Seeing Sense.... at last

Paydaypayback

Good morning all and Happy Friday again. So a relatively low spends week this week. Had to pop to the shop for essentials midweek and also a refuel of the vehicle but this was all budgeted. It was payday earlier this week so another round of payments to some of the accounts which now brings the balance down to £61112 outstanding. I get paid from another source on the 01st of the month so there will be a second round of payments then. I can't wait to get into the 59k mark. Although a ridiculous amount to owe its much better that the 70k mark I was at less than a year ago.  

Alongside my debt busting I'm am really focused on growing my pension pot for later life monthly contribution of 1200 to the pot this month so a nice little increase in figures.

A very quite weekend is planned. Maybe a walk into town for a couple of drinks at my local but that will be weather dependant so hopefully low spends. We do need to go and do the weekly supermarket shop but thankfully all budgeted.

I hope everyone has a wonderful weekend whatever they do.

Paydaypayback

Good morning all, Happy Friday again and scarily the end of January! It usually seems a really long month (and in the past I have almost always run out of money part way through) but this year it seems to have flown by.

Its been a relatively quite week this week and fairly low spends. I had a budgeted refuel of the car and budgeted supermarket shop later today but otherwise pretty quite.

The emergency fund is adding up slowly, I just add spare change to this and round the bank off to the nearest number whenever we have spends so it is ticking up slowly. 

Hopefully very quite weekend ahead with absolutely nothing planned after a very busy week at work. Lots of television, movies and hopefully the odd beer and G&T may be involved somewhere...!

LilSmiler

Happy Friday and end of January PaydayPB..!

Enjoy your weekend

Paydaypayback

Morning All, Monday again.

So beginning of February finances are all done and balances have been updated. Fairly small reduction in balances but at least its headed in the right direction -

Credit cards (14)       £48032
Car Finance                £4550
Loans (4)                     £5523
HP Agreements          £2997

Total                              £61102

Overall reduction of £476 over the last month and a few more payments to be made. Hoping to have the balance into the 50s and out of the 60s by end of April. Keep on chipping away at the balance each day, odd pound here and there but at least its one closer to debt freedom. 

Cherryfudge

You're doing a good job there! Nearly half a thousand pounds paid of in January when so many people are hanging on to get through the month: that's definitely going in the right direction!

Paydaypayback

@Cherryfudge many thanks, that's much appreciated. I must admit with such a large debt balance I do often look at the figures and feel I am getting nowhere. But, I then look at where I was this time last year (I have all my balances on an excel document which shows the reduction each month / outstanding balance etc) and that's where I see the difference. I have managed to clear around 10k over the last year without being too overly committed until fairly recently. I am now in the mindset I want it gone ASAP. 

I am in a fortunate position of being a higher earner but have made the decision to keep under the 40% tax bracket and funnel everything above into my pension. I could have more funds to clear the debt faster but I can't bring myself to pay 40% tax. Also I have 90% of the debt on interest free and I have also been defaulted for most of the cards so nothing to gain by losing on the pension tax relief I get. I think I'm doing the best I can for my circumstances, although I could be wrong.....

Cherryfudge

I'm not a pension advisor but as I get closer to pension age myself I can see there's a lot to be said for making the most of paying into it while you can. And 40% is a lot of money!

Baileys_Babe

In your position I would do the same regarding debt/pension/tax. Clearing around 10k of debt in a year is impressive.

LzzyIsGod

It can be overwhelming at times but when you look back at what you've achieved so far it's a real jump downwards debt wise. Plus don't forget it could have been a leap upwards which is just as important to recognise.

Paydaypayback

@Cherryfudge many thanks, it is quite disheartening seeing 40% of salary above 50k (ish) just get eaten by tax every month. I know a lot say its a nice position to be in but to get to that position it has taken a lot of hard work, sacrifice and study. Not saying lower paid individuals don't have the same because of course they do. No respite from it when you get to pension age either unfortunately so we get stung from every angle.

@Baileys_Babe that's much appreciated. I never feel on a monthly basis I am making any progress but over the year I agree 10k is a decent figure to have cleared. To be honest as long as the balance has gone in the right direction I wouldn't care if it was 1k.

@LzzyIsGod you are absolutely correct it could so easily have gone in the other direction. To be honest we only stopped spending and had the lightbulb moment when I sat down to do the banking last April and realised there wasn't enough money to cover even the minimum payments on all the cards. At that point it hit me something had to change. I immediately cancelled all but one of the cards and arranged payment plans with them. They have all defaulted me (except one who for some reason are very reluctant to) which means the credit option has gone. As the balances are paid off the account is then closed down. 

Thanks again for all the kind comments everyone, so glad I found this forum and it's giving me the inspiration to push me along. Not wishing anyone to be in debt as its not fun but also good to know we are not in these situations alone.