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.

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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!!!

Debt reduction is hard

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First of all I would like to apologise for an error in my last post. For some reason I had it down that credi card 2 was a £1,500 limit when in fact it is £2,000. I have since amended the post and total debt.

Now it is the 6th November, all my bills are paid and food bought for the month so now I know exactly what amount debt I’m in.

Of course it would be more of a reduction if I hadn’t put my food shop on it this month but I do need to eat.

This month’s reduction is a small £71.48 but thats only going to get better. I hope next month’s reduction will be arround the £120 mark, but that doesn’t take into account any emergencies (which I pray won’t happen).

Fingers crossed I can manage to get my debt levels down and eventually become debt free.

Any tips and tricks to help would be greatly appreciated.

Oh and a little update. I am still vaping and I am now cigarette free for a total of 22 days.

The start of becoming debt free

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It has been a long time since I posted, and I apologise for that but life is rubbish and gets in the way.

Since August 2015 when the ex moved out I have struggled financially. I was used to splitting the bills and having money to spend every month so I started spending money. When he moved out I wasn’t used to not buying what I wanted when I wanted in and over the past 14 monthsy debt has spiralled.

I am quitting smoking so that I can save money (currently on day 8 of no cigarettes) and I am not having a social life so I can get the debt paid off ASAP.

The thing that has killed me is a high interest rate credit card, and when the card is maxed out they increase the credit limit. In 2.5 years I’ve gone from having a £250 credit limit to a £3,000 credit limit.

My debt currently stands at £6,536.96 Technically it is higher as I have a store card with £125 on it and an overdraft but the 6k is the main debt. It is broken down as follows:

  1. Loan- £1,536.96
  2. Credit card 1- £2,000
  3. Credit card 2- £3,000

The loan is a fixed monthly payment of £98.13 per month and I will have my final payment for that in April 2018 so that debt I’m not too worried about.

Credit card 1 is a low interest card, it is maxed out but payment is £50 per month which is slightly more than minimum.

Credit card 2 is the killer at a huge 39.9% APR variable interest rate. Bear in mind I pay £50 a month on a debt of £2,000, well with card 2 my minimum payment this month, on a debt twice the size, is a staggering £188.

I need to get this debt down, I can’t afford it. I pay it but then have very little money left for me after the bills have gone out, and what I do have goes on food.

So here is the plan….

  1. Cut up credit card 2
  2. Keep paying £188 per month until February
  3. Make monthly payments of £150 until paid off

I have direct debit set up to pay £150 per month unless that is less than the minimum, then the minimum payment is taken. I am hoping by February to have the minimum payment down to £150, then after that the £150 will be more than minimum.

I need to be frugel with money. Any excess money left over at the end of the month will go to pay off credit card 2.

If my calculations are correct I will have paid off my loan in April 2018, credit card 2 by October 2019 and theoretically credit card 1 buy October 2020.

Once the loan is paid off I will have it a bit easier on finances so I will easily be able to afford the credit card payments and not struggle so much with money. Once credit card 2 is paid off I’ll be having a party.

Wish me luck. I shall keep the blog updated as to progress