Countdown from 47k...

WhySeaEm

Moneywhizz said:

Do you have a debt free date in mind that you are aiming towards?

I'm aiming for Christmas '23. And what a Christmas that will be!

WhySeaEm

IrishSean said:

GL with the diary and DFW

I know so of what ppl post and ask seems quite pointed (and sometimes stern!) But the fact there's no BS & everyone is here to help everyone else achieve the end goal is a good thing.

Thanks, I LIKE the no BS approach around here. It's a wake up call! 

WhySeaEm

Bloody heck, I realised in the middle of the night I'd left my loan off that I got from my dad- I pay him back £300 a month! How could I forget that?! So I've updated my SOA again and been through it with a fine tooth comb to make sure nothing is forgotten. That leaves me with £865 a month, so my target will be £1000 a month instead.

I'm going to transfer £1000 a month to my savings on payday, and unless absolutely desperate I will.not.touch.it. We don't have an emergency fund or any space on any credit (we're completely maxed out) so that will have to do. Then on the following night before payday I'll pay it to debt, plus anything left in our current account (if anything!). 

I need to pay back £750 to Dad (on top of the loan) next month because he lent me money to get my car fixed. So next month I'll only have £250 to put into debt. But that's ok. 

GOALS! I feel determined. Plus in lockdown we're saving more, no doggy daycare or Cineworld or entertainment apart from the odd takeaway. We're eating more though so food bill has massively gone up. Petrol is down too! So that should help from next month. 

TheAble

Don't you think you ought to pay back the overdrafts as the first priority, rather than just the interest? Most banks' overdrafts are now charging 40% apr which is £1600/yr on your £4k.

WhySeaEm

TheAble said:

Don't you think you ought to pay back the overdrafts as the first priority, rather than just the interest? Most banks' overdrafts are now charging 40% apr which is £1600/yr on your £4k.

Yes, they're the first to go! Then the credit cards. 

Narola1976

Good luck on the start of your journey. You sound focused, and have a plan in place. I agree, the OD should be the first to go. 

babs

Good luck! I am starting my journey as from today and we have a similar income and an equally similar debt! Total madness to be honest how we have got to this point.. but definitely taking it in hand.. will follow your journey and may publish my own too when I sit down and work everything out. 

Kitten868

I've never seen someone have a lightbulb moment then buy a £1k computer on finance before. Hopefully this will pull you into action.  Any more big purchases you need come to the board for help - the people on here have become very resourceful and have great advice whether it's how to keep your laptop going a bit longer or looking for refurbished models or earning vouchers to get it 'free'.

Maybe you should work with a lockdown budget for the interim and revert to your normal budget later? Also you can reduce your overdraft online using online banking which is a great way to make sure you don't slip back in it. Overdrafts are so hard. I ended up doing a money transfer to a credit card and closing it. Just couldn't do it otherwise so I hope you find what works for you. Plus it's a massive win where when you get paid it's in the black and you're paying off debt with your money. Great feeling. 

Keep posting, you'll get there! Xxx

WhySeaEm

babs said:

Good luck! I am starting my journey as from today and we have a similar income and an equally similar debt! Total madness to be honest how we have got to this point.. but definitely taking it in hand.. will follow your journey and may publish my own too when I sit down and work everything out. 

Best of luck!! 

WhySeaEm

Kitten868 said:

I've never seen someone have a lightbulb moment then buy a £1k computer on finance before. Hopefully this will pull you into action.  

This really made me laugh! I know, I'm mad! But it really was an essential purchase and I got it for 5% off too which is better than nothing. Thanks for the advice, I'll take it!