Let's get this sorted then!

rachmac3

Hey everyone, 

I went back to uni just before I turned 40, so have quite a lot of debt from that, and from generally trying to live whilst working and studying. I tackled a bit before the end of 2024, but that was mostly getting on top of things, doing some 0% balance transfers, and I paid of two small debts of about £250 total so I had fewer to think about.

I'm feeling much more focussed now, but I will admit, after 4 years of living payday to payday (barely), not socialising, no holidays, minimum spending on clothes etc, I feel like if I am too hard on myself this year my mental and physical health will suffer again. So I need some small treats along the way, some cheap mini holidays maybe (camping, cheap flights for some sun) and I'd really like to see friends for food or a wine at least once a month. My house has also been neglected since I bought it 5 years ago as I havent had the money (or credit) for anything but essential repairs.

On 4th Jan 2025 my debts looked like - 

Tesco CC             £6,509.97

Natwest CC         £7,612.74

Lloyds CC            £6,112.60

1st Direct CC       £176.03

CC total               £20,411.34

TSB OD              £500   (my bills/DDs go out of this account so the OD clears each payday)

1st Direct OD      £600 (wages go in to this account, so OD clears each payday)

Car loan              £4,000 (borrowed from a friend so interest free)

1st Direct Loan   £10,684.44 (I needed a new roof)

I think that adds up to £36,195.78

I have taken my student loan off my list as it was de-motivating me massively, going up every month even though payments come out of my wages. I've taken ML's advice and changed to thinking of it as a uni tax. The debts listed are the debts I can actually do something about. 

The credit cards are all 0% at the moment. The overdrafts are 39% so I'm focussing on those first. 

I'm paying about £300 a month off the credit cards and £200 a month off the roof loan as minimum payments. Any extra money is coming off the overdrafts. 

I figured posting in here would help me to stay focussed, keep motivated, and learn some tips along the way!

rachmac3

Well this is a first! I'm usually counting down the minutes til my pay goes in so that I can start spending. Tonight I'm counting down the minutes til I can pay something off my debts!
I got £180 extra today from a second/ad hoc job I did in December. I'll use that to reduce my one of my overdrafts in the morning. 

LzzyIsGod

Welcome! I'm quite new here too but have a similar amount I am tackling. Have bookmarked your thread to follow your progress.

Good start on the ODs - that's where I started too (and stayed out of it hurray!) I was shocked I didn't realise the APR on mine and quite how much it was costing me.

Wishing you all the best

Nintud

That’s 3 of us with similar amounts of debt to repay.
Im hoping to be debt free (apart from my mortgage) by September 2027. When is everyone else’s debt free date?

rachmac3

I started a new job in November, so have been waiting to have a few months salary and my mileage and tax levelled out before I can be sure. I'll be a lot clearer after tomorrow. I should be able to get a date for the overdrafts and credit cards paid off at least. 

Scott_Weiland79

I am the same with my student loan, I looked at it the other day and the interest I was amazed. Last year to this year it had dropped say 200-300 quid and i earn 28000 plus per year. I am gonna overpay when i am debt free as i am sick of the 60-70 quid pm tax lol.

Have you put together a budget/soa of what your going to do each month? 
If you have post it here if you like there's always little tweaks that can be made to get your disposable income up to clear things faster.


I will see if i can find one but i did see online a really good overtime repayment interest calculator. Will have a look later for you.

Have you put any plans in place to help boost your income? Surveys apps/cashback sites/decluttering/vinted/ebay/world of books to sell old books there all good ones.

You will get there good luck 

LzzyIsGod

Nintud said:

That’s 3 of us with similar amounts of debt to repay.
Im hoping to be debt free (apart from my mortgage) by September 2027. When is everyone else’s debt free date?

CC debt (20k) to be gone October 2027
Loan (16k)  to be gone by October 2028.
Will happily accept sooner hahah

@rachmac3  I started Oct/Nov 2024 so also spent the 1st few months shuffling things round and sorting out incomings vs outgoings whilst stopping the debt getting bigger. Hard to shovel snow during a blizzard!  Things then looked clearer and it was easier to see where the easiest starting point was and work out a plan of action.

rachmac3

Nintud said:

That’s 3 of us with similar amounts of debt to repay.
Im hoping to be debt free (apart from my mortgage) by September 2027. When is everyone else’s debt free date?

I'm still not really sure, I've set up DD's so that just slightly more than the minimum payments is paid off the credit cards each month so when the minimum payments reduce I'll still be paying the amount I'm paying now. 
I'm paying £505 in total off my credit cards and loan, so that would take me til the end of 2030. But I'll try and pay as much as I can and clear it as soon as I can.
I'm a bit worried though as my kitchen is literally disintegrated and I'll be lucky if the existing cupboards last til the end of the year. I also damaged the engine in my car a few months ago so that could give out at any moment. 
It would be good to clear these debts before my 50th birthday (May 2029). My last loan payment is scheduled for April 2029. 

rachmac3

Scott_Weiland79 said:

I am the same with my student loan, I looked at it the other day and the interest I was amazed. Last year to this year it had dropped say 200-300 quid and i earn 28000 plus per year. I am gonna overpay when i am debt free as i am sick of the 60-70 quid pm tax lol.

Have you put together a budget/soa of what your going to do each month? 
If you have post it here if you like there's always little tweaks that can be made to get your disposable income up to clear things faster.


I will see if i can find one but i did see online a really good overtime repayment interest calculator. Will have a look later for you.

Have you put any plans in place to help boost your income? Surveys apps/cashback sites/decluttering/vinted/ebay/world of books to sell old books there all good ones.

You will get there good luck 

My interest on my student loan is higher than the interest on my mortgage - it's sickening!
I've been play about with the repayment numbers on a word document. I'll share them as soon as I'm happy (ish) with them.
That calculator would be great to look at if you can find it. 
I am still doing a few hours here and there for my old job, and probably will until the end of Feb, that's helping me clear some of my overdraft(s). I'm currently clearing through a whole storage unit of my fathers stuff, which I hope to sort by the end of April. I can have a look at my own stuff to sell then.  I have had a look at the surveys in the past, but never really made any money on them. 
Thanks for the good luck wishes!!

rachmac3

LzzyIsGod said:

Nintud said:

That’s 3 of us with similar amounts of debt to repay.
Im hoping to be debt free (apart from my mortgage) by September 2027. When is everyone else’s debt free date?

CC debt (20k) to be gone October 2027
Loan (16k)  to be gone by October 2028.
Will happily accept sooner hahah

@rachmac3  I started Oct/Nov 2024 so also spent the 1st few months shuffling things round and sorting out incomings vs outgoings whilst stopping the debt getting bigger. Hard to shovel snow during a blizzard!  Things then looked clearer and it was easier to see where the easiest starting point was and work out a plan of action.

Oooo I like the way you've separated that out, it makes it seem much less overwhelming. 
It sounds like we were doing the same things at the same time! It's starting to look a bit clearer for me. I just really need to keep the motivation going, which is why I thought I'd start this diary. 

rachmac3

I reduced my overdraft by £100 today, with my extra wages from my old job. 
I've changed my council tax payments to come out over 12 months instead of 10 so the budget is consistent. 
I did buy a pizza from the supermarket for my tea, even though I'd had my big shop delivered, but in fairness I was trying to resist getting a takeaway and drinking wine so I'm still going to claim that as a win. Or at least damage limitation!