The time is now...

Lancs37 · 21 December 2022 at 11:35AM

Hi everyone,

So I've had debt for as long as I can remember, and it's always been manageable. But I'm conscious that any simple life change, such as losing my job or becoming ill, could mean I'm in trouble very quickly. I have about £1k in savings, but that wouldn't last very long if my income dropped.

So my focus going into 2023 should be on slowly reducing my debt and increasing my savings as a safety net. I've recently consolidated most of my credit card debt onto one card, which is luckily interest-free (ending at different periods for different amounts, detail below). I have larger loans for a new kitchen (also interest-free) and a personal loan with Nationwide. I also have a Personal Contract Plan on my car.

Scarily I have eight credit cards altogether, not even including store cards with Next, Very and PayPal Credit.

I am cashing out an investment I had to clear some of the credit card debt, so I will be able to pay off some balances in Jan and start on the rest throughout 2023.

Credit Card 1 - £8,025
£447 - 0% interest until 01/06/23 - the aim is to clear this in January
£752 - 0% interest until 29/09/23 - aim is to clear this by March
£735 - 0% interest until 22/08/23 - aim is to clear this by May
£6,090 - 0% interest until 19/02/24 - aim to clear this by Dec 23

Credit Card 2 - £791.31 - The interest rate is 69% - I will pay this off in full

I will use the money from cashing out my investment to pay off £1,773 across the remaining credit cards in January.

My remaining debts totalling £23.7k for loans and kitchen finance, will probably just be left to tick over this year. Similarly, PCP has £22k balance but will only be fully paid if I keep my car at the end of the term, so I will just maintain payments for now.

Mortgage debt is £177k - will just maintain regular payments in 2023.

Sorry if this is too much info, I just wanted to get it all down and hopefully motivate myself (and help to encourage others along the way) going into 2023.