So what's next?

Dragonpie

Thanks Beanie - CC2 is on 0% until March so if all goes to plan, that will be paid off in March and then CC1 in April

Sarahwithlove

Well done on clearing the loan. Will you be able to clear both cards before the 0% period ends? What about your emergency fund are you going to get that back up and running? 

Dragonpie

Now that the loan has gone I should be able to save / put towards debts £1200 so, as long as there are no unforeseen expenses, I should be OK to be paid off in time. Rather than paying straight to the card, I will put the money into a savings account - I would rather not pay the card off until I have £1000 extra in the account but I will hopefully clear CC1 in March, even if that involves using the emergency fund again.

I know how ridiculous it is that I got myself in this position when you take in to consideration my potential, disposable income and I aim to never get myself back here again! 

Sarahwithlove

Sounds like you have a plan in place then. Just try not to spend the extra money, do you have a saver you could move it into so it's not tempting you to be spent 

Dragonpie

I've got several savings accounts set up to help me budget, the credit card funds will be going into the emergency fund account (I then have a holiday fund and a gift fund) - I've done quite well so far with sticking to my budget (with a few blips!) so I hope to be OK as the budget will be staying the same and only the final destination of the funds will be changing. 

Dragonpie

I've not updated for quite a while as life has been getting in the way but I am still here and the end is in sight! As long as there are no unforeseen bills, CC2 will be paid in full in 2 weeks leaving me with just CC1 - there is a balance of £1126.13 but it's interest free until December, so I am undecided whether I will clear that early or just pay the minimum and clear it at the end of the 0% period.
I am so proud of myself, I started this journey with over £20k of debt and in 6 weeks time, I can be entirely debt free, I have a holiday fund, a gift fund and an emergency fund. It hasn't been easy, although not being able to leave the house for the past 12 months has probably helped to curb my spending! 

Sarahwithlove

I would work out how much a month you'd need to pay to clear it by end of 0% period and pay that each month then save the rest. You can always pay it off early then if you want. What's your next goals financially after debts are gone? 

beanielou

Great result 
Be proud.

Dragonpie

Obviously not been here for a long time but I mentioned my debt to my parents last night and it was the first time I'd mentioned the extent of my debt; my partner also never knew the extent of my debt until recently. I wouldn't recommend keeping finances a secret in the way that I did but I also realised that I had this diary as an outlet which helped me immensely! So thank you!

No idea if anyone is still here but this is my final update. I've been mostly debt free for a while now, I have a reward card that I clear in full every month and around £500 on an interest free credit card due to requiring dental treatment and having to go private, I make sure that I have the funds in savings to pay both off at any time, though.

I'm overpaying my mortgage upto my 10% annual maximum, saving more so that I can hopefully make a lump sum when my deal ends and have seperate savings pots for emergency, travel and gifts. 

I'll be honest that my finances aren't entirely improved due to sensible budgeting as I earned a promotion which has helped immensely but I now live within my means (although splurging on nice shoes still happens too often!)

vampirotoothus

Congratulations x