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Biting the bullet

46 replies 2.1K views
Like many others have been a lurker here for a while. A great place for support! Want to finally clear what has been hanging over me for some time. I feel like I'm finally beginning on the right track, but need to see it through. A few diaries have made me understand how I got into a mess - mainly living the life I want rather than the one I can afford, frittering on little things and paying for friends on credit then not paying off when they pay me back. This all mounted up to huge debt of around £50k. I wasn't on top of payments, defaulted one account. I inherited some money a few years ago and was able to pay off a chunk of the £50k, bringing it down to around £15k but it crept up again over the last few years. Whilst being on top of payments (mainly minimums) I was spending it again and the balance wasn't going down. End of the month, I was resorting to credit. I need to trim things down a lot. It'll be helpful to not feel the need to go on holiday this year! Yesterday was a bit of a milestone. I made the final payment on my student loan and cleared my lowest balance CC. Now onto the next. I have worked out a plan and will be debt free at end of 2021 if I can stick to it!
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Replies

  • Narola1976Narola1976 Forumite
    453 posts
    Third Anniversary 100 Posts Name Dropper
    ✭✭
    Good luck on your journey. Lots of great advice to be found on this forum. End of 2021 isn’t thar far away so knuckle down and it will be over before you know it
    Starting Total = £35156.29
    Current Total = £31793.19
    9% of debt paid off so far

    Debt Free by Christmas September August 2023!
  • savvylondonersavvylondoner Forumite
    51 posts
    10 Posts Name Dropper
    Thanks @Narola1976 - you're right that it isn't that far away. Just need to commit to it and be consistent!
  • FOMO_overspenderFOMO_overspender Forumite
    101 posts
    100 Posts Name Dropper
    Hey @savvylondoner good luck on your DF journey! A diary was the best thing for me, as I was the same as you (credit and friends pay me back and then spending it etc) and this made me accountable. This and an actual spending diary really helped me see how I was wasting money (pre lockdown it was Ubers everywhere, after work drinks etc) 

    I am sure someone else will also suggest this but definitely worth posting your SOA (https://www.lemonfool.co.uk/financecalculators/soa.php) on here for helpful tips and whilst paying down debt is important, also saving up an emergency fund for future debt prevention. 

    You got this! We'll be here to cheer you on 👏

    Total Debt @ LBM: £26,380.49
    • New debt total: £18,654.59
    • New % of my total paid off: 29%
    Debt Free Goal: December 2022
    My Debt Free Diary 
  • savvylondonersavvylondoner Forumite
    51 posts
    10 Posts Name Dropper
    Thanks - yes I intend to do a SOA. I'm lucky with my income at the moment but that can often be dangerous because it lulls you into false sense of security! I'm making sure I only use Monzo now for payments day to day so I can track everything on there. Saving £200 a month to get an emergency fund going.
  • MahsrohMahsroh Forumite
    392 posts
    Fourth Anniversary 100 Posts Name Dropper Combo Breaker
    ✭✭
    Hi! Didn't want to pass by without saying good luck! Definitely sounds like you are already on the right track. 
  • Important update! We have recently reviewed and updated our Forum Rules and FAQs. Please take the time to familiarise yourself with the latest version.
  • savvylondonersavvylondoner Forumite
    51 posts
    10 Posts Name Dropper
    Thanks @Mahsroh - I'll keep updating this as a way of staying accountable!

  • EssexOstrichEssexOstrich Forumite
    44 posts
    10 Posts Name Dropper
    Good luck! I'm fairly new to all of this too but it seems a good time to try and change a few habits, ones that we're definitely all guilty of! I'm another big spender/pay for friends type but I'm actually enjoying seeing the numbers come down after so many years of ignoring it. I feel like a bit of a weirdo for that but it beats the nagging stress that I was feeling.
    Look forward to seeing your progress and well done for making a start :)
    Starting balance (April 2020): £31852.73
    Balance (Oct 2020): £21131.68
    Emergency Fund: £600

  • NaomimNaomim Forumite
    1.7K posts
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    ✭✭✭
    I agree with doing the SOA even if you dont post it on here. I haven't posted mine. 

    Monzo is excellent for helping with budgeting.  I love my pots! 

    Good luck 

    Naomim 
    Credit Cards
    NOV 2019 £33,220.42
    OCT 2020 £28,944.1812.85% cleared
    Overdraft
    NOV 2019 £4581.92
    JULY 2020 £941.71 79.44% cleared
    Grocery Challenge Gone to pot!!
    Here's my diary: A Ditherer's Diary Again
  • savvylondonersavvylondoner Forumite
    51 posts
    10 Posts Name Dropper
    As it's the beginning of the month I thought I'd post an update! Since my LBM on 26th April I've been lucky and able to pay off £2220, about 10% of what I owe. For the first time ever I've really stopped to think about everything I've bought. I'm just using Monzo for spending and monitoring what I'm spending in each category. After a month I will see what can be cut back on. Already it's clear that what I thought would be enough nowhere near covers what is now a bare minimum stripped-back life - says it all really! I've avoided being generous :neutral: and have shopped from home, ditched the weekly takeaway and done fakeaway instead... Now to keep the momentum going!
  • NaomimNaomim Forumite
    1.7K posts
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    ✭✭✭
    As it's the beginning of the month I thought I'd post an update! Since my LBM on 26th April I've been lucky and able to pay off £2220, about 10% of what I owe. For the first time ever I've really stopped to think about everything I've bought. I'm just using Monzo for spending and monitoring what I'm spending in each category. After a month I will see what can be cut back on. Already it's clear that what I thought would be enough nowhere near covers what is now a bare minimum stripped-back life - says it all really! I've avoided being generous :neutral: and have shopped from home, ditched the weekly takeaway and done fakeaway instead... Now to keep the momentum going!
    That is flippin' amazing! what a great chunk to clear off.  Well done! 👌

    My only concern is if you cut back too much on everything, something's gotta give. Going uber frugal can become painful and then you stop and blow out.  Just remember to factor in a little fun now and then.  Maybe takeaway once a month?

    Naomim

    Credit Cards
    NOV 2019 £33,220.42
    OCT 2020 £28,944.1812.85% cleared
    Overdraft
    NOV 2019 £4581.92
    JULY 2020 £941.71 79.44% cleared
    Grocery Challenge Gone to pot!!
    Here's my diary: A Ditherer's Diary Again
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