Got to get started Chipping away at it.

Lonelygambler

Hey, you are doing well. Keep going. 

Jay19903562

So ive had a few decent months in my new job , another payrise of £3k and also plenty of overtime so ive been paying quite a bit off my different cards . Just updated my spreadsheet with all my credit card balances .

12th April 24

Credit card balances - £10,878.61

Other Debts(loan paypal etc) - £12,460.72

Total £23,339.33

Today

Credit car balances - £7,356.46

Other Debts(loan paypal etc)- £10,519.44

Total £17,875.90

So in total ive taken just shy of £5500 off my total debt . Zeroed the balance on 3 different cards/accounts . Got one more that should be zero when I get paid next month on the basis of overtime ive done towards next payday already . All in all feeling pretty chuffed with the progress . Hoping to be below £15,000 total by the end of the year .

I know its best to prioritise paying off debts but I have also upped my additional voluntary contribution to my pension scheme as well , mainly because im in the higher rate tax bracket now and want to try and reduce my higher rate tax or even get below the threshold by year end .

Chocolatefund

Well done. You are smashing it. 

I'm in a similar boat, got a pay rise coming which will push me into the higher tax bracket. I dont think I'll purchase added pension till next year, as I want to get the debt cleared first. Its actually not that much over either to make much difference.

However, any extra shifts I pick up will push me way over.  Since the extra shifts are a different payroll, I may just ask if I can be higher taxed on that, to reduce the risk of them messing around with my tax code to claw it back. (It's happened to me before)

Last thing we want is a nice tax bill from HMRC. 

Sarahwithlove

Well done on the debt busting. The payrise has definitely helped alot along with overtime. 

Jay19903562

Chocolatefund said:

Well done. You are smashing it. 

I'm in a similar boat, got a pay rise coming which will push me into the higher tax bracket. I dont think I'll purchase added pension till next year, as I want to get the debt cleared first. Its actually not that much over either to make much difference.

However, any extra shifts I pick up will push me way over.  Since the extra shifts are a different payroll, I may just ask if I can be higher taxed on that, to reduce the risk of them messing around with my tax code to claw it back. (It's happened to me before)

Last thing we want is a nice tax bill from HMRC. 

Thanks , this payrise and the associated higher earning potential in my new job has massively helped . TBH before I got this job I was in a bit of a pit of despair thinking it would take me 10 years or more to clear all the debt . Now I reckon 2 years , maybe 3 and I will be free to enjoy my higher wage fully.

The reason I wanted to start paying my additional pension contributions is because my scheme doesn't automatically build up a lump sum , if I want a lump sum I have to trade some of my annual pension or fund it myself through additional contributions  And I thought with getting quite a sizable payrise this year I might as well start paying them as i got the payrise so I never really had that money in the first place . 

I do actually have a second income of around £6k as well which at the start of the year was still getting taxed at BR which means my tax code for the main employment has been adjusted to lower my personal allowance which should hopefully mean by the end of the tax year I dont owe anything . Not ideal but next year should get a full personal allowance .

This afternoon i was also looking into my chances of getting a balance transfer card and ive managed to get a card with 0% £4k limit for 14 months so im going to transfer balance onto that .  That should leave me with only 2 cards then . By the end of the year I should only then have balance on the BT card which gives me the chance to absolutely hammer it for 10 months and see where I am  .

Going to be due another smaller payrise later in the year which should come with some backpay back to janurary, if that comes through I should be well below my £15k target .

Aimingforthegoodlife

Great work on the organisation of funds with the increase! You are doing amazingly well!

Sarahwithlove

Good news about the card that should help 

Jay19903562

Thanks again all ,

I have been trying to take advantage of it currently being summer so there being plenty of additional shifts on offer at work , I know outside of summer the potential for extra shifts is massively reduced . And they have recruited to fill a few vacancies so once those people get started and are trained up it will also reduce my potential .

Sarahwithlove

Then yes definitely take advantage of the extra shifts whilst you can 

Jay19903562

Bit of an Update

12th April 24

Credit card balances - £10,878.61

Other Debts(loan paypal etc) - £12,460.72

Total £23,339.33

18th August

Credit card balances - £7,356.46

Other Debts(loan paypal etc)- £10,519.44

Total £17,875.90

Today

Credit card balances - £5997.84

Other Debts)-  £8970.41

Total £14968.25

Achieved a goal I set which was to have my total debt below £15k by the end of the year

As well as a reduction in the overall balance , and hopefully being below £5k on my credit cards before the end of the year , things are a lot tidier . When I started this I had balance spread out accross about 10 different lenders . Now I have got 5 , and one of them is a credit card that will be paid off by the end of the year if I meet my £5k target . Some of it has been done in an inefficient way , for example paying off small balance at lower interest . But the feeling of accomplishment when paying off a balance does give a boost as well and at least help feel like I am going somewhere . Most of my credit card balance now (Around £5400) of it is spready over 2 interest free cards . One until Next November and one until April 26 . Hopefully both be paid off long before then .

Ive still been picking up the odd extra shift at work , ill have 3 extra shift in next months pay packet . The banger that I swapped my car in for passed its MOT just needing a new tyre which I had a bit of money left over from the sale of the old car for and so far has been saving me about £50 a month on fuel as well .