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Debt Free Year

edited 10 December 2019 at 10:08PM in Debt Free Diaries
3.2K replies 238.8K views
NicnakNicnak Forumite
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edited 10 December 2019 at 10:08PM in Debt Free Diaries
UPDATE: DEC 19- For those reading now, I'll give you a whistle stop tour. I almost died, survived, left my husband, and on my own journey to debt free after buying him out the house. I've paid of 67% of the total debt I had here as a single parent. In 2019 I cleared 10k - if I can do it, then you can too. I promise it will be hard, but totally 100% worth it if you put the hard work in. I still have treats, I am going to Lapland in a few days, I go on holiday, and I am living my best life.

Saves you reading the next few pages.
x

Hi,

I've pretty much buried my head in the sand over the past 15 years about debt and what it means. I've always seen it as 'normal' to have debt for things, and never thought twice about it. Recently though, I have wanted to think about cutting down my work hours, and I just can't. I can't be the mum I want to be to my 4 year old because I need to work to make sure I can pay the bills and debts. That is when it hit home, that I can't continue like this. I am having a wedding reception in December, which I know is going to take up most of my 'spare' cash, but from January 2018, I will make a difference to my debts.

Currently have
£485 0% credit card. It was £2000 in July, So I have been ensuring that I am working on it.
£7500 Tesco loan at 3.2% - Paying £220 a month and due up in Three years
£17,450 car loan. Car is in negative equity and I'm stuck in the PCP. The car also is over mileage and has damage. I am 10 months away from handing it back, but with excess mileage and damage, I am thinking this might not be the best idea. Currently paying £351 a month for this luxury that I am thinking I don't need. (I shouldn't have got it, but I did, I can't change what I have stupidly done, and now need to work on the best options).
I spend money every month on things I don't need, and really need somewhere to record and focus on what it is I am doing, and the inspiration to keep going when I see progress is being made.

I've started a written diary as well to try to help. If I pay off these debts, then I know that I will be £500 better off. In April, my phone is due up for renewal, and I have already looked at the SIM only deals which will take it to the £500 a month mark.

i am going to try to earn some extra per month to pay off the debts, which in the short term might reduce the time I have with my daughter.

Here goes...

I really need to do this now.
September 6th 2017 - Updated December 2019
Credit Card £0 now: £0 Consolidation £15,000 = £5,362 Total = £25,330 :(£5,362 79% gone EMF #252 = £1300/£1000
Pay off all your debts by Christmas #071 = 2020 = £4400.90

Decluttering target 2361/3500 items
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Replies

  • NicnakNicnak Forumite
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    I've started on Christmas planning too.

    Always save up my Tesco vouchers to buy some wrap ups gifts. My daughter has been asking for a Disney doll and saw it in Tesco direct. I have enough vouchers to buy it! £17.50, but a start in the right direction.
    September 6th 2017 - Updated December 2019
    Credit Card £0 now: £0 Consolidation £15,000 = £5,362 Total = £25,330 :(£5,362 79% gone EMF #252 = £1300/£1000
    Pay off all your debts by Christmas #071 = 2020 = £4400.90

    Decluttering target 2361/3500 items
  • NicnakNicnak Forumite
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    This Friday is pay day. Usually by Monday I am down to my last bits and then live in my overdraft.

    Does anyone have any ideas of how to stop this?

    I've changed jobs and usually get paid on the 28th. To be paid on the 15th is new to me and also means I'm not in my overdraft this month. My bills come out after the 28th so I really red to curb my spending to ensure I can pay my bills.

    Any helpful suggestions as to how to do this?
    I've started online shopping to prevent buying things I don't need.
    September 6th 2017 - Updated December 2019
    Credit Card £0 now: £0 Consolidation £15,000 = £5,362 Total = £25,330 :(£5,362 79% gone EMF #252 = £1300/£1000
    Pay off all your debts by Christmas #071 = 2020 = £4400.90

    Decluttering target 2361/3500 items
  • Scott_Weiland_2Scott_Weiland_2 Forumite
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    Good luck with your journey Nicnak.

    I would have a read of both of these they can help. If you are going to online shop sign up and register with topcashback.co.uk anything you buy online try and go through TC.

    Next do an soa if you google SOA and money saving expert forum. Its an income expenditure form.

    http://www.moneysavingexpert.com/family/make-money

    Have you had a look at doing online market research surveys to try and boost your income.
    Cashback Earnings YTD £46.04 Survey Earnings YTD £182.66
    "Always always train, be the best version of you that you can physically be"
  • Scott_Weiland_2Scott_Weiland_2 Forumite
    799 posts
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    Nicnak wrote: »
    This Friday is pay day. Usually by Monday I am down to my last bits and then live in my overdraft.

    Does anyone have any ideas of how to stop this?

    I've changed jobs and usually get paid on the 28th. To be paid on the 15th is new to me and also means I'm not in my overdraft this month. My bills come out after the 28th so I really red to curb my spending to ensure I can pay my bills.

    Any helpful suggestions as to how to do this?
    I've started online shopping to prevent buying things I don't need.


    re the overdraft its down to budgeting really, not overspending if your in it constant msybe consider the following would using an account with no overdraft be a better option. Perhaps set up an account with no overdraft, stop using the other account and pay a set amount in to get the overdraft down.
    Cashback Earnings YTD £46.04 Survey Earnings YTD £182.66
    "Always always train, be the best version of you that you can physically be"
  • Hey Nic
    Some of this sounds familiar - I similarly spent years in denial and constantly dipping into overdraft. Wishing you well in your journey to a debt free life!
    #Frugal February : NSDs Target =16
    Started here on 07 September 2017: Total:[STRIKE] £20,521[/STRIKE] £19847
    Barclaycard: [STRIKE]£14659[/STRIKE] £14435 Oct 2017 HSBC Credit Card : [STRIKE]£3112[/STRIKE] £3012 Oct 2017
    Overdraft: [STRIKE]350[/STRIKE] £0 Oct2017 MBNA : 2400
    A journey of a thousand miles starts with a single step. I'm on my way!
  • Hi Nicnak :)
    If you post a statement of affairs (SOA) then I'm sure people will give some useful suggestions of where you may be able to save money.
    It is also useful to keep a spending diary where you write down EVERYTHING you spend. I did this last month & this has really helped me to rein in my spending this month.
    Alot of companies will allow you to change the date of your direct debit if you contact them.
    Debt Free Wannabe!
  • NicnakNicnak Forumite
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    Thanks everyone.

    I do Quidco and find this does help but always gets absorbed into my overdraft.

    I have also started the diary, but not writing down everything I spend, so thank you for that. I think I need to do it. Make myself accountable. I have lowered overdraft to 0 before now, but always end up back extending it.

    Here is my SOA
    Joint for bills only: £650
    Childcare: £160
    Shopping: £120-£160
    Fuel: £100 (just looking at this as started a new job further from home)
    Car: £351
    Car insurance £45 - I did shop around for this, it was the cheapest I could get at the time.
    Loan 2: £220
    Credit card: £100 minimum but as much as I can
    union: £16
    Zurich pension: £100
    Coffees left right and centre: £100 a month (This will stop, but trying to be honest)
    life insurance £16
    Phone bill £50 (Due up April- going to SIM only)
    National Trust membership £5
    Bank rewards fee £3 (do get £8 back per month though)

    The joint purely has bills coming out of it. I actively try to reduce joint bills. I just waste money all the time.

    £2076 in total. Wow, I have never seen it written down properly with the bits I waste. I'm not surprised I am always in my overdraft.
    This doesn't include birthdays, Christmas and everything else a month throws at you.
    September 6th 2017 - Updated December 2019
    Credit Card £0 now: £0 Consolidation £15,000 = £5,362 Total = £25,330 :(£5,362 79% gone EMF #252 = £1300/£1000
    Pay off all your debts by Christmas #071 = 2020 = £4400.90

    Decluttering target 2361/3500 items
  • NicnakNicnak Forumite
    3.9K posts
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    ✭✭✭✭
    Good luck with your journey Nicnak.

    I would have a read of both of these they can help. If you are going to online shop sign up and register with topcashback.co.uk anything you buy online try and go through TC.

    Next do an soa if you google SOA and money saving expert forum. Its an income expenditure form.



    Have you had a look at doing online market research surveys to try and boost your income.


    Thanks for this, Yes I do online market research, and I starting tutoring next week at £30 an hour once per fortnight. That should bring in enough income to pay for the shopping. Although I have a habit of spending cash. I need to get focussed.
    September 6th 2017 - Updated December 2019
    Credit Card £0 now: £0 Consolidation £15,000 = £5,362 Total = £25,330 :(£5,362 79% gone EMF #252 = £1300/£1000
    Pay off all your debts by Christmas #071 = 2020 = £4400.90

    Decluttering target 2361/3500 items
  • zippygeorgeandbenzippygeorgeandben Forumite
    1.2K posts
    Part of the Furniture 1,000 Posts Debt-free and Proud!
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    Do you know how much you definitely have leaving your account each month for sure? I mean DDs, SOs.. not stuff which changes month by month.
    Well done on reducing the £2000 CC to £450 but it's 0% so you might have been better throwing it at another loan. But then again, I understand you wanting to wash your hands of a debt!
    Savings as of July 2020
    Savings account 1 - £15597.36(14081.15)Savings account 2 - £5000(4500.00)
    Current account - £2015.64(4116.53)
    Total - £22613.00 (22697.68)
    Plus £840 (£120 per month between CS/BS) HTB £800
  • NicnakNicnak Forumite
    3.9K posts
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    ✭✭✭✭
    Do you know how much you definitely have leaving your account each month for sure? I mean DDs, SOs.. not stuff which changes month by month.
    Well done on reducing the £2000 CC to £450 but it's 0% so you might have been better throwing it at another loan. But then again, I understand you wanting to wash your hands of a debt!

    Yes, all of the above. The only thing that is variable is the coffees and birthdays and birthday meals etc.

    All the direct debits are set in stone.
    September 6th 2017 - Updated December 2019
    Credit Card £0 now: £0 Consolidation £15,000 = £5,362 Total = £25,330 :(£5,362 79% gone EMF #252 = £1300/£1000
    Pay off all your debts by Christmas #071 = 2020 = £4400.90

    Decluttering target 2361/3500 items
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