'Shoot for the moon' - MoonSeer's Debt Free Journey

MoonSeer

This year has been a rollercoaster already and I am desperately trying to stay on track.  Life has an annoying habit of shooting curveballs that blindside us so I figured I am going to take things at my own pace and keep working toward my goals. Joining the forum and starting my debt free diary is really a first step toward being able to see the progress I have been making.  I am currently looking at any and all options to get these paid off but like everyone right now, the increased living costs are hitting hard.  I decided to check what options are available to me but apparently, none of the debt charities will offer suggestions online and want me to speak to them.  I am not in the right headspace to do this yet so will continue as I have been.  The good news in all of this is that I have actually got on top of most of my priority debts. It wouldn't take much for me to fall through again but for now, I am mostly on track.  

My debts currently stand at a grand total of £36082 which is inclusive of overdrafts, loans, credit cards, and personal amounts owed to family and friends. 

My income including all wages and benefits total around £2557 and my outgoings total £2473 each month. This leaves me around £84 each month to put towards that excessive sum that I am trying to reduce.  As things currently stand, it would take me around 35 years to pay it all off. Lucky (?) for me, I do occasionally earn a little bit more which allows me to put more toward these debts.  I have recently been offered a job where I can work from home.  If this comes to fruition, I will save at least £200 on commuting costs so there may be some more light to see.  But let's not count those chickens until they have hatched! 

Around £24k is commercial debts, all but one of which are with debt collection agencies. The agency holding the largest debt is being really difficult and won't allow me to make further payments online but the other two are allowing me to chip away.  I am trying to work towards building up some funds to offer a full and final settlement but the truth is, I'm unlikely to be able to do so because there will always be something big that comes up that requires the funds.  I have some impulse control issues from a mental health condition that has probably not helped where I am at now but I am really determined to get through this.  Just being in a 'room' full of people who are doing the same is encouraging.  

I know this record will be full of ups and downs but hopefully, even if slow, I will see that progress is being made.  

twiggy86

Just wanted to wish you luck and well done for starting a diary. My only thought was that if you are that close to "tipping point", would it make sense to save the £84 per month for a while to help build up an emergency fund in case anything does occur (fingers crossed it won't but I'm also finding this year a roller coaster!) And yes I do need to take my own advice and try to prioritise an emergency fund over debt payments! 

MoonSeer

Thank you @twiggy86
I understand what you mean about the emergency fund.  I will give it some thought and perhaps look at doing 50% save, 50% pay but it always sounds easier to do than the actuality.  
I'm sorry this year has felt like it is getting ahead of you.  I always struggle when new bills arrive at the start of the tax year. Hoping that I will manage it okay but always feels like lots of balls being juggled at once.  
Best of luck with your debt reduction this year!

MoonSeer

Another month ended and a new on has begun.  While I have found myself in my overdrafts, I am not quite scraping the pennies and all my bills are up to date. 
A number of bills have been paid forward and no payments are due for at least three months on these so I have a bit of wiggle room as my jobs go into transition.  I had only been offered four shifts initially but was given an additional two.  This was supposed to be over 30 days but all my shifts are in first three weeks.  This appears to be a sort of benefit for me as I have offered the new place a start date toward the end of May.  
I have been looking at what twiggy suggested about saving and have made a decision that once my overdrafts are no longer in use, I will put the excess into savings each month and try and pay towards something every three months but not use more than half my savings unless absolutely necessary.  This sounds wonderful in theory and will probably not actually happen but it is certainly something I can see myself working towards.  

Current debt total is £34681.  Tax credit overpayment from previous years has now been paid. I want to be out of my overdrafts before looking at paying any more into my debts at this time.  Next payment due 12th May. 

MoonSeer

I had a NSD the other day which is a shocker for me as I usually have travel costs or something but was nice to see all my balances showing £0 spent.

I have an official 'start' for new job which is a little bit exciting.  I should get my equipment in the next week or so. The main 'problem' is that I am supposed to work from home and I have no home to work in. The house I am staying in is undergoing a facelift and half the rooms are out of commission.  I was hoping to find another home but that's proving far too difficult.  

I also have an assignment due tomorrow and so only a few hours left to write it.  ITs unlikely to even scrape a pass given that I haven't started and I need to leave for work at 5am for a 12 hour shift.  I can't even take my ADHD meds because the environment I am in is not conducive to being able to work in any recognisable sense and it will affect my anxiety so I am in a very fun place right now.  /s

This time next week, I do expect things to look a little brighter.

enthusiasticsaver

I would also suggest you focus on emergency savings for now rather than the debt. Hope you get assignment finished

MoonSeer

Thank you @enthusiasticsaver
i did submit something but nowhere even close to my word count as I started to fall asleep at 4am. Had a half hour kip, submitted at 5:30am and took a cab into work so I could get another hours Kip. I know it’s not very frugal but needs must and all that. 

I am on a transition phase ATM and have two weeks left before my training week for the new job. Have received all my equipment and am set up, ready to go. 

Eldest is going to get through this month and the. We will see what options are in front of us for next steps. 

Building works at parents house is chaotic and not great for learning or working - both of which I’m trying to do as are the children. Just hoping to muddle along until I can think of a way to deal with all this. Hopefully I can carve some temporary space for my eldest as it’s unlikely we will get somewhere together with all the requirements expected. I may just end up helping her to get something for herself instead. But that’s a conversation for next month, I think

MoonSeer

I am exhausted. Had a bit of a strop at work over 'uniform policy' (I don't have a uniform) and was super tired from the two hour plus commute each way before my 12 hour shifts.
Had a nice enough weekend celebrating child's birthday and then a baby shower on Sunday (I still haven't finished the gift for mum or baby but will hopefully have some time to spend on that tomorrow) 
Started training for new job yesterday. Going well. Completed three weeks worth of online induction in a few hours during the 'study time' we were given. Already feel like I am getting to know my team through the screen
Will head to office next week, all being well. Ticked lots off my todo list. Now need sleep  

 

Squirrelz92

Happy shiny new diary! Have bookmarked you and ready to follow you on your quest to becoming debt free!

I am still deliberating over the whole 'pay off debts or build £1k emergency fund' decision. I am so eager to start chipping away and want to throw all my spare change at it at the end of the month but I also know that I need to be practical and have that buffer for things like my MOT and service (due in July)!

MoonSeer

Thank you @Squirrelz92
I have done the same with yours - you have had an inspiring journey so far. Wishing you all the best as you continue. 

I have a monthly ‘notes’ section in my phone where I make a list of all the bills going out monthly and then add the ones that need to go out annually. I try and stack my pots so that all the bills can be paid as quickly as possible and the. The rest of the year I can relax for a bit (which leads me to Xmas) 
I am currently being paid weekly which helps a lot but my work isn’t stable which is why I try and get payments out of the way quickly. 

My new job is going well although I had a few days off this week for a short break. While away, I had an email to advise my trip in a couple of weeks may be affected by the train strikes. I just need to find a way of getting my mother to the destination (all being well) and would happily find an alt route if required but that’s not as easy for my mum.

I still need to update my debts on here but I hope to be  completely  out of my overdraft this week

Squirrelz92

Absolutely brilliant news regarding potentially being out of your overdraft this week! Did you manage it in the end? Glad your new job is going well! Nothing worse than changing jobs and then not enjoying it. Fingers crossed the trains strikes dont upset your Mum's travels too much