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£69k debt free wannabe

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  • enthusiasticsaver
    enthusiasticsaver Posts: 15,765 Ambassador
    First Anniversary First Post Name Dropper I've been Money Tipped!
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    Just skimmed your diary and a few things which may help.

    I am guessing that since you have a consolidation loan money management and budgeting  is a long standing problem so starting new habits to break the debt cycle is good. Cutting up the cards is a good start. Sinking funds is also good but you also need to save for emergencies so you have another option other than credit when you have an unavoidable expense. The usual suggestion is £1000 emergency fund but as you are paying presumably high interest then £500 is suggested.

    Asking for interest to be stopped will impact on your credit file so you will not get any 0% deals in the near future. 

    I briefly added up your outgoings and they came to £4300 approx so you should have over £1k spare each month from your income. Are you repaying debt with that at the moment?

    Continue with what you are doing. 


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  • Jensfrugalyear
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    Thanks @LittleMissDetermined we have camping booked in this weekend so do allow some wriggle room for fun.
    @enthusiasticsaver thank you for your response. We do pay extra to debt but we also end up overspending on food each month, this is our downfall which we are currently working at improving. I have been in debt for as long as I can remember just never took the step to sort it, and even with pay increases just kept spending more and more. We know we are going to be sorting this for a while so do allow some fun along the way.

    On the long journey to debt freedom...here we go....

    Credit cards:
    Natwest card - now closed was £500 balance
    Tesco credit card £1878.89/3300
    Husband Bcard £4100/9400 - 0%
    Sainsburys cc £4839/6000 -0%
    My bcard £5215/8000
    Halifax CC £6588/8000 -0%
    MBNA CC £9150/12000 -0%

    Loans:
    Natwest Loan £14167 - ends sept 26
    Old car loan £1897 - ends May 24
    Consolidation loan - £6020 ends oct 26


    Tax bill -57 ends next month
    Student loan about 5k ends Mar 24



  • bamgbost
    bamgbost Posts: 469 Forumite
    First Anniversary Name Dropper Combo Breaker First Post
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    Hi @Jensfrugalyear , your situation, income and budget all rings very close to home. We are on a similar journey! I have bookmarked your page to encourage you.


    You get a lot of good advise and encouragement off here, that helps to motivate u. We all have them days where we get angry and blame ourselves and even want to give up! But dont! Keep the same positive attitude and check in on here.

    I like how you have cut up your cards. I didnt quite do that. Gave them all to the mrs. shes alot more disciplined that me. So I trust her.

    A couple things from me. Are you looking at applying snowball or avalanche method? ( ie.starting with smallests debts or highest interest ones?)
    -Defo looks like the shopping could reduce too. We spend under £300 a month for family of 4 too. ( albeit our kids are in primary school).
    -I also try and do a few zero hours jobs to bring in extra too. That goes straight on the debts.
    - Maybe calculating your debt free day too could help. I did that...and now wanna beat it!

    Whatever you do, dont give up. Will keep a close eye on your journey.
    365 Day 1p challenge - £371.49 / 667.95
    Emergency Fund   £1000 / £1000 ( will enlarge once debts are cleared)
    DFW - £TBC
  • Jensfrugalyear
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    bamgbost said:
    Hi @Jensfrugalyear , your situation, income and budget all rings very close to home. We are on a similar journey! I have bookmarked your page to encourage you.


    You get a lot of good advise and encouragement off here, that helps to motivate u. We all have them days where we get angry and blame ourselves and even want to give up! But dont! Keep the same positive attitude and check in on here.

    I like how you have cut up your cards. I didnt quite do that. Gave them all to the mrs. shes alot more disciplined that me. So I trust her.

    A couple things from me. Are you looking at applying snowball or avalanche method? ( ie.starting with smallests debts or highest interest ones?)
    -Defo looks like the shopping could reduce too. We spend under £300 a month for family of 4 too. ( albeit our kids are in primary school).
    -I also try and do a few zero hours jobs to bring in extra too. That goes straight on the debts.
    - Maybe calculating your debt free day too could help. I did that...and now wanna beat it!

    Whatever you do, dont give up. Will keep a close eye on your journey.
    Thanks, I have a 17 year old and 9 year old and they eat alot! Both really skinny too 🤣.
    We meal plan and try not to buy too many branded items but the kids eat loads of fruit and veg so quite a bit goes on that. The food budget also has all the cleaning supplies and pet food. We have a cat and 2 dogs and 2 fish but the fish don't cost much. This last month I really started to notice the extra shops going up and we have reigned that in the last 2 weeks which has been great.
    I have started matched betting (not something I would suggest for you with previous history) so am starting to get money from that. Have managed to get £60 profit the last 2 weeks, but now need to wait for the euros to start to carry on with it as I don't feel comfortable betting on other things as I may mess up. Thought about a 2nd job but with any money being taxed at the higher rate plus my student loan I don't think I want the added stress as last year I left a job that had me working ridiculous amounts of hours and it broke me.
    Its been great to find someone on a similar journey...you will inspire me to keep going!
    On the long journey to debt freedom...here we go....

    Credit cards:
    Natwest card - now closed was £500 balance
    Tesco credit card £1878.89/3300
    Husband Bcard £4100/9400 - 0%
    Sainsburys cc £4839/6000 -0%
    My bcard £5215/8000
    Halifax CC £6588/8000 -0%
    MBNA CC £9150/12000 -0%

    Loans:
    Natwest Loan £14167 - ends sept 26
    Old car loan £1897 - ends May 24
    Consolidation loan - £6020 ends oct 26


    Tax bill -57 ends next month
    Student loan about 5k ends Mar 24



  • Jensfrugalyear
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    Morning all, just wondered if anyone has any tips on not looking at the full balance when paying off debt. I am focussing on one at a time but feel exhausted already trying to pay this one off and know I have so much more to do.
    On the long journey to debt freedom...here we go....

    Credit cards:
    Natwest card - now closed was £500 balance
    Tesco credit card £1878.89/3300
    Husband Bcard £4100/9400 - 0%
    Sainsburys cc £4839/6000 -0%
    My bcard £5215/8000
    Halifax CC £6588/8000 -0%
    MBNA CC £9150/12000 -0%

    Loans:
    Natwest Loan £14167 - ends sept 26
    Old car loan £1897 - ends May 24
    Consolidation loan - £6020 ends oct 26


    Tax bill -57 ends next month
    Student loan about 5k ends Mar 24



  • Queen_of_the_Hive
    Options
    Hi @Jensfrugalyear, its really frustrating isn't it. I got paid today and its only 6.20am yet i have logged on to online banking and already paid what I could into the various pots and debts. As a motivator myself I started my journey with a very simple excel spreadsheet which has evolved over time to include various breakdowns, graphs etc of targets I have set myself (debt payment & savings). I also found a colouring in chart online and this one is divided into 100 and so one of my targets is debt reduction by percentage and each month on the 13th day I review all my pots and work out how much debt has been paid off that month and then colour in the chart. I've kept to whole numbers to keep it easy so in effect rounding down. Its got me to 54% debt repaid now and I do enjoy colouring the pieces in and when it is complete there will be something physical to show for it. 
    2024 financial goals & challenges

    1). Mortgage (started Jan 2024) £118,140.23/ £122400. Overpayment total: £276.70 87% remaining.

    2). #7 Save 1p a day challenge 2024 £210/£780

    3). £1902.91/£3000 in Investment ISA (23/50 investments)

    4). Increase cash savings & saving pots

    5). Keep debt to a minimum.

    Favourite quote: 'Life is like a box of chocolates, you never know what you're gunna get!' Forrest Gump
  • bamgbost
    bamgbost Posts: 469 Forumite
    First Anniversary Name Dropper Combo Breaker First Post
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    @Jensfrugalyear , I use a similar approach to @Queen_of_the_Hive. Where I have an excel spreasheet. Which shows all my current balances, what i intend to pay off at next payday. I pay off minimums on all debts bar 1. And then over pay on the one. enjoy watching the balance on it come down.
    I have a priority list of the debts alongside the projected clearance date for each.
    Often with adhoc payments or jobs, I continue to bring the single debt balance down during the month, and aim to beat the projected clearance date.
    Dunno why but some how that makes it a bit exciting and motivating for me personally.

    But i can totally relate. When you look at the huge 5 figure sum, it can be demoralising. So yes, try and zone in on the single debt each time and blast it to smitherins!
    365 Day 1p challenge - £371.49 / 667.95
    Emergency Fund   £1000 / £1000 ( will enlarge once debts are cleared)
    DFW - £TBC
  • I set milestones using a notepad ony phone them tick them off. We are nearing being able to pay off off loan in my signature. So for the next loan, which l have put out of my mind until now, l worked out the payment plan them worked out where it will be in 1, 2 and 3 years time. Wrote them down. I did it for this loan and it really helps, especially when we hit a goal early. It's amazing where all these little extra bits come from.

    I'm snowballing so everything had min payments except the one we are concentrating on. 
  • Jensfrugalyear
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    Thanks all.
    I do have a detailed spreadsheet (as I am a bit of an excel nerd) added this little chart for my Marbles card and focusing on £10 at a time as it will give me regular cells to colour in and this has cheered me up!Have sold my old xbox today too so will get 7 cells coloured in already 😁 
    Am aiming to have this card paid off by end of August, hopefully sooner if I can sell enough crap from round the house.

    On the long journey to debt freedom...here we go....

    Credit cards:
    Natwest card - now closed was £500 balance
    Tesco credit card £1878.89/3300
    Husband Bcard £4100/9400 - 0%
    Sainsburys cc £4839/6000 -0%
    My bcard £5215/8000
    Halifax CC £6588/8000 -0%
    MBNA CC £9150/12000 -0%

    Loans:
    Natwest Loan £14167 - ends sept 26
    Old car loan £1897 - ends May 24
    Consolidation loan - £6020 ends oct 26


    Tax bill -57 ends next month
    Student loan about 5k ends Mar 24



  • Narola1976
    Narola1976 Posts: 529 Forumite
    First Anniversary First Post Name Dropper
    Options
    Hi @Jensfrugalyear I use a snowball app and it has really helped me. It’s simple and easy to use. You can choose between snowball or avalanche or even set your own order. It’s called DebtPayoffPlanner. I find it very motivating and you can play around with it too. 
    Starting Total in September 2019 = £38287.77
    Current Total = £25534.10
    33% of debt paid off so far

    Debt Free by Christmas September August July June 2023!
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