Clearing my debts 1% at a time

Rud0lf

Posting to keep myself focused and on track, wanting to do so much better but struggling time of year to reign in impulsivity. If I keep posting I'm more likely to stay on track. £71 in my account to last until Wednesday. So wanted to be able to use this for hairdressers but visiting a theme park my son has asked santa for merchandise for so will end up spending it on that and hairdressers will be from next months budget. 

Items left to buy are doable in next months budget. 

Need to keep remembering ihavent put everything on a credit card like previous years. Debt is reducing not building.

I have taken advantage of buy now pay later offers for some items and have used emergency card but set to pay full balance of each month so staying in control. Putting it here to keep myself accountable, Trying to teach myself to be able to use small amounts of credit to my benefit whilst staying in control. Feel like I need to learn to do this now while I'm still holding myself accountable so I don't go off the rails and end up back at square 1.

So overall. 

Left to pay:

Cc1 1874.22/9825 19.08%
Cc3 595.59/4390 13.57%

Cc2 757.57 to be paid in full on Wednesday 
Very bnpl 1221.71 budgeted 150 pcm to pay in full before any interest is due.
Pay in 3 £27.86 December 21st and January 21st.

Both very and cc2 have been ticking along for a little while but I feel the need to include them to stay in control. I've learnt the most important thing is to be honest with myself and own my situation. 

I expect main debt to be paid off before April 2nd and bnpl to be paid off by June although will aim for before as other things drop off the budget.

Absolute total is 2469.81 +757.57 +1221.71 +55.72 =4324.81. This will fluctuate each month as cc2 is used and paid off in full each month but on April 2nd I expect maximum of £380 on bnpl and all other debt cleared.

On payday next week this will reduce to 3073.24, it will then increase slightly throughout December as cc2 is used for grocery spending and last minute items but will reduce again on December 30th.

I expect cc2 use to reduce somewhat at the beginning of next year before becoming emergency only. BNPL will only ever be used where the balance will be paid in full comfortably before the end of the interest free period. 

Overall I am still plewith progress as I've had these ticking away in the background for a while successfully just want a little extra accountability having them out in the open so to speak. 

Rud0lf

Cc1 1547.36/9825 15.75%
Cc3 428.45/4390 9.76%

Cc2 477.17 to be paid in full end of dec
Very bnpl 1107.06 budgeted 150 pcm to pay in full before any interest is due.
Pay in 3 £27.86 December 21st and January 21st.

Payday and the balances have been updated, finally had my payrise which will pay for the last few presents I need as well as my haircut and Christmas nights out, both at social clubs and not drinking at one so should be cheap. Need to keep myself focused for the whole month again so will set myself miki budget periods again. Off to have a look at dates and figures and I'll update when I can.

Rud0lf

Mini budgets
250 from now-15th this includes two Christmas nights out and santa dash breakfast.
150 15th-20th this includes last Christmas gifts.
150 20th-30th shouldn't have much to spend just a few nice food treats, hot chocolate out and something nice to eat on Christmas eve. Maybe a little afternoon out between Christmas and New year.

Rud0lf

December pay has hit my account, so a few bills paid early, and the rest has been moved out of sight until real payday. Everything is bought, nothing to spend for a few days now as visiting family tomorrow and hibernating today. 

All on track so debts will be as follows once payments have cleared

Cc1 1220.5/9825 11.85%
Cc3 261.31/4390 7.68%

Cc2 543 to be paid in full end of jan
Very bnpl 1125.70 budgeted 150 pcm to pay in full before any interest is due.
Pay in 3 £27.86 January 21st
Pay in 3 £39.50 January 9th and February 9th

Some short term credit used towards Christmas but mainly because I didn't want things to sell out before payday or to risk them arriving too late. Previous years a lot has gone on credit because there was no other way I could give the kids the Christmas I wanted to. I now have a standing order that comes out each month and goes straight to a separate savings account, I started it part way through the year and it really helped this year, having it set up from January should mean next year there is no need for any type of credit. 

By April my dmp will be finished, this money will then pay off the last of the very account by May and then I should be debt free except for the student loan. I'll decide nearer to then whether to divert the money to that or savings each month.

Looking forward to ending 2024 with a good chunk of money in savings and being able to get jobs around the house sorted and save for our next car and then early retirement. 

I'd like to retire at 57 instead of 67 and help my husband to retire early too as his pension won't be as much as mine xx

Rud0lf

Sometimes it's easy to feel like small increases in short term debt make me a failure so I decided to look back to where I was when I first started this diary and where I was a year ago. I'd forgotten how far I've come. 

When I first started this thread three years ago I had £18336 left to pay on the mortgage and 
24986 which I hoped to clear in 6y 9m so buy September 2027 and was working at paying 1% of the balance as often as I could. 

A very kind grandparent left money in her will which helped us clear the mortgage then it was just the debt to focus on. To this day my husband does not know about the debt. He would have helped but it would have broken him as he struggles with anxiety. The original debt was 36538 which through a dmp I had reduced to 24986 by the beginning of my diary. Starting my dmp was the best thing I have ever done. It's helped me by freezing the interest to allow me to reduce the balance.

A year ago I had 7641.30 debt not including the student loan which was around £3000.

Now as things stand I have 1481.81 of the original debt 

Very 1437.66 budgeted 150 pcm to pay in full before any interest is due.
Cc2 835.92 to be cleared on 15th in full
153.54 pay in 3 PayPal 
2084.41 student loan

Overall total including absolutely everything 5993.34 

At the end of march my dmp ends

My cc2 will continue to be cleared each month

Very will be paid off 150 pcm to be paid by October which will remain interest free. PayPal will be gone by the end of February. By October I will be entirely debt free 2 years 11 months ahead of schedule. 

Then I will be ready for the next phase saving in earnest for retirement. 

Looking back makes me proud how far I've come and grateful for a secure job with enough pay to enable me to live comfortably while clearing the debt. Roll on 2024 and the progress it brings.

MrFrugalFever

Fantastic achievement, perhaps 2024 is going to be your year!!

Rud0lf

MrFrugalFever said:

Fantastic achievement, perhaps 2024 is going to be your year!!

I am determined to make it my year, I have had a week off with youngest this week and was very grateful to SIL for taking him for a lovely day out as he really enjoyed playing with his cousin but he is like me and a home bird so only real expense this week will be a subway lunch treat for both boys tomorrow as a last nice thing to do before I return to work on Monday. So far this week we have built a marble track which was a Christmas present and he has enjoyed going to buy a few small things with his Christmas money. 

Today was toasties for lunch and a movie afternoon on our projector, one of last year's Christmas gifts, so free fun. 

Outside of the bills budget I have £144 to pay for some petrol and get me to the 15th when I get child benefit which is another £157 to last until payday. Kids savings account has been added to already so they will just need their pocket money and school dinner accounts need topping up with £10 each for the odd days they want a hot meal so far I've only needed to add £15 each since September as they prefer packed lunch on the whole. Only other thing I need is 2 phone cases and screen protectors probably £30 in total.

Anything I have left at the end of the month will go off very or cc2 as the rest is ticking along. 

Back to work on Monday and need to make sure I take lunch everyday as that's my only downfall of a weekday really.

Rud0lf

Today's small mse wins, lovely baked potatoes and extras made ready to microwave on Monday for a quick tea after football, downgraded Disney+ from 10.99 to 4.99 as we're willing to watch it with adverts. Family movie at home instead of cinema trip, paid to buy a movie on Amazon prime which the boys were desperate to watch but cheaper than 4 tickets and snacks. 

Eldest's bedroom is now finished small cost for 2 new shelves but nothing else needed.

Free crusty rolls from mum which we had for lunch.

Budgets being relooked tomorrow, unlikely to be much change but may adjust savings pots slightly as Disney+ has gone down.

Tomorrow I'll make a meal plan for the week including some cheaper options and plan lunches for work. 

Mr R will go shopping as he sticks to a list much better than me.

 I will clean the downstairs windows and come up with a cleaning routine which works for me around work and other commitments. I have tried several of other peoples in the past and find them impossible to stick to so I'm thinking about allocating each room a day to be cleaned with the bathroom and kitchen on Saturday and Sunday because they will take longer and easier rooms on my running days like the living room and dining room. Just need to decide the finer details then I'll pop it on the fridge and try to stick to it.

Rud0lf

Pleased with how this month is going on reflection, although there isn't much money spare £12 until Monday in the slush fund and then 159 until the end of the month I have to keep reminding myself it is January and normally I'm in dire straits but because I budgeted better for Christmas and all bills money is stashed away to pay everything t the end of the month things aren't too bad. 

2024 s the year all debt will be gone and I can start a better balance between living my life and saving for retirement. From April my full allowance will go into my LISA with the rest split between paying off very and saving for nice experiences with my family. 

Anyway enough reflection for this morning it's time to get ready for work.

Rud0lf

A quiet weekend planned this weekend getting on top of housework and watching movies. birthday presents for youngest paid for and ordered nice and early incase of delays in delivery.

We have a visit booked to plan a new kitchen with IKEA on Saturday and a visit from the in-laws on Sunday. But some time to rest.

Other than the huge expense of a new kitchen which is budgeted for there will be 
as little spending as possible. Accounts are ticking over okay but I am looking forward to payday to have a little more fun money. Everything is on track, one Paypal payment this month is the final one so that frees up a little extra next month and then two finish next month so March's budget will be even better. Eldest' sons phone drops to SIM only in March too. 

3 more weeks of school before half term, no real plans for half term holidays but looking forward to a restful week with a bit of sorting out before the mess of a rewire hopefully in March.