Ready to crush the debt- once and for all

jody51

Hi Everyone, new poster but I have been a long term lurker. I have decided to try keeping a diary to help keep me on track to smash all my debts. Currently I owe just under £35K spread between a low interest loan and a couple of credit cards (all 0%). I went off to university in 2004 with a bit of money in the bank, I had always worked since I was 14 and wasn't from a well off family so knew the value of money. I worked as much as I could during my uni days but ultimately it was never enough and I got lured into OD/CC to help with the bills. I graduated and was fortunate enough to get a paid PhD for 3 years which was a reasonable income which I also topped up with some nightshift supermarket work. Roll on 2008, recession and struggle for post doctoral work and the bills increased little by little as they do. During this time I met my husband, we married and bought and renovated a house etc. I also had two children in 2015 and 2017 so after you factor in maternity leave and the subsequent (eyewatering!) childcare bill for the past few years (coupled with some very nice holidays etc.- yes I'm definitely no angel) it's no surprise that I have never gotten on top of my bills. I have always tried to be as savvy as possible and qualify for balance transfers when needed and I would say that although I'm not overly anxious about owing this money, I just plod along paying down as much as I can in my current circumstances, I should be more concerned and I have to take stock of the situation and take better control because you really don't know what is round the corner. I'm in a stable job, not much chance of OT so I am going to have to make my salary do the work as it is. Things have gotten a bit easier recently- I have moved to a job that will allow me to WFH more (it's been a shock considering that I have worked all through the pandemic!) so this will allow me to chop a bit off the childcare bill and have the oldest child at home for a few hours in the afternoon after school. I have planned budgets so many times over I'm an expert...but sticking to them is my problem!  Anyway, I'm having a fresh start, I think that if I stick to my fairly realistic budget I can get over the bulk of this in 24 months and have a wee bit of savings then too so I'm not tempted to go backwards. Why start now? Well I just want to be in a position to help give my children everything the need as they get older, and I want to give myself the gift of freedom if I choose to retire earlier down the line. I lost my dad suddenly when he was 56 (I'm 36 now!) so I'm very aware of my mortality. Fingers crossed that I make it over the finish line this time!

teaandcupcakesplease

Welcome, i have subscribed. Your doing the right thing! xx

Evenstar20

Good luck Jody, Our debts sound similar especially the amounts and how we got to them, Kids and Holidays! Similar age too which I think is a context that isn't always taken into account in time lines of clearing debt. Will look out for your posts and progress!

Lifestartsat40

I look forward to reading of your progress! 

jody51

Thanks everyone! I’ve been think a lot over the past couple of days of how we just normalise our levels of debts sometimes, it’s shocking how calm and ambivalent I was over all my debt, I suppose I have lived with it for a long time and just assumed that it would get paid off eventually but that attitude has to go! I’m being more pro-active!  It’s been a low spend weekend, did some batch cooking and I’m determined to stick to the plan this week! I feel that if I can just get through the first month and break a few spendy habits it’ll help spur me on a bit. Hope you’re all enjoying your extra hour today 😁

Lifestartsat40

It will feel hard at first getting into a different way of living but before long it will be second nature Im sure

jody51

It’s been a while since I posted but I’m delighted to say that I’ve stuck to the plan since my last posts. I will get paid on Thursday next week and my payments will bring the total down to £29kish. It’s been a hard few months but I think I needed to be strict to rewire my brain and break the spendy habits! 

Thankfully when I had started this process I was fairly well sorted for Xmas so I didn’t have to go over budget in what normally is an expensive month. I have been giving myself a fairly strict budget but of course there’s always some spanner in the works to try spin me off course. I had a very expensive dental issue in January and my car service was slightly more than what I had planned the following week 🙄 but I was able to cope without going to far off my plan.

 I will say this- surveys have been my absolute saviour since late November- I wish I had started years ago! I’ve clocked up about £600 since December in surveys and sold a few odds and ends online so this has been my buffer to cover the unexpected costs and I intend to continue this as much as I can. From this month I’m also giving myself an extra £200 - rather than sending this to repayment as I’m rejigging my budget to reflect the rising costs of everything rather than stressing in the middle of the month and being tempted to reach for the cards and undoing my good brain rewiring!! If I’ve anything left I’ll pay it off at the end of the month. The impact on my DFD will be minimal really but my mental health will appreciate the larger buffer.

I’m starting to feel really positive about this now, I’ve learned so much over the past few months and it has been incredibly empowering to not buy things that I can definitely live without.

The journey continues 😄

anjyeah

Good luck! And welcome to the board. 

Like yourself, my debt peaked when I was in University as it was the only way I can sustain my day-to-day despite the minimal grants. Well done on the surveys! It looks like you already have a plan ahead so good luck

jody51

I don’t update this very often but I do lurk in the forum daily which helps keep me on the right track! Payday tomorrow and that’ll be a year since my latest light bulb moment, after payments this month debt will be £20k. I have paid just over £14k back this year. 

Whilst that’s absolutely fantastic it’s a tad overwhelming to think that I’ve that much (and then some!) to pay off again. But I’ll get there! I give myself a fairly strict budget but do quite well at surveys which gives me my ‘treat’ money. I’m going to get back to basics this month and be a bit stricter with grocery shop because it’s been too easy to spend more than necessary recently. 

In the past 12 months I have learned lots, cut down massively on my spends yet I have never went without. We’ve still had plenty of nice activities but all planned better. It’s been eye opening to think about how wasteful I have been over the years! To anyone just starting out and those continuing with their DFW journeys good luck and keep at it- we will get there! 

gd55

Fantastic achievement over your first year, well done and keep it up!

jody51

Just checking in- I am into the ‘£13k’s’ now, I have paid back over £20k since November 2021 (18 months) 

It has not been easy, but thankfully I was well established with my plan before the cost of living impact set in. All being well I will be making my last payments in December (9 more paydays) 

I have some savings and will become debt neutral in July/August

to anyone needing a bit of encouragement- keep going!! I already feel mentally lighter knowing that I can see the end in sight.