FourthTimeLucky's 4th attempt to become debt free

Hiddenidenity

Amazing progress! Well done on being credit card free, make sure you cut it up now and enjoy doing it x

glass_half_full

That's a great achievement! Regarding the loan, I would vote for paying it off, as long as you have an emergency fund. If you save the money on the side you might be tempted to spend it.

fourthtimelucky

Thanks for the well wishes. Much as I doubted it at first, it becomes quite addictive paying these debts down.

fourthtimelucky

So with the credit card debt cleared I find myself weighing up taking on some new debt in the form of a mortgage!

I have been living with parents for two years now which has been key in helping me pay down debt quicker than might have otherwise been the case.

I have seen a flat for sale and it has been twice reduced since I first viewed it. I am really in two minds about it. I like the property and the location is ideal for what I need. My credit is decent and I have an agreement in principle for a mortgage on the property.

My issue is whether to go and get myself more debt whilst I have the loan remaining or to stay where I am and try and blitz it as quick as possible. One consideration is the likely rise in interest rates in the coming months.

I am still in two minds and realise I am now waffling. I just wanted to get some words down to explain quandary.

fourthtimelucky

I have just taken the brave step of closing my credit card account despite the best intentions of the Customer Retention Department. At least three times in the past I have reduced my credit card balance to nothing only to keep the cards and use them again.

Instead of this safety net I will now look to build a small emergency fund whilst attacking my remaining loan balance.

It feels good to have no credit card debt and no credit card to accrue any more!

fourthtimelucky

Well today was the first 1st of the month that didn't feature a credit card payment since god knows when. It is a nice feeling to say that.

My contractual loan payment has been paid and brings the amount remaining to £6,725.50. The good news is that this takes the amount paid to 51.00% of the starting balance. To paraphrase Bon Jovi, I am (more than) half way there...

I am now waiting to hear back from the bank about how overpayments on the loan would work in relaton to interest calculations. That will determine whether I make a monthly overpayment or set the money aside until I have enough to meet a settlement figure.

Progress feels good!