Taking charge of debt

sunshine_raincloud

Finally got switch bonus through today after waiting well over 2 months for it (was supposed to be paid in within 30 days). After my last complaint I was told it would be paid in today latest. Surprise surprise, it hadn't actually been paid in when I checked this morning so I called the bank who said they couldn't do anything and I needed to wait another week.. once I mentioned escalating my complaint to the financial ombudsman it hit my account within 5 minutes! So used some of that to complete a couple more envelope challenge amounts. Withdrew 27+ 45 then 38+ 30 so paid £140 to CC and have left rest of switch bonus in my bills account to create a bit more of a robust buffer. This has brought my debt down to £2406 so I have hit my target of paying off over 2/3 of my debt! Next challenge is to get below 2K hopefully by the end of the month! 

Hope everyone is having a lovely Wednesday 

Squirrelz92

Amazing progress on paying 2/3's of your debt!!! Congrats! So pleased the switch bonus finally came through for you! Loving the pot organisation and how you feel much more in control! x

beanielou

Great news on the bonus at last & the debt reduction 

savingholmes

Fantastic news on the switch bonus

sunshine_raincloud

Thanks @Squirrelz92 @beanielou @savingholmes for your comments! 

Just plodding along really now. Trying to figure out a budget for when my lodger moves out. Really not going to be able to put as much per month to my debt at all but determined to pay everything off by November as that is when my current mortgage and fixed energy tariff run out so will need to put the amount I am putting to debt each month on that if my house hasn't sold by then. Only other bit of news is paying off £6 to CC as it was annoying me debt didn't end in a zero!   

beanielou

So when is the lodger going?
Is the house on the market yet? 

sunshine_raincloud

beanielou said:

So when is the lodger going?
Is the house on the market yet? 

Hello. Sorry for delayed reply! 

House isn't on the market yet. Next stressful thing to sort out. Will be towards end of this month when both are happening! 

sunshine_raincloud

Hello all, 

Haven't felt much like posting recently sorry. Sometimes just need to take a bit of a break from obsessing about the debt busting! Still on track to hit under 2K debt by the end of this month.

Regular savings for the month have gone out so now have over £1100 in my EF. Non-EF will be used for holiday money in September. I'm not sure if once I reach the point that my savings match or are larger than my debt that I might be tempted to pay it all off in a lump sum? I have been thinking about it... not sure how wise that would be.

It has been good so far transferring a weekly amount only to my spending account. It is making me think more about spending rather than at the start of the month thinking I'm rich and blowing all my money! Managed a NSD on Saturday because of the weekly budget when previously I think I would have gone to the supermarket. 

It is my birthday this week. Expecting some birthday money from a family member. At the minute I am thinking I will just put however much it is straight to my debt. A bit depressing really but last year my finances were in such a mess the money just got sucked into the pit of my overdraft without much thought so at least this year I am making an active choice about using it for debt! Maybe next year I will be able to buy myself something nice with any money I might receive. 

I think I need to be positive about how far I have come. This is probably the best financial position I have been in for years and I have definitely been in a lot, lot worse. 

Feeling very worried about house sale, cost of everything, also if it doesn't sell and I am stuck on expensive SVR mortgage with my gas and electric tariff running out at the same time. Just need to try to prepare as much as possible for this eventuality just in case! 

Anyway Happy August everyone!

savingholmes

As you say - you are taking concerted action and are in a much better position than you were. Hopefully you can sell the house quickly - or failing that get another lodger.

beanielou

I would pay a lump sum off~~but that's just me!