Monthly update

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Overdraft increase aside (and I only put that aside as it doesn’t really cost much to use it) my debt level is slowly decreasing.

9 more payments on my loan and then I will be a bit better off every month and hopefully then the debt will decrease quicker.

 

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I have to say I’m actually a lot less stressed now, seeing that my debt levels are decreasing. They aren’t decreasing as much as I would like but every month I see the total going down.

What I need to focus on is CC2 and getting that level down. I need to buy the other half’s birthday present, concert tickets, so I will need to buy them in August, and they will need to go on the card, but that’s not a lot of money. Then I will be cutting the card up, I won’t be making any more excuses and keeping it “just in case of emergencies”, because I know I will spend on it.

I can safely say I am very slowly getting there, and so much so my credit has increased too.

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I am hoping that we get a bonus at work after the company financial year end, as was stated by one of the partners last year, but we don’t know what we would get and I can’t rely on a possible bonus, but that would significantly help.

Fingers crossed for a good bonus, even £50 would help.

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.

 

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