About time, I stopped hiding

Catastrofluff

It seems it is finally time to stop hiding, and start doing something about my debt. It all started, as it did for many others, in lockdown. My husband had been the victim of a terrorist attack and both of us were (still are if I'm being honest!) suffering with PTSD, I was finishing my PhD (after my funding had ended) and was trying to pay my mortgage in a minimum wage job. 

Then, I entered the world of working in academia. Temporary contract, after temporary contract and never full time. This meant filling in the gaps somehow. Unfortunately this seems to be the way for people working in academia these days. 

Now I'm in a full time (albeit still temporary) position, and really need to get my head on straight. 

Every month once that wonderous paycheque hits, I seem to pay out money to my many debts leaving me with very little in the kitty. Add to that, a car that continuously breaks (but that I need) and an unwell Grandfather living in an entirely different country who I have to go and visit the debt is seeming to be even harder to get down. 

So here we are, I need to find a way round it so I don't spend my days working from home staring at my budget spreadsheet. 

The debts are as follows:
0% Interest cards
CCIF1 2988.84 (Monthly repayment - £52)
CCIF2 5069 (Monthly repayment - £50)
CCIF3 1727 (Monthly repayment - £46)
CCIF4 1564 (Monthly repayment - £40)
CCIF5 280 (Monthly repayment - £40)
Other credit cards
CC1 1700 (Pay off what I can afford each month)
CC2 2000 (Pay off what I can afford each month)
Loan
L1 11080 (Monthly repayment - £286.80)
L2 66.52 (Monthly repayment - £66.52)

Total owed: 26408
Total monthly payments: (Set payments - £581.12) (Extra payments are roughly £400)
Other set expenditure: £1469.12
Income: £2500 p/month 
Left over: £49.76 (including extra payments)

In wonderful news L2 will be finally repayed this month! So there is certainly one thing to celebrate. 

My current plan is:
1) Pay off CCIF5 first. Extra £66.52 per month from L2 being paid off will be used for this. 
2) Stop using CC1 and CC2 for everyday spending. These can then be paid off without adding extra debt. 
3) Increase my income by £500 p/month - I do work every now and again at a pub, but this doesn't quite cover it! Any ideas welcome
4) Use any extra income to pay off CC1 and CC2 
5) Most importantly, have as much debt paid off by the end of 2025. Ideally, the figures I'd like at the end of 2025 would be:
CCIF1 - 2400 (£588 paid off)
CCIF2 - 4500 (£569 paid off)
CCIF3 - 1250 (£477 paid off)
CCIF4 - 1200 (364 paid off)
CCIF5 - 0 (£280 paid off)
CC1 - £800 (£900 paid off)
CC2 - £1190 (£810 paid off)

The loan will just tick along, and is likely something I will look at down the line! 

So those are my aims, and I've been trying to pay it all off for some time. But it has just never felt possible. I'm hoping by writing it down, it finally will be! 

Looking forward to check ins and feeling hopeful for once! 

Catastrofluff

Just did a quick calculation of what this means monthly:

Loan and credit card repayment - £730.80 (£63 on each credit card per month to reach my overall goal) 
Other set expenditure - £1469.12
Income - £2500

Left over per month £300.08 

This seems much more manageable! And means I can put any extra income towards both credit card payments and saving for fixing my poor car! 

This will be beginning next month as I have to fly out to sort some things for my Grandfather next week which has also been reflected in the above totals because it had to be paid for on CC after the previous trip used up my emergency fund!

Please keep everything crossed for me to reach my goals! 

Catastrofluff

So, a speedy update for the beginning of the week:
1) I have now collated my pots of savings, these are £350. I’m keeping these safe for repairs to my car.
2) I decided to start PADding, and so have so far paid off an extra whopping £8.50 on two credit cards. These will get bigger over the month though! I’ve also been able to add some money to savings, which always makes me feel safer. 

3) I finally told my OH who was less than impressed, but only because he’s been in this situation before. Thankfully, he’s now out of his credit cards, so we can focus on mine! 

4) I have a meeting with a tutor company this week. It’s also sparked the idea of doing tutoring outside of this locally. This (I hope) will not only enable me to pay off this debt quicker, but will further my career. I’m aiming for an average of 12-15 hours of tutoring a week, which will give me a whopping £800 (post tax) a month to pay down these debts. £500 of this would go to strictly paying debt, and £150 a month would be strictly for savings. Anything extra will help me throughout the month, but also enable my PADding each month. 

5) I got an extra £190 from my pub work yesterday so that should help me with my emergency trip to Cyprus and keeping my head above water as I traverse this new world of paying off debt! 

6) I applied for a tax refund for some of previous work based on ML’s advice about uniforms. Fingers crossed I get it! It’s only £40 but again, this can go to paying off debts. 

All in all, a positive update. I know it won’t always stay that way, but I really hope it will! I’ve never been quite so determined before! 

in_need_of_direction

you are doing well, starting to make any size of reduction means that you have had a change of mindset.  when i first started on here, i used to transfer any savings from money off coupons to my mortgage.  sometimes, these were only pennies but it all helped

enthusiasticsaver

Good luck with your plan to get the debt repaid.  Does your husband also have debt? 

Catastrofluff

enthusiasticsaver said:

Good luck with your plan to get the debt repaid.  Does your husband also have debt? 

So, he has a small loan, and owes some money to his parents for his car. But these are easily payable amounts. Ideally, I want to pay this off all myself. I’ve always been very independent with my money, so hoping this can continue! Looking at the figures I’ve done, I should be able to pay this off in two years. Much less if I can get some extra money each month! 

Catastrofluff

in_need_of_direction said:

you are doing well, starting to make any size of reduction means that you have had a change of mindset.  when i first started on here, i used to transfer any savings from money off coupons to my mortgage.  sometimes, these were only pennies but it all helped

Thank you! I definitely am in the right mindset now. The silly thing is, I always thought it was. But I’ve finally stopped blaming the world and realised it’s on me! 

Catastrofluff

Well, long time and no posting! Time for a catch up! 

Thankfully I have managed to not add to my debt! Yay! 

By the end of this month I’ll have paid down £500 of my debt, and added a little bit to my savings! Next month my aim is to do £600. 

That £5000 credit card is the one that irks me the most, so hoping to add little bits here and there to pay that one off quicker. 

Feeling much more positive but also trying to stay accountable!