Debt Free by 30, my birthday goal

Scottyfor

So after looking on this site for a while I thought I'd put down my situation and let someone other than my Girlfriend into the world of my debts!

I've pretty much been in debt of one form or another since university, overdraft, then credit cards, then a loan to pay off the cards, then more cards, its safe to say I wasn't really careful with money. If I added up all the debt I think it would hurt, but thats in the past and can't do anything about that now. Since Uni Ive always worked, decent jobs decent wages and moved around the country, I'm on an alright salary now and live a comfortable life but for the past few years the debt has been there and at the back, and a lot of the time front, of my mind.

So here is my current position 6 months to go until my 30th birthday; all of my debt is in a 0% card and is currently sitting at £3338, I have the 0% til next June, I've been good at bouncing between 0%'s whilst not really paying off a lot, as I paid off a loan but that went a year or so ago so the cards got hit. I also have £1000 in savings (this was 0 a few months ago)

So my plan; I've had several over the months but they all have the same end point, I will pay off £100 a month of the card, theres no interest so why pay of a lump sum when don't have too, and I can save £400 a month at the same time, Ive done a budget for the last couple of years and I know every penny that I spend so I think I'll be there or there about on this. This means by November, the credit card will be at £2179 (this is over the £100 a month, but I get paid every 4 weeks so in August I get a pay with no rent coming from it, so its going to the card). At this same point my savings will be at £3632, but ill say for purposes of life being life £3000, I want the savings as for the past forever Ive had to pay for things on cards when they pop up, but want the cash to do it without having to work out where its coming from.

So to bring this long story to an end by my 30th birthday in November my debt will be 0 and i will fingers crossed have £800 still in savings, and then the savings will grow as I'm sure Ill still be my tight self! Also as a side bonus my student loan should be paid off by next April, woo hoo!

So, Thanks for your time, hopefully i'll be back in November celebrating that I'm debt free!

japmis

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andyfromotley

Hi scotty,

Welcome to the forum, that sounds like a plan.

For my money i would stop saving now. £1000 is fine as an emergency fund. I would throw everything i had at the debt. Yes you will lose out on a tiny bit of interest but for me this would be outweighed by the motivation of seeing that debt figure go down.

Each to their own of course but either way it sounds like you are on track to be Debt Free. Nice one