Making 2015 count

liz_isabella

Slowly over the last few years I've been facing up to my debt problems, and starting to make a difference. But it's time to slam the door shut on the last of them, and to make sure I don't make mistakes with my money again. I'm ready for the next phase of my life to begin, but I don't remember a time - from my childhood on - that I haven't been blighted by debt in one form or another. So this is not just a stab at freedom from money woes, this is a stab at freedom from my dysfunctional relationship with money, and helping it work for me.

I entered 2015 with the resolution not to incur any more debt - either formal (so getting any kind of loan, be it payday, spending on my Argos card, anything) or informal (borrowing from the bank of Mum and Dad, even by £20).

Two years ago I entered into a repayment scheme with Lloyds TSB, which cleared my credit card with them, as well as my two overdrafts. That has now ended, and I'm paying my final £60 on Saturday.

So that leaves:

Everyday: £2396 owed/(71.9%)/£300 per month (was £200, but I increased it from this month)
Argos Card: £347/(29.9%)/£50 per month (reduced the limit to £350 as I never use that card and just want to reduce it to nothing since they won't let me close it)
Funding Corporation (car): £2858 owed/(44.9%)/£205 per month
Pounds to Pocket: £555 owed/(379.68%)/£95 per month

I also use my credit card for expenses and repay it in full every month - Aqua Credit Card, limit of £800.

Also, at the moment I have a direct transfer going to my Lloyds Club Saver account, but right now I'm just transferring it straight back again to help ease things. I would like to at least attempt to start building an emergency fund in that account.

I would like to end 2015 no longer in debt. Until I saw that rate for P2P in that list, I hadn't really taken on board how huge that was. Perhaps I should overpay that one next? Because it just ticks over quietly and ends in July, I had intended just to leave it alone. Thoughts?

I don't want to make anymore mistakes. I would like to move on with my life, and maybe even have the option of combining my life with my other half. But right now with my credit rating in the shitter, and no savings, I don't want to inflict that on him. Although I out earn him, his finances are beautifully stable and he owns his own property. If we combined our lives, I could support him and would happily do so if I never have to do a dish again, but I want to stave that off for as long as possible while I pull my affairs together.

Scottishmummy

Hi liz. Absolutely you need to whack every penny you can at that p2p debt. Have you heard of snowballing? I can't do a link right now but if you look at whatsthecost you can fill out their calculator and it tells you who to pay off first.

Good luck.

liz_isabella

I saw your message about the high APR on P2P, and then did some scrutinising of the other APRs and considered how much of my hardearned money was going out on interest, and after reading the advice and warnings about debt consolidation, I decided to take the plunge as my sole reason was saving myself interest.

I've been approved, and with an exceptionally manageable repayment fee over 18 months, at 16%.

It feels like I really am managing my money, rather than suffering with my debts.

So in the spirit of that, I'm going to leave this diary here now, and enjoy the freedom of one payment, and the relief that being debt free in 18 months will bring.

Thank you for chiming in on the APR! It made me think, and go off and do something about it.