I can do it: £41,000 debt in October 2023. Debt-free in March 2025?

annetheman

I realise I didn't address the big gap between my first trip to visit my sister and adding the student loan...

Unfortunately, my sister's new baby (the one I flew to meet in July) died at 12 days old. No reason why, just SIDS.

I went back to TZ, bought a plane ticket 2 days in advance for close to £2,500 (emergency travel stings) and put that on the NatWest 0% credit card. Spent a few more hundred to help them out while there for the week.

I also went to Amsterdam in September for a friend's birthday, put about £600 on the credit card for that, but paid that back at least. So it was primarily the trip to TZ for the baby's funeral that set my NatWest card back by about £3k.

So I paid off the NatWest credit card #2 in full, paid off Smile Direct loan in full, and added £3k onto NatWest credit card #2 all in the space of 2 months.

I also got a new 0% Barclaycard and transferred by Virgin CC debt onto that since the 0% period ended. So now I have 2 CCs with high debt vs 4 with mid debt (NatWest CC #1 paid of months earlier).

I don't regret adding that debt - losing a child is the hardest thing in the world and my sister needed me - she is only 37, me 34 and we have lost our mother young. There is no one else (dad flew over too, though) I would spend the money for.

With my aunt dying earlier in the year and the baby in July, it is clear how desperately I need to save a small emergency fund. So I added £50 a month to a digital savings account in my SoA - I know the advice is pay off the debt before you save but death seems to be plaguing me and I need to be ready for the next one

joedenise

I don't agree with your last sentence.  I think everyone should have an Emergency Fund.  Even if you start with a small target of, say, £500 and then increase your target as you go along.  I aim for about £1,000 as I know if I needed more I have credit cards I can use but obviously would rather not add to those if at all possible.

beanielou

You have had a really hard time. 

Sometimes life just sends us curve balls. 

Aimingforthegoodlife

I am so sorry for your loses, I agree that money was well spent and needed. Focus up on EF, I think it is Dave Ramsey who suggests building up an EF before focusing on debts. Sending hugs x

in_need_of_direction

echoing what others have said, just remember that the bereavements impact you too so take care of yourself

annetheman

JANUARY 2024

December paid: £586.90 unsecured [bad] + £463 student loan [good]

I've decided to do more reflecting on my progress - I'll add the amount I've paid off of my debt that month, plus an assessment of whether this was a good month or not.

I've made a pretty big decision... My Shared Ownership rent is increasing, and I can either staircase to decrease it, buying more shares and therefore getting a bigger mortgage. OR, I can sell now, take some equity and the little savings I have and buy a freehold house (a crap one that needs tonnes of work, but no more rent and service charges, currently almost £900).

I have decided to sell, and informed my Housing Association. I don't think it'll happen until summer or so, but I've put in an offer on a small Victorian terrace and it is amazing what having a target like that can do for my self discipline!

I wouldn't be surprised if I can move my debt-free day over the coming months because I am completely altering my SoA, decreasing everything possible and pumping more into my overpayments. 

I guess I realised I need to be obsessively saving for something in order to really commit to this, which is unhealthy but if it ain't broke...

I'll be keeping quite active over in the House buying subforum, but I won't neglect this and keep myself accountable with at minimum monthly check ins - hopefully all of my payments will be [good]!

lucielle

Fingers crossed and good luck on your purchase. 

L

annetheman

lucielle said:

Fingers crossed and good luck on your purchase. 

L

Thanks so much lucielle, appreciate it! It might fall through but the best outcomes are always when I take my will out of it and trust - it'll always work out for the best

annetheman

I haven't checked in in a while because I haven't been ploughing away at my house purchase, no overpayments on my debts.

The house is looking like a dud... I had an offer accepted and mortgage affordability was fine - then the lender's survey came back... It has a single skin kitchen extension, meaning the lender probably won't lend on it!

I find out Tuesday, with the best case scenario being a bridging loan for remedial works to insulate the offending wall, followed by remortgage to absorb the loan (would still require owner accepting a lower amount, which is unlikely!).

So unless I find another house, which is looking HIGHLY unlikely, plan B will be staying where I am for another year, saving up a bigger deposit and - yes indeed - paying off the rest of my debt to get to my DFD March 2025...

Since I may be aggressively paying this down again, I thought it'd be useful to udpate my latest stats and look at where things are. It's wonderful seeing some progress, even though I haven't been doing much, just living frugally, paying a little bit over and that's it. 

DEBT ROLL 9th March 2024

Barclaycard CC @0%	NatWest CC @0%	Tesco Loan @5.84%	Close Brothers Car Loan @6.79%	o2 Phone Loan @0%
£4,911.64	£7,316.47	£3,466.56.44	£4,936.63	£205.31

And student loan... £15,121.41!

TOTAL: £36,853.84 - change since October 2023 is over £4k!

Seeing the progress has made me really want to keep this going. So I can really see the bright side of losing the house -- seeing this go down even faster and knowing I'll have a bonus at the end to use for my deposit if I start looking this time next year. What's the harm in another year here getting things right financially?

Okay.. Feeling better! I hope everyone else is seeing the light at the end of the tunnel, too...!!

beanielou

March 25 is only another year  Don't think you should think your SL as a loan.  As Martin says think of it as a graduate tax.