New Leaf for 2026 - Dire Debts

RAS

Good call ManyWays. It's important to factor in the Tesco card if it's reversion rate is 28.6% or above.

Given the new situation, you might want to use half the back pay for an emergency fund and half on Santander Loan2?

Something to cover house repairs, ill-health etc.

Once you see the monthly payments on the loans go down consider something like a Monzo account with different pots for holidays, clothing, whatever. Get into the habit saving for treats rather than buying on the cards? Even before you've cleared all the debts, put something aside from your released money if you want.

ManyWays

so its a clear win to switch that to barclaycard now - its ending pretty soon, and the Barclaycard will be at a lower rate than the Tesco

NeverendingDMP

Just want to say hello and well done for all the things you've done so far. There's plenty of challenges on here that will pop up over the next few days. Grocery shopping challenge,, also sometimes at the beginning of the year there will also be a live out of your cupboards challenge to avoid any shopping. Quite often there's savings/making extra income challenges-good to kick start the emergency fund. these will all be worth a read for ideas of how to make extra pennies into pounds. Have a look in the debt free challenges section.
You've moved some cards and canceled some d debits already. Only tiny things to add /to mention for anyone else having a read is instead of what looked like a monthly playstation subscription you can go on c d keys and get a monthly/3 monthly voucher code. Usually works out a bit cheaper. And for council tax some councils ask for the payments over ten months but you can ask for it to be spread over twelve to ease the money they budget. Honestly though you've made some great changes already and I reckon if you update your SOA when you get your new minimums you will see that it's all more positive. Keep it up x

ryandotdee

Well done on your progress! Seems like you have put some really solid foundations in place, I am in a similar boat to you, and am definitely in the adjustment phase of setting a budget based on my means and living within it, first couple of weeks it felt like deprivation, but then I realized how much of what I was spending was needless.  I am still on the journey, but I am on the road now and it feels good.

Cant help but wonder from your username, are you in the technology field work wise?

linux_Master

That sounds a good plan to me @RAS; I tend to use my Lloyds account for bills and then transfer my spending money to Monzo, aside from my Monzo Loan and Flex, I've never really used the pots. 

Sounds a good plan to send my savings there too and categorise it so I know what's for what.  

I'm definitely glad I checked that Tesco card, the minimum payment would have pushed it very high once the interest free period reverts. 

linux_Master

Thanks @ManyWays!

That's what I was leaning towards too. I've got enough of a limit to get that transferred, at least then all my core credit card debt will be in one place! 

linux_Master

Thank you so much @NeverendingDMP! Really appreciate your kind words and support. 

That's a really good idea looking at CD Keys too, I think that's a cracking idea I never even considered it. I've not used it in years! 

And I also didn't know I could spread my council tax over 12 months. It is 10 months with March/April free at the moment. I'll give them a call to see what I can do with that as it will hopefully keep my budget more aligned.  

Once I have everything moved around and in place after these few changes, I will do a new SOA and see how I measure up.  

Thanks for cheering us on! 

linux_Master

Thanks @ryandotdee! Definitely in a similar position and I could not agree more! It does even now seem like I've just put on the handbrake, but looking at my past statements when I reviewed my SOA was kinda scary. Especially as now I can't even remember the purpose of some of my loans and card debt. Nothing additionally meaningful to show for it, but I was impatient and couldn't wait for things that really I couldn't care less about now! 

I've followed your journey too, you've absolutely got this! Keep pushing and come the end of 2026 I know things will be much better for the both of us now we have the foundations in place. 

I do indeed work in IT. I do a little bit of everything, but mainly web design, so hoping to see if I can make some money in this on the side... just not too sure what to do yet! 

linux_Master

Also just to say a Happy New Year! 

And a huge thank you to everyone who has commented on this so far and given me some amazing advice. 

I felt absolutely terrified and alone until I started this thread and now I have never felt more confident and positive than there is a light at the end of this tunnel. 

Thank you everyone! 

ryandotdee

Ahh, I knew it It has to be worth a shout to try and make a bit on the side through some gig work etc, I used to do freelance stuff when I was younger, but now I am older and have kids its a struggle to get motivated to do dev work on the side. Although, I have put an ungodly amount of time into my budget app, but I guess that's because it has real value to me. Let me know if you want to take a look, would be good to get the input of an actual web dev, I am a back end monkey for the most part