I'm Back - and better! Final Push to Go...

Exerbusi2

That's good news! All progress is good progress!

zippygeorgeandben

My original payments per month were £653 back in September.
These were broken up as follows;
£200 Virgin CC
£230 Tesco Loan
£223 Zopa Loan

6 months later these will be as follows:
£135 Sainsburys CC
£230 Tesco Loan
£85 Zopa Loan
£133 Sister Loan
New total - £583 pm
This is £70 less per month on debt repayments which obviously I will throw extra per month at the Zopa Loan.
I also have the knowledge that the CC is interest free for the 2 years and I also have a 2 year 0% CC on purchases (Nationwide) for my Summer holiday.
Hopefully, I'll sell more candles too!

Exerbusi2

I think the candle sales will be your biggest help, Zippy - it's money you didn't have beforehand so is all a bonus!

Of course it's a limited resource, but milk it as much as you can!

I received my £100 today, so £50 of it has gone on the CC...

Exerbusi2

Mini update...

I noticed on my CC statement that a DD payment of £43 was taken, so I upped my repayment to make it a collective £100 off the bill.

New balance, £1700.

Exerbusi2

Potential hiccup...

Car has a problem with the steering column. Could be an expensive job - I'm hoping it won't be!

zippygeorgeandben

Noooooo!
Doctor Doctor I've got a steering wheel lodged in my pants. It's driving me nuts!

Exerbusi2

I like it!

Soooo, massive game-changer here...

It turns out that my car has a few underlying faults. They've been cleared for now, but the mechanic (who doesn't sell cars, only repairs them so has no financial interest in this advice) has suggested that I get shut of the car pretty quickly, otherwise I'll have to spend serious cash on it in the near future, which just isn't worth it.

This is a bit of a dilemma for two reasons...

1. It temporarily destroys my debt free mission.
2. I'm so close to being debt free, but I absolutely need my car to work (I have to travel to various sites per day with my work, so I need a reliable car).

I could keep going with this car, hoping that it would pass its MOT (due in July), but if it doesn't I'll risk having a car without an MOT that isn't worth much.

Instead (the mechanics advice), I could part ex it whilst it's still a viable trading car and has 3 months MOT.

I'm not a car trader - I buy cars and keep them for a while, so even if I did spend on a new car, I'd throw money at it to get the debt down ASAP.

Intellectually, it's a no-brainer. Buy a much newer car that won't cost the earth but would put me in a lot more debt than I'm currently in, but could easily afford in terms of repayments.

Emotionally, it's a bigger problem - I'm SO CLOSE to being debt free that it's actually clouding my decisions. I'm probably too focussed on the debt free thing, meaning I'm not thinking practically.

In reality, being debt free was going to be a temporary thing anyway - I always knew my car wasn't going to last too much longer, so it was a case of getting debt free simply in order to allow me time to save up part of my next car purchase.

My girlfriend understands my issue, but her thinking is that it's not such an issue if the car I buy is worth more than the loan attached to it. I get that and agree, but I've made being debt free such a part of my identity that I want to achieve the goal.

The most pragmatic approach is to buy a nice, well-engineered car that won't break the bank. I have a couple in mind and have been pleased by what I've seen so far - in terms of fuel economy, the cars I'm looking at will quite easily save me over £100 per month, which could be thrown at repaying a debt quicker.

I'll buy the car using my CC and will qualify for cash back, which may be handy too!

Just reading this post back shows how muddled my thinking is on the issue at the moment! I'll sleep on it again and see what my thinking is again in the morning...

zippygeorgeandben

Ok - had a good read of your post.
1) The word 'destroy' is extremely misleading. It's like when people say 'oh the concert is cancelled' when actually it has been 'postponed'. It's just been delayed, perhaps a little like your debt repayments. I don't want you using that word again!
2) I can totally see your point of view here. It must feel like you've made these constant payments/over payments to bring your debt free date closer and it's now all seems a waste of time and perhaps not worth all your hard work.

This is where you are wrong. Stuff happens, emergencies happen and hey, it's not like you've suddenly got to pay for life saving surgery. It's a car. It's also a vital aspect of your life which you need for work/business.
The reality of you knowing your car wasn't going to last forever means that even though you weren't prepared for it, the car was!
But hey, you've been pragmatic, finding cars which won't break the bank and also looking at savings in the long run.
I absolutely get and understand your frustration but the reason you've been paying back these debts quickly is, whether you like it or not, for moments like these.
All you need to do is look at posts on MSE from people who have consolidated debt and then been thrown an emergency like yours, i.e. a new car. You don't have to consolidate, just put the debt repayments on hold for a little while.
I'm rambling.
It'll be fine but yes, I understand your frustration.

beanielou

Another way to look at it is to continue to pay down your current debt & see the car loan as a so called 'good' debt as it is a neccessary evil if you get my drift.

zippygeorgeandben

Good morning Exerbusi2. I hope you are enjoying the 3 day weekend. I certainly am but I'm not sure I can say the same for my liver!
I've updated my signature now. Made it a bit simpler to look at. Slightly less garish colours.
I'm quite proud that I've nearly knocked £6,000 of this debt since September.
I've got quite a few things in May coming up. Next Saturday I have an afternoon/evening in Manchester. That will cost me about £100. I've also got a big evening the weekend after which if being sensible will be around £100. I then have an engagement to attend on Fri 12th and Fri 19th so it's going to probably be a month where I can't throw extra at the debt apart from the usual repayments.
There's nothing wrong with the usual repayments, it's another month closer to reducing the debt. It's just nice to throw a bit more here and there.
In April I still ended up with a surplus of about £250. This is despite throwing an extra £750 at the Zopa debt so it's all good.
There's a slight possibility that I may apply for a different job soon. However, pay is a factor I will negotiate. If it doesn't mean I get another £100-£150 per month, I probably will stick where I am.
No one seems to be biting on the candles though which is a shame but it's just about finding the right person at the right time.
Anyway, hope everything is ok with you and we'll chat soon.