Taking charge of debt

sunshine_raincloud

So a work trip that I had been dreading has been cancelled which is a huge relief for me (I spend enough time talking about work whilst I'm at work...) This also means the spending money I had budgeted for it has been freed up. My head is telling me I should put this straight in the EF or onto CC1 but it is also a good friend's hen party the same weekend, which I had originally not been able to go to. So now I am toying with the idea of going for one night, which will likely be expensive but I haven't seen some of these friends in a very long time and we haven't all been together in even longer! I would need to be sensible and still keep to a budget then should still have some money to put to EF leftover. I will have a think this week and decide!

For the first time in my recent adult life I think I might be on track to finish the month not in my overdraft and potentially with around £100-200 spare if nothing crops up so this will also be going to the EF in next couple of weeks. I know it sounds like a small thing but it feels like an accomplishment to me and has shown me that budgeting does work (but only if you stick to it!). Hopefully I am building new habits that will keep me debt free in the future once this is finally all gone! 

sunshine_raincloud

I have made the decision to be sensible and not go to the hen party this weekend, which is a real shame but if I go I think it will push me back into my overdraft and psychologically I don't think I can handle that right now and feeling like a failure! It is the right decision and I guess in a way I feel like I need to make a few sacrifices after having spent the rest of my adult life going to every party and never saying no to anything, which is how I ended up in this mess to begin with. I already am feeling the FOMO of all my friends having fun without me but once I've got this debt under control I will be able to have more disposable income to have (budgeted) fun with them all. 

Instead I have transferred an extra £100 to my EF!

Hoping this is the right decision.

Other than that this week had vet visit for my cat, but wasn't as bad as I was expecting with regards to cost. He is getting on a bit now so going to try to find some reasonable insurance to cover his potential costs in the future. Any recommendations would be gladly received! Big monthly payment for CC1 coming out my account tomorrow, which will take my total remaining debt to below £6k. Still feeling a bit overwhelmed and like I have a long way to go but I never give myself much credit for any achievements. I've also managed 5 NSDs this month, which is my highest total yet. Hoping for a few more as well! 

I hope everyone is having a good week! 

sunshine_raincloud

So my big payment to CC1 for this month has come out. 

Current totals stand at: 

CC1 £713 remaining of £1433 (50.2% paid)
CC1 £4110 remaining of £4160 (1.2% paid) 
CC3 £840 remaining of £1800 (53.3% paid)

Total debt £5663 remaining of £7393 (23.4% paid)

Feeling good that I am almost at the quarter mark for paying my debt! My EF also nearly at a quarter of £1000 target currently standing at £229.38. The plan is the same currently. Aiming £510 per month to debt as baseline and £150 per month to EF. Then any tilly tidying or money left at end of month going to EF until it reaches £1000 then I'll throw everything I can at the debt.

I paid £14.50 in overdraft interest this month for the short period where I dipped back into it before payday last month but I am hoping this is the last time I ever pay anything for an overdraft! Honestly it is scandalous how much they charge. I feel like banks set a lot of young people up to be in debt or at least help them along the way by giving these huge 0% interest overdrafts for being a student then hiking the rate right up! 

I've also had a refund come through for some clothes I bought then changed my mind about so should have enough to last me until payday as that's most of my bills out of the current account now. Sometimes it is hard to feel like you are making any progress, which I have definitely been feeling so it's good to take stock and see how far you have come. 

Aiming EF at £1000 by end of May.
Aiming to be debt free by end of November!

shell16

@sunshine_raincloud

Sounds like you have an excellent plan.  You are aiming to pay alot off debt each month, have you taken account for the increased cost of living on budget like grocery, gas and electric, fuel for cars and Increased National Insurance payments?  Its great when you start out on Debt free journey but it is a marathon.  Dont put too much pressure on yourself to pay off in the fastest possible time as this could leave you short  before payday, and having to resort to overdrafts or credit.

I wish you all the luck, and subscribed to cheer you on!
Shell x

sunshine_raincloud

Hi @shell16 and thanks for the support and advice  I've been lurking and following your diary for a while for inspiration! Just seen you have made some big payments today.. that's great! 

I made the decision at the start of the year to get a lodger for my house to help with costs, which is why I am able to pay this much off per month for now. If they were to move out it would be a different story but trying to capitalise on the extra income whilst I can!

Definitely feeling nervous about cost of living crisis like most people are across the country. I'm lucky to still be on a fixed 2 year tariff for gas and electric but this comes to an end in November, which is one of the many reasons why I am hoping to have my debt sorted out by then! I've increased my direct debit today though just to try to create a bit of a buffer on the account for when winter and price rises bite at the end of the year. I also don't drive. Annoying as it is relying on public transport to get everywhere it does save me an awful lot of money. Constantly reevaluating this though! Food prices is the big thing for me as I love to eat (probably too much...) so trying to be cautious there whilst still allowing myself the occasional treat to keep up morale. 

You are right though that I need to be careful not to be dipping back into my overdraft each month (which I did do last month). The CCs have been chopped up so cannot spend anymore on them and I used a money transfer to pay off my overdraft and reduce it from £2000 to £250 to get rid of that temptation so hopefully that is enough to keep me on the straight and narrow but life always has a way of throwing things at you hence my priority with the EF for now! 

Thanks again and wishing you all the best!

shell16

@sunshine_raincloud, you do right capitalising on the lodgers money whilst you can.  I really hope you can get a good chunk of debt cleared this year!  Thanks also for reading my diary.  I have certainly had ups and downs along the way and life does have a habit of throwing curve balls at you!  I have been trying since my LBM to reach a £500 EF but something always happens.  I do want to get to £1000 but set myself a mini target of £500 for now.  Once I get to £500 EF im going to use that towards debt clearance now that my PAD's have somewhat halted.  Maybe use 6 months worth then pay back into EF to increase further....im not sure yet.

Its great to hear that you are so focused and although early on in your journey the diary entries you make will start to help someone else just beginning theirs.

Good Luck! 
Shell x

sunshine_raincloud

So I have unfortunately ended up having a very spendy weekend despite not going to the hen party. I will try and pull it back over the next few days before payday on Friday by having as many NSDs as I can manage. Should be one today! I really need to be better about cooking meals. I'm going to allocate a day in the next couple of weeks to batch cook a load of meals for the freezer so I don't resort to takeaway when I am feeling tired and lazy. Other than that no real news.. slow and steady wins the race! 

Checkpoint_Charlie

Hello there! I am only ever really a lurker here but just wanted to say thank you for sharing your journey and that you are doing so well! Never forget there are readers like me cheering you on and enjoying your successes and wishing you tonnes of positivity when there is the occasional bump in the road! All the very best! 

sunshine_raincloud

Checkpoint_Charlie said:

Hello there! I am only ever really a lurker here but just wanted to say thank you for sharing your journey and that you are doing so well! Never forget there are readers like me cheering you on and enjoying your successes and wishing you tonnes of positivity when there is the occasional bump in the road! All the very best! 

Thank you for your kind words! Definitely gave me a boost this morning 

beanielou

You have made a great start 
Be proud.