Lightbulb moment

edited 24 January 2016 at 5:42PM in Debt free diaries
Poppy6483Poppy6483 Forumite
1 Post
edited 24 January 2016 at 5:42PM in Debt free diaries
Hi all

First post so please go gently...

Had a bit of a lightbulb moment recently, when I realised my debts are holding me back. Not sure how they have accrued really, I think just living beyond my means and treating myself too much, along with feeling like the people around me have quite a casual attitude to debt (ie it is normal to have credit card debt). It's nice to have a wardrobe full of clothes but no good if the rest of my life is rubbish!

Anyway, I am getting sick of renting and would really like to buy. Step one will be paying off my debts!

I owe the following:

First direct loan -5,800 (I pay 81.76 a month - I took this loan out to pay off credit cards then surprise surprise...I maxed out the credit cards again!)

Amex card 1 - 1,900
Amex card 2 - 700
Halifax - 1,100
Capital one - 450
Santander - 3,800 :eek::eek:

Natwest overdraft - 2,000 (overhang from uni....not got round to paying off).

The Amex accounts are incurring the most interest so I will focus on paying those off first.

Total debt on 24 January 2016 = 15,750

I also have 12k locked away - one account matures in March, this has 4K in so I will use to to pay off some of the debts (the remaining 8k matures in two years time, by when I hope to be debt free and on the way to house purchase...).

In terms of paying off, I can afford to pay 500 a month towards the debt and not be living a completely horrendously frugal existence (I work v long hours so I do need *something*, even if it is just a meal out, otherwise, like dieting, I'll just go in a massive binge if I restrict myself too much). I'll also use my annual bonus to top up my debt repayments (likely to be in the region of 5+k)

It would just be good to have a way to track my progress and have some words of encouragement :j:j
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