Debt Free by 60

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socks_uk
socks_uk Posts: 2,813 Forumite
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edited 1 February 2020 at 1:25PM in Debt free diaries
I guess I hit a lightbulb moment in August on my 55th birthday that I didn't want to be still in debt with my own personal debts when I reach my 60th. My total personal debt on 21st August 2019 was £11.024.
On starting this diary, my Nationwide loan balance was £7,682 (3.2%) and I have a Nationwide credit card (18.9%) which I have now moved between M&S (28 months (0%) and have just been accepted for Sainsburys (12 months 0%).
Unfortunately, M&S only gave me a £500 credit limit and Sainsburys was £3,500 credit limit. I only wish M&S had accepted me for the full balance transfer amount I applied for (£2,471), but nevermind, I'm now at 0% for at least 12 months.

I have had my first statement for M&S and my direct debit is £12.21 and due to be paid on 21st October. £488 divided by 28 months is £17.42 so, for now, I'm going to let the direct debit pay the minimum payments.

I've only just sent off the paperwork for the Sainsbury's balance transfer so early days on that one but £1983 divided by 12 months is £165.25 a month. I used to pay £80 a month for my Nationwide card so I'm going to start off paying £50 (ish) a month on top of whatever the minimum payment will be.

Fingers crossed I'll be able to find another 0% balance transfer in 11 months time!
DEBT FREE BY 60
Starting Debt 21st August 2019 = £11,024
Debt at May 2022 = £5268
Debt Free Challenge - To be debt free by August 2024

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  • socks_uk
    socks_uk Posts: 2,813 Forumite
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    It's been a while since I first realised I'd be 60 in 5 years time (now 4 years 7 months) and I'm keeping a monthly check on all my debt.

    I signed up for Credit Club to see my Experian credit report and realised that I was using my loan & credit card statements to work out my debt total which seemed to be less than on the credit report. So, since September I have checked my debt balance via the credit report and, at the beginning of January, managed to shift the last of all my credit card debt to 0%, which I'm really happy about.

    Now they are all at 0%, I'm ploughing all the overpayments on to my Sainsburys card, as it has the least time left at 0%, and I'll leave the M&S and Halifax credit cards on minimum payments.

    I'll carry on paying my loan at the normal monthly payments for now and reassess closer to the first 0% credit card comes to an end and hopefully shifted onto another 0% balance transfer.

    So far I'm pretty positive and I see no reason why 'Debt Free by 60' isn't possible (and we have started saving for a trip to Australia to visit friends for our 20th wedding anniversary in 2022)
    DEBT FREE BY 60
    Starting Debt 21st August 2019 = £11,024
    Debt at May 2022 = £5268
    Debt Free Challenge - To be debt free by August 2024
  • savingholmes
    savingholmes Posts: 27,559 Forumite
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    Good luck on your journey. I tend to find the so-called updated credit report is at least a few months out so I tend to owe less than it thinks.
    Achieve FIRE/Mortgage Neutrality by mid 2030
    1) MFW Nov 21 £201,999 with 236 payments to go - now £183,036 Equity 26.8%
    2) Spend on handyman & external building works & new patio door £12.65K
    3) CC £4.6K on 0% spends card but offset by £33.8K savings (part EF, part future home improvement)
    4) Mortgage neutral by June 2030 AVC £10.2K/£127.5K AVC target 8% value at 15/5
    5) FI Age 60 annual income target £13.7/30K 45.7%
  • socks_uk
    socks_uk Posts: 2,813 Forumite
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    Well I've just had my 56th birthday last month so I have 4 years left to achieve my 'Debt Free by 60' goal.
    The 0% on my Sainsburys card was due to run out this month so I took out an MBNA  0% card for 14 months (but I did buy a sewing machine on the Sainsburys card prior to the balance transfer!)
    Thankfully I'm still pleased with my progress and I'm on target for my goal!
    DEBT FREE BY 60
    Starting Debt 21st August 2019 = £11,024
    Debt at May 2022 = £5268
    Debt Free Challenge - To be debt free by August 2024
  • socks_uk
    socks_uk Posts: 2,813 Forumite
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    I've just been updating my monthly debt chart and I'm still on target for August 2024.   <3
    At the moment I'm 'topping up' my credit card minimum payments to a round figure.  I hate it when the monthly payments go down so this month (and all future months) I'm making sure my MBNA £68.10 payment is topped up to £70, my Halifax £8.09 payment is topped up to £10 and my M&S £8.99 payment is topped up to £25.  (Paying £25 a month on my M&S credit card will mean it will be paid off the month before the 0% ends in June 2021.)
    Doing the maths, my total debt is currently £8827 and I'm paying £305 per month so I should be debt free in 29 months so about April 2023 - FINGERS CROSSED!   
    It would be nice to be debt free by age 59!   :)
    DEBT FREE BY 60
    Starting Debt 21st August 2019 = £11,024
    Debt at May 2022 = £5268
    Debt Free Challenge - To be debt free by August 2024
  • Sarahwithlove
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    Have you got any ways to make extra money or areas you could cut the budget back in? Do you do surveys at all? Do you meal plan and do shopping list based on that? 
    *Dad loan - £5300 - £1700
    *Virgin Credit Card - £3552.50 - £0
    *Barclaycard - £0

    *Total debt - £1700*

    *Sinking Fund - £2000/£3000*
    *Emergency Fund -£50/£2000

    *Debt Repayments Pot - £0/0*

    New diary- https://forums.moneysavingexpert.com/discussion/6474943/the-three-cs-coffee-clothes-credit-cards/
  • socks_uk
    socks_uk Posts: 2,813 Forumite
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    Thanks for your reply.  Yes, I have registered to do some surveys but I spend a lot of my time on the sewing machine so I've not actually done that many. 
    As for meal planning, well, it depends what I find with yellow stickers or from the Company Shop (discounted food).  I also like to buy a sack of potatoes so jacket pots are very often on the menu, including tonight.  
     
    DEBT FREE BY 60
    Starting Debt 21st August 2019 = £11,024
    Debt at May 2022 = £5268
    Debt Free Challenge - To be debt free by August 2024
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