The 44 month plan!

wingingit99

Hi,

I've been a long time lurker on here and have learnt so much about paying off debt and making smart choices. I need a little bit of accountability, so have decided to start a diary. If anyone is on a similar time scale maybe we could support each other?

I have a fairly significant amount of unsecured debt, about 31K accumulated from years of living beyond my means and borrowing for ex, which I have accepted I'll never get back  .

I have a plan to be debt free by the time I turn 40 which is in 44 months time. The positives are ... I have a decent income and I know I can do it, as I had a light bulb moment about 18months ago and had managed to bay off quite a bit already.

However as so often happens I ended up separating from my husband, needed to get a new car, and over recent months have found myself slipping into old habits, and have found myself back at 31K.

I don't feel the need to post my SOA as everything is on 0% or a very low rate loan, my credit score is decent (not that it really matters but I can switch the 0% when needed) ,I've never missed a payment,  I've switched all my bills and cut out extras, and I have a budget which includes a few treats each month, so I should be able to stick to it and will have it all cleared in 44 months.

My problem is over the last few weeks I've found myself buying stuff that is not essential or in the budget - I know, I know, put it in a pot and if the money isn't there don't spend it! However I end up borrowing from one pot to buy things from another and can feel things are starting to get out of hand. My plan is still on track at the moment, but if I don't stop, it will be an issue.

My long term goal is to be able to take my daughter on holiday abroad for my 40th once the debt is gone, so I need to sort myself out and stop jeopardising the reality of this,

I'm going to update this diary weekly and put out there anything I've bought that is not in the budget or goes over my pot , recent examples include clothes, takeaways, coffee out, extras from the local shop. Anything I get from now on needs to be in the budget, or I need to wait ... wish me luck!

Blackcats

Welcome!  This is such a supportive place.  You'll get lots of advice and encouragement on your debt free journey.  

anjyeah

Welcome! Having a diary alone is part of the process already, like yourself, I had been quite a lurker too before I took the plunge and made one. So well done. 

Anyway, you sound like someone with a plan already and the support here is amazing. We look forward to your journey! 

Legs21

Happy new diary! Have you set yourself a treat pot? Maybe frivolous spends could come out of that. If you have a set amount in there it may make you think before buying whether it’s worth reducing the balance in the pot for it. 

Allikat86

Hello ☺️ I can identify with the little unexpected spends (for a different reason - small kids!) and I’m working on that too! Look forward to reading your diary.

CRANKY40

Hello and welcome. I agree with the treat pot idea or it's going to be a long 44 months....

wingingit99

Thanks for the advice

I got paid this week, so we are now down to 43 months and counting!

Remaining debt = £30,511 
2.9% paid off 

I've put aside a little bit of money for small treats throughout the month. 

I've also decided to go back to tracking every penny I spend for the next couple of months. I did this last year for a bit and even though it's time consuming it does help me to see exactly where the money is going / being wasted.

I'm also aiming for 10 no spend days this month, which will be a challenge considering it's the school holidays. 

Things purchased this week that I didn't really need ...

* 2 playsuits in the boohoo sale, I don't feel bad though as I had some money in my clothes budget (however it probably would have been better spent on something more practical!! Not to worry. I'm organised with school uniform for next year for DS and only need to buy shoes now, but will wait until Sept for those)

Not a bad first week back on the debt free journey, it's nice to see the figure going down. Next month I should hit my first mini target to get the debt under 30K

teafor2

Hello and welcome  

I started my diary November 18 because I had no idea where my personal spending money was going. The diary really kept me on track and it was surprising what things I managed to achieve just by being accountable and making a note of everything I spent. I've been absent for a few months for personal reasons and I lost track of the money again, so I'm back. Not a hardship though as it really is a great forum I have pots and so far in the last 5 days have gone from having nothing in them to all of them having something in them, that's what being here does for you

Good luck on your journey. I've subscribed. x  

wingingit99

This week I've been tracking every spend, it really does help me see where the money goes! So far I'm within budget for the month 

I work in Education and we had an end of year night out this week. It was so nice to get dressed up, go out and have a little dance! Even better a colleague's husband gave us a lift there and back so, spending was well within budget.

I bought a couple of dresses on eBay ready for the new school year, sadly the lockdown stone has meant most of the work clothes I have at the moment are a little tight! 

We are not going away this summer, so my focus is going to be decluttering and organising the house, hopefully I will be able to sell some of the stuff I'm getting rid of to fund some days out. I think my DD would love CBeebies land at alton towers, so will work towards getting enough from selling for the tickets.