Trying to get the balance right

Mrsfreshstart2023

Well it's been a couple of months since I've posted. I'm not sure why I haven't posted as I've been on the forums just as much but I feel really disheartened that I had to put my car on a credit card and it feels like such a set back. 

Prior to the car all payments just left the account and came off the debt figure each month. I think I started to think too much about it and started to split payments, paid lower amounts off cards and tried to put the rest in a saving account. 

I've tried doing that for a month or so, and I'm not sure it's for me. I don't feel as productive and it's too easy to dip into the savings account. 

I've also been talking to my OH about finances and we've worked really hard the last year or so to keep chipping away at our debts. Our mindset has changed and I have no doubt about that. I think we feel like we need to have some breathing space and some spare money to actually live and enjoy life. 

Summer holidays are an expensive time in our house so we've made the decision to keep paying £500 (min) off debt figure each month. I have tried to pay up to £700 the last couple of months and it's not sustainable and just leaves me short, this makes me feel like we don't have enough money but in reality we do. I've just got this debt free goal in my mind and I'm trying my best to achieve it but I now realise so long as I'm not paying interest on my debt and I'm not adding to it, it's going inthe right direction no matter how long it takes me. 

So my credit card balances as of the end of July stand at £12630.

🫠

Sarahwithlove

It's about getting the balance right between living and paying off the debts. If that adds another 6 months to your timeline so be it. You are more likely to stick to it if you allow yourself some breathing room in your budget. 
Maybe have a look and see if you have anything you could sell to make extra cash. 

Mrsfreshstart2023

I feel like the summer holidays have been and gone in the blink of an eye. I love the kids being off, but will be relieved to get ba k to our normal spending routine. Its been a costly 6 weeks with school uniforms/supplies and trips and activities for 4 kids. 

I listened to @Sarahwithlove and reduced my debt repayments slightly this month. It made such a difference to my wellbeing, I could buy and spend what I needed to on the kids and we've had a lovely time. It's made me think of what life will be like once the debt is gone and we have more financial freedom. 

So long as the figures are coming down and we aren't paying interest, I'm going to continue to pay £500 off the cards and try and add the other £200 in to a savings account. I don't know how do-able of comfortable we will be but will give it a go. I'm aware we have (whispers) Christmas around the corner so will need extra to spend then. 

So end of month figure stand at £12258.13. If I continue the slow and steady approach and only pay £500 off per month, it will take me 2 years to pay the remainder of the debt. That seems like such a long time 😔 but doing it this way means we can still enjoy life and that is what it's all about 🙂

Sarahwithlove

I'm glad you have found a better balance especially if it's going to be for the next two years. Maybe you can focus on finding an extra £500 at a time then you know you are bringing your debt free date forward a month each time. 

Mrsfreshstart2023

I'm a bit late posting September update, credit cards now stand at £11739.31. 

I've transferred a couple of balances that were nearing the end of the 0% interest deals and they are now transferred to a fee free 0% for 12 months deal. 

I've tweeked the direct debits of the different cards so my repayments remain at £500 across all cards. 

I can't see me paying much more than this per month with Christmas coming up. 

Hopefully will be able to head into 2025 around the 10k mark.

It's all progress.

Mrsfreshstart2023

Credit card figures as of the end of October stand at £11373.

I've been thinking about my debt free journey plan and wonder if the current way is the right way for my family

I continue to pay around £400-£500 off debt each month. This leaves us money to do things with the kids and buy things but i still think things feel tight. I have started my Christmas shopping so things will feel tighter but we never really have anything spare. I do admit, I don't count every penny, we went through a stage of being extremely careful and watching every penny but it wasn't for me. I felt like I stopped living , I know it works for some people however if this is going to be my life for the next couple of years I still want to do things as a family and enjoy our lives. 

I don't have any savings and this bothers me but realistically won't be able to save until the debt has gone.

I'm expecting credit cards will be paid around June 2026 should I keep going as I am.

I'm considering if I should perhaps change my approach. Reduce my credit card payments to just over minimum and work on building up my savings. 

The credit cards are all in 0% interest so won't cost me anymore should I choose to do this. It will take me an extra year until it is paid off.

Could anybody give their opinion and if anybody has changed their approach in the middle of their journey and pushed back their debt free date?

Thank you 😊 

joedenise

If all your CC debt is on 0% then I think I would pay just over minimum on each of them and build up at least a £1,000 emergency fund.  After that is done then I'd continue to save until the 0% CCs are due to end and pay off as much as you can.

Of course if you are able to transfer any to new 0% CCs that would also be an option.

Only you can decided what is right for you and your family but for me an EF is absolutely essential so you don't need to use a CC if for example your washing machine breaks down.

MFWannabe

joedenise said:

If all your CC debt is on 0% then I think I would pay just over minimum on each of them and build up at least a £1,000 emergency fund.  After that is done then I'd continue to save until the 0% CCs are due to end and pay off as much as you can.

Of course if you are able to transfer any to new 0% CCs that would also be an option.

Only you can decided what is right for you and your family but for me an EF is absolutely essential so you don't need to use a CC if for example your washing machine breaks down.

This ☝️ 
Totally agree
You also still need to live while paying off the debt (obviously not to the extremes that may have caused the debt in the first place) 

Mrsfreshstart2023

Happy New Year! 

Credit card figures at the end of December were £10,722.

I reduced the amount of my monthly debt repayment to around £320 from £500. I struggled with this change initially but it made sense with the additional spending for Christmas. 

On a positive note, I've been making more of an effort to save and I've managed to put away £1200. This was started off by me downloading the Plum app again. I had opened an account last year when I was saving for a holiday. I thought all direct debits had stopped but to my surprise I had been paying £100 per month since June so I had around £500 in there, which was a lovely surprise!! 

So I think for now I will continue to pay around £300 off debt each month and will keep saving. This feels like the right balance for our family. We can still reduce our debt but still go on family holidays, spend quality time together and money for any home improvements. It will means debt might take longer to get rid of but so long as I am not adding to it or paying interest, I think I can accept that.