FourthTimeLucky's 4th attempt to become debt free

fourthtimelucky

A bit of a blow to the plans today when a letter landed from the Police advising I was rumbled doing 58 mph in a 50 mph zone. Whilst it is my first offence so I don't get the points and fine, it does mean an unexpected and un-budgeted £85.00 fee for the speed awareness course.

I guess it serves me right for thinking I was sitting pretty with all the bills sorted for the month

fourthtimelucky

I've just been checking out my remaining credit card with regard to the remaining term on the 0% transfers I made on to it. The remaining balance is split between two offers with £480.97 at 0.00% until Dec 2017 and £1002.65 at 0.00% until Feb 2018.

Would I be right in assuming my payments go toward the offer that finishes first or are they allocated equally between the two? The card is a Barclaycard Platinum Visa. Any advice appreciated, I have checked the T&Cs and it just says higher interest to lower interest under allocation of payments.

fourthtimelucky

Time for the monthly check and this time it is with added servings of good news.

Following a review of our job grading at work I today received a cheque for £700.15 as a back dated pay uplift. It was unexpected and fantastic news. Old me would have invested in an xBox or something silly by now but frugal me and just ploughed it off my credit card balance. In addition to my standard payment of £100.00 plus a prearranged overpayment of £50.00 this takes a total of £850.00 off the balance.

Current balances are (starting figures in brackets):
Unsecured loan - £7,352.56 (£12,913.02)
Barclaycard - £633.62 £(3,353.62)

This means I have gone from having paid 32.97% of my starting balance off last month to 41.05% this month. The backdated money was a massive bonus and also a bit of a pick me up as far as my debt busting efforts go.

fourthtimelucky

Just realised I am a little late with my monthly check in. Bad me!

I am still sitting smug at the reduction in the credit card balance following the backdated money. The best part is I didn't really have to battle myself to make the payment. As soon as the money came through I knew it would be best going off the balance rather than a frivolous treat.

As things stand (starting balances in brackets):
Unsecured loan - £7,263.54 (£12,913.02)
Barclaycard - £483.62 (£3,353.62 - it went up at the start following a balance transfer)

I am also hoping of making an extra payment off the Barclaycard later in the month, emergencies permitting!

glass_half_full

Hi there,
Fantastic progress! That credit card is getting closer and closer to being paid off.

redofromstart

That's really disciplined with the back pay, well done you!

Chrystal

I've just read all of your diary and want to say Well Done!

Turning your mind set around is the hardest thing anyone can do, and you managed to achieve this by focusing on the long term gains. Keep going and reap the rewards.

fourthtimelucky

Thanks for all the positive words folks, it is good to know people are reading. Excited to be approaching the half way point. I am hoping the journey picks up some speed ones the CC is paid off.

glass_half_full wrote: »

Hi there,
Fantastic progress! That credit card is getting closer and closer to being paid off.

redofromstart wrote: »

That's really disciplined with the back pay, well done you!

Chrystal wrote: »

I've just read all of your diary and want to say Well Done!

Turning your mind set around is the hardest thing anyone can do, and you managed to achieve this by focusing on the long term gains. Keep going and reap the rewards.

fourthtimelucky

Some good budgeting and a relatively quiet month means that with ten days until pay day I am sat with a a decent wedge still left in my bank account. I have decided to pay an extra £350.00 off my credit card balance. This takes it down from £483.62 to £133.62.

The exciting part of this means that when I make my regular payment plus an extra £33.62 in ten days time the balance will be a delightful £0.00. I know us Brits aren't supposed to blow our own trumpets, but I am rather proud reaching this milestone.

Get the banners and party balloons ready, I will check back in in ten days time!

fourthtimelucky

Another month and another milestone. Fourteen months after starting this journey I can now say I don't have any credit card debt. When I started, £3,086.58 of my total debt was split over two credit cards. With a balance transfer fee and some unavoidable spending this climbed to £3,352.62.

I am pleased to say this figure is now £0.00 thanks to some good budgeting, a small windfall and some very tough decisions to miss out on things I would have previously done without question. This is the first time in 19 years that I do not owe money to a credit card company; exactly half my life!

This leaves me with £6,994.52 owing on my unsecured bank loan. The last payment is scheduled in December 2019 but I am aiming to get it finished much quicker. I am not trying to figure out whether I am best placed making overpayments direct from the loan balance or saving the money on the side until I have enough saved to pay it off outright (any thoughts welcome).

Roll on a well deserved (and budgeted for) beer tonight!!