Balance crept up ever so slowly... Now the wake up call

Didisdebtfreejourney

Sarahwithlove said:

It's slow and steady progress so keep going it's all helping. 

Thank you for the encouragement @Sarahwithlove 😊, well done on paying off 2 of your cards! 
I like to look back at the first couple of posts sometimes to be able to remind me of what I've done so far, that's the beauty of keeping a written record of the process. 

Didisdebtfreejourney

@1stTimer Yes, I think I've repaid about £10 this month with that tax alone 😅😆. 

Didisdebtfreejourney

Hi again! So Monday was pay day for my teaching and I am still going all in towards my credit card debt although I should really but putting something towards my 2025/2026 taxes!

My reasoning is that once I'm not repaying consumer debt then the savings from the interest and what the minimum payment would have been can really help build that up back quickly. It will be my next priority, as Dave Ramsey puts it "being current with your bills" as step 0. 

Anyway, I waited until the credit card statement came out, to see the interest and all and managed to make a payment that brings down the active balance to £500 🎉🤯🥳! There is still some additional balance (around £60 I think) due to monthly installments but those are due to finish in August.

On the bright side, the minimum payment is back down to £58, so that's a whooping £50 less than it was in January!!

I feel as though I will be able to breathe a short sigh of relief soon, just in time for my income to dip - at least in theory - during the summer. Who knows...

 

Ordinary_Yet_Unique

Are you working on supply for teaching or as a freelance educator?

Didisdebtfreejourney

Ordinary_Yet_Unique said:

Are you working on supply for teaching or as a freelance educator?

Hi @Ordinary_Yet_Unique, I do both, one day supply (two from September) and one day of piano teaching a week. 

Ordinary_Yet_Unique

Thank you with your response. Have you any pension provision in place? 

Didisdebtfreejourney

Ordinary_Yet_Unique said:

Thank you with your response. Have you any pension provision in place? 

Hi again, thank you for your reply 👍. I have a little pot from a previous employer for now. I am hoping to put some money away every month for this purpose eventually as I am attempting to follow the Dave Ramsey babysteps. He recommends 15% (not sure if he means from the net or gross amount but anything is better than nothing!) once debt is paid and emergency fund is completed. 

Regarding the state pension I get via the child benefit claim in my name 16 years I think (until child is out of education) towards it.  

Thank you for making me think of this again 👍 it's really important. 

joedenise

Didisdebtfreejourney said:

Ordinary_Yet_Unique said:

Thank you with your response. Have you any pension provision in place? 

Hi again, thank you for your reply 👍. I have a little pot from a previous employer for now. I am hoping to put some money away every month for this purpose eventually as I am attempting to follow the Dave Ramsey babysteps. He recommends 15% (not sure if he means from the net or gross amount but anything is better than nothing!) once debt is paid and emergency fund is completed. 

Regarding the state pension I get via the child benefit claim in my name 16 years I think (until child is out of education) towards it.  

Thank you for making me think of this again 👍 it's really important. 

Unless things have changed it's only 14 years which could for child care years for pension purposes.

Didisdebtfreejourney

joedenise said:

Didisdebtfreejourney said:

Ordinary_Yet_Unique said:

Thank you with your response. Have you any pension provision in place? 

Hi again, thank you for your reply 👍. I have a little pot from a previous employer for now. I am hoping to put some money away every month for this purpose eventually as I am attempting to follow the Dave Ramsey babysteps. He recommends 15% (not sure if he means from the net or gross amount but anything is better than nothing!) once debt is paid and emergency fund is completed. 

Regarding the state pension I get via the child benefit claim in my name 16 years I think (until child is out of education) towards it.  

Thank you for making me think of this again 👍 it's really important. 

Unless things have changed it's only 14 years which could for child care years for pension purposes.

Brilliant thank you, that's great to know 👍. 

Didisdebtfreejourney

Well, via a mixture of budgeting, sacrifices and good luck (got some unexpected money that I was able to use towards the debt), I can declare that I am credit card debt free!!! 🎉🥳

I still owe some money to family and am gradually paying this off with my husband (he didn't know about the CC debt 😅 and I probably won't tell him either). 

And since I didn't have to pay any minimums anymore, I've been able to reach my £1000 goal for the emergency fund too!! 

And I am so glad that I put aside money for the car as MOT and repairs came to over £430! I was able to move things around in YNAB to cover it without having to go back into debt). 

So some very positive changes in the last 2 months. However, I do miss being able to put my head in the sand and not feel accountable for every single pound as the zero budgeting system requires...

Seeing the real numbers as to how much I spend in every category will be eye opening and maybe will help align my budget with my goals. On the meantime,feeling "YNAB" broke is real! 

I'll leave it there for now, but, in line with Dave Ramsey, I'll be doubling down on the family debt (no interest as per say so at least it won't grow) before aiming for a larger 3-6 month emergency fund ... Step 2 and 3 are going to take absolutely forever!