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

annetheman

savingholmes said:

That is shocking news. Do you have any things you can sell to clear clutter and bring in extra £?

Thanks....! Honestly, it will be fine, I just can't stick to my overpayments, I will just have to reduce them next month... I really should have realised it earlier, it's more shocking that I didn't! 

I'm definitely going to push to sell, I'll reduce what I can but add more if I can... really dumb oversight on my part! Worst case scenario is I clear my debt one month later?

I'll see what happens! *big d'oh!!!*

annetheman

So it's mid-month already...

I'm down to my last £358 for the rest of the month with most of my debt payments still to go, although the largest have gone out.



It has hit me today that I will have to live like this for the next 1.5 years, tracking every penny and putting almost all my disposable income into paying off the debt. I am still very fortunate that I am living comfortably, not required to make choices that badly impact my health or lifestyle to service the debt. I got myself here, I am lucky I can get myself out...

I haven't expensed the £280 for office chair and £30 for footstool, but I'm working in "cash at hand" not "future money" so when it is paid to me, it's more of a bonus. But things like this might come up, and it's about changing my spending behaviour to what it is now - restrained and disciplined...

1.5 years seems like a long time, so I'm going to make it feel more manageable by measuring my progress in weeks:

67 weeks to go!

2Scratters

You are doing a great job!
Just checking have you factored in a further reduced monthly income in your new job or even a full month missing?

annetheman

2Scratters said:

You are doing a great job!
Just checking have you factored in a further reduced monthly income in your new job or even a full month missing?

Thank you! It's really encouraging seeing other people's posts and lurking on this forum, I appreciate very much an encouraging word - it's gonna be a looooong 67 weeks

I have reduced the amount I'm paying this month slightly, on one of the 0% cards. I haven't received the full paycheck for August yet so I don't know what I'm working with with regards to being between the jobs this week....

Once I receive my final paycheck, I will need to adjust my overpayment, the likely hit will be to the highest overpayment, might need to half that or more....

I've extended my DFD from December 2023 to January 2024 as a result of this but I really hope I can be debt-free by December 2023!!!

CMD79

annetheman said:

Friday!
I have good news - new job will give me a fairly generous £850 towards my home office - I have a desk, but just ordered a footrest and chair to expense in full. I'm VERY pleased I can now save the £20 money I make from selling my chair - that will help counteract the bad news from today...

PENALTY CHARGE NOTICE: £80 for entering and stopping in a box junction when prohibited  - caught in 4K on the Kew bridge. Gutted but self inflicted.

So I've thought about where to reallocate the PCN money from, and given the expense info, I will allocate the £50 house stuff and decor budget to it. I will also use half of my £50 for outings, since I'm meeting someone for coffee tomorrow (expect to spend around £6, which will come from the £20 for selling my chair).

I'm going to send my sister £50 for her birthday, meaning for the rest of the month, I have £263.99 remaining, to include food and all other misc costs (not bills and main stuff/DDs and OPs). Sounds very survivable!

Another good bit of news - I turned my first debt repayment in the plan green, meaning it's gone out for the month! Psychologically, turning things green really does something for me! If I don't stick to my overpayment or pay less for whatever reason (never under the minimum of course), I will turn it red. I am without a sinking fund, so anything - literally anything - could mean I can't overpay anymore. But, that's exactly what I'm working to fix!

I'm going to put calendar invites to ensure I remember to do the colour changes for each corresponding day every month - very satisfying!

OH! I'm going to do this too!! This would work for me. Turning it green - likey likey likey!!

CMD79

annetheman said:

I've not had a lot of time to focus on my debt progress this week - it's my last day at my current job tomorrow...! Going to be incredibly sad to leave a team and company I love, but it is time!

Very bad news
I realised that because I will have a 1 week gap between my current and new job, I will have about £800 less at the end of the month... Really! I didn't factor that into my September debt repayment... It's too complicated for me to work out exactly how much I'll be down by but that's the ballpark figure. Basically all of that month's repayments.

Let's see what the impact is! *sigh*...

  

Have you put it in a salary calculator to check how it looks with the tax reductions? If you haven't, it might not be as bad as you think....

CMD79

annetheman said:

So it's mid-month already...

I'm down to my last £358 for the rest of the month with most of my debt payments still to go, although the largest have gone out.



It has hit me today that I will have to live like this for the next 1.5 years, tracking every penny and putting almost all my disposable income into paying off the debt. I am still very fortunate that I am living comfortably, not required to make choices that badly impact my health or lifestyle to service the debt. I got myself here, I am lucky I can get myself out...

I haven't expensed the £280 for office chair and £30 for footstool, but I'm working in "cash at hand" not "future money" so when it is paid to me, it's more of a bonus. But things like this might come up, and it's about changing my spending behaviour to what it is now - restrained and disciplined...

1.5 years seems like a long time, so I'm going to make it feel more manageable by measuring my progress in weeks:

67 weeks to go!

Yep. I keep feeling like that as well. But I'm hoping I will be able to get a better job at some stage soon to bring my DFD forward. I'm dreaming of the day when suddenly, it's all paid off and this money is disposable income. The even bigger dream would be that I'll be so addicted to turning excel speadsheet cells green, that I turned my attention to saving!!! 

KeepOnKnitting

annetheman said:

It has hit me today that I will have to live like this for the next 1.5 years, tracking every penny and putting almost all my disposable income into paying off the debt. I am still very fortunate that I am living comfortably, not required to make choices that badly impact my health or lifestyle to service the debt. I got myself here, I am lucky I can get myself out...

I think you will be surprised at how fast it just becomes "how I live". Not doing whatever it is that makes your money disappear, but instead doing the new thing that reduces your expenses becomes a normal habit, and then it's automatic. Then you find new ways to spend even less again! 

2Scratters

@CMD79 do not fear when you get to one end and turn it round you will find you will be wanting the savings and watch it work for you this time. I certainly have done that. Sadly it took me over 35 years to get to it

beanielou

1 1/2 years is really nothing.