The future is bright
Birdee
Forumite 46 Posts
I'm Birdee and am on a debt free journey. I've been adding to my debt for about six years, with the last two years being completely disastrous. My spending was out of control. I had completely buried my head in the sand. I was suffering from lots of self hatred and I just assumed I didn't have a future, so why did I need to worry about money. I went to counselling at the end of 2019 and finished my sessions just before lockdown, and that has been instrumental in helping me be more present and positive about the future.
I got into a relationship with somebody in June 2019 and he is excellent with money, works hard, earns a lot, saves a lot so has been very inspiring to me. I broke down in tears to him in November 2019 and told him about my finances. I thought he would reject me, but he didn't. I started my debt free journey the following week. We are still together a year on and he continues to inspire me every day.
I started with a total of £25046.68 of debt, split across four credit cards and a loan, and am now on £20345.87 split across five credit cards and a loan (managed to get a new balance transfer card that really helped), so have paid off 19% of the debt. The first six months were a bit up and down while I firmed up my budget, sometimes overpaying my debts too much and leaving myself short for the month, but think I now have it under control. I have been very lucky during Covid19 to be able to continue working at home, and am actually saving money by not having to commute to work. I recognise the need to use this very privileged position to put that extra money towards my debt, which I have been doing.
I am a data analyst by profession so have data galore to asssit! Have given myself a target of three years to get out of debt, and have projections and models set up to help me with that, and to encourage me to pay more when I can afford it. I can re-run projections and it tells me the estimated date I may be out of debt. Very motivating. Have also got alerts set up for promotional periods ending, and have a clear order in what I pay off first (based on interest rates). Am hoping to be able to make use of empty cards and shuffle my debt around throughout the process, but am conscious those offers may be scarce with the current financial climate. So have a couple of planned scenarios.
Am hoping I can get a promotion at work in the next six months or so to speed the process up, and I may also be able to trim my rent costs at the end of this year. Will be using every extra penny in my pocket towards the debt. Felt so overwhelming at the start, and I still have deep feelings of shame about my debt. But falling into a well of shame won't clear my debts - being honest, focused, and determined will.
I got into a relationship with somebody in June 2019 and he is excellent with money, works hard, earns a lot, saves a lot so has been very inspiring to me. I broke down in tears to him in November 2019 and told him about my finances. I thought he would reject me, but he didn't. I started my debt free journey the following week. We are still together a year on and he continues to inspire me every day.
I started with a total of £25046.68 of debt, split across four credit cards and a loan, and am now on £20345.87 split across five credit cards and a loan (managed to get a new balance transfer card that really helped), so have paid off 19% of the debt. The first six months were a bit up and down while I firmed up my budget, sometimes overpaying my debts too much and leaving myself short for the month, but think I now have it under control. I have been very lucky during Covid19 to be able to continue working at home, and am actually saving money by not having to commute to work. I recognise the need to use this very privileged position to put that extra money towards my debt, which I have been doing.
I am a data analyst by profession so have data galore to asssit! Have given myself a target of three years to get out of debt, and have projections and models set up to help me with that, and to encourage me to pay more when I can afford it. I can re-run projections and it tells me the estimated date I may be out of debt. Very motivating. Have also got alerts set up for promotional periods ending, and have a clear order in what I pay off first (based on interest rates). Am hoping to be able to make use of empty cards and shuffle my debt around throughout the process, but am conscious those offers may be scarce with the current financial climate. So have a couple of planned scenarios.
Am hoping I can get a promotion at work in the next six months or so to speed the process up, and I may also be able to trim my rent costs at the end of this year. Will be using every extra penny in my pocket towards the debt. Felt so overwhelming at the start, and I still have deep feelings of shame about my debt. But falling into a well of shame won't clear my debts - being honest, focused, and determined will.
Starting Debt = £25,046.68 (Nov 2019)
Current Debt = £1,984.36
Total paid off = £23,062.32 (92%)
Pay Debt by Xmas23 #24 - £2,400/£4,384.36
Pay Debt by Xmas22 - £4,957.69/£9,342.05
Current Debt = £1,984.36
Total paid off = £23,062.32 (92%)
Pay Debt by Xmas23 #24 - £2,400/£4,384.36
Pay Debt by Xmas22 - £4,957.69/£9,342.05
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I currently rent in London with a friend, and I'm responsible for the council tax, TV licence (which is fully paid for the year), and Broadband/Basic TV. So that's why there are no values for energy/water bills as she does those. It generally works out about even, but I keep a spreadsheet and we remedy any differences every few months or so.
On top of the monthly minimums, I am currently paying an additional £500 a month towards my debt. I have tried trimming back even further but find that amount is doable without scraping by at the end of the month and entering a danger zone of putting stuff on credit again. This also leaves me enough wriggle room in my budget to adjust if I need to throughout the month.
I use Monzo to separate all my money out and this has completely revolutionised my spending habits. I also convinced by boyfriend to get a Monzo account too, so we can put shared spending on a tab, or split bills individually. In our relationship I'm way more likely to book something we have talked about attending or pick up food/wine for dinner so this way I can just instantly ask him for his share which keeps my spending accurate for the month.
Current Debt = £1,984.36
Total paid off = £23,062.32 (92%)
Pay Debt by Xmas23 #24 - £2,400/£4,384.36
Pay Debt by Xmas22 - £4,957.69/£9,342.05
A fool and his money are soon parted!
use it up, wear it out, make it do or do without
Clubcard-£10.50, coop card £15.63 Surveys cash- 8.94
I'm keeping in mind little milestones to break down the big debt. After pay day this month, my total debt will be under £20,000 and that is so motivating. On track to have the Barclaycard (aka The Beast) paid off in three months. Will be singing for days when that is gone.
Current Debt = £1,984.36
Total paid off = £23,062.32 (92%)
Pay Debt by Xmas23 #24 - £2,400/£4,384.36
Pay Debt by Xmas22 - £4,957.69/£9,342.05
June 2020 - Debt £190.96
Saving Pots: House Fund: £2015.21 Holiday Pot: £327.31 Rainy Day Fund: £964.84 Sod it/Treat Fund: £12.06
Stocks and Shares ISA: £189.65
Last month was hard and I found myself very short towards the end of the month but I managed. Having a clear out before I move in September and I have a few bits to sell so looking forward to getting on that.
Current Debt = £1,984.36
Total paid off = £23,062.32 (92%)
Pay Debt by Xmas23 #24 - £2,400/£4,384.36
Pay Debt by Xmas22 - £4,957.69/£9,342.05
Having two no spend months (other than groceries and personal care/medicine) to try to maximise money I can throw at the debt as slowed up a little in Autumn last year. My remaining two 0% deals are coming to an end over the next few months so trying to pay them off as strategically as possible. Have some room on my NatWest card at balance transfer rate of 6.9% (no fee) so will shift some over there to avoid paying the ~20% interest if needed.
Current Debt = £1,984.36
Total paid off = £23,062.32 (92%)
Pay Debt by Xmas23 #24 - £2,400/£4,384.36
Pay Debt by Xmas22 - £4,957.69/£9,342.05
Really frustrating, but if this had happened a year ago I'd have been in no position whatsoever to pay for the treatment. At least now I can make the choice. I'm in debt for far stupider reasons than trying to protect my teeth.
Current Debt = £1,984.36
Total paid off = £23,062.32 (92%)
Pay Debt by Xmas23 #24 - £2,400/£4,384.36
Pay Debt by Xmas22 - £4,957.69/£9,342.05