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One Year Plan and Ten Year Plan

in Debt free diaries
32 replies 3.5K views
lilian1977lilian1977 Forumite
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Hi all

I have an existing diary but have decided on a new challenge for myself so I am posting a new thread, I hope you'll all cheer me on :)

I turned 39 last week and currently have £4348.43 of unsecured debt (on two credit cards) and a mortgage of around £48,000 that I share with my DH. I will also need to add £1000ish to my debt in December when I have to buy my annual train pass.

So, I have decided to set myself two targets. I would like to be unsecured-debt free by the time I am 40 and have our mortgage paid off by the time my DH is 50 (in 10 years time).

Here's how I plan to do it. We currently overpay our mortgage by £110 a month - I would like to up this but will need to do it gradually so it's not a big difference to our monthly available money. I am waiting to see what new mortgage deals come out now that the base rate has fallen, then will decide whether it is worth paying the ERC and any new fee to move to a lower rate on a 10 year fix (with the intention that the mortgage will be clear at the end of this). As for my personal debt, I am currently Music Magpieing all the CDs I can as well as Ebaying clutter from around the house. I am also not using my credit cards at all and have cut the food budget drastically by insisting on shopping from our stores first. I am no stranger to moneysaving, but now need to step it up even more.

So, I plan to post here as and when I've made some progress and it would be nice to have some followers :)

Thanks for reading xx

My debt free diary
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Replies

  • Hey lilian,

    Cute baby ;-)

    I love the sound of your plans & the fact that you will be sticking around the boards for that duration of time.

    I am with you my sweet!

    We are currently paying of debt & once that is gone we will start saving for a mortgage but I plan to be posting on these boards until I am mortgage free so do you want me to be your new DFW pal?

    Dxxx
  • natsplatnatnatsplatnat Forumite
    3K Posts
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    Hi lilian,


    Would it not be worth diverting some if not all of the £110 from overpaying your mortgage to paying of your unsecured debt? If your debt is at 0% then probably not, but just a thought!


    All the best - you seem really focused! :) Nat x
    start = Wed 19th Nov 2008 £21,225
    end = Mon 28th Sept 2015 DEBT FREE!
    I love a good plan - it may not work.... but I love a good plan!
  • Second what natsplatnat says!

    I totally forgot about the DFW advice haha.

    Dxxx
  • lilian1977lilian1977 Forumite
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    Hi both

    Yeah the debt is on two 0% cards so no, it's better off going to the mortgage :) Thanks for the advice though!

    I'm cross with myself as have been a member on the boards for 8 years and have been DF twice in that time - but hey, we live and apparently don't learn. This is the last time I will be in debt though, third time's a charm as they say!

    My debt free diary
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  • That's good both the cards are on 0%.

    I have also been DF before so yeah I am also mad with myself.

    Last time though for both of us.

    Dxxx
  • lilian1977lilian1977 Forumite
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    Indeed! Well I'm happy to have you as a friend on here :D

    I'm at that frustrating stage of having Music Magpied everything that made it through the first round, so I need to go back through and be a bit more ruthless I think. Also I need to go through my DVDs again.

    I am dropping something off that I've sold locally tomorrow, and have someone else coming to collect something, then am picking up some new-to-us shoes for DS for £2 - so will be in credit by £7; however money that is made locally goes onto our Tesco savings stamps card for Christmas. I also found out from Martin's email that I have £10.20 on an Oyster card that I have now had refunded - once that comes into my account it will pay off the Christmas presents I bought today from Quality Save :)

    I'm actually doing really well for Christmas already, I need to make a list of what I have and split it into two for DS Xmas and DS birthday (3 weeks later) so that I don't over buy. Today I got a small Millenium Falcon (from Star Wars), a Moshi Monsters Top Trumps set, another small Moshi Monsters toy and a few present stash things from Quality Save.

    My debt free diary
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  • Good stuff, what is Quality Save? Is that like a bargain shop?? We have Home Bargains, B&M & Wilko's which are quite good.

    I love a wee wander round & you do get some great things especially for the kids.

    I don't have any kids of my own but have my nieces & nephews to buy for.

    I am a little organised for Christmas this year too, have quite a bit still to buy in but will get there in the end.

    I sold some stuff on ebay already & probably could make quite a bit on music magpie but I love my DVD's so don't think I could part with them.

    Dxxx
  • edited 11 August 2016 at 8:11AM
    lilian1977lilian1977 Forumite
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    edited 11 August 2016 at 8:11AM
    Hi

    Yes Quality Save is very similar to Home Bargains, in fact I think it might be the same company.

    Debt free progress today:

    Found 19p in Waitrose
    Returned a bra set that didn't fit to Primark so that's £6 going back onto my credit card
    Got a box of muesli from someone at work as they didn't want it
    Agreed with DH that from this month we will up the mortgage overpayment by another £10 a month - £5 each a month every few months isn't noticeable.

    I have also brought my breakfast and lunch in (my lunch is a tin of soup that is 4 years out of date that I found in the cupboards at work, haha!) and tea is from the cupboards at home.

    I'm also thinking about cancelling my gym membership but I'm not sure - I use it a few times a week but have started only really using the treadmill - I can run on the streets for free. However going into the winter months I am less likely to do this. I am able to go on my lunchbreak from work and it stops me going to the shops, but it's £30 a month and I think that could be better spent paying down my debts. Does anyone have any thoughts or words of wisdom for me on this?

    Have good days all xx


    Edit: I have just had a quick Google and found another gym close to my work that is £5 a month cheaper, so I am going to cancel my membership at my current gym now (it won't end until 30th September anyway) and then join up with this other gym if I decide I want to keep going.

    My debt free diary
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  • monzmonz Forumite
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    Pop by to say hi and follow :) x
    Debt (1/9/14) £6,702.11 Debt free (30/11/2016) mortgage port- £70,077.82 and mortgage £126,517.39 o/s currently
    Debt - £17,190.83 (29/7/22) now (19/8/22) £16,688.80
  • lilian1977lilian1977 Forumite
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    Thanks monz :)

    My debt free diary
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