"Lightbulb moment - 67k down. Need to execute a recovery plan"
Comments
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In the grand scheme of things, £1,000 off of a £50k+ debt pile is relatively insignificant at this stage, I would keep it back for EF and be very strict about this.The psychological impact of having to add further debt during your journey because you didn’t have an EF to fall back on, in my opinion, will far outweigh whatever gain you get from paying that £1k in to your debts right now.
just my own two pennies worth.Save £12k in 2023 challenge
Jan = £715 / £1,000 - Feb = £1,275 / £1,000 - Mar = £400 / £1,000 (fallen behind will make up in April)
Apr = £ May = £ Jun = £Jul = £ Aug = £ Sept = £
Oct = £ Nov = £ Dec = £Saved Total = £2,390 / £12,0002 -
Thanks MrFrugal...I think your right.All the stats, the experts and history point in the direction of having an Emergency Fund. As it is bound to prove useful at some point on this debt free journey.I think I better stick to the proven formula!365 Day 1p challenge - £371.49 / 667.95
Emergency Fund £1000 / £1000 ( will enlarge once debts are cleared)
DFW - £TBC1 -
Having sat on a 50k debt pile myself, I'm massively in favour of keeping an EF. Being able to replace a busted appliance without fretting about adding to the debt is a good feeling. It happened to us again recently and I'm making sure that the EF is getting back to where I want it over the next few months.DEBT-FREE 27/08/21 Mortgage: £19,670.73 to go1
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Hi,
I have an EF now my debt has GONE. Martin Lewis states on the main site to use your savings/EF as the interest you're incurring on your debt is more than what you would make in interest. Have a read, its worth it!.
Bizzy1 -
Bizzywizard said:Hi,
I have an EF now my debt has GONE. Martin Lewis states on the main site to use your savings/EF as the interest you're incurring on your debt is more than what you would make in interest. Have a read, its worth it!.
Bizzy
the emergency fund is vital to function when in a large amount of debt and provides a psychological way out when the brown stuff hits the fan, it’s long since been recommended to achieve £1,000 in funds for only emergencies.Save £12k in 2023 challenge
Jan = £715 / £1,000 - Feb = £1,275 / £1,000 - Mar = £400 / £1,000 (fallen behind will make up in April)
Apr = £ May = £ Jun = £Jul = £ Aug = £ Sept = £
Oct = £ Nov = £ Dec = £Saved Total = £2,390 / £12,0002 -
Thanks for the advise guys... A lotta stuff came up unexpectedly, that needed dealing with so low n behold a lot of the bonus went elsewhere.fortunately i did put £250 towards an EF. And at least have got that fund started. Need to get that to 1k as a priority.I totalled up the list today, and its sitting just above 50k! Still a huge amount, but down significantly from a year ago @ 67k! Approximately 25% down - So its moving in the right direction.I appreciate all the tips, advice and encouragement from the MSE clan! Its really helped motivate me.365 Day 1p challenge - £371.49 / 667.95
Emergency Fund £1000 / £1000 ( will enlarge once debts are cleared)
DFW - £TBC1 -
Emergency Fund is in motion. currently @ £350.The forecast this month on my sidehustles is looking quiet, So progress is likely to slow down a little. But I still hope to clear my smallest CC by hook or by crook.Also we are back to school holidays, so food budget will increase again with kids at home. Wish me luck!365 Day 1p challenge - £371.49 / 667.95
Emergency Fund £1000 / £1000 ( will enlarge once debts are cleared)
DFW - £TBC2 -
Just read your Diary,
Amazing! such amazing progress. Impressive.
Nevertheless she persisted.1 -
Been quite a while… head down trying to juggle that thing we call LIFE.
DF Journey has been progressing a lot slower recently. As we try to live a little
and make steps to build up an Emergency Fund, alongside reducing debt.
The side hustle side of things has had its ups and downs but keeping the debt amount moving in the right direction
. So grateful for everybit that comes in. The amounts left currently stand at:
CARDS
Amounts
Interest
S CC
1055
30%
M CC
2151
30%
H CC
4052
20% (0 til Sept 2021)
C CC
1873
30%
Loans
A L
7020
9
B L
9462
14.9
R L
9,810.00
14.9
H L
13700
7
TOTAL
49123
Focus in still on reducing the CCs one by 1. Ticking them off in order of smallest to largest balances. (physcologically helps with ticking them off quickly
)
H CC, is looking pretty ominous, as Im worried the 0% will soon run out. And with the high debt levels we wont be able to transfer it to another 0%. Eeek!
Anyone see any flaws with this approach? Or suggestions?
365 Day 1p challenge - £371.49 / 667.95
Emergency Fund £1000 / £1000 ( will enlarge once debts are cleared)
DFW - £TBC0 -
As you have credit cards charging 30% interest I would pay the money off the debt rather than having a £1k emergency fund. Think about what you really need money for, and why. That's £300 in interest that you are paying to have that EF so it's something to bear in mind.
Saving money for annual bills is different and I would recommend you do that. I just think with the size of your interest rate the question is what emergencies could you have and what is that £1k for, that it is worth £300 a year to you.Debt at highest: £8k. Debt Free 31/12/2009. Original MFD May 2036, MF Dec 2018.0
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