I can do it: £41,000 debt in October 2023. Debt-free in March 2027?

annetheman

Thought I'd try a new format so it's easier to read in future...

Halloween, one of my favourite times of year. Amazing sunsets in October, cozy, dark evenings, beautiful colours of the turning leaves. I must admit I am slightly surprised by how warm it is - haven't had to get the coats and scarves out and subsequently haven't really turned the heating on (my dad doesn't want any help with any of the bills despite my insistence, but I'm still encouraging frugality!!)

Credit report scores dropping 
So the debt update for the past few weeks is the shocking realisation that paying off loans reduces your credit score (HUGE drop after my mortgage settlement was recognised).

I expect when Tesco Loan is showing as settled it'll drop further - I know the scores mean nothing but it's still annoying lol it was so high! Anyway...

The reason I checked the credit reports is my mortgage broker has submitted a hard check AIP to Virgin Money for the new house... More on that later...

Paying more now to save more in future - sometimes...
This new house is NOT a renovation project but it is a lot more expensive, £65,000 to be exact... But while I'm paying more upfront for a better house in almost the same location (they are 1 minute walk apart), I will be paying less for ££££££UnknownTotal renovations over the next few years. I actually think Martin Lewis would be proud?!

I couldn't even buy the old house ("rodent house") because of the Title defect, and no end in sight...

Anyway... this is not a house thread, this is a debt thread - not having to pay for huge renos means I should still be able to meet my DFD target, regardless (yes!)

Debt repayment journey is not linear.
No smashing anything this month, or the next few while I save every penny for this wallet-buster house, just minimum payments -- but you know what, at least it's not 1 step forward 2 steps back like it was a few years ago when I was living recklessly.

I do feel my attitude towards debt has changed through this process...

Gratitude. Faith that everything happens for a reason.
I am so grateful for my dad's support. Only because I am living here can I afford this house and is my debt looking so good - I can't believe I was upset about it(!) and just proves again I never know what's good for me, but God of my understanding and faith will give me an intuitive idea if I let go of my own willfulness from time to time...

Another day, another mortgage application...
Yet again, for the fourth time this year, I find myself waiting with baited breath for the outcome of a mortgage application. I have been approved every time but this time I am applying for the top end of my limit - I am very nervous. I will spend lots of time tomorrow doing YouTube meditations for inner calm...

Happy November, it's a good month for not spending much 

annetheman

Hello diary - it has been almost 1 year since my last entry! Very wordy and a bit everywhere, which was basically the theme of the inside of my mind at the time

Since then, some big updates in my debt-free journey have been:

• Completed on the house (yay but big debt addition!!)
• Started renovation (!)
• Consolidated remaining CC debt
• Switched my student loan debt to direct debit repayments

I'm really pleased to say I've progressed in my debt reduction, even though I haven't prioritised it all the time. Renovating is expensive, especially so in London, and if I had spent the past year solely paying off my debt instead of renovating, it would be done by now. 

Shoulda woulda coulda, though. Positive thoughts and move forward!

£3,224.80		Car Loan
£8,524.31		Credit Cards
£5,768.55		Student Loan

Total debt as of 30 Nov 2025 = £17,517.66. Not including mortgage... For now.

Updating this has been very helpful, as now I have spent some time considering some reno sacrifices, rather than just ploughing on. I'll check in in mid 2026, after my bonus and the most expensive part of the reno so far... Or possibly next November!