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Seeing Sense.... at last

Hi all, long time lurker here who has followed other diaries in the hope of inspiration and motivation. 

I had my light bulb moment nearly a year ago in April 2024 when my debt levels reaching a ridiculous amount and I was running out of money with too much month left at the end of it.

At the worst I owed over 70k and realised I needed to do something when I started bot being able to keep up with the payments. I have cut down on everything that is not essential and am slowly making progress. 

As of this morning I now have that 70k at a more reasonable 6k and dropping each week. Made up of -

Credit cards (14)       £48314
Car Finance                £4683
Loans (4)                     £5584
HP Agreements          £2997

Total                              £61578

I don't currently have any savings but do have a couple of good pension pots currently worth 250k but I'm only mid forties so not able to access.

The debt is from frankly being stupid with money, over spending and not budgeting. We lived well out of our means and it finally came a bit us last year. I've been sailing the ship through very stormy waters but am bow starting to go through slightly calmer waters. Thanks for your time. 
Total debt April 2024 (lightbulb moment) - £70700

Current debt 24th Jan 2025 - £61112 / £70700 (13.53% paid)

Debt paid aim 2025 - £1227 / £10000 (12.27% paid)

Emergency Fund - £76.46 / £500

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Comments

  • redofromstart
    redofromstart Posts: 5,320 Forumite
    Seventh Anniversary 1,000 Posts Photogenic Name Dropper
    Just dropping in to say Happy New Diary and good luck with your journey.
  • Sun_Addict
    Sun_Addict Posts: 23,089 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Found you 😊 Welcome to diary land.

    I started a diary in 2008 (I think) after lurking for some time. There are so many inspirational diaries on this board. I'm sure you'll soon have that debt whittled down. We'll all be cheering you on. 
    I get knocked down but I get up again (Chumbawamba, Tubthumping)
  • Found you 😊 Welcome to diary land.

    I started a diary in 2008 (I think) after lurking for some time. There are so many inspirational diaries on this board. I'm sure you'll soon have that debt whittled down. We'll all be cheering you on. 
    Just dropping in to say Happy New Diary and good luck with your journey.
    Thank you so much for the kind welcome messages. I am knuckled down, prepared and committed to getting shut of this debt ASAP. Spent far too long owing money and being under control of the banks. Time to get the control back. I will provide regular updates along my journey. Let's go.....
    Total debt April 2024 (lightbulb moment) - £70700

    Current debt 24th Jan 2025 - £61112 / £70700 (13.53% paid)

    Debt paid aim 2025 - £1227 / £10000 (12.27% paid)

    Emergency Fund - £76.46 / £500

  • Cherryfudge
    Cherryfudge Posts: 12,306 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    I found you after reading your comment on SA's thread. Well done for making a significant dent in your debt already. Do keep posting, you'll get a lot of encouragement on here.
    I think a bit of sunshine is good for frugal living. (Cranky40)
    The sun's been out and I think I’m solar powered (Onebrokelady)

    Fashion on the Ration challenge, 2025: Fabric 2, men's socks 3, Duvet set 7.5= 12.5/68
    2024: Trainers 5, dress 7, slippers 5, 2 prs socks (gift) 2, 3 prs white socks 3, tee shirts x 2 10, 6 prs socks: mostly gifts 6, duvet set 7.5 = 45.5/68 coupons
    20.5 coupons used in 2020. 62.5 used in 2021. 94.5 remaining as of 21/3/22
  • Hi all, Happy Friday,  almost the weekend and hopefully a steady quite one for me. Low spends hopefully to be achieved. 

    I have tried many methods of paying my debts and I have the last few months settled on the snowball method of paying my smallest balance off first and then moving onto the next one. I did try paying debts with the highest interest first but I now have most of my debt on 0% plans so snowball method started to make more sense. It also gives me a feeling of making progress as I tick another account off the list and close it down whilst making minimum payments to the others. 

    I really want the debts gone but on current plans I expect its going to take me around 5 years to clear the balances. 

    Ahh well onwards and upwards (hopefully downwards on the balances).
    Total debt April 2024 (lightbulb moment) - £70700

    Current debt 24th Jan 2025 - £61112 / £70700 (13.53% paid)

    Debt paid aim 2025 - £1227 / £10000 (12.27% paid)

    Emergency Fund - £76.46 / £500

  • Baileys_Babe
    Baileys_Babe Posts: 5,989 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Good luck with sticking with the plan, not paying interest will be a great boost to you being able to make progress paying off your debt.
    Fashion on a ration 2025 0/66 coupons spent
    79.5 coupons rolled over 0/79.5 coupons spent - using for secondhand purchases

    One
     income, home educating family 
  • Sarahwithlove
    Sarahwithlove Posts: 3,124 Forumite
    Sixth Anniversary 1,000 Posts Name Dropper
    Good luck. Just think where you'd be if you hadn't had that light bulb moment. So though progress may feel slow it's all in the right direction. As debts start to go you'll have more to snowball on to others as well. 
    *Dad loan - £5300 - £5900
    *Virgin Credit Card - £3552.50 - £1500.00
    *Natwest - £1828.35 -£1166.00

    *Total debt - £8566.00/£10680.85*


    Savings
    *Savings - £3000/£3000
    *Emergency Fund - £500/£1000
    *Mortgage Overpayments - £21/£950


    New diary- https://forums.moneysavingexpert.com/discussion/6474943/the-three-cs-coffee-clothes-credit-cards/
  • Sarahwithlove I dread to think where I would now be if the lightbulb moment hadn't happened. I was certainly close to losing everything. Hopefully brighter days ahead.

    Well Monday again and start of another debt busting week. Payday this week so that will be the start of this months payments to all my accounts and a step closer to debt freedom. Weekend was pretty low spends, had a walk to a lovely little pub nearby on Saturday but the rest of the weekend was spent watching lots of TV and movies.

    I have set myself a weekly spends budget which covers all our weekly shopping and spends for the week, anything that is left on Sunday night I split 50/50 towards my lowest debt and emergency fund. Seems to work so I just need to stay in the habit. 

    Working all week so hopefully low spends week with just a car refuel required midweek. I have created a spreadsheet and now allocate all our money to various pots (I picked this up from other members threads and it's a great idea) so fuel all budgeted for.  
    Total debt April 2024 (lightbulb moment) - £70700

    Current debt 24th Jan 2025 - £61112 / £70700 (13.53% paid)

    Debt paid aim 2025 - £1227 / £10000 (12.27% paid)

    Emergency Fund - £76.46 / £500

  • Welcome to the MSE boards!
    Congrats on your debt paying off so far, 10k is a great achievement.
    Love a walk and a lovely little pub 😊
  • LzzyIsGod
    LzzyIsGod Posts: 138 Forumite
    100 Posts Photogenic Name Dropper
    Totally agree with all the previous posters - you've made inspiring progress so far and there will be lots of people willing you on to hit that goal. So far I've a found having a separate fuel pot has been really helpful and reassuring to have - just knowing its there already budgeted for and allocated is a stress reliever.

    Wishing you all the best and will be following 
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