FourthTimeLucky's 4th attempt to become debt free

FridaFrugal

Agree that when something becomes monotonous it is more difficult but you are doing really well, so keep your eye on the prize. The time (and debt) will go quicker than you think...

fourthtimelucky

Thanks for the reply Frida, I know I am on the right track and the prize will be more than worth the monotony, its just sometimes it seems a way off.

I wlll get there though. A more positive way to look at it is the fact that four years to get rid of 18 years of accrued debt isn't all that bad...

BettyBones

Hi FTL :wave: You're doing really well. Just stick to the plan and your DFD will come round soon enough. When I had my LBM in 2013 I was in debt to the tune of around £20k :eek: Then I wrote a proper plan and started attacking it with gusto and by April last year I was down to just under £10k. Now I'm just 4 payments away from being debt free (May 2017) and the time seems to have flown by. The trick for me was to not focus on my DFD, which was years away, but instead just try and focus on getting through one month at a time. Each pay day I pay all my bills, make my debt repayments, set my budget for the month and then just try to forget about it until the next payday rolls around. Now and again the monotony of it all gets to me but I think if I'd have spent too much time dwelling on how many months/years lay ahead of me till I was debt free then I'd have driven myself nuts and gone on a spending spree with my credit card long before now! :rotfl:

Good Luck with your journey... you can do it... and you'll be posting on the Debt Free Roll of Honour before you know it! x

fourthtimelucky

Almost time for the monthly update but thought I would post this as a precursor.

After a planned frugal February I was left with around £200 extra to clear from my debt. For some reason I am having a psychological block and finding it hard to actually make the payment from my CC. I have been paid and that £200.00 will not be needed elsewhere, I just keep finding myself waiting to make the payment "just in case something comes up". I have put the extra payment in to my spreadsheet and seen the difference it will make, I just can't figure out where my subconscious reluctance is coming from.

fourthtimelucky

Last day of the month equals pay day and also payment day.

I have paid the standard £100.00 from my credit card plus £150.00 on top of that from money left over at the end of the month. I did have £200.00 and have put the remaining £50.00 aside to pay later in the month as long as the budget is going to plan.

The contractual payment has gone toward the loan as well leaving £8,877.66 outstanding. The only reason I am posting the balance in my post rather than signature is that I like it as the numbers are heading the same way as my debt - DOWN.

Feeling motivated today and have been sticking to budgets well for the last few months even with the likes of Christmas, a car MOT and a trip away. Hopefully the penny has finally dropped!

33 months (maximum) to go...

angelpye

Hi forthtimelucky, you are doing really well! Well over the £1000 paid off mark! I can sympathise with the reluctance to pay money off just in case, I don't know if its because I was so disorganised before that I am used to something cropping up, or if its because I have very little in way of an emergency fund? Well done for keeping on keeping on, like you said 4 years to pay off 18 years of debt is not a lot. You can do this!

fourthtimelucky

Thanks for the reply angelpye, always good to get words of encouragement. It is good to know I have now paid off a fifth of the starting balance.

Another liberating thing is planning for social occasions and budgetting in advance for them. I have a trip to London planned for September when I will need £200.00. Old me would use whatever money was in my account and top up with drinks etc on a credit card where as new me is saving £30.00 a month and will have £210.00 ready to delve in to at the time.

fourthtimelucky

Just checked my CC to see when the 0% runs out on it. The current balance is £2,058.62. Of that amount £1,055.97 is at 0% until December 2017 and the remaining £1,002.65 is at 0% until February 2018.

I have a set payment of £100.00 per month off the credit card with extra payments being made as and when. I am toying with the idea of tightening the belt a little and doubling the monthly payment to £200.00. It will be just about affordable and will mean that the balance is cleared just as the second 0% period runs out.

Will mull it over a little more as don't need to decide just yet. I would rather do this than look at another balance transfer as I want to get away from that cycle. It has been juggling balances and not closing cards down that landed me in hot water previously.

In better news I am expecting a cheque for £100.00+ for some freelance writing I did which is a nice little bonus.

fourthtimelucky

Time to post the updates now that pay day has finally arrived.

I have paid an extra £50.00 from the credit card balance which is now under the £2k mark for the first time. I am almost a quarter of the way through the journey as well which is another nice milestone to reach.

Updated signature shows the current state of affairs.

I have a quiet April planned so hopefully will have some more cash to throw at this at the end of the month.

fourthtimelucky

Decided to check in for a mid month update for a couple of reasons.

Firstly I was beginning to have a wobble as far as credit card spending goes. I have a zero balance card that I keep open. I know the perceived wisdom is to close the cards when they are at zero but I keep it open. I often hire a car when travelling and a credit card is needed for the excess. The card has been at zero balance since it was cleared but recently I bought some tickets for a friend (I had the money prior to purchase but my membership was needed to buy them). With a small car hire charge I had a balance of £100.65 on the card. I had £85.00 for the tickets and £15.65 to pay for the hire fee yet found myself thinking about paying off only £50.00. I had all the money set aside for it yet found myself in this peculiar mindset. I am pleased to say I identified this as a trap I had fallen in many times previously and sorted my !!!! out and paid the full amount with the money budgetted.

Secondly I decided to do a quick audit of my finances as it had been a while since I reviewed things. I pride myself on following a lot of the MSE principles but had been a bit lax. I spoke to the AA and renegotiated my breakdown cover from £16.90 a month to £10.65 which is a £75.00 a year saving. My car is ten years old and although well cared for, the cover is a necessary evil with a vehicle of this age.

I have also began looking at car insurance as my renewal is due in a couple of months. I am hopeful of making a decent saving. This is my first year with my own policy as was previously a named driver. Updates on this in due course.

Finally, I am expecting a cheque for my contribution for a recently published book in the next week or two. Every little helps...