Small Business, Big Debts

RedLipstick

Look at you, one more debt gone. Well done! 👏👏👏

OldTimer2023

It's monthly update time again!

	LBM Oct-23	Mar-26	Repaid	Repaid %
Loan (MBNA)	£12,263.16	£0.00	£12,263.16	100%
Bank CC	£971.95	£0.00	£971.95	100%
CC1 (Bcard)	£0.00	£0.00	£0.00
CC2.1 (Halifax)	£7,375.50	£6,036.77	£1,338.73	18%
CC2.2 (Halifax)	£1,470.00	£0.00	£1,470.00	100%
CC3.1 (Virgin)	£12,388.88	£7,948.64	£4,440.24	36%
Bounceback Loan	£48,315.97	£31,130.95	£17,185.02	36%
TOTAL	£82,785.46	£45,116.36	£37,669.10	46%
Challenge Total	£34,469.49	£13,985.41	£20,484.08	59%
Emergency Fund	£1,000.00	£1,011.24	£11.24	1%
Credit Score	582	620	38	"Good"

As hinted at in my last post, there's not much to report on this month. Just a standard month of regular payments, as I had to cover some additional rent etc, but it's always great to get through these bumps in the road without tapping into my Emergency Fund or taking on any new debt - so that's a small win for me!

Things will be a bit tight again this month, but I have been able to increase my snowball since paying off the previous Credit Card, meaning the balances will start to come down a bit faster now.

It is now looking very unlikely that I will be able to clear my Halifax balance before the 0% expires at the end of August, which is a bit of a shame, but I'm still on track to have my Challenge Debts paid-off by January 2027, which is the bigger, more important goal, and the one I need to stay laser-focused on.

I'm definitely still feeling that positive 'over the hill' energy since getting above 50% re-paid on my Challenge Debts following the last few months of extra payments, so let's hope that continues as we get into Q2. In a few months time I should also clear 50% repaid on the Total Debt, and then by this time next year the Challenge Debts will all be gone. Just typing those words puts the biggest smile on my face, I cannot wait!!!

Take care all,
Old Timer

Humdinger1

Well done @oldtimer2023! Keeping going through a long process is a huge achievement. Are you perhaps planning to pay off the debt that starts charging interest more quickly, or see if you can move it to a 0% card? Onwards and upwards Humdinger

OldTimer2023

Thanks Humdinger! My plan is to get the Virgin balance transferred to another 0% when it expires in May and then add whatever is left of the Halifax balance on there too in August. Once I have consolidated everything down to that one, last, final Credit Card I can then smash the absolute living daylights out of it until it is fully re-paid in early 2027 😀

Humdinger1

You have a fantastic plan @OldTimer2023! All the debt will be gone next year. I finished paying off £140k of debt a decade ago and still use the techniques I learned now and sm grateful for them. I have an emergency fund and no debt. Your determination shines through Humdinger

OldTimer2023

Another month done!

	LBM Oct-23	Apr-26	Repaid	Repaid %
Loan (MBNA)	£12,263.16	£0.00	£12,263.16	100%
Bank CC	£971.95	£0.00	£971.95	100%
CC1 (Bcard)	£0.00	£0.00	£0.00
CC2.1 (Halifax)	£7,375.50	£5,736.77	£1,638.73	22%
CC2.2 (Halifax)	£1,470.00	£0.00	£1,470.00	100%
CC3.1 (Virgin)	£12,388.88	£7,848.64	£4,540.24	37%
Bounceback Loan	£48,315.97	£30,540.71	£17,775.26	37%
TOTAL	£82,785.46	£44,126.12	£38,659.34	47%
Challenge Total	£34,469.49	£13,585.41	£20,884.08	61%
Emergency Fund	£1,000.00	£1,014.31	£14.31	1%
Credit Score	582	630	48	"Excellent"

I upped my Debt Snowball payment this month, meaning my Halifax balance is now ticking-down a bit faster, and the Bounceback Loan is getting oh-so-close to <£30k. I don't count the Bounceback Loan as part of my 'Challenge Total', as it is a business debt, not a personal debt, but it's still nice to see it ticking down.

I'm not planning to make any overpayments this month, but I am going to set aside the money for a new phone into my Emergency Fund, as I know that my current phone only has a few months left in it, after nearly 5 years of faithful service. Having the money set aside should take the sting out of that moment when it inevitably arrives, though hopefully it will plod-on for a bit longer!

My Credit Score finally went back up to 'Excellent' this month! As I have said on here a few times before, this isn't really a big motivator for me, as the last thing I want is to take on any new credit, but it's nice to have some external validation that my finances are moving in the right direction. I have a Balance Transfer to do next month, so that might see the score drop again, temporarily, but the general trend is up - which is great!

Ok, on that note, there is not much else to report finance-wise, so I will wish you all well and go catch up on other diaries.

Take care all!
Old Timer

dawnybabes

when we need new phones we now go to CEX and buy preloved as they come with a 5 yr guarantee

you’re doing great !