Debt Free by '23

edited 30 November -1 at 1:00AM in Debt Free Diaries
114 replies 6.8K views
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  • MidsHollieMidsHollie Forumite
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    ratrace wrote: »
    Hi dont want to come across as harsh but your car is killing you you are spending £500+ every month on it thats more double what you spend to feed your self can you trade itin for a cheaper one and wipe £8k straight from your debt

    Also family loan on your soa it says 0 payments going towards that when is due to be paid and what will be the payments

    same with the help to buy when is that due to be paid back and whats the plans to raise the amount is it to remortgage if so then its very important to reduce your overall debt as fast as possible that way you will get a better interest rate etc...

    sorry if i have come across as a bit harsh but it coming from a good place

    Hi Ratrace,
    Don't worry about coming across as harsh, I realise that this is a mess! Thank you for your opinion.
    I agree with you, the car wasn't a wise decision, and is something I am considering switching. Unfortunately I will need a reliable car anyway so it's not something I can get rid of altogether. My SOA is new to me. I have never anticipated for annual expenses before, and so I think I have overestimated on things. The insurance is about right and tax is exact, but the maintenance is likely to be very overestimated. I'd rather put away too much now and have some left over that I can transfer to debt payments later. I'm also overpaying on the payments to get the debt down faster, hence why the monthly payments are high.
    Family loan has no due date. Once credit cards and car is paid off, I plan to send all my current debt repayments to that. And HtB and remortgage has a good while to go yet. I will be debt free in terms of family loan, CC and car, and have some money saved up before then, as well as being on a higher salary, so I aim to remortgage. But that in the future is one of the reasons I want to attack this debt as fiercely as I can now. With retrospect, spending as much on the house was probably not a wise move either.....

    https://forums.moneysavingexpert.com/discussion/6086606/debt-free-by-23/p1

    True LBM, December 2019 = £32934. Current Debt = £12762. 1% Challenge = 61.1%. #51 3-6 Month EF Challenge = £1200/£6000



  • MidsHollieMidsHollie Forumite
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    So, over halfway through the month, and 2 weeks til payday. My Monzo groceries & fuel pot has about half of the full amount allocated for this month left, and I still have almost half a tank of fuel left. I think I'll have some money left at the end of the month to put towards debt, as long as I keep a very, very close eye on my spending.
    I didn't plan my food too well this week. I had a couple of random work lunches (muesli and yoghurt is ok for lunch right?!) but succumbed to a £3.99 meal deal on Thursday. I've had a good week on Prolific, and did a mystery shopping assignment today, so more than covered the work lunch lapse. I've paid another £70 to the debt - all from little bits and pieces - prolific, a work expenses claim, and my £20 minimum payment going out despite the fact that I've already paid money towards that card this month - something to remember for next time.
    I found £15 in a coat pocket today, which is really rare for me, as I don't often carry much cash. I think I'll put this with my Christmas money and buy a ticket for a workshop for a crafty thing I've started trying. If I get good at this craft thing, I think it would work as little side hustle small business..... fingers crossed!

    https://forums.moneysavingexpert.com/discussion/6086606/debt-free-by-23/p1

    True LBM, December 2019 = £32934. Current Debt = £12762. 1% Challenge = 61.1%. #51 3-6 Month EF Challenge = £1200/£6000



  • FootyFanDanFootyFanDan Forumite
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    Hey :hello:

    just wanted to pop in to say good luck with your journey. :)
  • MidsHollieMidsHollie Forumite
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    I'm not sure how to add multiple quotes in to a reply, but Dan, Pencakes and VegasGirl, it's great to have encouragement and to know that other people are out there battling this and winning, so thank you :)

    I got some cash from a side hustle today and paid that straight towards my smallest credit card (I'm doing the Dave Ramsey snowball method as my debt is all interest free). It means that my debt total is now £31991.18...… I broke the £32000 barrier! Although from the first post in this diary it is only about £500, my debt at its highest point (and my LBM) was probably close to £34000. I love how quickly the small amounts add up when I'm focussed.
    I've just looked at my spends for the month so far. There is probably about another £60 or £70 that I didn't NEED to spend, but have involved fairly cheap ways of keeping busy or keeping fit and healthy, or planning ahead (£22 glasses - yes please!). So I guess I could get a little more focussed, but I'm so pleased with my progress so far :j
    Now to eek out the £140 I have left for the rest of the month so that I can pay what I haven't spent towards the debt!

    https://forums.moneysavingexpert.com/discussion/6086606/debt-free-by-23/p1

    True LBM, December 2019 = £32934. Current Debt = £12762. 1% Challenge = 61.1%. #51 3-6 Month EF Challenge = £1200/£6000



  • FootyFanDanFootyFanDan Forumite
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    The progress you are making is great, I believe every little you find helps. The Dave Ramsay snowball is how i plan to attack it as well, i like the idea of the small wins early on. I would also think I could be a little stricter too with my spends but decided that i would allow a little for treats as if i had all my money at the debt i think i would quickly lose motivation

    Keep going you are doing well
  • SuperFrank88SuperFrank88 Forumite
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    Hi Hollie,

    I am in a similar situation to you so will subscribe to your journey :) Good luck, you have made an awesome start!
  • MidsHollieMidsHollie Forumite
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    Thank you Dan and Frank - I feel like I am smashing it!

    I checked my bank account this morning, looking to see if £8 had arrived from Quidco. IT hadn't, but I saw £130 from some work expenses. I wasn't expecting the £130 as my claim didn't quite meet the stupid and arbitrary rules they had in place, and seeing as I hadn't heard anything since I submitted it, I thought they hadn't even looked at it.SO it was a great surprise this morning! It went straight to the credit card.
    So far this month, I have paid off £1064.64, compared to £938.83 last month. Wouldn't it be great if I could pay off more each month?! It definitely won't happen though. I think my average will be around £850, and then with extras eeked out of the budget and little extras coming in will add on top. I've got a spendy few months coming up with car servicing and insurance, but I should have JUST about enough in my shiny new annual savings pot to cover things (fingers crossed!).
    Now, to keep an eye out for that £8 from Quidco and be as frugal as I can with my grocery pot so I can add some more to my January debt payoff :j

    https://forums.moneysavingexpert.com/discussion/6086606/debt-free-by-23/p1

    True LBM, December 2019 = £32934. Current Debt = £12762. 1% Challenge = 61.1%. #51 3-6 Month EF Challenge = £1200/£6000



  • MidsHollieMidsHollie Forumite
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    A bit of a mixed bag on the debt busting this weekend.
    I've done my final big grocery shop of the month today. Might need to pick up the odd thing like bread during the week but it won't be much. I will be able to batch cook lunch and dinner, and have got my breakfasts ready for the week too. I only have £67 left in my spending account now. So I can completely fill up with fuel and have nothing left, or put half or a quarter tank in and put the rest towards debt payment at the end of the month. I'm not really sure. Both have benefits, but I think adding a bit extra to the debt payoff would help my motivation, even if I could save myself some money from next months budget by filling up now.
    The council was giving away free tree's yesterday. I got two, but did have to buy compost. Luckily I had pots that they will do in for the next couple of years already, so although it was a £4 spend for the compost, it was pretty cheap for what I got in return. On a negative though, as I was getting in the car to get them, I noticed a chip in my windscreen. Its only small but I worry about it getting worse and / or causing an MOT failure. So something to get fixed ASAP. Good job I'm working on that emergency fund!
    I've not managed to get much extra over the last week or so from surveys, mystery shopping or my little side hustle. It's meaning it is hard to stay motivated. I also made a little visual thing of my debt pay off on a spreadsheet and it is such a mountain! It was supposed to increase motivation, not decrease it!
    I've got my budget ready for Feb. I've allowed for £50 on eating out as it is Valentines day, so I'm sure the boy and I will plan a few things that weekend. It's so hard to balance my debt payoff with also doing things with him (who has no debt other than student loans). I may have to start budgeting a little extra for relationship spends, see if I can make savings elsewhere.
    Plan for the next couple of days :
    - list things on ebay
    - meet buyer of one ebay item
    - keep an eye for that £8 quidco money!
    - fingers crossed my work debtor gives me the £7 owed
    - declutter some more things
    - meal prep
    - keep an eye out for surveys, mystery shopping and side hustle work

    https://forums.moneysavingexpert.com/discussion/6086606/debt-free-by-23/p1

    True LBM, December 2019 = £32934. Current Debt = £12762. 1% Challenge = 61.1%. #51 3-6 Month EF Challenge = £1200/£6000



  • BankMoth888BankMoth888 Forumite
    14 Posts
    MoneySaving Newbie
    Wow! Reading your diary is inspiring (and a tiny bit shaming!) because you are working so, so hard and in multiple directions. You've really shown me that I need to step up quite a few gears on my own plan. The part of your first post that resonated with me the most was "I just thought life would sort itself out" because that was totally my previous position too. Ha ha how we kid ourselves into thinking it will all magically be OK! Your new attitude will have this cleared in no time though and I'll be following along hoping to pick up some tips and a little bit of your amazing motivation. Good Luck :)
  • MidsHollieMidsHollie Forumite
    291 Posts
    100 Posts First Anniversary Name Dropper
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    Wow! Reading your diary is inspiring (and a tiny bit shaming!) because you are working so, so hard and in multiple directions. You've really shown me that I need to step up quite a few gears on my own plan. The part of your first post that resonated with me the most was "I just thought life would sort itself out" because that was totally my previous position too. Ha ha how we kid ourselves into thinking it will all magically be OK! Your new attitude will have this cleared in no time though and I'll be following along hoping to pick up some tips and a little bit of your amazing motivation. Good Luck :)

    Thanks BM! I really am keen to work as hard as I can whilst I can. I figure that whilst I can pay down as much of this debt as I can, I really should. I've been quite inspired by some of the Dave Ramsey stories, and some of the aspects such as 'robbing from your future' really make sense to me.
    So I can completely fill up with fuel and have nothing left, or put half or a quarter tank in and put the rest towards debt payment at the end of the month. I'm not really sure. Both have benefits, but I think adding a bit extra to the debt payoff would help my motivation, even if I could save myself some money from next months budget by filling up now.
    My plan from early in the week didn't quite work out. I chose to only put in half a tank of fuel, with the aim to put the rest to debt, but I bought tickets for an event this weekend.....whoops :o But in reality it is probably my first slip up since being on this journey, and it was £27 for two tickets. I'm sure I'll get treated out for dinner too, so it will be a nice little date night. Having been so frugal through January, I'm sure I'll enjoy it all the more.

    I rounded up the £50 cash I've had in the house, and paid it in to the bank. Added £20 from the left overs in my current account before payday on Friday and sent that to my credit card. As I only have £9 in my account now, I'm pretty sure that will be the last of my January debt pay off!
    Quite productive on the money front though today. Two mystery shopping trips in one, so should end up with £15. And a survey on Prolific when I got home. It all adds up!

    https://forums.moneysavingexpert.com/discussion/6086606/debt-free-by-23/p1

    True LBM, December 2019 = £32934. Current Debt = £12762. 1% Challenge = 61.1%. #51 3-6 Month EF Challenge = £1200/£6000



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