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24 months to debt freedom

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CL21
CL21 Posts: 253 Forumite
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edited 22 January 2023 at 8:30PM in Debt free diaries
Hello everyone! 

Long time lurker of the diaries here and loving the debt free progress people are making. I really need something to help me stay accountable and hope this is it! 

My true LBM is very recent but I’ve been dabbling around paying off debt for a while but just being a bit half hearted about it all. After all everyone’s in debt right?! After getting my debt under £10k I’m right back up to £20k and desperately want to get out of debt once and for all. 

I’ve done my budget (on an excel spreadsheet no less - couldn’t get on board with YNAB) and have worked out a time line for my debt. I think I can pay it off in 15 months but I’d like to get it done in a year. This will mean looking around for things to sell as my job doesn’t offer overtime and as I’m a single parent - and daughter only 10 - that rules out a second job. 

Big thanks to everyone who posts on here. I’ve read loads of diaries and am so inspired. It seems like a lovely community. I’ll post a bit more later on about my background and budget. I don’t want to post an SOA as I know all too well where I’m overspending and my new budget includes personal spends (a tip I got on here) which is where I’ve fallen down before. Although I could be super duper frugal, I know that I’ll just end up overspending and getting annoyed with myself and then spending a bit more! 

The title of my diary refers to my little monzo pots which I’m using to help me budget (I love them!)

**title updated 22.01.23 to reflect my hoped for debt payoff time**


Credit Card 1 - £6249.99 £4,900
Credit Card 2 - £13,481.47 £12,985

Total debt - £19,731.46 £17,885

Emergency fund £930
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Comments

  • Four_Seasons
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    Welcome you will get loads of support from everyone on here. Cheering you on x
  • enthusiasticsaver
    enthusiasticsaver Posts: 15,739 Ambassador
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    Best of luck and good you already know the value of savings pots. £20k in a year is an ambitious target and look forward to following your progress. 
    I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
  • CL21
    CL21 Posts: 253 Forumite
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    Thanks Four Seasons and Enthusiastic Saver (something I also hope to become one day!) 

    Appreciate the support. It’s definitely an ambitious target and I’d still be really happy if I did it in 15 months but I’m aiming high! 
    Credit Card 1 - £6249.99 £4,900
    Credit Card 2 - £13,481.47 £12,985

    Total debt - £19,731.46 £17,885

    Emergency fund £930
  • londoner2019
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    Good luck! Following your diary! What are the pots used for?
    CC: £0!!!!!! (have paid off £13,000+ over 3 years-ish)
    Student loan: GONE

    Goals for end of 2024:
    EF: £1,000/£1,000
    House repairs: £100/£2,000
    Building insurance (due Sep 2024): £400/£400
    Safety net savings: £1,500/£3,000 
    Holiday fund: £100/£3,500
    Christmas: £0/£1,000
    Fun pot: £350

    2025 goals:
    Holiday fund: £4,000
    Christmas: £1,000
    To partner: £8,000 - no hurry to pay)
    Save for house move: £10,000

    DFD: Finally taking back control after a decade of debt
  • CL21
    CL21 Posts: 253 Forumite
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    Thanks Londoner2019 - just looked at your debt payoff so far! You’re doing so brilliantly. How have you found your motivation? I’ve always struggled a bit a few months in (think I’m just super impatient and want it done) 

    Pots are for a few things. I started with

    Food - this also includes petrol (I don’t use much as I work from home), household/cleaning products and any eating out 
    Gifts - this is so that I have enough for Christmas 2022. It’s also my mums 70th next year and will also pay for birthday party for daughter as well as various friends of dd and my own friends. 
    Bella - this is for our black lab who’s 15m old and this pot is for her food, flea and worming meds, injections etc 
    School fund - a small pot to save for uniform and occasion school dinners as well as school swimming / clubs
    Misc - my spending money. I’ve put £75 a month in this to start
    Paddleboard - bit of a random one but the reason for this is that we’re not going on holiday next year and we both love paddle boarding but haven’t got our own. This will be fully funded in six months. 
    Clothing - my plan is to spend as little as possible and shop second hand as well (we love a good charity shop) but it will be fully budgeted going forward instead of a surprise! 

    So - quite a lot of pots but I like to have all of the different categories. I know some people like to have very few pots that cover a number of things but I’m definitely happier with more! 
    Credit Card 1 - £6249.99 £4,900
    Credit Card 2 - £13,481.47 £12,985

    Total debt - £19,731.46 £17,885

    Emergency fund £930
  • CL21
    CL21 Posts: 253 Forumite
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    Forgot to add that I’ve got a pot for a sinking fund also. That’s for building up a sum of money for emergency and will also pay for my insurances - car/home/pet etc in full. I’d also love it to pay my rates bill in full next year but that’s not totally necessary as it’s interest free over ten months. 

    Rates = Northern Ireland council tax for anyone unsure! Also includes water and - for an English girl who used to pay extortionate council tax + water rates - is extremely good value
    Credit Card 1 - £6249.99 £4,900
    Credit Card 2 - £13,481.47 £12,985

    Total debt - £19,731.46 £17,885

    Emergency fund £930
  • FootyFanDan
    FootyFanDan Posts: 1,392 Forumite
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    Hey CL21, just wanted to pop by and wish you the very best of luck in your journey. The pots idea are great, I found it difficult to get on board with saving up through the year for things as seeing pots of money lead me into a false sense of security. However this year I stuck to it and it made a huge difference when it came to replacing a cooker, also the car maintenance and xmas haven't felt anywhere near as scary this year. Looking forward to following your progress
  • CL21
    CL21 Posts: 253 Forumite
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    Hi @FootyFanDan thanks for stopping by and for the encouragement re the pots. Great to hear that they worked for you this time - hopeful they will do the same for me! I have tried them before but just ended up moving money from pot to pot once I’d spent what was in one 🙄 This time I have pots for all categories I know I need and some personal spends so this time feels a lot more doable 
    Credit Card 1 - £6249.99 £4,900
    Credit Card 2 - £13,481.47 £12,985

    Total debt - £19,731.46 £17,885

    Emergency fund £930
  • LittleMissDetermined
    LittleMissDetermined Posts: 8,285 Forumite
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    edited 3 December 2021 at 7:13AM
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    Good luck on your debt free journey! The pots are a good idea and like you, I rely on a trusty excel spreadsheet rather than a budgeting app. 

    Personal spends allocation is something I found really useful, I keep mine in a separate current account. Anything I don’t use gets swept into the emergency fund the night before pay day. 
    Have you had a look at any of the challenge threads? There are a couple I do which helps me both save (sealed pot challenge) and pay down my debts (payment a day). You may find something which will be both debt busting and motivating. 
    Anyway, I’ll be cheering you on. Lots of luck! 
    LMD x 
    Life gets in the way...PADding is addictive...Saving's better than spending...
    2024 1p challenge #11 | Cash envelope challenge #01 | SPC #017
    Sealed pot 2024 £3665 | EF £1000/£1000 | Sabbatical £1290/£3000 | Holiday spends £1008 | General Saver £2654.56
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