Debt free before August 2023

IzzyBee

Your doing really well I think everyone is feeling the same you’re not on your own I was in a bad place in March really struggling but I feel like I’ve turned a corner my youngest son is getting married in August 2022 a long way to go but I am focusing on losing weight and getting fit and healthy for it which is definitely helping 

FootyFanDan

Hey Poppy, you are doing brilliant the 9k figure certainly alot better viewing than a 30k one haha! I get you re the lockdown I haven't felt as crappy in the others as I do in this one. I think its just been a long road for us all and planning stuff is tough but on a positive we are getting closer to the light at the end of the tunnel, which I know isn't always easy to see especially with Social media/news broadcasting mostly bad news and negativity around the covid stuff and whilst i don't think the gov have handled as well as they could have (whether anyone else could have is a debate I won't enter lol) , we have some kind of roadmap out with the vaccine. Stay strong and safe you have got this!!!! 

Sarahwithlove

You're doing great keep going. It certainly feels harder this time round and think that's why we are hearing or more people breaking or bending the rules. 

savingholmes

You are making great progress despite limitations on extra income. Lockdown isn't easy - but does provide opportunities to save. 

Poppy1984

Thank you all for your lovely replies, I totally agree, I think everyone's struggling in this lockdown, but with the vaccine hopefully there's a bit of light at the end of the tunnel. 

In debt busting news I'm just trying to spend as little as possible and throw as much at my loan as I can. I've just made another overpayment but I'll wait to my fixed payment comes off middle of this month before I update my totals. 

In other news I'm trying to workout at home every day even if I only manage 15 minutes and it is doing my mental health the world of good. I wonder when the gyms will re open, I'm hoping to get back to regular sessions when they do. 

Stay safe everyone 

poppy

savingholmes

Getting close to the £9K mark now. Soon be in the next bracket down. Prioritising self care is good at this time too.

Poppy1984

Hello diary 
I'm just popping on to do my monthly update 😁 I hope everyone is keeping safe and well. I feel a bit brighter this month and that there might be a glimmer of light at the end of this pandemic tunnel 🤞 also I think a bit of sun and going for walks has really helped I like that it's not getting dark as early now and I can squeeze a walk in after I'm finished work before it gets pitch black dark. 

My new debt total is drumroll please............... £8,340 😃😃😃 I feel like I'm living by the seat of my pants at the moment because I'm throwing every penny at overpayments to try and get it paid down as quickly as possible but it does mean that I'm being a bit more risky as I don't have much money in pots backing me up like I did when I first started this journey, for example I've always kept £300 in an EF but there's about £20 in there at the minute. I don't see the point in keeping £300 sat there not earning any interest when it can be going off my debt. I do still have my pots for my car, Christmas etc but I've only got the bare minimum in them and the Christmas one is locked until October anyway or I'd be tempted to throw that all at my loan too! 

I'm not completely throwing caution to the wind though as I do actually now have £1,000 in my help to save account which I am allowed to access and take money out of at any time so I'm kind of classing that as my EF. However I really really really don't want to use it because if I take any money out of it it'll affect my bonus which will get paid to my current account in July. The bonus is 1/2 of the highest balance so I will have put the full allowance of £50 a month in so will get £600 originally I thought this would just stay in the help to save account but it actually gets paid into my current account so the plan is to pay that off my loan in July which will be a fantastic overpayment!! It will mean that I won't have as much as I thought when the account is finished in 2022 but I'll still have £2,400 which is a good amount, well maybe £3,000 because I can keep the second bonus payment of £600 to one side when that gets paid in 2022 because I SHOULD be debt free by then 🤞 

I do need to point out that I do still have 19 months remaining on my loan so technically my dfd is September 2022 it's only if I can continue to keep overpaying that I'm hoping to get out of debt by the end of December this year but I know I will definitely be out of debt by September 2022 if things don't go to plan this year or something comes up that means I'm unable to over pay. Exciting!!!! I just cannot wait to be free! 

This has been the hardest journey but is going to be so worth it. I have completely changed my attitude towards money and the way I budget etc and it will see me right for the rest of my life, although I wouldn't wish this stress on anyone as it's been pretty dark at times I do feel I have learnt so much and it will have a positive impact going forward. 

I cannot wait to be able to feel free and not have this huge weight of debt hanging over my shoulders. 

Poppy  

FootyFanDan

Hey WOW look at that debt total falling!!!. Well done. I think while there as been some really tough moments along your debt journey they are going to stand you well long after the debt is gone. I think what I have learnt the most is that it is still possible to live well whilst sticking to a budget which is something I never considered before. I always saw a budget as been restrictive previously. 

The EF is always something I was always unsure about whilst I was paying of loads of debt, I didn't have access to credit so the not having and EF and resorting to credit and further building up debt wasn't an issue, so i always focussed on most of money going towards debt. It is only as i get closer to debt free that I have started considering pots and EF it is something I have to constantly check though as I don't want overkill on the pots front as there is somethings I could actually just pay out of my budget if needed but that doesn't feel very MSE lol. I am still in the early stages of building the pots though so at present it is still unknown as to how effective it will be for me.

It does certainly seem though that you are determined to get this debt gone and soon your hard work will be all worth it! Keep going  

Poppy1984

Thank you @FootyFanDan I really feel like I'm getting closer to becoming debt free and I'm so excited. 

I know what you mean, I have pots for all annual expenses and I will continue to do that once I'm debt free. I think I will probably keep £1,000 out of my help to save account as an emergency fund once I'm debt free but I'm not keen on having thousands of pounds just sat there doing nothing as an EF. I know the general suggestion is 3-6 months wages just in case but interest rates are just so rubbish at the moment you would hardly get anything on them. I don't know about all that with savings to be honest. This is the first time I've actually even considered it as I was so focused on just getting out of debt. Obviously the last thing I want to do is get back into debt so I am going to have to have savings behind me and continue with my pots for annual expenses and saving for short term and long term things that I want to buy. I will probably want to loosen my purse strings a little once I'm debt free and get use to a slightly larger budget to live from while adjusting what I can reasonably save without keeping myself extremely frugal. 

My head hurts a bit now thinking about all that! A lot to think about, plan and consider moving forward. I can not and will not ever go back to being in debt so I need to start planning for how I'm going to manage my money once I become debt free really. 

Take care 

poppy  

Sarahwithlove

Sounds like in a real emergency you'd have access to your help to save and July isn't that far away. I'd be doing the same as long as you keep your pots topped up for yearly/ongoing expenses.