Shoot me now!

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Current debt level

Cc2- £2966.77

Cc1- £2000.00

Loan- £960.82

Total – £5927.62

Now for the shoot me part. I got an extension on my overdraft last month as i was really struggling. I had 3 weeks left until pay day and had maxed the overdraft out. It went from £300 to £750… i have 3 weeks left until pay day and i have a current balance of -£542.

I hadnt planned to spend that much money and get too far into the overdraft but had to trear my other half as he has helped me so much. In 6 months i had not paid for a night out drinking or even a meal so i did pay a couple of times. Now i need to stop.

I have never counted the overdraft towards my debt level as it barely costed me anything to use it but now it does. If i go to 750 every month i will pay almost £20 for thrle priviledge. 

My hours are short in August so wages will be down. I am concentrating more on the credit card debt but I have come to the realisation I cant help but buy things and buy things I dont need or want. I buy rubbish or take money out to go drinking with. This NEEDS to stop.

I need cc2 paid off ASAP and I hope by August 2019. Loan paid off April 2018 and cc1 paid off by December 2020. I want tp be debt free before Im 31.

Friends ask why does the boyfriend not move in, we have been together 6 months. Neither of us are in a rush, we have both done the relationships where they go south after you rush so we will move in together when we are ready. Yes it would help me get out of debt quicker and would financially be better for me but that cannot be the basis of a relationship. It will happen when it happens and in the meantime i have an awesome guy who keeps yelling at me when i buy something as he knows i shouldnt be spending.

So as of the 4th June 2017 I have no food in the house so I will use more of my overdraft for food but that is is. Keep it as low as possible and shop at Aldi.

Other than food I am not going to buy anything for 3 weeks….realistic target and if achievable it will get extended.

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 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