From debt to freedom...

Honeysucklelou2 · 30 December 2017 at 4:56AM

It's very close to a year since I started this diary. I've been thinking about the ups and downs of the last year.

Positive
The loan to the bank has been paid off and cleared:).
DD1's transition from home to university has been smooth:).
The emergency fund is slowly building, as I had to use some to cover car costs earlier in the year. Since clearing the loan though, I have allocated £50 a month to the EF and look forward to receiving my annual statement in the New year to see how much has been built up so far:).

The not so positive
Christmas amount on the cc which needs clearing fast.
Extra debt accrued due to tax credit situation in the summer. I must get the CAB appointment sorted out. To be honest there is a part of me that is nervous about challenging it. I know from using the entitled to website that the TCs received, I was entitled to, but one of the advisors I spoke to was very firm that I did have to repay and that I wasn't the first person that this had happened to. I'm also concerned that I've been told that I have to repay 50% and I worry that if I challenge things coupled with the fact that I still don't know where the ex lives and presumably neither does HMRC, that I'll be made to repay 100%:(.
The amount paid in interest on the pesky window loans. Never again!

Last year I did start the pay your debts by Christmas challenge which I have clearly failed to do. I signed up to pay back £10,000, which was made up of £5k to family for vehicle loan, £3k as a loan from family for legal fees ( re legal separation) and £2k for the remainder of the bank loan. The bank loan was cleared through regular loan repayments and as of today I will have paid £450 towards the legal fees and £325 towards the vehicle loan, making a grand total of £2775.
Will sign up for the 2018 challenge and hope to clear more.

Mumoffourkids · 30 December 2017 at 9:19AM

You were up either very late or very early honeysuckle. I do like your review of the last year. I might try to do a review at the end of the month or at the end of three years.

With regards to tax credits overpayment, it can't hurt going to see someone at cab. They might say it's not worth pursuing the challenge and at least then you know whether to bother or not. Tax credits are a nightmare but I couldn't survive without mine!

You have paid off the bank loan and built up an emergency fund. That is something I need to focus on in the next year.

Keep going and I am sure you will pay your debts off by Christmas next year.

Vegainer · 30 December 2017 at 9:39AM

Hi Honey! Just dropping by to say hello :j It sounds like you've had a positive year! I've always felt that is what matters, not meeting every goal perfectly. If you're moving in the right direction you're ahead of most people...

All the best for 2018, I'll follow along here :money:

Cherryfudge · 30 December 2017 at 11:59AM

Absolutely echo what Vegainer says: you are headed in the right direction and you've made excellent progress. Having goals is a big motivator and gives focus and so what if you didn't repay £10,000? Paying the best part of £3,000 and having an EF to cushion unexpected bills are both worth giving yourself a pat on the back for. It's really solid progress in the right direction, and 2018 will bring more of the same.

117pauline · 1 January 2018 at 12:25AM

Happy New Year

May all your hopes and dreams come true in 2018

Take care
Pauline

Thank you for popping in on my thread, your support is so appreciated

Cherryfudge · 1 January 2018 at 12:37AM

Happy new year from me too!

VelvetFreak · 1 January 2018 at 1:39AM

Happy New Year! Hope it's a great one for you

Even though you may not hit your goals as well as you wanted to, you are headed in the right direction, and that's what matters. Don't be too hard on yourself, you have made great progress already. You are doing great things and are a great example to your kids.

Honeysucklelou2 · 2 January 2018 at 2:06AM

Thank you for the kind replies everyone. You're right, the steps are in the right direction even if it's not as fast as I'd like!

Today has been a NSD. The weather has been a little wild so apart from feeding the chicks and walking the dogs, today has been a getting ready for work day. DD2 is happy as she was asked to work 3 shifts in a kitchen that she has been doing work experience in. The shifts should be paid so she was cheerful! DD1 had an amazing surprise. I was tidying up and found a letter addressed to her that had slipped underneath a magazine. When she opened it, it was a letter to inform her that she had been awarded a bursary from her university. It's to be paid in 3 installments, so was a brilliant start to the new year.

Happy New Year one and all.

Cherryfudge · 2 January 2018 at 11:33AM

That's great for both the girls! What a nice start to the year.

(Off to check my post, lol).

Honeysucklelou2 · 2 January 2018 at 12:00PM

I've paid the last council tax instalment for this financial year...always a good feeling and even better to know that in February and March I can focus that amount of money onto a debt.:)

I've also made an extra payment of £30 to the cc so making small steps. My cc is an online account which I've never done before. It's quite odd not having paper statements and making sure I log in to read the information. Went on today and actually discovered where the statements were so I read them, then wrote down a list in a notebook, so that I can see where I have spent on the card, then tick it off when I have repaid it, if that makes sense. I marvel at people who can manage everything online!

Pleased at how the food is lasting at the moment. I thought the Christmas cake wouldn't make it to the New a Year but we still have a fair bit left:T. I'll probably need to top up on milk today but ok for everything else.:)

From debt to freedom...

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free