My Debt Free Journey

LittleMissDetermined

Happy pay day and well done on another month overdraft free!  I hope you have a really great weekend, sounds like you're going to have a lot on
LMD x

Keedie

Sounds like a great weekend you've got going on and definitely congratulations a good chunk paid off your debts and not going into the overdraft. It makes a big difference doesn't it, having more financial control.

KeepOnKnitting

Hope you are feeling better in time for all your fun weekend plans.

abaka

Should have posted this last night.  Weekend away in Dublin was great.  Wife and I had a great time except I'm still feeling a little under the weather hence why I didn't do my 1st of the month update last night.

Better late than never!

Halifax Loan -   6737    6729     6529       6431       6332         6131

Halifax -            4941    4850     4801       4751       4240         4197

Virgin -              4191    4099     4049       3999       3959         3880

MBNA -                                                                    2560         1450

MBNA -                                                                    3672         3632


Another month without adding any new charges to Credit Cards or going into my overdraft.  I've also looked at my overall monthly debt reduction.  Including the loan my debt today stands at £19290 compared to 1st September when it stood at 20763 meaning I've managed to shave 7.35% of my debt in one month.  Not sure if I should be pleased or disheartened at that.  It's an incredible reduction but the percentage being so low just shows how much debt I do have overall.  However, I'm not in financial difficulties, there's a roof over my head, there's food on the table so at least it's a 7% drop in debt whereas if I worked out a calculation back in April before I had my LBM I imagine my debts were probbly increasing each month by 7% (if not more!)

If we look at the Credit Card debt on it's own which as I've said is my main goal to focus on since the loan is low interest and a fixed amount., my debt last month was £14433 vs £13159 so I've managed to reduce credit card debt by 9.23% which is a good amount!

Incidentally I just worked out my debt reduction since 31st May when I made my first post on this forum, between then and now I have went from £29401 to £19290 meaning I've wiped out over 10k debt in 5 months wiping 41.53% of my debt.  This makes me feel so much better about what I've accomplished.

LittleMissDetermined

You should definitely feel proud of what you have achieved so far @abaka! 41.53% of your debt in 6 months is phenomenal!! 

And just reflect on what you've still done in that time, you've had trips away and holidays, concerts and time with your family. It's great work.  And you've not used your overdraft again which is just brilliant  

Really well done! 
LMD x

LittleMissDetermined

Just checking in to see how you’re doing? Hope all is well x

abaka

Ok - It's been a long time since I updated.  Life got in the way late last year but I've been thinking about my diary over the last few weeks and figured I better get back to updating.  I've also tried to read in a few of the diaries I was following previously when I could.  Lack of updates hasn't meant lack of debt clearing....Although, there is a slight change which I'll update on.  However since my last post in November, I have managed to continue clearing my debts, no purchases on credit cards, no going into overdrafts so that's a positive.

However, we did have some unexpected situations with the house which required attention and I'll not get into.  It also coupled with an opportunity to do some renovation work that we wanted done but kept putting off, but realistically we were forced into doing at this stage...So it has meant taking on some new debt unfortunately. 

My wife took out a 5k loan which was used for maintence and repair and then renovation of our sitting room.  The work also included a complete rewire of the room and a new electric trip board installed to replace the dated fuse board, it also involved ripping out a brick fireplace so we got the room plastered and the fireplace vented and boarded up.  And then new door, frame, skirting, architrave and moving a radiator.  Looks like a brand new room, cause it is!  The loan is in my wife's name, but the DD comes from our joint account so we're paying between us.

However we also required some work done in the bathroom as a result of the issue and again, the bathroom was very old and had kept getting put on hold.  So we took the opportunity to replace it, there was some money left over from the initial loan, so I took out a loan from our credit union.  I borrowed against savings which allowed me flexibility in the loan amount, so £it's about 4000 across ten years at 1% per month (I also get 40% rebate on any interest paid).  The payment for this also comes from joint account, so myself and my wife make payments, but the debt is in my name.  Whilst I want to be debt free, I have no issue or regrets with taking on debt that is being invested in the house.  I'd sooner have 9k of debt that is invested in to making our home safe/nice as opposed to £30k of debt which was invested in junk which is where I was almost 1 year to the day.

There is still some money left over which is being used in further work this summer.  Gates need badly restored, tree removal and other outdoor improvements.

The Credit Union loan I'm rationalising by saying...I could have easily took the money out of my savings, but then it's gone.  I'm not really missing the £40 a month which is my contribution to the loan, and it means my money is still saved and the interest rebate means I'm adding to my savings.

Also since I stopped updating, I have also been able to put money aside for "fun spending" which is helpful to have a buffer for unplanned expenses as well as fun spending.  I have managed to buy back 3 of the things I regretted selling when I had my lightbulb moment so I'm making great progress in getting back on my feet.

Also, yesterday I received another 6 month extension for my "temporary job position"....And realistically with the level of vacancies in key operational positions in our department and recruitment backlog....It could be another 12-18 months before they get round to filling my post permanently....Happy to keep getting extension letters until then!!  

So where am I with my credit card debt.

Halifax -                    4197 - This is now with Tesco as I done a balance transfer, and the value is £3978

Virgin -                     3880 - This is now £3680

MBNA -                    1450 - This is now £0

MBNA -                    3632 - This is now £3107

I'll need to get a breakdown on my Halifax Loan and my Credit Union loan but they manage themselves, and once I've cleared the "problem" debt...I will pump more into them.

My total card debt is £10,765.  Still a huge number of course....but this time last year it was around £23k.  I obviously won't be able to reduce another £13k this year as last year I made lots of sales, and I also had an inheritance.....Plus costs have risen which means my disposable income isn't the same as last year....But by end of the year I hope to have hopefully got it down to about 6-7k which will be amazing.  I do need to do a balance transfer come August on the MBNA and then October for the Virgin....I believe the Tesco is interest free until June 24.

We find out on Thursday if our daughter will have gotten a pre-school/nursery place in September, so if she does get one, then our childcare costs will reduce dramatically....She goes to a daycare, 3 days a week and it costs around £680 a month I believe!!!
So that money being freed up might be able to be redirected to debts, although we have our mortgage deal renewing in October and no matter what happens, the mortgage will be more expensive, so extra funds there will be handy!

Other news is that we have a holiday booked in June for myself, wife and daughter.  2 weeks in Tenerife, very excited for that.

So that's been the last 4-5 months for me.  Very busy, life has been upside down, and whilst I have taken on new debt...My "problem" debt is still falling!.  

Sorry for the huge update - this is what happens when you don't post in 6 months!!!

LittleMissDetermined

Fingers crossed for the preschool place, that’s a real saving in childcare costs!
Unfortunately, houses can be expensive when things go wrong, at least you’ve sorted them so they should be good for a fair few years.

Welcome back to the world of debt free diaries! 

LMD x

Keedie

Great to see you back @abaka! I think you've coped exceptionally well with what sounds like a challenging few months, and I've no doubt that problems with houses can be very costly as the fix for one thing can often lead to the discovery of another problem.

I agree that £9k in additional debt to have a safe home (and by the sounds of it add value), is a good route and although I don't fully understand the savings rebate, it seems like having the savings to fall back on it you need it, is a good thing and the debt is shared between you both to make it more manageable.

Hopefully the nursery place comes through, as I remember paying £996 a month for my son's childcare when he was younger and it practically crippled me!

Well done on the job front too, and it's good to fly under the radar with the contract extensions whilst they take their time in working it all out 😉.

abaka

Hey - Just to update.  Daughter got into her first choice for Nursery.  Delighted.  With wraparound care, we'll still be out money but need to sit down and work that all out.  Should have a few quid each month spare to throw into debts.

I hope that pending another few extensions in work and no more set backs with housing etc, I can be rid of this debt within 2.5 years.

Amazing, how it can take just a few weeks to rack up debt but years to clear.....