Small Business, Big Debts

OldTimer2023

Hey all, it's update time again!

	LBM Oct23	Sep-24	Repaid	Repaid %
Bank Loan	£12,263.16	£9,669.03	£2,594.13	21%
Bank CC	£971.95	£0.00	£971.95	100%
CC1 (Bcard)	£0.00	£0.00	£0.00
CC2.1 (Virgin)	£7,375.50	£8,609.82	-£1,234.32	-17%
CC2.2 (Haifax)	£1,470.00	£0.00	£1,470.00	100%
CC3.1 (MBNA)	£12,388.88	£11,114.81	£1,274.07	10%
Bounceback Loan	£48,315.97	£41,573.63	£6,742.34	14%
TOTAL	£82,785.46	£70,967.29	£11,818.17	14%
Challenge Total	£34,469.49	£29,393.66	£5,075.83	15%
Emergency Fund	£1,000.00	£0.00	£0.00	0%

Finally got my Bank CC paid off this month, and it feels sooo good to strikethrough another balance   I closed the account too, so hopefully that will help when it comes to rehabilitating my credit score (which has crept back up to 'Good' again).

Sadly my remaining balances are all quite high, so it might be a while before I can strike another one off, but that's all part of the game I guess...

Still no movement on selling my item, but I always knew it would be a slow mover, and I'm not desperate for the cash, so all good, no panic lol.

Thinking ahead, I'm expecting to receive a bonus at the end of the year, so I'm planning to put £1k straight into my Emergency Fund and then £1k to pay-off the extra that I put on my card this summer.

That should leave me about ~25% paid-off by the end of the year, and having that £1k tucked away will do me the world of good mentally.

Based on my latest updates, my debt-free day is looking likely to be around August 2026.  Obviously this is later than my original target (end 2025), and it will likely slip further again (!!!!!! happens et al), but I'm so happy to be on the right track with all of this stuff - and I can feel that my mental attitude towards money is so much healthier than it was when I first started this journey back in October last year.

So, on that positive note, I'll head off to go catch up on everyone elses diaries!

Have a great day all,
Old Timer

in_need_of_direction

You’re doing brilliantly and if pushing your debt free date back makes for an easier life, go for it

OldTimer2023

in_need_of_direction said:

You’re doing brilliantly and if pushing your debt free date back makes for an easier life, go for it

Thank you so much for your kind words!  Yeh I think these things are all about balance, and knowing when and where to relax spending vs. when and where to rein it in.  Reading your DFD about feeling guilty when spending on yourself, and I can certainly empathise with that too...

I've been doing some reflection recently and realised that I'm really quite 'leaky' in the £20-75 range.  Anything over that feels excessive, and makes me think twice, but there's something about that lower range, alongside me saying "go on, give yourself a little treat" which I think is hurting me a bit in the long-run.

This is important because it's going to be really hard for me to increase my income over the next 1-2 years, which means that 'spending' is the only real lever that I have on my debt free date.

Anyway, long response to a short comment, but thank you so much once again

Aimingforthegoodlife

Honestly it is recognising these little habits and 'rules' we have that can be a game changer with money! I am terrible for a quick pop to the shop, a fiver here and there, and it soon adds up! Knowing this does mean I am more mindful- most of the time Keep playing with the budget and plans, I know people on here do smash there goals, but I need a balance, just paying down debt would definitely drive me to a spend off! Keep up the great work!

twiggy86

I have found that listed ALL spends in my spreadsheet has helped stop the leaks. So I have both a personal budget and grocery budget (as well as various other pots) and so the money is accounted for, however actually listing all these amounts really makes me think before spending! Also, do you track your no-spend days? Again another tool I've found that makes me consider all spends! Is it worth "losing a NSD" for a bottle of drink?! Silly but it works for me! 

OldTimer2023

It's that time of the month again, folks!

Before I start though, just a quick note to say THANK YOU to everyone who commented and gave advice on my last postings.  It means the absolute world to have some support in this challenge.  So, once again, thank you!!!

	LBM Oct23	Oct-24	Repaid	Repaid %
Bank Loan	£12,263.16	£9,433.20	£2,829.96	23%
Bank CC	£971.95	£0.00	£971.95	100%
CC1 (Bcard)	£0.00	£0.00	£0.00
CC2.1 (Virgin)	£7,375.50	£8,509.82	-£1,134.32	-15%
CC2.2 (Haifax)	£1,470.00	£0.00	£1,470.00	100%
CC3.1 (MBNA)	£12,388.88	£10,814.81	£1,574.07	13%
Bounceback Loan	£48,315.97	£41,002.72	£7,313.25	15%
TOTAL	£82,785.46	£69,760.55	£13,024.91	16%
Challenge Total	£34,469.49	£28,757.83	£5,711.66	17%
Emergency Fund	£1,000.00	£0.00	£0.00	0%

No overpayments etc this month, just chipping away as per usual...

... and I've just realised that it has been one year since my LBM!!!

Wow, how time flies!  I can remember exactly how low I felt when I sat down to write that first post, but then I also remember how motivated I felt after finishing it and clicking 'post'.  Since then, yehhh, I'm a little bit behind where I thought I would be (life happens eh?) but to know that I have paid £13k (16%) off my Total Debts and nearly £6k off my Challenge Debts is actually a pretty good feeling!!!

I mean, of course, it also makes me feel a little bit sick at the same time, and has me dreaming about all the things I could have done with that money instead, BUT, reality check, it's not as if these debts were 'done' to me.  I put myself in this situation (again), so it's up to me to get myself out of it (again).

Also, reflecting on the last 12 months progress, I've managed to take some pretty big chunks out of my debts AND I've had some really nice trips/staycations, kept up with my gym goals and hobbies/passions, maintained my closest personal relationships - and I've worked really hard on the business too, which is now starting to pay dividends (though sadly only the metaphorical kind, for now lol).

So, all in all, I'm feeling really proud of myself!!!

My only goal for the remainder of 2024 is to keep on track with my regular payments until my Bonus comes in at the end of the year, then £1k is going straight into my Emergency Fund and £1k straight off the new debt that I took on over my summer break.  That should take me to about 20% paid-off by the end of the year, and I'll be (very) happy with that.

Onwards and upwards everyone.

Wishing you all a great day!

Take care,
Old Timer

Lonelygambler

Keep up the good work. 

LG

OldTimer2023

Monthly check-in time, folks!

	LBM Oct23	Nov-24	Repaid	Repaid %
Bank Loan	£12,263.16	£9,197.37	£3,065.79	25%
Bank CC	£971.95	£0.00	£971.95	100%
CC1 (Bcard)	£0.00	£0.00	£0.00
CC2.1 (Virgin)	£7,375.50	£8,409.82	-£1,034.32	-14%
CC2.2 (Haifax)	£1,470.00	£0.00	£1,470.00	100%
CC3.1 (MBNA)	£12,388.88	£10,514.81	£1,874.07	15%
Bounceback Loan	£48,315.97	£40,433.44	£7,882.53	16%
TOTAL	£82,785.46	£68,555.44	£14,230.02	17%
Challenge Total	£34,469.49	£28,122.00	£6,347.49	18%
Emergency Fund	£1,000.00	£0.00	£0.00	0%

Another kinda boring month, just sticking to the regular repayments, but I've made some good progress mentally this month.  I've really limited my excess spending (those cheeky £25-50 'treat' items), so feeling proud of myself for being a bit more frugal and giving myself a bit more runway for next month.

Speaking of which, I really don't want to use the 'C' word when we are not even halfway through November, but I'm planning to have a word with my family about Christmas soon, to suggest that we keep things simple this year.  I don't want to be a scrooge but, equally, I don't want us all to waste money that none of us really have on things that we don't really want/need...

I closed my Bank CC after clearing the remaining balance in September, and was hoping that it would give my Credit Rating a bit of a boost, but there was no movement on the last report.  My score stayed exactly the same, hovering in the middle of the 'Good' range, which I guess is better than it going down.  Hopefully by this time next year I will have consolidated down to just 1 x Loan and 1 x Balance Transfer Card, which might see me creep back into 'Excellent' for the first time in a while - but that's not my main goal here, just a bit of a 'cherry on top'.

Other than that, I'm waiting for that last December payday to hit so that I can get the overpayment and Emergency Fund transfer made, to end the year on-track at 25% paid off.  That's the big goal for 2024!

Ok that's me, I'm off to check-in on other diaries now.

This can be a tough time of year financially, so even more important that we are all here for each other.

Take care all,
Old Timer

OldTimer2023

Wow, I can't believe it's time for the final update of 2024!!!

	LBM Oct23	Dec-24	Repaid	Repaid %
Bank Loan	£12,263.16	£8,961.54	£3,301.62	27%
Bank CC	£971.95	£0.00	£971.95	100%
CC1 (Bcard)	£0.00	£0.00	£0.00
CC2.1 (Virgin)	£7,375.50	£8,309.82	-£934.32	-13%
CC2.2 (Haifax)	£1,470.00	£0.00	£1,470.00	100%
CC3.1 (MBNA)	£12,388.88	£10,214.81	£2,174.07	18%
Bounceback Loan	£48,315.97	£39,860.09	£8,455.88	18%
TOTAL	£82,785.46	£67,346.26	£15,439.20	19%
Challenge Total	£34,469.49	£27,486.17	£6,983.32	20%
Emergency Fund	£1,000.00	£0.00	£0.00	0%

I guess there is technically still one more payday before the end of the year, but I'll include those updates in next month's post.

I'm actually feeling really positive about the progress on my debt repayment journey in 2024, and I'm feeling optimistic about 2025.

2024 has absolutely flown by, so if 2025 does the same then in no time at all I will be in touching distance of having all of my Challenge Debt paid off - and that feels soooo good.

I've set a pretty solid but also very realistic Budget for 2025, and having £1k in my Emergency Fund (after December's payday) should be a game changer.

I feel like I talk about 'balance' on here a lot, and that's probably the best word I can use to describe my 2024 debt performance.  I've made great progress in reducing the balances, but I've also had a really good year in general, and I've found ways to sneak in a bit of joy without breaking the bank, in a way that is mindful of my financial situation (i.e. without adding any more debt) but that nobody else seems to have noticed.

The one exception to this being my Summer Trip back to the UK, which was quite a lot more expensive than planned, but the memories will last forever, and I'm not planning to go back next summer, so that's money I can allocate to overpayments instead.

I've also made really good progress in my leaky £20-75 splurge range, and feel like I've mentally nipped that habit in the bud.

For 2025, my aim is to throw everything at my Virgin Balance to get it as low as possible before the 0% expires in June 2025.  My MBNA 0% also expires in July 2025 so the plan is to consolidate both of these balances on to one 0% Card and then switch my attention to the Bank Loan, which will be the lowest balance AND happens to be the highest APR.  My snowball is building quite a bit of momentum now, and I'm really happy that I chose to use this repayment strategy.  I feel that it gives me more focus and determination, to the extent where the repayments almost feel as good as a splurge would (I said 'almost' haha).

My debt free date is currently estimated to be May 2026, so a little bit behind my goal, but I'm still (very) happy with that.

All in all, a pretty positive post to end the year on!

Wishing everyone a very Merry Christmas, and a debt-busting New Year.

Take care all,
Old Timer

OldTimer2023

Happy New Year all!!!

I hope everyone managed to survive the hectic holiday season, and had some time to relax and recharge over the break.

I'm coming on with a quick update to report that my bonus cleared at the end of December, and I have already paid £1k into my Emergency Fund and cleared the £1k of new debt from my Summer Trip in 2024.

It feels soooo good to have that £1k tucked away, and I already feel a lot less dread at the thought of something breaking or needing to be replaced in 2025 (my 3.5yr old phone is definitely starting to creak a bit).

I also spoke with my family before Christmas, and we agreed that I'm going to put the money I would ordinarily use for the adult's presents into my "Flight Home Fund" to cover a trip back to the UK next Christmas, which will be a great help, and a much better use of money than the usual 'bottle of wine shuffle' that we all play at Christmas/Birthday time.  I'm keeping an eye on the dates so that I can hopefully get a cheaper ticket booked as soon as the dates are released (hopefully next month).

So, all in all, a great start to 2025!  So far, so good

Take care everyone,
Old Timer