Breakdown May 2017

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As of today my debt stands at £5997.47.

I will get this lowered and my aim is by 31st December 2017 my debt will stand at less than £5000. If my calculations are correct I can actually get my debt down to £4700 or there abouts.

I am being careful with money now to make sure I can pay off a good amount of the debt and still manage to live. I made a spreadsheet for one of the credit cards.

 

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Every month this works out roughly how much I should be paying, and obviously the more I pay off the better. It’s not 100% accurate but I would rather overestimate the minimum payment than underestimate it.

As for CC1, well that’s 1.19% interest per month so not too bad, and only 12 payments left on the loan. Once the loan is paid that’s an extra £98.13 a month I will save, well not save as I will use it for other debts, but you know what I mean.

I even now have a spreadsheet for budgeting.

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It works out how much I will have left every month. My overdraft is now increased to £750 but I don’t intend on using that, but I can keep an eye on what I’m spending every month and try not to overspend.

The above is the spreadsheet from my next paycheck. As you can see, after all debts are paid and bills I’m left with -£202.90 before buying food etc. I then plan on going up to -£350 as a maximum, and then the month after drop that to -£330 maximum and slowing bring the overdraft down also.

I have noticed some of my bills are quite high. My EE bill, I cannot change until I renew my contract next May, so that will go to a cheaper contract from then. As of 1st November 2017 I can contact Virgin Media and get rid of the TV and phone line, thus reducing the bill.

I am quitting smoking, saving money and improving my health. I vape. I need something to help me and vaping does. It can get expensive so I’m going into DIY liquids, thus saving me a fortune.

 

Progress, joy and success

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It is the first of the month so all debts are paid again, there is some interest to be added to to the credit cards before the monthly final balance but I am very happy, and might I add, very proud that finally my debt level is under £6000.

I have estimated the interested based on the previous months interest, and the info on the two credit cards websites and in total my debt level should come to approximately £5977. I am so proud to have gotten to that goal. My next goal ia £5000. This one may be tough. With impending TPD regulation enforcement I need to buy supplies to make my own eliquid…. this comes to a grand total of £88 which I will need to buy at the start of June.

Do you want to hear the downside? I can’t afford it so it will be going on the credit card. The upside to this is it will be enough to make 2.5ltr of liquid which will be enough for a long time, approximately 2 years. That means I wont need to spend the £30-60 a month on liquid. Spending money to save money.

So target wise, it’s now to get debt to £5000 by Christmas.

On 1st January 2018 I will owe less than £5000. Theoretically I should be able to do it by November but I want the security there in case anything happens.

I have to say, for the first time in a long time I’m feeling happy about my money and debt levels, rather than constantly worrying and my anxiety always being heightened due to it.

Yes I am still broke and have no money for nights out etc. But I would rather get my finances sorted so that by October 2019 I will have only 1 debt left and that credit card will end up being paid off in no time.

Spend money to save money

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So my current debt level is £6,165, so this has gone down considerably.

My plan was to not spend on the credit card over the next few months, though ideally never again but we all know that won’t happen.

Well I am going to have to spend. I am a vaper and the TPD regulations come into force from 20th May, which means my liquid will go up in price. I will only be able to buy 10ml bottles with nicotine. Currently almost everywhere has sales on to get rid of the bottles that are bigger than 10ml.

I have come to the conclusion it’s better for me to stock up on liquid now whilst its cheap and whilst i can buy 100ml bottles, then I won’t need to buy for the next 6 months or so. So whilst I was going to get my credit card bill down it seems impractical at the minute.

Overall I need to spend money now to save money in the future.

The struggle

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This months debt balance is £6,260. 

It has reduces by £80 this month but at this rate will take forever to pay off… not to mention constantly being skint and minimum payments aren’t decreasing.

Only 15 more payments on my loan though so that’s something, then the money I save from not paying that can pay other debts off.

Slowly getting there

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I admit, over the past couple of months I haven’t updated the blog, with Christmas etc. This is also the excuse for me not getting the credit card bills down. I was doing so well too but then Christmas came and I had to buy booze for parties and buy liquid for my vape.

Saying all of that I can see that I am slowly getting there, and hopefully I will not have to use the credit cards for the next couple of months seeing as household bills will be reduced due to payment plans.

I will become debt free. I will become debt free. I will become debt free!!!