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    • FiscalPickle
    • By FiscalPickle 4th Dec 17, 5:38 PM
    • 130Posts
    • 321Thanks
    Time to turn this around
    • #1
    • 4th Dec 17, 5:38 PM
    Time to turn this around 4th Dec 17 at 5:38 PM
    I had my lightbulb moment recently. Despite the fact I have a good job in an industry that means I should know better, I've got myself into a bit of a pickle. The goal for the next 2 years will be getting out of debt, out of the consolidation trap and into a good position re savings. The 2 years after that will be aimed at saving for a house deposit. My debts are:-

    HSBC loan £7872.48
    Virgin credit card £4019.39
    MBNA credit card £2825
    Car loan £5011
    Tax bill £139

    Grand total of £21,266.47 - I realise this doesn't add up please see post dated 18/12/17 for explanation!

    Once Christmas is out of the way and I've paid the tax bill, which is due at the end of the year, I've worked out a budget as follows:-

    Rent, household bills, food 1060
    HSBC loan 238.56
    MBNA CC 75
    Virgin CC 400
    Car 94.89
    Car ins 29.08
    Car service & repairs 50
    Contact lens scheme 26
    Entertainment 50
    Christmas & birthdays 80
    Clothes/shoes 50
    Hair 40
    Holiday fund 60
    Emergency fund 50

    This comes to £2303.53, my nett wage is £2,305. I'm throwing all I can at the Virgin balance until I've paid the spending part off, £1200 of this is on 0% until November. Then I'll concentrate on the MBNA, then the HSBC loan. Then I'll reevaluate. The HSBC loan is 7% APR, I'm halfway through paying that so most of the interest has probably been paid. I've set up the piggy accounts for car maintenance, holidays and emergencies. I've been in the habit of saving for Christmas and birthdays all year for some time now. Here goes!
    Last edited by FiscalPickle; 18-12-2017 at 4:58 PM. Reason: Amending total debt figure
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    • FiscalPickle
    • By FiscalPickle 20th Aug 18, 12:50 PM
    • 130 Posts
    • 321 Thanks
    Thoughts on the way forward
    I've been back at work last week after a really good 2 weeks of leave, having given the debt crisis a lot of thought I've come up with a way forward.
    • carry on paying off debt and not accumulating more - it will go in the right direction. The CC payments will not be as aggressive though, I have accepted that this will affect my timeline
    • stop focussing on the numbers and percentages - for me, this has just added extra pressure
    • enjoy life and factor in the occasional treat without agonising over it - I work hard and need to have some joy along with the grind
    • support Mr P as we work towards becoming DF, it may be a slower and more winding journey but we will get there

    I have decided not to put any of Mr P's balances onto my available 0% credit card, at the moment that is functioning as my EF and he really needs to sort out his own debt. The best thing I can do is encourage him and be a good example.
    DFD - 26/10/19
    In the process of shedding £20k and 35lbs
    • Drawingaline
    • By Drawingaline 21st Aug 18, 4:44 PM
    • 541 Posts
    • 1,854 Thanks
    You sound happy with your plan,, good luck
    • FiscalPickle
    • By FiscalPickle 19th Oct 18, 2:35 PM
    • 130 Posts
    • 321 Thanks
    Update - 2 months later
    Wow, I canít believe itís been 2 months since I last posted, that time has absolutely flown by. Iím still chipping away at the debt whilst trying not to add to it, without focussing on the numbers I have a feeling that the total is coming down. There are now new things needed in the house unfortunately, one of our cats has peed to oblivion on the dining room carpet so that needs replacing along with the underlay.

    I had a trip to London with a friend, I was really pleased that all of the travel, accommodation and activities came within budget. Iíd been saving for this since the start of the year and it was such a welcome break. We got a few good deals online for show tickets and dinner at a Michelin starred restaurant during the London Restaurant Festival. There was also a shopping trip, I went in with the mantra of if something really didnít stand out, not to buy it. As a result I only bought one item, not clothing though as Iím still plugging away with my weight loss efforts. Similar to the debt, Iím not focussing on the numbers as for me that is not a motivator. Instead, Iím going by the fit of my clothes and have recently gone down a belt notch.

    After taking a bit of a break and being kinder to myself, Iím feeling much better about this whole debt and MSE thing. I donít honestly know if Iíll be debt free by this time next year, but Iím much less stressed and if itís a few months into 2020, so be it.
    DFD - 26/10/19
    In the process of shedding £20k and 35lbs
    • FiscalPickle
    • By FiscalPickle 24th Oct 18, 12:14 PM
    • 130 Posts
    • 321 Thanks
    Tomorrow is payday, I'll be sending £825 to the CC balance. I'm ridiculously excited to see my payslip as I'm due a salary increase to the tune of £3k. Now that I'm earning £41k I really feel like I can start making significant inroads into Debt Mountain.
    DFD - 26/10/19
    In the process of shedding £20k and 35lbs
    • Drawingaline
    • By Drawingaline 7th Nov 18, 5:25 PM
    • 541 Posts
    • 1,854 Thanks
    Lovely to see you back!
    • Cherryfudge
    • By Cherryfudge 10th Nov 18, 5:30 PM
    • 2,339 Posts
    • 14,148 Thanks
    Congrats on the pay rise - what brilliant news!
    MFW #30 Paid off £4,100.58/£3000 in 2018
    Decluttered in 2019: 151/2019 as of 20/1/19
    • FiscalPickle
    • By FiscalPickle 21st Nov 18, 11:50 AM
    • 130 Posts
    • 321 Thanks
    Definitely feeling the benefit of my payrise, it makes moving job just over a year ago feel like the right decision was made. I'm nearly done with Christmas shopping, so glad I saved each month starting in January. There will be some extra expenses around going away for the festive period, but I have cut back on the overall gift spend to compensate. I have also hand made some gifts this year, including crocheted toys and hats, which is why my diary has been quiet. Hope everyone else's Christmas plans are coming together nicely
    DFD - 26/10/19
    In the process of shedding £20k and 35lbs
    • Onebrokelady
    • By Onebrokelady 24th Nov 18, 11:00 PM
    • 1,305 Posts
    • 7,397 Thanks
    Well done on the pay rise and also well done for making some Christmas gifts,DD1 used to knit me a pair of socks for Xmas but hasn't got time now she has the baby
    I'm being very organised this year and I'm on target for finishing my Xmas shopping by the end of next week
    Just keep swimming
    Original Debt Owed Jan 18 = £17,630 Paid To Date = £1,598 Total Now Owed = £16,032
    Emergency Fund = £300 Xmas savings = £0
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