Debt Free by December 2021
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Hi,
Long time lurker and long time debt buster. Husband and I have been paying down our debt for almost 3 years now. Started following Dave Ramsey about a year ago and we're currently just over half way through BS2. Debt at it's highest was over £13,000. We have 2 children (dinosaur 1 and 2) who are our 'why'. Husband works full time and I work part time (not currently working as self employed and no work since March). We're aiming to be debt free before the end of 2021. We've recently bought a house which needs some work. Our aim is to not get in to debt for this so as well as paying off the debt we'll be saving for the house too. I wanted to start this diary because I feel like this is the hardest part and could really use the encouragement and wisdom of everyone here.
15/07/2020 debt total £5600
Long time lurker and long time debt buster. Husband and I have been paying down our debt for almost 3 years now. Started following Dave Ramsey about a year ago and we're currently just over half way through BS2. Debt at it's highest was over £13,000. We have 2 children (dinosaur 1 and 2) who are our 'why'. Husband works full time and I work part time (not currently working as self employed and no work since March). We're aiming to be debt free before the end of 2021. We've recently bought a house which needs some work. Our aim is to not get in to debt for this so as well as paying off the debt we'll be saving for the house too. I wanted to start this diary because I feel like this is the hardest part and could really use the encouragement and wisdom of everyone here.
15/07/2020 debt total £5600
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16/07/2021 debt total £5500
- reduced our outgoings (even started paying for things like car tax annually and TV licence monthly to save money)
- created a zero based budget
- created pots and sinking funds for eveything (we have a lot of bank accounts)
- I returned to work part time and with the help of family and working weekends we don't pay for childcare
- we only have cheap or free days out (so thankful for Tesco vouchers). We have an allowance for this and takeaways. I take this out in cash as soon ws we're paid. Once it's gone it's gone.
One area I'd reallt like to address is our food budget. I currently budget £450 per month (this is for 5 week months too). We often go over this but I don't want to increase the budget because £450 should be enough to feed us.
Well done on your hard work so far- I look forward to following your journey!
Debt March 21: £0!
Pay All Your Debt Off By Xmas 2023 - #50 £1,495.29 / £12,000.00
Saving For Christmas 2023 - £1 a day challenge - #6 £100/£1095.00
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
Thanks for sharing your list of what you’ve done so far, that’s really useful! Have you headed over to the Old Style board for advice on your food budget? There are lots of inspiring threads to read on this topic and you can join the grocery challenge too (I’ve joined again - I used to do it religiously - but keep forgetting to post on it so sorry if I’ve missed you’re already on there!).
I think the most important thing for us was breaking that cycle of creating more debt. I need a new car but I refuse to get it on finance. Once I return to work I'll be setting up a pot to save for a car. It means we have to wait a bit longer for things but it keeps us on the straight and narrow. I haven't to be honest. The food situation has kind of crept up on us. It took reading your diary for me to realise that I used to be a lot a better.