Debt Free by 30!

freeman3030

Hi all,
I’m here because I was inspired by another debt free diary by Lancashirelass1. I’ve recently been worrying about my debt which is currently all on credit cards at 0%. However, worrying won't get rid of it so it’s time I made a bit of a plan! I posted a few weeks ago about taking out a loan shift the debt as that seemed like the easiest option, but the good people that post on this forum gave me the kick that I really needed and one post in particular really stuck in my mind “You are borrowing against your future, how long will this go on? The future seems a long way off when you are young, but believe me, you will be old and still in debt before you know it.” I don’t want to be in debt when I’m 30 so it’s time I took responsibility and did something about it.
I spend frivolously so I'm going to take a new approach to buying things. I'm going to look at it and ask myself "Do I need or want this?" if its something I want, I'm going to write it on a list and save for it. By the time, I've saved for it, I may not even want it anymore!

So, to start off with I’ve compiled a list of my CCs:

*Sainsburys: £924.28 (0% ends ? - I’m waiting to hear back from them)
*Tesco: £1,200 (0% ends Aug ‘18)
*Amex £1015.90 (0% ends Aug ‘18)
*Barclaycard £1667.23 (0% ends Oct ‘18)
*My partner: £2,000 for our car (£289 already saved)
Total Owed: £6518.41

I recently took out the Tesco CC to transfer the balance from Sainsburys, but I didn’t get a large enough limit to transfer the whole balance. This was when I started to worry as I originally thought it would be so simple just to take out a BT card and transfer the debt. But, it’s bought me an extra 12 months 0% and it didn’t cost a penny to transfer the balance. It's helped kick me into getting rid of this debt. So maybe I should be grateful! Who knows, in 12 months time when (hopefully) I’ve cleared Sainsburys and Tesco I may be eligible for another BT deal.

As of the beginning of this month, I got a small promotion so will use the extra money to throw at the cards. I’m looking forward to payday to see how much extra per month I get. It will probably only be an extra £60 per month, but every little bit helps!

I’m stripping back all of my credit card payments to the minimum and am going to focus on Sainsbury's and Tesco CC’s.
As i’ve got 12 months and £1,200 on tesco I’m going to do £100 per month which will free me from that, interest free. I’ve got some savings from when my sister lived with me (I saved all of her ‘rent’ to give back to her when she buys her first home, I felt guilty that she was paying me to live in my house - but it’s silly because it means I was supporting her and she’s older than me! It’s hard, because she’s my best friend and I know she wouldn’t want me struggling in debt. So I’m going to use that (£665.92) and once I’m debt free, I’m going to save it back up and if I can, and give it back to her… but ONLY if I shift the debt! (that’s the long term goal)

SEPTEMBER GOALS

1) Only spend £80 this month on food (I usually budget £350 for fuel and food per month. £200 for fuel and £150 for food for 2 people). I’m going to withdraw it in cash on the 1st September and keep it in a little cash bag in my wallet. I plan on running the food down in my freezer and cupboards etc. I’ve got a reasonable amount, so might get away with one ‘free’ week.

2) Do a SOA - is that what it’s called? Basically budget what I earn, what and where I spend etc. and see where I can make some savings.

In August I switched from Barclays to TSB as I can earn an extra £5 per month for banking with them. It's only a small amount, but as Tesco says, every little helps!

Sorry to have gone on, but I’m happy to have finally started getting my finances in order and I’ve got just under 3 years to get to my goal of being debt free by 30!

System

Hi,
Well done - coming on here is a good first step.
By posting an SOA you are in fact comparing your spending habits to a lot of members who are perhaps a little more thrifty in certain areas, thus giving you a few ideas !

For example, many wouldn't consider a £50 phone bill plus £80 Sky TV a problem, however I would etc.

freeman3030

Thank you for your post andydownes123, I agree that £80 per month is a lot for Sky. We have sky and it's actually around that price region but my partner pays for it as he's football mad. I'd sooner ditch it all together if I'm honest as I barely have a chance to watch TV.
I've still yet to do my SOA, it's been a very busy week. But even making baby steps is better than doing nothing at all! Have a good weekend everybody.

fruitloop04

Hi freeman3030, I am in the same position of getting in to debt from overspending and not making myself accountable! Well done for tackling it - lessons we learn now will put is in good sted for the future. I am 30 but hoping to be debt free by the time I am 31 Good luck!

freeman3030

It's nice knowing that I'm not alone. I'm glad you've set yourself a target. Do you think you can do it in 1 year? Good luck with your debt free journey too!

freeman3030

Hi all,
So, it's been a bit of a busy month so far. I decided to sell some furniture that I don't need and made £170 which I used to pay some CC debt and in total I've paid off £422.32 this month! Which is a nice chunk... roll on payday next week to pay off a bit more!
With regards to my September goals, I've failed with my shopping budget. I set myself an £80 limit and I went over by £5 (I did my last shop for this month on Friday, so won't need to shop until payday next week)... that said though, I did buy all the birthday cards for friends/family that I'll need for the rest of the year and I bought my two godchildren their birthday presents this month too despite their birthdays not being until October and November. As it all came out of this months shopping budget, I don't actually think i've done too badly.
This month I've also spent £101.97 on three tins of Sadolin wood stain for our garden fence, but as it's not a regular payment, I don't feel too guilty about it as we need to finish the garden off. We started the garden at the beginning of the year and are now only just about finishing (4 or 5 more Saturdays should see the fence finished) but it'll be a good job done and should hopefully make our house more saleable when the time comes.
Unfortunately due to being so busy, I've yet to do my SOA, but having halved my shopping budget this month I can see that I can make cut backs! Roll on next month eh!

perfectxmess

Hi freeman3030,

Good luck on your journey to debt freedom!

I had the same goal of debt free by 30 and had a similar amount as you on credit cards (was just over 7000) and i paid off the last bit today! It can be done

Just keep reminding yourself of what your goal is and why you're doing this, it can be hard sometimes when you really want to whack a frivolous purchase on the credit card but stay strong. I watched a sh*t ton of youtube videos about budgeting, frugal living, other people's debt stories and successes and found that a really good motivator. You've just got to find what works for you.

Looking forward to keeping up with your diary x

freeman3030

Congratulations to you and well done for repaying the debt! Did you manage to it it all back by 30? I'm surprised this month that I haven't had any cravings, I think I've just been so focused on saving and trying to get rid of the debt, but I know in a few months time when I've been so "good" for not spending on myself that I'll want to "treat" myself - must stay strong! It's nice having the goal, it's certainly achievable and it'll be such a relief to not have the cards anymore!

freeman3030

Congratulations to you and well done for repaying the debt! Did you manage to it it all back by 30? I'm surprised this month that I haven't had any cravings, I think I've just been so focused on saving and trying to get rid of the debt, but I know in a few months time when I've been so "good" for not spending on myself that I'll want to "treat" myself - must stay strong! It's nice having the goal, it's certainly achievable and it'll be such a relief to not have the cards anymore!

perfectxmess

Thank you yes i turn 30 next feb so amazingly managed it with time to spare. I swear spending cravings are just as real as food cravings, it's always like the 3rd week of the month when i have no money left that i'm suddenly desperate to hit the shops. So annoying!

But yes keep that goal in mind and you'll be there before you know it

freeman3030

I find this so helpful, just to write down my progress... more for my own benefit than anyone else's. But I paid off my Sainsburys credit card in full at the beginning of this month! Overall in the 2 months that I've been on the BIG DEBT REDUCTION I've managed to reduce my debt by £872.02 which I'm pretty chuffed with.
I'm so happy with my progress and can't wait to pay the next card down to a £0 balance.
I do have a question.
The Sainsburys card is now paid off and has a credit limit of £1,000 (it's my oldest credit card) should I cancel it or leave it open?
Half way through next year I'm going to need to do a balance transfer on my Barclays card, I'm just trying to plan out what would be the most efficient way maximizing my chances of acceptance of a BT card next year.
Currently when comparing cards online my chances are very low on a BT card, hopefully I can remedy that in the next 6-8 months.