Small Steps Out Of Massive Debt!

GeorgianaCavendish

boxofpaws wrote: »

Good morning Georgiana, just trying to catch up on everyone's diaries...

I can't believe how well you're doing. The big chunk when you got your bonus was just the start, am I reading it right? Have you cleared another £3-4K since then?

Got to admit, I'm a little jealous. You're pulling way out in front of me!

Hi Paws! Lovely to "see" you again I had a big leap forward in March when I got my bonus and I've been managing to reduce the debt by at least £600 a month in the normal months, with overpayments made as I get my hands on more cash from ebay selling, surveys, focus groups, cash back sites etc. I've also managed to shift the credit card debt around quite a bit so that I've completely got rid of the highest interest rates, the majority is now on rates under 7% (compared to the whopping 27.9% I was paying before!) with £4500 on 0% (never thought I'd see the day!)

I've got a little bit more restructuring to do. Some of my MBNA debt is on a promo rate that expires in May 2018 (and goes back up to 27.9%!) so I'd like to get this on a longer term rate so I'm not panicking about it in the background. A long way to go but I am pleased with the progress so far

GeorgianaCavendish

Mummy_bear wrote: »

Hi, just read through your whole diary. Very inspirational. I've subscribed

You've done so well transferring debts etc to get better deals

Hi Mummy_bear! Thank you for posting and for reading the whole thread I'm glad that you find it inspirational, I feel like I'm learning so much all the time and there are some things that I can't wait to come to my MSE diary to share (clearly I have a very exciting life :rotfl: )

GeorgianaCavendish

Orange_Ena wrote: »

I've been reading a little while and I'm just de lurking to say well done, you're doing brilliantly. Very inspiring actually Wishing you well on slaying the rest of the debt

Hi Ena! Thank you so much for posting, and for reading along on my debt-slaying adventures It's lovely to hear that my diary has been useful for others, I am so glad that I found the DFW boards on MSE because I was at a point when I could see the potential for everything to come crashing down. There are so many lovely people on here that helped me get a grip on things, I hope that I'm able to pay a tiny bit of that forward among all my ramblings

JoJoC

Morning GC, just stopping by to say hello! Like the others, I love catching up with your diary - helps to keep the motivation going

GeorgianaCavendish

Thank you JoJo! I really appreciate it

GeorgianaCavendish

I checked the paperwork on my company pension plan today as my birthday is coming up soon as I thought that I might be eligible to increase my matched contributions. The cross over point will actually be the birthday after this one when I'll be able to increase my matched contributions from 3% to 5% of my gross salary.

I would really like to be able to increase my matched contributions as soon as I become eligible but this would nearly double the amount I currently pay towards pension contributions, at the moment I don't think I would be able to scrounge this from my budget. Just another point to add to my ever-growing list of "Reasons Why I Really Need To Get This Debt Gone"!

Hiddenidenity

So another 12 months before it would increase?

A lot can change in 12 months if so Who knows where you'll be

enthusiasticsaver

GeorgianaCavendish wrote: »

I checked the paperwork on my company pension plan today as my birthday is coming up soon as I thought that I might be eligible to increase my matched contributions. The cross over point will actually be the birthday after this one when I'll be able to increase my matched contributions from 3% to 5% of my gross salary.

I would really like to be able to increase my matched contributions as soon as I become eligible but this would nearly double the amount I currently pay towards pension contributions, at the moment I don't think I would be able to scrounge this from my budget. Just another point to add to my ever-growing list of "Reasons Why I Really Need To Get This Debt Gone"!

Actually when you take the fact that the pension payments are taken before tax is calculated it would not be the full 5% but 5% - the highest tax rate you pay so it may not be as much as you think deducted from your monthly pay. It is well worth doing. We overpaid into OHs pension from age 27ish as his was main wage. Once I went back to work part time I also did AVCs. Starting additional pension payments early is the main reason we have been able to retire at 58 even though our state pension ages are 66.

I would work the actual difference out before deciding to wait.

Treadingonplaymobil

My pension planning largely consists of sticking my fingers in my ears and going 'la la la la la', so you're doing better than I am. DH pays into a company pension, but not nearly enough. It's something that we have on the long term To Do list, as finances improve.

GeorgianaCavendish

enthusiasticsaver wrote: »

Actually when you take the fact that the pension payments are taken before tax is calculated it would not be the full 5% but 5% - the highest tax rate you pay so it may not be as much as you think deducted from your monthly pay. It is well worth doing. We overpaid into OHs pension from age 27ish as his was main wage. Once I went back to work part time I also did AVCs. Starting additional pension payments early is the main reason we have been able to retire at 58 even though our state pension ages are 66.

I would work the actual difference out before deciding to wait.

Actually this is true, I'd forgotten that the pension contributions are taken before tax. When I do the sums again taking that into account, a 1% increase in my contributions actually isn't that much a month. I'm going to do my budget again with the express objective of finding that 1%, possibly 2% if I can manage it.

My last pension statement looked pretty healthy (I've had this policy for almost 9 years) but then I compare it to my annual income and it doesn't look so healthy after all.