A space for my thoughts - tackling debt once and for all!

Debtfree2026

Good afternoon all,

I've spent the last three weeks lurking and very much enjoying reading other people's diaries, seeing their journeys - the ups and the downs - really resonates with me.  I like the idea of this being a safe place for me to write down my journey.  

A few things have led me here - our fixed rate mortgage is due to end in July 2026 and I really want us to be in a the best financial position we can be at that time.  I have a loan and two credit cards and the APR on one credit card is a massive 27.9% meaning that making slightly over minimum' payments I'm never paying the debt off, just the interest.  I have just applied and been successful for a 0% credit card to do a balance transfer so I'm looking forward to that arriving so I can transfer that balance over.

We own a family business and I'm sick of scrimping by when we have the potential to earn more - the business is doing very well.  So we've decided to give ourselves a pay rise and this means we actually have a chance to overpay on payments and clear the debt quicker.

I'm married - my husband has one credit card which he pays in full at the end of the month.  He runs the family business and I am a manager there.  Extremely lucky to have some flexibility with working from home etc as we also have two daughters, aged 4 and 9, who seems to have caught every bug going the past few months.

I am a frivolous spender. I love to treat others.  This is an expensive time of year with both my eldest's birthday and Christmas in December.  Luckily I am pretty much sorted for both. I'm hoping that gives me the scope for overpaying some debts in December.  I ordered and paid for the turkey and veggie box in September and bulk ordered frozen Christmas bits in October so they are in the freezer - pigs in blankets, trio of greens etc.  Got my husband's present back in August, likewise a gift for my father-in law that he will love!  My side of the family do a secret Santa and I've already bought those gifts.

I have a nice life.  But nothing takes away the fact that I am in debt and our quality of life would be so much improved without this hanging over me. The worrying and sleepless nights mean I can be short tempered and something small can push me over the edge.

I have done a SOA but it needs some revision, so I'm just laying out some basic facts in the interim.

This is combined for myself and husband as we both pay into joint account:

Previous take home pay: £3,473 (this is relevant as we had a shortfall every month which meant going into credit for birthday presents etc).

Take home pay from 30th November 2024: 

£5,686.10

Monthly DD's (not including debt repayments!)

£          2,174.52

Current debts:
HSBC Loan: £15,615.86 (set repayment of £459.29 a month)
CC £7942.88 (APR 27.9%)
CC £3423.27 (APR 1.3%)
Littlewoods: £808.91

Now clearly something is going very wrong for us to be in our overdraft most months.  Hence why I am doing this now.  I think the biggest outgoings are groceries/takeaways.  Since payday I've transferred £800 into a Monzo pot for groceries/food.  I can definitely work on getting that side of things down.

I just really want to get rid of the debt and I have the means to do that if i reign in the spending. 

Let's go!

Debtfree2026

Further to my first post I have been continuing to read others diaries and take note of some great advice.  I am making great use of my Monzo account by having separate pots for certain things.  The first pot being 'Groceries' - I transferred £800 into that on the last pay day and have been using it for my online deliveries/top up shops and I've been amazed how quickly the balance is going down.  Definitely some improvements to be made to reduce this in future.

I then have pots for, holiday fund, haircuts, birthdays and Christmas.  I was feeling quite smug about my new budgeting ways I then went through my bank statements and found a few of those 'one off' payments that need a place - RHS membership, garden waste service......so I've worked out how many months I have until they are due and have allocated a pot for those from our salaries.  

January is going to be tough as it's the start of the new school term, so payment for the children's extra-curricular activities are all due at the same time! In fact, according to my spreadsheet we will be in a deficit that month but I can take it from elsewhere for that month - i.e putting £100 into holiday pot rather than £200.  The club fees won't be due again until April though so I can account for that in the budget going forward.

My 0% credit card arrived and I was eager to transfer the balances but have come across a couple of hurdles...... apparently I should have received an activation code which was sent separately and not arrived but the biggest thing is that I cut up my high interest credit card and I need the blooming card to do that transfer!  So I've had to reorder that particular card! 

Getting closer to Christmas and nearly done on that front - just need a present for mother in law and two nephews.  As per previous post, the food is essentially paid for already and I have a final food delivery booked in for 23rd December for last bits and pieces.   Going to my sister's for Boxing Day and paid for the hotel in advance so shouldn't be too spendy.  

I know this first couple of months are really a learning curve for me, to see what works - but I am feeling very determined and motivated!  My husband says I'm obsessing and I know I am, but it will totally be worth it and he knows that too.

Sarahwithlove

It will be worth obsessing over it when you become debt free and have all that extra money for other things or to overpay the mortgage etc. 

The first few months are about tweaking your budget and working out where you can cut back. I've found food shopping for me is also my downfall so I've started giving myself a weekly amount from my monthly to aim to keep it too. I also then do a top up shop of bigger items once a month or meat etc from costco every few months. It's about finding what works for you. 

Good luck! 

Debtfree2026

Sarahwithlove said:

It will be worth obsessing over it when you become debt free and have all that extra money for other things or to overpay the mortgage etc. 

The first few months are about tweaking your budget and working out where you can cut back. I've found food shopping for me is also my downfall so I've started giving myself a weekly amount from my monthly to aim to keep it too. I also then do a top up shop of bigger items once a month or meat etc from costco every few months. It's about finding what works for you. 

Good luck! 

Yes, it really will be!  Plus I'm sick of that feeling where I'm scared to look at my online banking - I won't mind so much if I know all the payments are accounted for!  That's really helpful advice re the weekly food budget, thank you!

Isn't it funny how embarking on this journey also makes so many of us want to sort things generally - I've been sorting the food cupboards and freezer this past weekend and my mind feels so much clearer already - and the debt hasn't gone down at all yet!  I think its the fact I have a plan and am doing something about it!

Debtfree2026

Today our workshop closes for Christmas and it's also an early pay day. So, last month was my first month using the pots on Monzo and actually budgeting so I am going to continue using that system.  I also used some of the money from doing surveys to go into my smaller pots, so I'm already slightly ahead for this month.  I am slightly concerned about the extra curricular fees all being due at the same time -I've already had invoices for piano and drama.  As I'm typing I've just had another one through for my youngest daughter's performing art class!

My 0% balance transfer card came through so I've moved my highest interest card onto that - the debt was £7,900 and 27.9% APR so that will make a big difference to me! I also have a Nationwide CC and I couldn't move the whole balance over but I have moved £2,163 which leaves me with a balance of £1,317.64 at an interest rate of 1.3%.  So I will prioritise getting that down and gone.

I put £800 towards groceries last pay day and although this month's pay day is a week earlier, I do have £200 left in that pot so that will go towards my last online food delivery on 23rd Dec.  Then we have everything we need to see us through to the New Year.  

It's my wedding anniversary this weekend, and my husband is taking me to London.  I have a facial and spa booked which is something I'm really looking forward to.  The kids are excited to be going to their grandparents for a night as well so should be a lovely weekend all round!  It does mean that I only have today to get caught up on washing and sorting the house - before I know it it'll be Christmas Eve and I really want things to be a bit more organised before then. Luckily I don't need to go into work today -I need to pay everyone their salaries, but I can do that from home.

Apprehensive about the month ahead but ultimately as long as everything is paid/ready to be paid I should be in a good place.  This month I was still buying gifts and all the stuff we needed for Christmas so I'm hoping January will be a bit easier in terms of not having those expenses.  Am I being naïve?!  We are doing dry January so that should help somewhat as we are big red wine drinkers!

Justcrackingonwithit

I’ve just started a diary too, and like you wanted a safe space to work through my thoughts. No one in real life knows that I have debt.  I’m not married, don’t have kids and live alone. I’m lucky that I’m mortgage free, so all of my money is going on an emergency fund and paying off the CC. 

Subscribed to your diary and will cheer you along! 

Debtfree2026

Justcrackingonwithit said:

I’ve just started a diary too, and like you wanted a safe space to work through my thoughts. No one in real life knows that I have debt.  I’m not married, don’t have kids and live alone. I’m lucky that I’m mortgage free, so all of my money is going on an emergency fund and paying off the CC. 

Subscribed to your diary and will cheer you along! 

Thank you so much!  Just saw your diary also, so will have a read and subscribe! Here's to 2025!

Lonelygambler

Good luck. I will be following your progress. 

Sarahwithlove

Good win with the balance transfer. I would suggest creating a pot for all these different groups/activities and save over the year for them so next time round the shock isn't so bad. 

Debtfree2026

Sarahwithlove said:

Good win with the balance transfer. I would suggest creating a pot for all these different groups/activities and save over the year for them so next time round the shock isn't so bad. 

Yes, that's exactly what I've done!

Had a lovely weekend in London but it was super expensive.  My husband paid for everything from his funds from selling some car parts privately but it did feel indulgent.  It was for our wedding anniversary/my birthday present from last month and I did have a really nice time.  I am very lucky that he wanted to treat me but I was thinking that we could have paid for all the extracurricular activates three times over from that money!  When I told him that he said that he didn't want me to worry about anything and that the weekend was for me to fully relax.  In the spa he kept saying 'stop thinking about stuff!' and I said 'I'm really trying but it's just before Christmas and I just have outstanding tasks going around my head!'.

He is going into work today to get some stuff done.  All of our staff are off now until January so he should be able to get on with invoicing without interruptions!  I've got a lot to sort at home - the big clean up before Father Christmas comes tomorrow night!  Presents are all wrapped though so that's a big win.  Online shopping is due between 9-10am and only four subs so that's good.  M&S pick up tonight and then farm shop/butchers tomorrow morning and we are all set.

Justcrackingonwithit

Sounds like a lovely weekend, and how nice that your OH wanted to treat you 😍 I think it’s important to have these special times to keep us going through the debt busting journey.  I’m  loathe to treat myself to anything at the moment, but I know I need to factor treats in otherwise I’ll get really down.

Have a wonderful Christmas x