20K to Debt Free by June - Finally Debt Free 27/06/23

LeeXenon

Seems like a bit of a slow day today, I've noticed a trend where this end of the month tends to be very much a "lull" in that I am doing little to no spending. Today will be a NSD and once again I find myself evaluating my finances and contemplating increasing payments once again. Unfortunately a lot of travelling has been done already this month so there will be very little flexibility due to the extra costs incurred as a result.

Let's kick off the day by getting my overall card debt down to £9,000;
£5 to CC1, £5 to CC2.

Still looking at December 2023 as a debt free date, although I'm very eager to bring this forward in the coming months.

LittleMissDetermined

It gets like that, I’ve started ‘budgeting’ a £1 daily pad in my spreadsheet outgoings 🤣

sunshine_raincloud

This is what I have always wondered with the PAD setup. If you have a budget and know how much extra you might have leftover for additional debt repayments why not pay it towards debt in one lump sum rather than splitting it into small payments every day? I know it really seems to work for some people but I can't get my head around it. Might be missing something with the logic! 

Well done on your progress so far @LeeXenon

LittleMissDetermined

I think it’s just the mentality that each day you’re chipping away at the debt. It works for me anyway. I might look at it differently if I was accruing interest on my card I suppose 

LeeXenon

LittleMissDetermined said:

I think it’s just the mentality that each day you’re chipping away at the debt. It works for me anyway. I might look at it differently if I was accruing interest on my card I suppose 

The mentality of it definitely plays a part, however in my case if I had a lump sum lying around id be more inclined to spend it on things that I dont necessarily need. At least when the payment has gone on the card that little sum of money is "committed" to paying off the debt.

LittleMissDetermined

I can see how it would be tempting. I have mine on my trusty spreadsheet as a committed outgoing so it won’t get spent elsewhere 

sunshine_raincloud

Sounds good. It's all about finding what works best for us as individuals. I just wasn't sure if there was something better about it mathematically that I didn't understand and whether I should be following suit!

Keep up the good work anyway

LeeXenon

Well a bit of a mental milestone for me today, finally closed the spending credit card that led me down a path of bad and irresponsible spending and getting into debt.

Good riddance!

OrwellianBabe

Just stumbled onto this thread and well, wow!  Well done you for the commitment shown to debt busting.  I've been trying to rein in my debt demons too but difficult to make ends meet on a part time salary and with an extension currently under construction.  However, I've been creatively looking at ways to generate extra cash that is then specifically earmarked to clear debt down.  Selling unwanted stuff, cutting food portion sizes or unnecessary car journeys, batch cooking, shared baths, using solar lights as indoor night lights etc - There are a million ways to generate small savings on your household budget and I'm sure you've done this already.  Do you have a hobby you can monetise?  I knit and have recently been advertising my skills via the local NextDoor website undertaking commissions to knit things for neighbours such as Harry Potter jumpers.  I knit in the evenings in front of the TV so don't really have to find extra time for this but if you had a hobby you could monetise then perhaps this might help generate a bit of extra cash to allocate to debt clearing.  Good luck with it all.  Hope you make your target 

LittleMissDetermined

LeeXenon said:

Well a bit of a mental milestone for me today, finally closed the spending credit card that led me down a path of bad and irresponsible spending and getting into debt.

Good riddance!

Well done! That’s amazing work