Hopefully debt free before Mortgage renewal in June 2026

Tezzadp

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VAP_Driver

Ships cross oceans one wave at a time. It’s good to see those numbers keep on coming down. And payday is just around the corner.

Tezzadp

No money spent today
No direct debits today

Daily debt payment

Hastings loan daily payment : £1.61 (Total paid so far this month* £131.89 (inc monthly DD of £89.02, of which £27.18 is interest)) - leaving a final payment of £20.06 in Jan 2028 (36 monthly payments) = Balance outstanding now £2568.26

I have been in touch with Hastings about the outstanding balance discrepancy on my loan. I had a slightly smaller outstanding amount than they were showing on their website. I made the mistake of deducting the full £89.02 monthly payment from the outstanding balance. But this monthly payment includes interest payment on the loan, so therefore that amount will not come off the amount owed.

I have corrected the figures above to reflect the true amount still owed.

*This month refers to 31st Jan and will run until 27th Feb (the day before pay day)

Tezzadp

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Tezzadp

So its my spreadsheet month end today, as its my payday tomorrow (last banking day of the month), so i will attempt to do a summary of my month as simply as i can. 

I started the month with a net salary of £1738.72 and i have managed to be left with a very healthy £378.23  in my bank account after all bills and other debt payments have been made. This is more than average for a variety of reasons, a shorter month, no council tax payment this month (or next month) as i pay over 10 months not 12, my CSA payment this month isnt included as this comes out on 28th of the month, which as its February is the last day of the month (which is in my March accounting month), no major nasty surprises (apart from my Speeding fine  ) and a very strict budget, where i spent little to virtually no money on anything i didnt actually NEED. 

So, i have just this minute used the £378.23 to pay a lump sum of £300.00 off my Hastings Loan (as its the only debt that charges me interest 12.02%) bringing the balance owed now down to £2268.26 leaving a final payment now of £51.63 in August 2027 (30 monthly payments) which has knocked a MASSIVE 6 MONTHS  of payments off the length of the loan that i now no longer have to pay, and has saved me a fair bit of interest that i no longer have to pay. 

I have left £78.23 in my bank account as a slight buffer as next month is a 5 week (Friday) month, which means i will have 5 payments of my Virgin CC weekly payment and 5 standing orders into my emergency bank account, instead of 4 that i had this month, and also 2 lots of CSA payments will also be in the same accounting month of March as this months CSA payment is also included in next months accounting month, so having a little extra to start the month with just gives me a bit more to make sure i can cover these with a bit of comfort. I also won't have as much left over at the end of the month to make a lump sum payment with either next month, for the above reasons. 

So a summary of my debts : 
......................................................................................................................................................
Debt balances when i started posting on this forum on 6th Jan  

Hastings Loan  £2962.60
Virgin CC £1230.00
Tesco CC  £2273.00

Total £6465.60
......................................................................................................................................................
Debt balances at the start of this month (Feb)

Hastings Loan £2672.97
Virgin CC £1127.00
Tesco CC £2218.00

Total £6017.97

A summary of payments this month :  

Hastings loan £431.89 (£27.18 is interest) 
Virgin CC £143.00
Tesco CC £55.00

Total £629.89 (£602.71 after interest)     Well happy with this   

My new current outstanding balances : 

Hastings Loan £2268.26 
Virgin CC £984.00
Tesco CC £2163.00

Total £5415.26  

     Reduced by £1050.34 since 3rd Jan     

Savings/Emergency account payments this month :
 
Previous balance £324.50
This months payments +£160.00
Withdrawal of -£100.00 (this was used to pay my speeding fine  )
End balance  £384.50

So looking at the above figures i can say that im not doing too bad in comparison to how much i earn if i do say so myself. I know i wont be able to pay as much off every month of the year, but while i can im going to pay as much as i can to drive that outstanding total down as much as possible. I think i should be able to pay all of my debts off by the time my mortgage renewal is due in June 2026   

VAP_Driver

I’m pleased this month has gone so well for you. I’m equally pleased, perhaps even more so, that you understand what needs to be done next month and are prepared for it. Paying off debt is a rollercoaster, and it can be disheartening when after a good spell, the rate of progress invariably slows due to circumstances, planned or unplanned. Being aware, realistic and managing your expectations appropriately is exactly what you need to do in order to make your new good habits sustainable, and to ensure you don’t ’fall off the wagon’. And you’re clearly demonstrating that you’re all over that.

Sometimes, good luck at the right time can lead to success. But for the most part, it’s appreciation, dedication and application. Keep on moving on. You’re doing really well.

Tezzadp

Thanks @VAP_DriverI'm chuffed i've managed to pay off as much as i have so far, but im also equally aware that i wont be able to pay as much off all the time. Later in the year is a time for larger yearly bills to be paid and im sure i will have more unexpected bills along the way also. Im trying my best to cater for these as much as i can while also trying to pay off as much of my debt while i have the ability to right now. 

Posting on here, paying my daily small amounts and updating my spreadsheet all on a daily basis helps me to keep on track and motivated to keep on going and not lose my way. I also appreciate everyones comments, input, support and encouragement i receive on here along the way. 

Thanks for your motivation and encouragement 

Tezzadp

Today is pay day which is the start of a new accounting month for me. I have been paid £1738.72 which is my budget for the month, lets see what i can do with it this month.

No money spent today

Direct debits/Standing orders

Friday means a £40 standing order into my savings/emergency bank account. Balance now stands at £424.50
CSA monthly payment of £71.20

Debt payments

Virgin CC £32.00 - Weekly payment that i increase by £1.00 every week until it is paid. Balance outstanding now £952.00

Hastings loan daily payment : £1.62 (Total paid so far this month* £1.62 - leaving a final payment of £49.73 in August 2027 (30 monthly payments) = Balance outstanding now £2266.64

*This month refers to 28th Feb to 30th March (the day before pay day)

Tezzadp

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VAP_Driver

We all develop little strategies or mindsets, to help us try and reach our debt-free goals (and hopefully, beyond). One of mine was not to think how much things cost, but how much I had to actually earn to pay for them.

For example, to buy something that costs £100 pounds, then I’d have to actally earn about £145-150 pounds; thinking of that helped me turn a ‘must have’ into ‘would like to have’ to ‘not worth the effort’ very quickly.

It worked for me, you might find it useful too. Or maybe not!