthday gathering next Sunday. The main challenge will be staying away from the sales....

We are going to London on the 14th and I need to figure out the cheapest / easiest way to get from zone 2 to 1! The tube fares are going up on the 2nd we don't have Oyster cards.

Edited to add - does anyone out money in a separate account for eg birthdays,car costs etc? Wondering if it would better to do this or keep it all saved in a lump sum somewhere.

32b3in2013

Good morning

Can I come back? I cleared my mums debts this year, but I had to get another car as mine broke, so I got a loan. The balance of the loan as it stands at £4315.00 so I will have that as my target if that's ok?

AMR you can use contactless cards as Oyster cards now. The cost is exactly the same as it would be if it was a traditional Oyster card. I haven't topped up my oyster card since they introduced it

32b3

Pablosammy

amr547 wrote: »

Edited to add - does anyone out money in a separate account for eg birthdays,car costs etc? Wondering if it would better to do this or keep it all saved in a lump sum somewhere.

I split my current account balance into virtual pots (I do it in YNAB which I love, but there's no reason you can't do it for free in a spreadsheet or some other software). So I'll get paid, then allocate £200 to groceries, £60 to gas/electricity etc until I've run out of money to allocate. If there is excess in a pot at the end of the month it just rolls into next month, so something like a Christmas Present fund builds up over time. It's all in the same account, but I've split it into different funds in YNAB (and in my head!).

It means I spend less time looking at my current account balance, thinking I've got more money than I actually have, and spend more time looking at my 'pots' instead Does that make sense?

Pablosammy

32b3in2013 wrote: »

Good morning

Can I come back? I cleared my mums debts this year, but I had to get another car as mine broke, so I got a loan. The balance of the loan as it stands at £4315.00 so I will have that as my target if that's ok?

AMR you can use contactless cards as Oyster cards now. The cost is exactly the same as it would be if it was a traditional Oyster card. I haven't topped up my oyster card since they introduced it

32b3

Hi 32b3! Of course you can, I'm at work today so can't do my spreadsheet, but I'll get a number assigned to you and update the front sheet at some point in the next couple of days. Welcome along

amr547

32b3in2013 wrote: »

Good morning

Can I come back? I cleared my mums debts this year, but I had to get another car as mine broke, so I got a loan. The balance of the loan as it stands at £4315.00 so I will have that as my target if that's ok?

AMR you can use contactless cards as Oyster cards now. The cost is exactly the same as it would be if it was a traditional Oyster card. I haven't topped up my oyster card since they introduced it

32b3

I have no idea what a contactless card is :eek: :rotfl: I will have a look at it

amr547

Pablosammy wrote: »

I split my current account balance into virtual pots (I do it in YNAB which I love, but there's no reason you can't do it for free in a spreadsheet or some other software). So I'll get paid, then allocate £200 to groceries, £60 to gas/electricity etc until I've run out of money to allocate. If there is excess in a pot at the end of the month it just rolls into next month, so something like a Christmas Present fund builds up over time. It's all in the same account, but I've split it into different funds in YNAB (and in my head!).

It means I spend less time looking at my current account balance, thinking I've got more money than I actually have, and spend more time looking at my 'pots' instead Does that make sense?

Sounds difficult! I have a budget spreadsheet so know roughly how much I should have at each point of the month but I don't usually allocate savings for a specific thing it all comes out of the main pot

Pablosammy

amr547 wrote: »

Sounds difficult! I have a budget spreadsheet so know roughly how much I should have at each point of the month but I don't usually allocate savings for a specific thing it all comes out of the main pot

I probably made it sound more complicated than it actually is, I have that knack... :rotfl: