I have transferred my notes from another forum as I wanted to keep this as a diary.
Plan to get rid of debt but nervous - need some support
This morning I woke up and decided that this is the week to do it.
I have totalled up all my debts
Credit card 1 - £1462.18
Credit card 2 - 301.97
Loan settlement figure £16,171.25
Car loan settlement figure £2571.88
Total debt £20,507.28
Total savings £19,035.64
If I pay off the debt with my savings then I will be £621.23 better off as well as the original £1000 that I also put away so will be £1620.00 better off per month to start my real savings. In a year I will have real savings of £19,000. I am ready to take the plunge and clear the debts but am really nervous about it.
Other than this I have a mortgage on my property and 2 mortgages on buy to let properties. The buy to let properties are fully covered by the rental income and I have an emergency fund of £3700 to cover any emergencies on the buy to let properties which I have not included in my total saving above.
There is one other credit card debt which was run up by an ex- boyfriend £5600 which he pays me £100 per month to cover.
Am I doing the right thing or am I going to leave myself open to worry with no savings. By the 1st of May I will have £1600 to put into savings so why am I worrying or is it normal to think that I am doing the wrong thing even though I know it will be better for me in the long run.
I gave up meat for lent and for some reason see off loading my debt as a good way to celebrate Easter.
Well I have started the ball rolling.
I have just cleared my loan of £16,171.25 with my savings
Total debt left is now £4336.03
Total savings is now £2864.39
I am now going to raid another of my accounts to pay off the car loan. Watch this space.
I have just been to the bank and cleared the Car loan. I am now on a roll.
Total debt left is now £1764.15
Total savings is now £292.51
Still feel weird that I have done this but I know I am doing the right thing.
Just did the final calculations
The total debt left is £1728.10
Payday next week.
Debts you are finally going DOWN!!!!!
I am more than happy to have a mortgage as my only debt. Good riddance to the debt. I will sleep easier now. As for holidays I am more than happy to holiday in the UK. I have a nice garden so I am going to take up gardening.