Paying off debt to freedom

EscapingTheAlarm

That's amazing news - Well done! Is there anything which you can think of doing to get you up to the £1000 mark? I agree that 36 months sounds a lot quicker! Maybe you could just tell yourself you will get there by then and promise yourself that you will find ways to do it along the way?
ETA x

camz2017

Yeah realistically say I get another bump next year of a similar %, then that upps the payments, same the year after, and same the year after. I am due promotion between all of this for sure...

So the 36 months might be realistic when you consider with time the salary bumps etc. I'm going to try to get some £900 to £1000 months in, starting with January... See how I get along!

I've got a big hole to get out of!! Crazy how little £1000 seems to dig me out, yet it's a huge number!!!

EscapingTheAlarm

Well that’s great then! Don’t feel guilty about the hole, feel pleased that you’re getting out now rather than digging further down! Just try not to go out with any ladies with expensive taste!
ETA x

camz2017

Really amazes me how kind you all are, it's sort of touching! Really love all the support I've had on here - thanks everyone

Ok so target debt free date is January 2021. I will setup a tracker in my signature.

camz2017

Signature updated, just started today as the % figure, but paid off a bit already.

camz2017

Bad diet day: Breakfast, a girl who stayed over made me bacon, eggs, toast, sausages, hash browns, cheesy beans and fried bread alongside the toast (so I had 4 slices of bread lol)

Lunch: KFC Wicked Zinger Burger box meal (burger, fries, pepsi, hot wings)- my mate wanted to go and then bought me food bless him, love the guy.

Dinner: spaghetti bolognese and then I also ate a chicago town pizza lol

Snacks: 2 coca colas full fat, 3 kit kat crunchies, 3 greggs sausage rolls.

I can't believe it, but my belly just rumbled!!! Night all, fatty going to crash

jemreading

Reading your diary makes me super hungry!! could go for a KFC myself now!

January 2021 sounds like a good target date to have!

camz2017

So I told my best friend of my financial situation, not sure he fully can relate as he comes from a lot of wealth and is always spending a fortune without a care in the world.

Anyway, he was like talk to my financial advisor for free, says a lot that he has a financial advisor lool.. Anyway so I got an hour of free financial advice.
So I did a facetime with some guy who basically said the only way to get out of a financial mess is to spend within budget (obviously lol) but also to work on generating a second income from investments, etc. So he has given me a whole bunch of advice on investing £500 amounts at a time (so it's not too stressful) into things that return quicker than Credit Card interest, not sure how I feel about it. He's all like "make your money work for you."

Food for thought anyways

natsplatnat

camz2017 wrote: »

to work on generating a second income from investments, etc. So he has given me a whole bunch of advice on investing £500 amounts at a time (so it's not too stressful) into things that return quicker than Credit Card interest, not sure how I feel about it. He's all like "make your money work for you."

A couple of thoughts from me....

• How long will it take you to have £500 to 'invest' without it impacting on your planned debt repayment?
• Each time you 'invest' £500 that's £500 not going toward your debt.
• How big a risk will you have to take on each £500 to return more than the interest you are being charged in your debt?
• How 'quick' will your return be? (CC interest is obviously added monthly).
• are you willing to risk your money.... as there will be the potential to lose some/all of it.
• Most 'investments' suggested by FA's have fees.
• There is no get-rich-quick (get-outta-debt-quick) fix.

Ok, so I am a cynic by nature (although I prefer the term 'cautious') and although I agree with "making you money work for you", I (personally) don't think that investing is the right thing to do whilst clearing debts. You would need a phenomenal level of return on the first few thousand pounds to even start eating into the interest on your debt. If you threw those few thousand pounds (in chunks) at your debt, you would be making it work for you by reducing the amount of interest being applied. By keeping your monthly planned repayments to the same figure you will clear the balance faster and faster as time goes on. Regular payments will help your credit rating and you should find that balance transfer offers come your way helping things move even faster.


So, I suppose what I am saying is you can only work with what you actually have.... not what you could have!! If you invest and it all goes wrong you could end up with even less!

EscapingTheAlarm

I think that natsplatnat has some good points. I’m obviosly not in a position to give much advice but I reckon that getting the debt down would be a good idea before you start to invest as it would make the numbers look less scary and take a bit of pressure off.
The only thing I was wondering is whether you own or rent your flat? If you rent it then could go get a help to buy ISA and put some of your pay rise in there? That way you get given quite a bit for your investment?
ETA x