Change's Debt Free Diary

ch4nge

Completely new to the forum, but am working on becoming debt free and heard from a friend that there is much moral support to be had around here!

Starting balances (including last year's wins :j )
[STRIKE]Credit card #1: £500[/STRIKE] PAID IN FULL!
[STRIKE]Overdraft: £2000[/STRIKE] PAID IN FULL!
Credit card #2: £4850
Credit card #3: £3600
Credit card #4: £7200
Total: [STRIKE]£18150[/STRIKE] £15650

My biggest challenge is controlling impulsive online shopping/reducing social spending; to counteract this I am trying cash envelopes for my £25 weekly "fun allowance" this year :eek: would love to hear about other people's experiences trying something like this.

It's going to be a long slog (think will take me about 24 months in total) so hoping for a bit of advice and maybe some moral support when I get extremely BORED of living frugally! I'm hoping to change my relationship to money as well as clear the debt, because I can definitely be a bit of an emotional spender...

ch4nge

Having read elsewhere on the forum about the amazing 100 steps/1% challenge, I divided my debt into 100 steps and created myself a simple 10x10 grid to colour in as I pay off each percent. The idea is that (as long as you cover interest with your separate minimum payments) you can divide your debt into 100 manageable chunks, and know you are only ever 100 steps away from paying it off.

I rounded mine to £160 for each percent. In an average month using only my salary I can pay off 2%; so I've been brainstorming ways to make a bit extra. First percent was a simple bank account switch (£125) + selling an old phone to Mazuma (£30) + counting out 5ps in my change jar (£5)! I won't colour in the square until I've made the payment, but it's good to know it's coming up. This month I also got an annual bonus, which coloured in a couple of extra!

Would love to hear if anyone else is trying this method. It definitely made me feel more hopeful!

Was thinking of doing a SOA, as I've seen others do - are there any suggested rules/methods for that?

Current totals:
Credit card #2: [STRIKE]£4850[/STRIKE] £4230
Credit card #3: £3600
Credit card #4: £7200
Total: [STRIKE]£18150[/STRIKE] £15030

96%

Treadingwater02

Didn't want to read and run, good luck on your journey to being debt free!

ch4nge

After feeling really positive about paying off my first '4%' - I now feel totally stuck! It seems a long wait until the next paycheck to colour in some more squares of my debt free tracker.

To try and create multiple income streams, I've been doing some User Testing online. I'm earning £7.50ish per session (20 minutes work:j), which I'm tucking away until I can make a 1% payment. I've also signed up to do some tutoring, although no luck there yet...

How do you keep the momentum going during the month? Anyone found any good ways to earn a bit extra?

One-step-at-a-time

Hello and good luck with your debtbusting!

I always get really frustrated when I get to the point in the month where I have made my payments and can't make any more significant changes, so I am constantly chipping away selling odds and ends on eb4y (which has been great as it doubles up as decluttering motivation), and doing surveys (signed up with prolific). I also have my bank account set to round up any debit card purchases to the nearest £, with the change put into in instant access saver, then I pay off a bit of the CC whenever it gets past £10. Not technically earnings, but it does mean that there's a drip feed of payments going.

Scott-Weiland

Re boosting income streams i am a huge huge advocate of if you have the time doing market research surveys online, there is easy an extra 50-100 pounds per month or more to be made if you meet demographics. The last 3 years i have easy earned 3000-4000 pounds via surveys and cash back. I will post you up some links. I have currently about 8 or 9 debts, i make a small payment too each then the smallest of each debt any surveys/cash funds i earn all payments go off the smallest debt till its cleared. Once the smallest debt hits say 30-40 quid i will clear it on payday. This method for me seems to work.

Re debt busting its thinking smart and being patient, firstly do an soa and be realistic with yourself ie do you really need amazon/sky/virgin media etc etc

If you dont have it get topcashback on your phone too, since i put the app on my phone 2-3 years i have earned 725quid. And thats all through just basic stuff ie

buying on ebay
gettting the odd takeaway from justeat
argos click and collect
switching insurance providers or car insurance or life insurance
switching broadband providers.


https://www.moneysavingexpert.com/family/make-money-surveys/