Debt free before August 2023

Poppy1984

As the title says really, my debt free date is August 2023, however my aim is to beat that!

I've ummed and aah'd over starting this diary, I need something to give me a boost and some accountability, but I don't really think I have anything interesting to say.

My debt is large (smaller than it was) and is taking a long time to pay back, I'm feeling low quite a lot lately and have slipped up a little with extra little spends here and there I think because I'm feeling so restricted and I know that's going to go on for a few years to come.

My debts are listed in my signature but I will list them again here:

Feb 2018:
Next account £815
Very Account £1,600
Tesco Credit Card £1,600
Loan £26,522

Total £30322

Now: loan £18,600 fixed payment £456 a month

My debt built up by overspending, keeping up with the Jones's, buying a house and furnituring the house, robbing Peter to pay Paul, buying on buy now pay later, not paying it back in time before the interest was due to go on, panicking putting that on a 0% credit card, not paying that back in time, constantly shifting the debt around like a fool whilst continuing to live beyond my means and building more debt, I also consolidated twice, hence the big loan. The first time I consolidated I did what everyone on here says you'll do and I kept the cards and catalogues and let it all build back up again. I'm deeply ashamed of myself but I have well and truly learned my lesson!

I have reduced my outgoings as much as I possibly can and cut my spending down as much as possible. Ideally I'd like to get a better paid job so that I can over pay that loan and get it down quicker but I've interviewed for a couple and sadly had no luck so far.

Anyway that's it for now, I guess I just kind of wanted somewhere to vent and share my feelings about being in debt and paying it back.

Poppy1984

I feel so low today, I have completely overspent this month on little spends here and there the first time since I started debt busted I haven't really tracked mu spending and have allowed myself to over spend so I'm really cross with myself. Its fine I wont go into my overdraft or anything I'm just not going to be able to make any sort of overpayment on my loan.


I'm really fed up of being so restricted, I feel like I say no to people all the time and I'm always saying I can't afford I cant afford continuously. I know I have no choice in the matter as what's the alternative build up the debt again!


I suppose I've kind of hit a bit of a plateau and the debts not reducing very fast so I just feel like there's such a long road ahead of me. I'm not really sure how I can speed the process up, I don't have anything I can sell, I don't have time to take on an additional job, I'm looking for a new higher paid job.


I guess I just have to accept where I am and that its going to be like this for the next few years.

NeverendingDMP

Try not to be disheartened. You have reduced it by a good 10k so far. Its tough when its going to take a while but even tougher in decenber when the little spends at this time of year just seem to appear out of nowhere. Its not gone up so thats a start. And there are plenty of us here that can keep you companybon the journey.

[Deleted User]

Well, there are some positives there, Poppy! Your spends haven't stopped you from making your necessary payments, just the overpayments, so it could be worse!

I'm sure everyone on here has felt that feeling of the debt not going down so fast, just take some time to reflect on the positives and regroup, you'll do fine

Poppy1984

NeverendingDMP wrote: »

Try not to be disheartened. You have reduced it by a good 10k so far. Its tough when its going to take a while but even tougher in decenber when the little spends at this time of year just seem to appear out of nowhere. Its not gone up so thats a start. And there are plenty of us here that can keep you companybon the journey.

Thank you, I think that's what it is and December just seems to be such an expensive month with lots of expectations to spend and socialise. I feel like a scrooge constantly saying to people no sorry I can't afford that no sorry not this time etc etc.


I'm worrying a little bit about my state of mind at the moment because I am feeling this way and little spends have crept in here and there that I'm going to lose control and end up adding to my debt! Or going down the F*ck it mode and spending what I cant afford because I'm so sick of scrimping, does that make sense? I suppose its the money equivalent to dieting and binging!

Poppy1984

SSDD23 wrote: »

Well, there are some positives there, Poppy! Your spends haven't stopped you from making your necessary payments, just the overpayments, so it could be worse!

I'm sure everyone on here has felt that feeling of the debt not going down so fast, just take some time to reflect on the positives and regroup, you'll do fine

Thank you I guess that's right, it could be worse. I just feel so downtrodden at the moment.

Poppy1984

Feeling a little bit more positive about things today, I received a statement for my sons savings (it's in shares) they are at quite a good amount so hopefully if they stay around that amount until he is old enough to cash them in he'll have a little bit of money to start him off at 18. So although I have messed up hugely in terms of money and debt at least that's one positive thing!

I really don't want him to follow in my footsteps when in comes to debt. I wish I had knew what I know now when I was 18!

I'm going to complete a new SOA as I haven't done one for a while so that needs updated. I'll pop it on here when it's done.

Im putting job hunting on hold until the new year now, I need a break from the constant checking.

Right off to do my SOA

Poppy1984

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 1
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1600
Partners monthly income after tax....... 0
Benefits................................ 80
Other income............................ 140
Total monthly income.................... 1820

Monthly Expense Details
Mortgage................................ 205
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 79
Electricity............................. 30
Gas..................................... 30
Oil..................................... 0
Water rates............................. 20
Telephone (land line)................... 0
Mobile phone............................ 7
TV Licence.............................. 13
Satellite/Cable TV...................... 0
Internet Services....................... 16
Groceries etc. ......................... 200
Clothing................................ 10
Petrol/diesel........................... 50
Road tax................................ 14
Car Insurance........................... 26
Car maintenance (including MOT)......... 31
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 22
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 5
Contents insurance...................... 5
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 84
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 70
Emergency fund.......................... 20
Glasses savings ........................ 5
Total monthly expenses.................. 942


Assets
Cash.................................... 0
House value (Gross)..................... 68000
Shares and bonds........................ 0
Car(s).................................. 500
Other assets............................ 0
Total Assets............................ 68500


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 49597....(205)......2.59
Total secured & HP debts...... 49597.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Halifax loan ..................18600.....456.......3.9
Total unsecured debts..........18600.....456.......-


Monthly Budget Summary
Total monthly income.................... 1,820
Expenses (including HP & secured debts). 942
Available for debt repayments........... 878
Monthly UNsecured debt repayments....... 456
Amount left after debt repayments....... 422

Personal Balance Sheet Summary
Total assets (things you own)........... 68,500
Total HP & Secured debt................. -49,597
Total Unsecured debt.................... -18,600
Net Assets.............................. 303

Created using the SOA calculator at https://www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using other browser.

I feel like I'm in a much better place than when I first had my lightbulb moment and started seriously debt busting. I feel as though my SOA is as tight as I can get it. A few comments to explain it......

Groceries: I put £200 a month because that is what I budget for all food and household cleaning items etc I often come in below £200 so any money left over from that budget at the end of the month is used to over pay my loan.

Presents: I know, I know £84 a month on presents for someone in so much debt sounds a lot but honestly it really doesn't go that far!!! When I started debt busting I told all my friends I could no longer buy for them and their children and asked them not to buy for me and my son.
So that money covers birthday and Xmas presents for close family and also any celebration expenses over the year. It may sound a lot but trust me it does not go far once you start. I've only bought family token gifts for Xmas but even that soon adds up!

I use spending tracker on my phone to track all my spending. I usually end the month with a surplus which for someone who lived in their overdraft for years is a miracle! I know my SOA says I have over £400 left, I don't. Anything that doesn't fall into any of the categories on my SOA is paid for using that money and recorded in my spending tracker, again any surplus like with my groceries budget gets used to over pay debt.

Holidays: I know that seems like a lot and it is but a close family member is celebrating a big birthday next year and I agreed to go on a trip to celebrate that years and years ago. Yes they would understand if I said I couldn't go but I really want to and I feel as though it's important. I know I'd get out of debt faster if I didn't go but ultimately some things and some people are just more important.
That £70 is to cover everything from the travel, accommodation, spending money whilst there and a gift.
This will go to 0 after the trip so that money can be used to overpay the loan after that. The trip hasn't been booked yet but is likely to be around September time. So that money will be freed up after then.

My car insurance is due for renewal in March so I'm hoping to reduce that and my mortgage is fixed to April but who knows whether I'll be able to get a better deal or not with everything that's happening around Brexit. I will try to get a better deal though. Other than that I can't really see anyway I can reduce any outgoings on my SOA.

Tahlullah.H

Sometimes, family comes first. Don't beat yourself up about this.

Poppy1984

Tahlullah.H wrote: »

Sometimes, family comes first. Don't beat yourself up about this.

Thank you! I feel like I'm constantly saying no to people all the time and as much as people understand it's still disheartening. They want to do something that has a cost attached and want me to do it with them it's nice that they feel that way. Everyone understands but it gets me down.

Poppy1984

Well its pay day tomorrow! Thank goodness because I am on my last penny! I would like to say this month will be better but with Christmas I really don't think it will be. I find it so frustrating because I'm unable to over pay my loan and I really want to over pay as much as possible so I can get it paid off as fast as possible.
I know its positive that I'm not getting into any more debt and I'm still paying the loan down with my contractual payments but I am impatient and really want to be overpaying so its getting me down that I can't do that.


I guess I just feel like I am in limbo wishing the months away so I can be debt free sooner.


One of my friends has been match betting so I'm going to talk to her about that, if I can get into that I could use any cash I made to over pay my loan which I think would make me feel a bit better.