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  • FIRST POST
    • Eyebright
    • By Eyebright 14th Jan 20, 1:03 PM
    • 954Posts
    • 4,961Thanks
    Eyebright
    Debt Free by 40
    • #1
    • 14th Jan 20, 1:03 PM
    Debt Free by 40 14th Jan 20 at 1:03 PM
    Good afternoon MSE,

    It's a new year and like so many the new year has brought with it a LBM for me. It kind of flickered on a couple of months back, and I made a start, but I had a relapse... Now I've truly seen the light and this year I'm sorting myself out and over the next few years I'm sorting out my debts.

    I turn 35 in February and have set myself the goal to be DF by 40, so I have 5 years to get out of this hole! I recently consolidated my CC debts onto a loan, and I have a bit of an O/D I need to clear.

    My loan is over 6 years, so straight away I need to sort out my budgets so that I can make regular overpayments.
    One of the reasons we are in so much debt is we have no savings, and so when we needed a new car, and the house needed a new roof, it went on the CC. So an EF and sinking funds for planned expenses etc are also a top priority.

    So my plan of attack is:
    • Clear the O/D
    • Create a budget
    • Start an EF and sinking funds
    • Find ways to up my income and reduce my outgoings so that I can O/P the loan
    • Stop spending money on tat I don't really need!
    POAYDBX 2020 #? 20/4000
    1 debt vs 100 days #14 20/1000
    Saving for Christmas 2020 0/500
    EF Saving 145/500
Page 1
    • Eyebright
    • By Eyebright 14th Jan 20, 1:10 PM
    • 954 Posts
    • 4,961 Thanks
    Eyebright
    • #2
    • 14th Jan 20, 1:10 PM
    The Debts
    • #2
    • 14th Jan 20, 1:10 PM
    So my debts are as follows:

    1) O/D on my current account: £144.65
    2) The Loan: £18,691.92
    3) HP Creation: this is in OH's name so I need to find out how much we owe!!!

    Total: £TBC

    The O/D will hopefully be cleared this week, I have hopefully sold an item and have been promised payment tomorrow when the other person gets paid.
    I've sold it for £200, so there will be some extra there. I'll need £20 of the extra to have a bit of spending money to ensure I stay out of the O/D until I next get paid. Then any left over will either go towards my first O/P on the loan (even though the first actual payment doesn't go out until the 7th Feb!), or towards starting up my EF which is currently 0.
    Last edited by Eyebright; 14-01-2020 at 1:17 PM.
    POAYDBX 2020 #? 20/4000
    1 debt vs 100 days #14 20/1000
    Saving for Christmas 2020 0/500
    EF Saving 145/500
    • Siebrie
    • By Siebrie 14th Jan 20, 1:10 PM
    • 1,766 Posts
    • 26,625 Thanks
    Siebrie
    • #3
    • 14th Jan 20, 1:10 PM
    • #3
    • 14th Jan 20, 1:10 PM
    Congratulations on getting your LBM!


    What have you done with your credit cards, now that you have consolidated the debts into one loan? Have you closed some of them? There is advice somewhere on this Board (sorry, I don't know the exact location) about which ones you can/should close that won't impact your credit score.


    Would the insurance company pay anything back for the new roof? Would there be a government scheme that would pay out money if you updated your roof to a certain standard / insulation? The electriticy/gas company?


    Good luck!
    Wombabeluba 2020! € 19,15 = £ 16.37
    2019's wi-wa-wombles € 2.244,20 = £ 1,909.46
    Wombling to wealth 2018 € 972,97 = £ 879.54
    Still a womble 2017 #25 € 7.116,68 = £ 6,309.50
    Wombling Free 2016 #2 € 3.483,31 = £ 2,969.05
    • Eyebright
    • By Eyebright 14th Jan 20, 1:17 PM
    • 954 Posts
    • 4,961 Thanks
    Eyebright
    • #4
    • 14th Jan 20, 1:17 PM
    Savings
    • #4
    • 14th Jan 20, 1:17 PM
    My saving goals are as follows:

    1) £500 EF to start off with, increasing to £1000 once I've got the debt ball rolling.
    2) £500- Christmas
    3) £280- Birthdays
    4) £500- Car Maintenance
    5) £160- Annual Zoo Pass
    6) £210- Professional body registration fees
    7) £150- House Insurance
    8) £250- Car Insurance

    I think that should keep me busy, but will cover all the big annual expenses that we should really plan for and never seem to do, resulting in us getting in a pickle or adding on unnecessary direct debits ...
    POAYDBX 2020 #? 20/4000
    1 debt vs 100 days #14 20/1000
    Saving for Christmas 2020 0/500
    EF Saving 145/500
    • Eyebright
    • By Eyebright 14th Jan 20, 1:26 PM
    • 954 Posts
    • 4,961 Thanks
    Eyebright
    • #5
    • 14th Jan 20, 1:26 PM
    • #5
    • 14th Jan 20, 1:26 PM
    Congratulations on getting your LBM!


    What have you done with your credit cards, now that you have consolidated the debts into one loan? Have you closed some of them? There is advice somewhere on this Board (sorry, I don't know the exact location) about which ones you can/should close that won't impact your credit score.


    Would the insurance company pay anything back for the new roof? Would there be a government scheme that would pay out money if you updated your roof to a certain standard / insulation? The electriticy/gas company?


    Good luck!
    Originally posted by Siebrie
    Hi Siebrie,
    Thanks for your kind words of encouragement! The roof would have been a no go with the insurance company as we knew when we bought the house the roof would need replacing, something to do with the nails used to pin the tiles in place. I want to say they had nail fatigue, or something to that effect, so really we should have saved up to replace the roof when we moved in, like a sensible person would do. But we didn't, so bam! £5.5k onto the credit card when it sprung a leak and all the tiles started slipping...

    My plan is to close both my credit cards once the EF is up to date. I've already reduced the credit limit on them both, and the actual cards have been hidden by my OH (who wouldn't be tempted to use them), to stop me from using them when I see something pretty I want to have, but haven't budgeted for!
    Thank you though, I'll see if I can find the post about closing them. I didn't realise closing them could potentially affect my credit score!

    I clearly have lots to learn!!!
    Last edited by Eyebright; 15-01-2020 at 3:02 PM. Reason: typo
    POAYDBX 2020 #? 20/4000
    1 debt vs 100 days #14 20/1000
    Saving for Christmas 2020 0/500
    EF Saving 145/500
    • Purplemumof2
    • By Purplemumof2 14th Jan 20, 1:43 PM
    • 7,770 Posts
    • 30,308 Thanks
    Purplemumof2
    • #6
    • 14th Jan 20, 1:43 PM
    • #6
    • 14th Jan 20, 1:43 PM
    Welcome back Eyebright

    Happy new year and happy new shiny diary

    Pmo2
    xx
    Official DFW Nerd Club - Member no. 791 - Proud to be dealing with my debts
    BC: £4100.00 Lloyds: £8000.00 OD £2000 MBNA: GONE
    Jan LTW 17/22 ~ Jan NSD 2/10
    PAYDBX 2020 #041 PD £40.00/£8000
    Xmas Pot £52.85/£500 ~ EF £280/£500
    20p Savers 2020 £2 Savers 2020 50p Savers 2020 SPC 13 2020 #003
    • Eyebright
    • By Eyebright 14th Jan 20, 1:44 PM
    • 954 Posts
    • 4,961 Thanks
    Eyebright
    • #7
    • 14th Jan 20, 1:44 PM
    The Plan
    • #7
    • 14th Jan 20, 1:44 PM
    OK, so here are the things I have put into action already to get started or plan to imminently.

    1) I get paid on the 25th of every month, so the first goal is to clear the O/D before payday, so that my new budget kicks in for February, it's a clean slate and I don't have to factor in clearing the overdraft out my new budget. This goal has hopefully been achieved, as I've hopefully sold something, which will be paid for and collected tomorrow.

    2) Created a budget- as others have said in their diaries, this is going to be key, as the little daily changes that become habits are going to be the key to cracking this debt and setting up great new habits to keep me out of debt in the future. This includes £10 to put in my purse each week as pocket money. What's left of it at the end of each week will go into a sealed pot and when it's full I'll cash it in to go towards the debts or sinking funds.

    3)Meal plan to get the grocery spends down

    4) When OT is available at work, do it! I'm working an extra shift on Sunday

    5) I've applied for a tax rebate on the .gov website for washing and maintaining my own uniform and for having to pay registration fees. Fingers crossed I get something back!

    6) Declutter the house and sell the stuff in the process.

    7) Join a few MSE challenges to help keep me focused on my goal of debt freedom!

    I'm sure more ideas will come to me over time, but that's enough to get me started hopefully. Anyway I've waffled enough on here, I'm off to read some other diaries in search of tips and inspiration.
    If you've read this far then thank you!
    POAYDBX 2020 #? 20/4000
    1 debt vs 100 days #14 20/1000
    Saving for Christmas 2020 0/500
    EF Saving 145/500
    • Purplemumof2
    • By Purplemumof2 14th Jan 20, 1:45 PM
    • 7,770 Posts
    • 30,308 Thanks
    Purplemumof2
    • #8
    • 14th Jan 20, 1:45 PM
    • #8
    • 14th Jan 20, 1:45 PM
    Looks like a good plan, good luck x
    Official DFW Nerd Club - Member no. 791 - Proud to be dealing with my debts
    BC: £4100.00 Lloyds: £8000.00 OD £2000 MBNA: GONE
    Jan LTW 17/22 ~ Jan NSD 2/10
    PAYDBX 2020 #041 PD £40.00/£8000
    Xmas Pot £52.85/£500 ~ EF £280/£500
    20p Savers 2020 £2 Savers 2020 50p Savers 2020 SPC 13 2020 #003
    • Eyebright
    • By Eyebright 14th Jan 20, 1:48 PM
    • 954 Posts
    • 4,961 Thanks
    Eyebright
    • #9
    • 14th Jan 20, 1:48 PM
    • #9
    • 14th Jan 20, 1:48 PM
    Welcome back Eyebright

    Happy new year and happy new shiny diary

    Pmo2
    xx
    Originally posted by Purplemumof2
    Hi PMO2! How are things with you? I promise this time I'm sticking around and getting this sorted.
    I always fall down after the initial rush of enthusiasm where I make grand sweeping changes. I kind of fall flat, lose motivation at the thought of years of being in debt and fall off the wagon. Not this time. My LO is 3 now, and I want out of this cycle of debt, so I can have savings for her future and take her on holidays and enjoy life.

    ETA: I'm off to find your diary, I'm sure I started reading it the other day when I quietly snuck back into MSE land!
    POAYDBX 2020 #? 20/4000
    1 debt vs 100 days #14 20/1000
    Saving for Christmas 2020 0/500
    EF Saving 145/500
    • Purplemumof2
    • By Purplemumof2 14th Jan 20, 1:51 PM
    • 7,770 Posts
    • 30,308 Thanks
    Purplemumof2
    Hi PMO2! How are things with you? I promise this time I'm sticking around and getting this sorted.
    I always fall down after the initial rush of enthusiasm where I make grand sweeping changes. I kind of fall flat, lose motivation at the thought of years of being in debt and fall off the wagon. Not this time. My LO is 3 now, and I want out of this cycle of debt, so I can have savings for her future and take her on holidays and enjoy life.

    ETA: I'm off to find your diary, I'm sure I started reading it the other day when I quietly snuck back into MSE land!
    Originally posted by Eyebright
    Can't believe your LO is 3, that went quick!

    I'm ok, still here, still in debt but the end is in sight (I hope!) lol xx
    Official DFW Nerd Club - Member no. 791 - Proud to be dealing with my debts
    BC: £4100.00 Lloyds: £8000.00 OD £2000 MBNA: GONE
    Jan LTW 17/22 ~ Jan NSD 2/10
    PAYDBX 2020 #041 PD £40.00/£8000
    Xmas Pot £52.85/£500 ~ EF £280/£500
    20p Savers 2020 £2 Savers 2020 50p Savers 2020 SPC 13 2020 #003
    • Eyebright
    • By Eyebright 14th Jan 20, 2:15 PM
    • 954 Posts
    • 4,961 Thanks
    Eyebright
    Can't believe your LO is 3, that went quick!

    I'm ok, still here, still in debt but the end is in sight (I hope!) lol xx
    Originally posted by Purplemumof2
    I can't believe she is 3 either! However I'm glad in a way, not wishing time away, but I finally get funding for her nursery fees. I've stretched it so get 22 hrs a week (she goes for 20hrs/week)- which means I'm not paying nursery fees. It's going to make such a difference every month!

    You have done so well, just got to stick it for a little bit longer. You will get there xx
    POAYDBX 2020 #? 20/4000
    1 debt vs 100 days #14 20/1000
    Saving for Christmas 2020 0/500
    EF Saving 145/500
    • GeorgianaCavendish
    • By GeorgianaCavendish 14th Jan 20, 2:25 PM
    • 802 Posts
    • 5,309 Thanks
    GeorgianaCavendish
    Good luck Eyebright Do you use cashback sites when doing your insurance renewals etc?
    • Eyebright
    • By Eyebright 14th Jan 20, 8:55 PM
    • 954 Posts
    • 4,961 Thanks
    Eyebright
    Good luck Eyebright Do you use cashback sites when doing your insurance renewals etc?
    Originally posted by GeorgianaCavendish
    Hi Georgiana, yes I do thanks! One year when we had a cat I managed to get more back in cashback than it cost me for the insurance for the year. That might be one of my greatest achievements to date! I was paid to have insurance!

    I need to remember to use them when I have a planned spend. I did quite well over Christmas, and have some cashback tracking.
    I'm going to try my hand back on Prolific and OnePoll. I have about £36 on OnePoll and have done for about 3 years, I will cash that out one day!!!!!
    I'm going to research the Shoppix app too I think, I've seen that mentioned on a few diaries.

    I should also add, I always switch for the cheapest deals with my utilities, broadband and insurances. When my current phone plan is up in November I'm going to switch to SIM only, as I'll be able to make some savings there. Shame it's so far away! I checked on Vodafone this morning and if I want to do my upgrade early it will cost me £207 at this time! Errr... I think I'll wait thanks
    POAYDBX 2020 #? 20/4000
    1 debt vs 100 days #14 20/1000
    Saving for Christmas 2020 0/500
    EF Saving 145/500
    • Poppy1984
    • By Poppy1984 14th Jan 20, 11:05 PM
    • 335 Posts
    • 773 Thanks
    Poppy1984
    Hi eyebright! Thought I'd pop along to your diary and say hi after you've subscribed to mine

    Good luck with everything! You sound like you've well and truly had your light bulb moment and made a fantastic start!!!
    19-02-18 Total Debt £30,322: Loan £26,522, Next £815, Very £1600, Tesco Credit Card £1600
    Loan £17,697 remaining Original DFD Aug 2024 New DFD Aug 2023
    • Eyebright
    • By Eyebright 15th Jan 20, 8:34 AM
    • 954 Posts
    • 4,961 Thanks
    Eyebright
    Thanks for stopping by Poppy!
    I'm very good at getting off to a fantastic start, what I have to work on is sticking with it once all the big changes have happened and I need to keep plodding day in day out chipping away at the debt. But, I am definitely in it for the long haul now. I was up until late last night watching Youtube videos on YNAB. I'm wondering if it would be helpful, it seems very popular here on the forums.
    POAYDBX 2020 #? 20/4000
    1 debt vs 100 days #14 20/1000
    Saving for Christmas 2020 0/500
    EF Saving 145/500
    • Eyebright
    • By Eyebright 15th Jan 20, 8:47 AM
    • 954 Posts
    • 4,961 Thanks
    Eyebright
    Morning MSE,

    I've got today off work, and what's more, I'm toddler free! She goes to her aunty on Wednesdays as I usually work. I'm very excited and hoping to make it a productive day once I've finished my cuppa and had a shower!

    Hoping today to have £200 coming my way, so I can clear the O/D ready for payday and a new month next Friday

    So this is my jobs list for today, hopefully if I have any time spare I'll start making a birthday card as LO has a birthday party to go to next weekend. Note to self: need to get them a little gift to take to the party...
    My resolution this year is to make all my own cards and tags as I love crafting and have a stack of supplies I never seem to use. I've already made one for my brother as it was his birthday last week.

    To-Do List
    • Wash bed linen- DONE
    • Take down and wash all the net curtains
    • Hang up new nets bought for the landing
    • Paint toenails
    • Re-organise my nail polishes- DONE
    • Call my grandparents and say hello- DONE
    • Update my January bills in my BuJo
    • Set up Pay Off All Your Debt By Xmas spread in my BuJo
    • Sort through the pile of magazines on dining table
    • Make birthday cards
    • Go to the post box- DONE
    • Online food shop between 2-3pm. Put away- DONE

    That's quite the list I've given myself, so I had better get cracking.
    Have a fabulous day everyone
    Last edited by Eyebright; 15-01-2020 at 3:04 PM.
    POAYDBX 2020 #? 20/4000
    1 debt vs 100 days #14 20/1000
    Saving for Christmas 2020 0/500
    EF Saving 145/500
    • Purplemumof2
    • By Purplemumof2 15th Jan 20, 9:08 AM
    • 7,770 Posts
    • 30,308 Thanks
    Purplemumof2
    Morning,

    Good luck with your list today.

    Hope that the money comes in for you today.

    Have a great day xx
    Official DFW Nerd Club - Member no. 791 - Proud to be dealing with my debts
    BC: £4100.00 Lloyds: £8000.00 OD £2000 MBNA: GONE
    Jan LTW 17/22 ~ Jan NSD 2/10
    PAYDBX 2020 #041 PD £40.00/£8000
    Xmas Pot £52.85/£500 ~ EF £280/£500
    20p Savers 2020 £2 Savers 2020 50p Savers 2020 SPC 13 2020 #003
    • Eyebright
    • By Eyebright 15th Jan 20, 12:17 PM
    • 954 Posts
    • 4,961 Thanks
    Eyebright
    Thanks PMO2.

    I'm a bit behind on my to-do list, as after finally completing the 11 million questions on Prolific last night, I got my first study through and it should be for £5!!
    Ecstatic, though it did take me just over an hour to complete!
    Hoping to hear soon from the buyer, I'm sure they said around lunchtime, so fingers crossed they don't back out. I really want to clear my O/D today. Then the daily fee will stop and save me a bit of money next month when I get the charges through.

    Right dashing out to the post box now.

    ETA: Just done another study on Prolific, only a 5 minute job, but that should be 55p coming my eway. Hopefully it will all start to add up. Not heard anything though from the person who is supposed to be buying my item. Grrrr...
    Last edited by Eyebright; 15-01-2020 at 3:05 PM.
    POAYDBX 2020 #? 20/4000
    1 debt vs 100 days #14 20/1000
    Saving for Christmas 2020 0/500
    EF Saving 145/500
    • Eyebright
    • By Eyebright 15th Jan 20, 5:11 PM
    • 954 Posts
    • 4,961 Thanks
    Eyebright
    Hoorah!
    Yay! First victory achieved!

    The item that was being collected has officially sold and I've been paid. I've cleared the O/D from my current account and have given myself and extra £10 in there to last me until next Friday when it's payday. So relieved, to have past the first hurdle, even though it was quite an easy one.

    I also still have £41 in my Paypal account extra from the payment. I'm thinking bung £20 into the EF and send £20 to the loan for my first overpayment.

    I don't know if I mentioned it, but I've also started bullet journaling as another way to keep me focused and productive, and as part of my "BuJo", I've created spreads that I can colour in to tracking my saving pots and debt repayments. So I could colour in 2 squares for EF, and 2 squares in my debt challenge spread and 100 days vs 1 debt. I'm aiming to pay of £4k this year/£1k in 100 days...
    I've been dying to colour in some squares but being in my O'D meant I had no money to put towards anything!

    Also the study I did for Profilic earlier has been approved, and I got a £3 bonus on it, so I've got £8 there already for one study. I'll cash out everytime I get to £10, so it's in line with colouring in my squares!

    Right, must dash, LO will be home soon, so time for cuddles and silliness until she goes to bed. Then I'll decide what to do with my pennies.
    POAYDBX 2020 #? 20/4000
    1 debt vs 100 days #14 20/1000
    Saving for Christmas 2020 0/500
    EF Saving 145/500
    • Poppy1984
    • By Poppy1984 15th Jan 20, 5:49 PM
    • 335 Posts
    • 773 Thanks
    Poppy1984
    Woooooo! Well done!!!! That's amazing your overdraft is now gone!!! Yay!

    Bullet journal sounds good!

    Do you have anything in your EF at the moment? The reason I'm asking is you might be better to build that up a little first before starting to over pay your loan. That way if an emergency comes up you don't have to go back to the credit cards or overdraft. Just a thought.

    Well done sounds like a very productive day I'm exhausted just reading all that lol x
    19-02-18 Total Debt £30,322: Loan £26,522, Next £815, Very £1600, Tesco Credit Card £1600
    Loan £17,697 remaining Original DFD Aug 2024 New DFD Aug 2023
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