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Becoming debt free in 2018

(448 Posts)
iammeegan Sat 16-Dec-17 10:55:24

I've decided to make a plan to become debt free in 2018.
Money and debt give me terrible anxiety which means I bury my head in the sand and it's become out of control!
So starting in the new year and I'm going to stop spending and start paying everything off.
I would love some support and people to help motivate me.
I have already worked out that I can be debt free in 14 months with some serious cut backs and forward planning.
I'm currently on mat leave but will be returning to work in March which will allow me to pay off more each month

So would anyone like to join me?

Ta1kinPeace Sat 16-Dec-17 18:27:14

Remember to use the Standing order trick on any credit cards ....
I'll bump the spreadsheets thread so you can see how it works

iammeegan Sat 16-Dec-17 18:47:43

Thank you, I know what I've got to do to pay it off but I could do with some support, money saving types for everyday life and generally help keeping on track.
I would like to read through that thread though

StoorieHoose Sat 16-Dec-17 18:53:00

What’s the standing order trick please?

Ta1kinPeace Sat 16-Dec-17 18:53:38

There are a couple of old debt threads that were useful for several people ...
they all had "drowning in debt" in the title
One of the posters cleared tens of thousands in a couple of years
partly using the standing order trick combined with snowballing (MoneySavingExpert explains that one)

mustbemad17 Sat 16-Dec-17 18:54:12

Ooh i'm game for this! Haven't even sat down & worked out what my debts are but i cringe every time the post comes!!

Whatififall Sat 16-Dec-17 18:55:16

I'm doing the same! I won't be debt-free within the year, I'm aiming for 2020.
I've done a lot of reading about the debt snowball (starting smaller than snowballing up to the big debts) and I'm going to do that.

MrsGrindah Sat 16-Dec-17 18:55:55

Did it last year and it’s was the best feeling ever! These are the things that worked for me ( not necessarily saying they would be right for you)

Paying off the debt that bothered me most....which wasn’t necessarily the one that was the most expensive interest wise. For me I hated the overdraft so once I paid that off it was a great motivator
Switching to cash.. which I know goes against the grain these days but makes me realise how much I’m spending
Having a savings pot even though I still had debt... it was small but it showed me I could save
Pausing before buying... eg I see a jumper and think “ but do I love it ?” If the answer is yes then fine. If not I leave it.. I have other jumpers
Penny sweeping..little bits really do add up

I love being debt free but I’m not smug about it and know I could easily be back there so this years focus is saving !

Ta1kinPeace Sat 16-Dec-17 18:56:20

I've bumped the spreadsheets thread that shows it
but basically if you have a credit card on which you are paying the minimum,
change the direct debit into a standing order for £1 rounded up
than the amount you paid this month.
That step alone assuming you stop spending on that card
reduces the repayment period from 30 to 3 years grin

onlyonaTuesday Sat 16-Dec-17 18:59:22

Place marking because I’m at work

iammeegan Sat 16-Dec-17 19:25:26

Hank you everyone! It's especially great to hear the success stories. My biggest problem at the moment is an overdraft which I'm getting charged £2.80 per day for. I've chickened it of three appointments at the bank because I feel like they look down on me.
So my first job is to pay that off and close it.
Will look at the other thread plus the snowballing and standing order tricks.
My biggest problem is panic buying and avoiding.
It's time to face this head on!
I've done a meal planner for the week and can get away with only spending £40 on food as long as we stick to it.

Ta1kinPeace Sat 16-Dec-17 19:29:03

Would the bank let you convert the overdraft into a loan ?
Or could you borrow from somebody like Zoopla on 5% to clear the overdraft
and then WHUMP the Zoopla loan while not giving the bank loads of money in fees

Foodylicious Sat 16-Dec-17 19:37:21

Seriously check out Dave Ramsey.
Such a good step by step guide on how to order your finances and steps to get you debt free!
There is a UK fb grouk called Dave Ramsey UK i think.
Good luck

iammeegan Sat 16-Dec-17 19:40:10

I already have a loan with the bank, if I consolidate them the interest would be at least 49% because of a bad credit rating. That charge will go down the less I use the overdraft, so at capacity it's £2.80 per day but the more I pay off the less they will charge me

Ta1kinPeace Sat 16-Dec-17 20:20:26

Ah, OK
then yes, very tight budgeting is the way to go on the O/D
and then you can start to work on the rating

StoorieHoose Sat 16-Dec-17 20:22:07

Thanks Ta1kinPeace!

Cowardlycustard2 Sun 17-Dec-17 11:42:24

I can’t find the spreadsheet thread fblush

Ta1kinPeace Sun 17-Dec-17 12:15:43

I just tagged you in it but spelt your name wrong ! d'oh
go to the "money" board and its right near the top :-)

Cowardlycustard2 Sun 17-Dec-17 12:53:12

Oooh found it thank you! This is great, am rubbish at setting up spreadsheets

Ta1kinPeace Sun 17-Dec-17 12:55:43

You are very welcome to download them and play with your own copy.

Yonks ago a poster did the credit card one and printed it out - 16 pages long - and laid them up the stairs so that when her DH came home he could SEE how long their debt would take to repay.
It worked.
Last time I looked her finances were well on track.

specialsubject Sun 17-Dec-17 14:36:58

Start now with minimal present buying and no Christmas waste. Good luck.

iammeegan Sun 17-Dec-17 15:37:55

SPREADSHEETS for : Debt Control, Budgeting, Mortgages etc

Link to spread sheet thread. Thank you very much for that

Please keep posting though if you would like support or if you've been successful.

onlyonaTuesday Sun 17-Dec-17 17:09:17

I need to pay of 10k of credit card debt and a store card.
Really not sure where to start with this?!?

Ta1kinPeace Sun 17-Dec-17 17:20:31

(a) stop using them - only debit card from now on in.
(b) convert the direct debit on each into a standing order
for whatever you paid this month rounded up to the nearest £5
then ignore them both
and get your spending under control.
After a year or two they will be gone.

confusedwife84 Sun 17-Dec-17 17:36:21

onlyona I have £3k and it literally makes me so anxious. I'm on mat leave at the minute so struggling to get a handle on it

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