Clearing my debts 1% at a time

Rud0lf

Just paid £6 off my balance meaning there are now exactly 11 payment of 494 until I'm debt free. I'll now definitely be debt free by April 24 even without chipping away any extra. Beginning to feel more in control of my finances instead of them controlling me. I'm clearing debt but still able to do so.e socialising and have booked a girls holiday for next year, deposit paid and lots of notice so will start chipping away at that. No way I would have been able to do this before I started my dmp. Its all about getting a balance between debt free and life. So far it has been a four year process but it's helped me really evaluate wants and needs. 

I've also began to realise my impulsive nature has created many of my problems and have put my own rules in place. Not buying anything online straight away but having it in my basket for a day first to decide whether I really want to buy it or whether it is just a whim. 

All in all I will have been o the plan for 5 years when it finishes and will have defaults for another year after that. Planning what to do with the extra money I'll be able to save.

Rud0lf

Crawling to payday on Tuesday, lots of plans over the next year which need a little paying off each month but not using any credit just means the budget is tighter for a few months. This will improve somewhat in September when a few things Im paying for won't need paying anymore, for example after school club for the eldest who is moving to secondary and swimming lessons as both boys can swim four different strokes now and our holiday will have been so we'll just take them once a week instead. 

I can now reduce the amount I'm saving for holiday spends as I've almost hit my target. 

Have a night out at a show with the kids tonight with 40 until payday, I'll need to pay for parking and a few soft drinks. 

Statement showing this month's balances has finally arrived and I've calculated  payments until end of March next year and everything should be paid except for 19p, I'll have to find a way of making a mini overpayment so that will become my new debt free date. My saving for Christmas has been hit with commiting to holidays for next year but I'll make the extra money in September cover it. Once I'm paid on Tue my payment will go to debt I'll update my totals.

Rud0lf

I've manged to make it to pay day with just over £4 left in my account paid the extra 19p so i should now be debt free in 10 more payments which takes me to 31st March next year as my debt free date. Just before my husbands birthday trip. We don't normally spend a lot on birthdays but he really spoilt me on my big birthday so I would like to do the same for his. Payday has been and gone almost all bills paid and some money left over, I have set myself a budget for the month. Despite having two holidays to pay off next year my budget is do-able. Less money to waste on rubbish and more focus on long term rewards. 

Spends for this year's holiday are almost saved and should sorted by the end of this month. The boys loved their show, this month I have quite a few commitments for family birthdays etc and fathers day each with a small gift, £10 max but need to keep checking the bank every day to keep on track not bury my head in the sand like I used to.

Rud0lf

Almost a month since I've posted but it's pay day again, another month closer to being debt free. 9 more paydays until its gone forever, can't wait to celebrate it. 4445.80 left to pay. 

Counting down the days to the end of term and reflecting on how far I've come on my money saving journey. Before setting out I was wasting so much money, living month to month with no plans for the future and no hope of saving. Robbing Peter to pay Paul and feeling the relief of making it pay day without tying myself up in knots. Now I'm managing to pay 494 a month but more importantly living within my means not buying everything on a whim, saving and able to afford a holiday. I'm excited about how much I can save once my dmp is paid off and how that will change my life, enabling me to retire early and enjoy spending time with the people who are important to me. Its still 17 years away but the thought of retiring before 60 makes me happy. 

I suppose the point I'm making is that no matter what your situation once you have a clear plan there is light at the end of the tunnel. Hopefully if any one is reading this who is just starting out on their journey this will give you a little hope.

Rud0lf

Just realised I should be debt free at the same time my student loan finishes so even if I put £500 in a long term savings account each month I'm still going to be about £150 better off, hopefully we'll get some type of pay rise even if its 1% like it has been for most years. 

Exciting times ahead 

Rud0lf

Not sure where I've gone wrong this month but I've had to shuffle around money between my accounts. Good news is I'm not getting in to further debt, bad news is that once I've sorted my holiday spends there isnt much left in savings.

September will mean cracking on with saving for Christmas, I was determined not to leave it too late and I have but at least without the big holiday to save for and with one in high school I'll have less outgoings so should manage okay. 

I'll start looking for Christmas gifts in sales etc, I have a top for DS2 and a toiletry set for DS1 so far. Will look out for bits when I'm on holiday too. 

Come payday on Friday the debt will be under £4000 the lowest its been in about 20 years. Uniform shopping will be sorted in the next fortnight.

Pay rise has been agreed at 6 1/2% which should work out at about £150 amonth extra, this will go straight into a saving pot to build an emergency fund. When I pay off my debt in April next year I'll think carefully about savings and where to keep my money, some savings I can't access too easily would be good. 

Rud0lf

School holidays are always the hardest time to stay on track, 1 day until payday. Uniform has all been bought, it has been bought on my 0 balance cc but will be paid in full tomorrow, this way I got a discount in the uniform shop for buying early.

Need to go through and see what else needs buying for holidays too and maybe buy some more dollars. Back tomorrow to update payday totals

Rud0lf

Feels like the last few percent are taking forever but looking how far I have come I am now at 89% of my original debt paid. 8 debt payments left and on track to be paid by end of March payday. 

4 debts have gone, one card remains at 0% balance for real emergencies. Only 8 more payments to go. Maybe less once I know what my payrise will be his year.

Most importantly I feel like I have a balance between living and repaying so have been able to stick with this for the long haul.

~FlowerPot~

Hi, just read through your diary. You have done amazingly well. Not long to go and you will be debt free woohoo!
Flowers x

Rud0lf

Thanks flowers, it can't have been very interesting for you but I suppose getting rid of debt really is just chipping away at it. 

Having spent the first week of school holidays chipping away at my jobs list I've taken another look at my finances in view of next steps once I'm debt free. I've found the login details for my lifetime isa which I set up when I was 39 while I still could. I've seen I can save up to 4000 a year which is then topped up to 5000 by the government. I can pay into this until I'm 50 but then can't withdraw from it until I'm 60. I want to get some benefit from this year's allowance while I'm debt busting and have set up a £50 standing order so will pay in at least 400. I'll revisit this in November when I get my payrise and add any extra in to there this year. When I get to April and am debt free the plan is to increase the standing order to £333 as that is the maximum I can pay in for the year. 

I've also opened an ISA for shorter term savings fixed for a year. Up until now if I've needed something at the end of the month I've attacked the savings pots as they are too easy to access in my app. I'm also going to look at opening instant access savings in another bank so I can't see them in my usual banking app.

Although I can't save a  lot now it means it is all set up for when I can so I'm less likely to fritter away extra money.

Off to check I'm on track for this month and to figure out how much I can keep towards holiday spends for the end of the month.