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  • FIRST POST
    vq12
    My journey to becoming debt free in 2018
    • #1
    • 5th Apr 18, 10:18 AM
    My journey to becoming debt free in 2018 5th Apr 18 at 10:18 AM
    Hey guys, so first of all let me start by saying I'm only 22 and don't have a massive amount of debt, 2500 odd but I have SIX defaults against my name from 3 years ago. I was stupid with money and wasn't really aware of the consequences and didn't tell my parents because I was pretty afraid of what they'd say.

    BUT, I'm now earning great money, after tax I take home 2600 by myself so I have quite a lot left over a month after paying for my debts. Me and my long term girlfriend want to start buying a house in 2 years so paying them off in full is probably better for me, I'll still have the defaults but hopefully after 5 years or so it'll look much better. My credit is awful at the moment, I'm literally talking my score on Experian (not that it matters) is 182 lol.

    So here are my debts:
    NatWest: 108.18
    Vodafone: 133.47
    Wonga: 372.58
    NationWide: 367.48
    EE: 591.71
    Barclays: 804.00

    I did consider offering settlements, but I don't want creditors to think I can't pay my debts in full in the future and it's not a huge sum of money anyway (it's still a lot, but I mean not 5 figures).

    I am using the snowballing method, here is my excel spreadsheet with my payments (I will spend 450 a month, I have allowed for this as I save a lot at the moment towards a house and have a few other things I pay for, ie car etc).



    Green: Paid
    Red: Not paid

    Vodafone/NatWest wasn't paid this month because I had to chase who had the debts, this took longer than expected but is now sorted for next month!

    The only thing I have on credit now is my car and my 17 phone bill (sim only, I purchase my phones outright now). I've also joined Monzo to help me cut out unwanted spending, I am trying my very best to save as much as physically possible while allowing myself to live comfortably.

    Let's do this!
    Last edited by vq12; 30-05-2018 at 8:58 PM. Reason: including a photo of original debts
Page 2
  • vq12
    Also just realised having 150/200 on my credit card is obviously bad, so paying off 100 this month to try and boost my credit score a little.
  • vq12
    Upped my credit card limit to 1250 yesterday, won't ever use over 50% of that, want to keep it low as possible.

    Hopefully that'll help my credit, also paid off this months payments today as I was getting impatient waiting for pay day on Tuesday lol. Will replace funds on Tuesday, but good news is I'm below 1000 now.
    • beanielou
    • By beanielou 22nd Jul 18, 10:11 PM
    • 56,147 Posts
    • 226,970 Thanks
    beanielou
    You are getting there
    Lou~ Debt free Wanabe No 55 DF 03/03/14.
    **Credit card debt free 30/06/10~** **Weight loss 2 stone 11 lbs **

    "A large income is the best recipe for happiness I ever heard of" Jane Austen in Mansfield Park.
    ***Fall down seven times,stand up eight*** ~~Japanese proverb.
    It starts with you, it starts from now. *** It is ok to be me.***
    ***Keep plodding***
    Out of debt, out of danger. MFW 2018. No 144
  • vq12
    You are getting there
    Originally posted by beanielou
    Definitely, it feels good to be at this stage, I know my credit won't change much from here due to my amount of defaults but I've not missed a payment on anything in a long time, so hopefully it increases a little more with the debts being settled and me paying off my phone contract etc.

    A picture of where I stand today, 23rd July 2018.



    Think I'll be cutting October off and just overpaying in September. Makes more sense to do, I don't really see the point in waiting.
  • vq12
    Tidied up my graph a little to make it better to view...

    Here is where I stand, will hopefully clear off October's debt during September, but I may pay off my last payment to my girlfriend. The good news is, by October I'll have an extra 800 a month to save...



    Pretty cool to think I started out here


    I'm glad I've kept to it, it needed to be done.
    Last edited by vq12; 01-08-2018 at 1:19 PM.
  • vq12
    In other news, I have now finished paying off all the dental work I wanted doing :-)

    So now these final 2 months are literally my last debts, hopefully that's the last of it going forward also!
  • vq12
    Talking to myself a bit here, but paid off 100 towards October's debt yesterday.

    Will pay off the remaining 185 by next month, just putting spare money here and there towards it. So my debt should be finished by next month, at the absolute latest. So the schedule has worked out just about right, which is perfect as I start my new job in February, so need to save as much as absolutely possible!
    • beanielou
    • By beanielou 8th Aug 18, 12:59 PM
    • 56,147 Posts
    • 226,970 Thanks
    beanielou
    Talking to myself a bit here, but paid off 100 towards October's debt yesterday.

    Will pay off the remaining 185 by next month, just putting spare money here and there towards it. So my debt should be finished by next month, at the absolute latest. So the schedule has worked out just about right, which is perfect as I start my new job in February, so need to save as much as absolutely possible!
    Originally posted by vq12
    Sounding good
    Lou~ Debt free Wanabe No 55 DF 03/03/14.
    **Credit card debt free 30/06/10~** **Weight loss 2 stone 11 lbs **

    "A large income is the best recipe for happiness I ever heard of" Jane Austen in Mansfield Park.
    ***Fall down seven times,stand up eight*** ~~Japanese proverb.
    It starts with you, it starts from now. *** It is ok to be me.***
    ***Keep plodding***
    Out of debt, out of danger. MFW 2018. No 144
  • vq12
    Wish next week would hurry up so I can pay off my EE balance lol!

    I'll probably end up doing it this week and just moving the money over on payday, eager to close them off now lol!
  • vq12


    13/08/2018

    Let's do this, I want to get this done by next month!
    • beanielou
    • By beanielou 13th Aug 18, 6:05 PM
    • 56,147 Posts
    • 226,970 Thanks
    beanielou
    Not long now
    Lou~ Debt free Wanabe No 55 DF 03/03/14.
    **Credit card debt free 30/06/10~** **Weight loss 2 stone 11 lbs **

    "A large income is the best recipe for happiness I ever heard of" Jane Austen in Mansfield Park.
    ***Fall down seven times,stand up eight*** ~~Japanese proverb.
    It starts with you, it starts from now. *** It is ok to be me.***
    ***Keep plodding***
    Out of debt, out of danger. MFW 2018. No 144
  • vq12
    Not that it means much, but since I started paying everything off in March 2018 here are my credit scores on their respective sites:

    Noddle:
    March 2018:482
    August 2018: 557
    Increase:75 (Also score went from 1/5 to 2/5)

    Experian:
    March 2018: 182
    July 2018: 514
    Increase: 332

    ClearScore:
    April 2018: 87
    August 2018: 121
    Increase: 34

    Again, I know they're made up but it's definitely encouraging to know I'm getting somewhere and the effort is helping me achieve credit sooner rather than later.

    Actually thought I'd give up by now and spend the money elsewhere, but it's been so satisfying watching my credit increase, getting an actual credit increase, and having less debt to worry about (I hadn't paid some of them in years so was worried on the 6th year I'd get a CCJ). I know my debt wasn't massive, and I'm very fortunate to have a well-paid job at 22, but my new job will have a credit check so this has come at the perfect time.
    Last edited by vq12; Yesterday at 8:21 AM.
  • vq12


    4/6 done!
    Soon to be a 5th this week, then next month the 6th.

    Very pleased with everything, and think this journal has helped me do it quicker or keep on pace as I felt if I didn't and nobody heard from me, I'd let everyone down.
    • beanielou
    • By beanielou 14th Aug 18, 9:40 PM
    • 56,147 Posts
    • 226,970 Thanks
    beanielou
    Well done.
    Lou~ Debt free Wanabe No 55 DF 03/03/14.
    **Credit card debt free 30/06/10~** **Weight loss 2 stone 11 lbs **

    "A large income is the best recipe for happiness I ever heard of" Jane Austen in Mansfield Park.
    ***Fall down seven times,stand up eight*** ~~Japanese proverb.
    It starts with you, it starts from now. *** It is ok to be me.***
    ***Keep plodding***
    Out of debt, out of danger. MFW 2018. No 144
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