Debt Free in 16 Months!

AJH95

Hi All, 

After being a silent reader for so long I've decided to make my own diary.

It all started after taking out a loan for a car (which I thought I could afford). Turns out I could afford the car payments, but trying to afford anything else resulted in my credit card getting used more than I wanted. I ended up taking out another loan to pay off the credit card, thinking that would help but it just made things worse. Go forward three years and I've changed loan companies three times and managed to build more debt on my credit card. I've just paid the final payment to the debt consolidation loan and I'm now 9 months from finishing the car loan.

I do have the credit card to pay off which I have just transferred to a 0% card rather than keep paying the interest from Natwest. I plan on paying the amount that was being used to pay the other loan towards this. 

So one loan and one credit card to pay off, totaling currently 22/7/2024 - £6647.64. (That hurt adding up) I plan on moving the payment for the car loan to the credit card when that ends in May 2025. 

We're planning on moving house when our current mortgage expires which is in January 2027. I'd rather have all these debts paid off a while before so I can just focus on saving for that. 

Hoping to change jobs to a better paying one but trying to sort that around a busy life is rather difficult.  

I have made a monthly budget after going back and seeing how much I was really spending on things. I wasn't budgeting for certain things but was always buying them. 

Lets see how we get on, today should be a spend free day as I did the weekly shop at the weekend and the car has a full tank of fuel. 

WinterWarrior

Good luck!

fatbelly

So the credit card debt is on a 0% BT deal. When does the 0% finish?

You will be able to pay more to it after May 2025.

Will you be able to clear it before the 0% period ends?

I agree that getting debt free by Jan 2027 is a good aim. A bit before that if you can. Also to avoid any negative markers on your file.

Have you given the card company a d/d to take the minimum payment? That way, even if something goes wrong, you avoid a late payment marker.

AJH95

fatbelly said:

So the credit card debt is on a 0% BT deal. When does the 0% finish?

You will be able to pay more to it after May 2025.

Will you be able to clear it before the 0% period ends?

I agree that getting debt free by Jan 2027 is a good aim. A bit before that if you can. Also to avoid any negative markers on your file.

Have you given the card company a d/d to take the minimum payment? That way, even if something goes wrong, you avoid a late payment marker.

The BT 0% ends in January 2026, I should be able to clear it before that ends, providing I stick to the current budget. I have set up the DD for the minimum payment and planning on paying more a month. 

Trying to decide if I should close the old CC or leave it open. 

fatbelly

I'd leave it open and see what deals you get offered. No need to close it at the moment

MFWannabe

I’d close the credit card as you run debt up again so it takes away that reliance and temptation 

AJH95

MFWannabe said:

I’d close the credit card as you run debt up again so it takes away that reliance and temptation 

This was my thoughts, I think I'll leave it open for the next month and then close it. 

AJH95

First NSD went well although I forgot to take my lunch to work but managed to get by with the few snacks I always have in my bag. I didn't want to take a walk to the shop to buy lunch and end up getting distracted and end up buying loads of other items. 

Should be another NSD today, remembered my lunch and packed a spare 2L bottle of squash that we had at home to bring in, saves me going up to the shop and buying single bottles of drink. 

Got my banking code through so logged into the BT card and checked the DD was set up.

Feeling productive even though these are only small things.

Lonelygambler

I’ll be following. 

I am to do 5 N/S/D in a week. It has been a challenge at times. 

Good luck 

AJH95

Lonelygambler said:

I’ll be following. 

I am to do 5 N/S/D in a week. It has been a challenge at times. 

Good luck 

Thanks! I've just read your diary and you're doing so well! Keep going! 

AJH95

Tuesday was a NSD. 

Went to collect a parcel from the post office and resisted the urge to buy any sweet treats. That is what my downfall will be. 

A family member gifted me a fashion gift card for a recent birthday - It isn't really the type of shop I would usually go into but had a little look and saw there were a few items that would work for my work wardrobe which has been drastically in need of an update for several years but I've not wanted to spend on that. Ordered those and became a member (which was free) to get free shipping so quite pleased with that. 

Today - Wednesday. 

Pay day today - Technically a week early but that's because my boss is away next week. He's old fashioned and doesn't believe in setting up automatic payments. Going to try and ignore it until next week, I have enough in my chase account for this weeks food shop and should still have enough fuel until the end of next week. 

Had to pop up the shop on my lunch to grab an ingredient for dinner tonight which I had forgotten on the weekly shop, again resisted the urge for a sweet treat. Got back to the office and my colleagues mum had popped in and left us a homemade cake so I was pleased I resisted at the shop! 

Todays spend is £1.70 which I paid with cash that I had in the car.