Journey to reduce my £30k debt to Zero by 24th December 2024

Baileys_Babe

For me, whether I pay now or wait until January would depend on how much it is occupying my mind via how much interest I would gain on the money between now and the deadline.

Spendless

MakingMoves said:

Spendless said:

Hi, looked through some of your first posts and notice you've put that you have a debt to pay back to HMRC by end of Jan. Just curiosity but am wondering if this is an overpayment of Child benefit - only cos your net salary amount suggests that you might be in the income bracket where you have to pay some back (the position we were in). If it is if you submit your tax return before 31st December you can just pay back the surplus via your wages going through your tax code (assuming you're PAYE) if you leave it  after this date upto the deadline of Jan 31st then you pay it back it one chunk - and ask me how I know this! 

Might not be relevant but just thought I'd mention it. 

Hi Spendless, I hope you are well 

Yes it is for an overpayment of child benefit.. I didn't even know that was an option to pay it back through my payslip. I missed the boat on this one but I will keep this in mind for this years self assessment...I'm sorry I have to ask- how did you know?

 Thank you that's going to be really handy next year. I'm not sure whether I will need to pay it next year, it all depends on whether or not I receive a bonus. Usually my pension deductions keep me under the maximum threshold...but my 2022 bonus pushed me over (not that I'm complaining) I guess time will tell. 

I should have this debt cleared by the end of the month, I'm still deciding whether to keep the saved funds in a saving account and pay on the deadline Jan24 or to just pay it now and get it out of the way. what do you think?

Happy Friday, hope you are having a great one and you have a wonderful weekend!

MM x

 

Lol, it's on my own DF Diary!

Background - From the time the changes were made to CB in 2013 Mr S had to submit a SA form because he has a company car (plus benefits like petrol) which are taken into account , so it wasn't as easy as just saying his wages were £x  which were under £50K at the time then you were adding on the benefits in and I wasn't working or working enough and wanted the NI credit still. I wasn't aware that you could have the credit without the money plus we'd only be a little over so not all to pay back and each year he'd do his SA late December, frequently NYE with only hours till the deadline! Then the adjustment would go through his tax code what we owed back. However Mr S used to insist that he had until Jan 31st to submit not Dec 31st like I said, so a couple of years ago when I'd taken my eye off the ball he did it in Jan. Weeks later he tells me he's had a bill from HMRC of several hundred of pounds that needed paying back and had had to raid our savings to do so. Since we were (and still are) on our debt free journey - I wasn't impressed by this and didn't understand why till we looked into it more and discovered this is what happens if you submit in Jan rather than by December.

Do you get interest on the savings account and will it be applied by Jan 24? If you do I would leave it and use the interest for either yourself or to reduce debt further (assuming you won't be tempted to dip into it) if you don't then pay now. 

MakingMoves

Hi Baileys_ Babe & Spendless

I hope you are both well! sorry I thought I had replied already but perhaps I got distracted and didn't save/post it...I honestly don't know what happened there. :9 

@spendless forgive me, I was being a lazy pants and really should have checked your diary. Thank you for filling me in. I will pop over and have a read   Oh wow!! I'm sorry to hear that happened, what an awful shock....Thank God you had savings, its not nice to have to pay it all in one go but such a blessing you had it!- silver linings at least! Thank you I will keep this in mind in future .

Thank you both for the great advice, It's not bothering me at the moment so I think I will follow your advise and put it in my savings, its instant access and has 4% interest (better than nothing). I'll be able to pay it over in Jan'24 no problem as it wont be locked in. Thank you guys, love that and the interest can be used to chip a bit off the other debts.

From my side not much to update: working, new routine and a strange insomnia has found its way into my life, hence my updating at stupid o'clock I haven't had any spare money to make additional payments and I'm down to my last £50 in my account. I have a week left until payday so this week will be a no/very low spend week. I've  made 2 ebay sales totalling £12.50 cash buyers and they are due to collect tomorrow so hopefully that will add to the pot. I think next month I will need to budget a little better and hustle a bit harder. I also need to increase my buffer- £50 isn't a comfy number for me, I will up it to £100- I might sleep better then! I know I have my emergency fund but I don't want to use it should I become overdrawn. Hopefully it wont come to that- I can do 6days no spends.

Ok I'm off to try and get some sleep, I wish you a wonderful day today

MM x

Baileys_Babe

Gaining some interest on your tax money and using it to pay towards the debt seems great, just make sure you do not spend the tax money in the mean time.

Increasing your buffer is vital if the current buffer is causing you stress. Even if it takes you a while to get to a level you are happier with.

Have you worked how many meals you can make with the food you have in or with minimum spends? Are there any other spending you need to do before payday?

Good luck @MakingMoves I'll be cheering  you on

remote_control

I hope you get your sleep sorted soon. 

Well done on the eBay sales! Hope they collect and pay. I've got a fair bit listed but not selling much. I've had it as auction for about 3 weeks and just moved everything to buy it now and something sold instantly. Got a few more bits to list and will do that when there is an offer on fees. 

Keep going 

Spendless

MakingMoves said:

Hi Baileys_ Babe & Spendless

I hope you are both well! sorry I thought I had replied already but perhaps I got distracted and didn't save/post it...I honestly don't know what happened there. :9 

@spendless forgive me, I was being a lazy pants and really should have checked your diary. Thank you for filling me in. I will pop over and have a read   Oh wow!! I'm sorry to hear that happened, what an awful shock....Thank God you had savings, its not nice to have to pay it all in one go but such a blessing you had it!- silver linings at least! Thank you I will keep this in mind in future .

Thank you both for the great advice, It's not bothering me at the moment so I think I will follow your advise and put it in my savings, its instant access and has 4% interest (better than nothing). I'll be able to pay it over in Jan'24 no problem as it wont be locked in. Thank you guys, love that and the interest can be used to chip a bit off the other debts.

From my side not much to update: working, new routine and a strange insomnia has found its way into my life, hence my updating at stupid o'clock I haven't had any spare money to make additional payments and I'm down to my last £50 in my account. I have a week left until payday so this week will be a no/very low spend week. I've  made 2 ebay sales totalling £12.50 cash buyers and they are due to collect tomorrow so hopefully that will add to the pot. I think next month I will need to budget a little better and hustle a bit harder. I also need to increase my buffer- £50 isn't a comfy number for me, I will up it to £100- I might sleep better then! I know I have my emergency fund but I don't want to use it should I become overdrawn. Hopefully it wont come to that- I can do 6days no spends.

Ok I'm off to try and get some sleep, I wish you a wonderful day today

MM x

Well it'd be lovely to see you on mine but since you have a toddler daughter, I think I should make you aware that reading about mine  you'll start to have empathy with why the Witch that stole Rapunzel decided the best thing to do  was to keep her in a tall tower  in case of who she might meet otherwise! 

MakingMoves

Good Afternoon All,

I hope you are all well...

@Baileys_Babe Hiya hun, thank you, you are right I am upping my buffer this month I think its the smart thing to do and ill be a little less stressed, too many little surprises popping up. I had frozen and cupboard goods but I did need to restock on perishables- fruit, milk bread, eggs and lunch bits for DD. I ended the month with £36.62 so very happy for that.

@remote_control Hi!! Happy to report ebay sales were picked up and paid for, which was nice, restored my faith on the site lol! Massive congrats on the sale, the other bits will go too I'm sure. I will add buy now options to my lists hopefully that will make some more sales. Thank you, I'm wishing you luck on selling those other bits

@Spendless Helloooo!! Aww I will be over I love the Rapunzel's of this world lol!

So today I have been paid!! yay!! First thing I did was pay the final £740 to complete the tax payment (this has been sent to savings) and £356.57 to debt 5...oh and £200.17 to Loan... These I can send straight away without (erc on loan) The rest of the debt payments are on direct debit and will be taken later, total payments when all taken for the month will be £1680.

Its been a interesting week, I've tried not to spend as best I could unless essential and had the joy of no internet Thursday- Saturday...long enough to be annoying but not long enough to get any compensation form my broadband supplier...typical lol! On the plus side It did encourage me to spend more quality tie with DD reading and playing which was lovely and I sorted out the hoarding cupboard. I have got rid of lots of junk and found some more bits to list on ebay which is awesome....every cloud has a silver lining.  

Here's my budget for Sept/Oct:

Income
	Salary		£3,157.91
	Money left over from Aug		£     36.62	Remaining from last month
	Income:		£3,194.53
Spend/Budget
Debt Payents	Credit Card 1		-£   312.01	Min Payment
	Credit Card 2		-£     71.25	Min Payment
	Loan		-£   200.17	Min Payment
	Debt 5		-£   356.57
	Debt 4		-£   740.00	Completes Tax debt- sent to savings
	Internet		-£     27.51
	My Mob		-£       7.95
	Mums Mob		-£       4.95
	Council Tax		-£     92.00
	Rent		-£   725.00
	Car Tax		-£     15.75
	Life Insurance		-£     52.36
	Electric		-£   100.00	estimation from Last month bill
	Amazon Kids		-£       3.99
	Baby Stuff		£     20.00	spend for days out with bubs £5pw
	Charity Giving		-£       5.00
	Petrol		-£   100.00
	Food		-£   180.00
	Gifts/Birthdays		-£     40.00	Birthdays upcoming
	Beauty		-£     40.00	(contact lenses, medication etc)
	miscellaneous		-£   100.00	for Buffer/ unforeseen costs
	socialising/personal spends		-£     20.00
	mum birthday		-£     20.00
	Expenses		-£3,194.51
	Balance Remaining		£       0.02

With my buffer, if I don't spend this I will be moving to a Xmas pot I need to put something aside for that, its coming up soon (90days eek!) Ok I best crack on I hope you all have amazing Tuesdays!!  be back soon

MM x

Sarahwithlove

Sounds like you had a productive few days without Internet. Maybe choose one day a week which is no Internet so you spend quality time together and get odd jobs done. It's something I may look into actually.

MakingMoves

Hi All,

Its been a year since I first started this diary and yes I fell off Whilst I didn't add much to my debt, I didn't clear it at the rate that I should have. I lost my way, but now have found it again..at least I hope I have.

I haven't been up to much and my circumstances are pretty much the same. The only terrifying thing that happened recently, was that the company I work for underwent a restructure. I am extremely lucky in that I wasn't made redundant but having watched my colleagues/friends go through this. It has woken me up to the dire situation I am in and the need to pay down my debt ASAP and have a emergency fund.

This morning I was paid and so paid £1,000 to CC1, £270 to my loan and £290 to CC3. Bringing my total debt to £21,270.85   Its ALOT and whilst I now may not be able to clear this in its entirety before December 24. I am going to do everything in my power to take out as much as I possibly can. My biggest fear is that a 2nd redundancy wave comes and I am still carrying this huge debt ...It's keeping me awake at night and turning me grey!

I will be back later and update my budget for this month tonight once I've put bubs to bed. 

MM x

Humdinger1

Well done @MakingMoves for coming back.  It can take a few lightbulb moments before it sticks but I think you're at that point. You can totally do this.  Onwards and upwards love Humdinger x