1 year challenge to clear debts

[IwanabeDebtFREE]

I owe 25K on a mixture of credit cards and an overdaft. I want to clear this in one year.

I have started some changes, food shopping/packed lunches which will save me at least 4000 alone.

I have listed out the debts with highest interest rate ones to be tackled first and am going to use snowball technique.

I am owed some PPI which I will repay debt with.

I have surrendered an insurance policy this morning which is uneccesary which I can get 4000 for

Going to Ebay and sell gold.

wish me luck the challenge begins and anyone else wish to join me welcome

[Hattie11]

Can u surrender all life assurance policies? I thought it was only on death of one of us? Or do they all have different terms?

[TiredofZombies]

Fergus I totally see your reasonin but I think I'd still recommend saving less to pay off more debt. You interest on your savings will be never be as much as what you pay on your borrowings. £100 in savings may earn you £5 where £100 of debt id costing you £7. Totally made up figures but you see what I mean.

In addition, once you own a house there can be all sorts of unexpected expenses that, if renting, would be LL's responsibility. Say for example the boiler goes, you'd have approx £2000 to pay out.

[AbbyLou]

Yes Mum2Fergus, we are going to get all the paperwork out at the weekend and see what we can do with the house/contents insurance. We haven't changed them for ages so we may be able to make some savings. I have put the figures in for car insurance and could also make some savings but does it need to be up for renewal for me to change? I'm not sure how it works!

[Mum2Fergus]

Abbylou, check your existing policy for any fees. It may be as simple as an admin fee to cancel, or they might try to charge you the remainder of you policy term.

Managed to have £581.20 left from last months wage so thats in the pot. Attempting £50 housekeeping this week...freezer still relatively full so fingers crossed it goes ok!

Had a bonus memory today too! Im due a bonus from work in Dec!!

[IwanabeDebtFREE]

Evening everyone, glad to be in company.

One of my credit card statements came in today and £2000 has been credited by them as a 'CR Goodwill CS'. Not quite sure what this is but may have something to do with PPI I have been claiming back.

so I am now down to £22,245 from my original 25,000 at start of thread.

[Mum2Fergus]

Hi Wanabe, thats a bit of a result! Well done how did you get on with surrendering the insurance policy?

[boringnamechange]

I have just under £3k debt and had worked out to be debt free by sept 2014 (on 0% credit cards) but this thread has got me thinking I can do it a lot sooner I just need to be more frugal and determined.

Great result for you already op!

Will sit down tomorrow and sort my paperwork out. I am also determined Christmas is going to be more budget friendly not panick buying like most years.

[Mum2Fergus]

Hi Change, and welcome! How did you get on with your paperwork today?

[Mum2Fergus]

3 days into my £50 budget, and Ive spent £13.07!! If I seriously knuckle down, this approach will save me just over £200 a month!

[AbbyLou]

I'm determined to spend less on shopping this month. We usually budget £300 a month and always run out. However I know I can do it for less, I just have to be imaginative. If I can save a bit it's all the more to go into the pot to pay off. We have a holiday booked for February half term to DLP which is the dc Christmas present and we have £220 left to pay on that by 10th December so that's a priority.

[DorsetKnob]

we have been to court again this week at the instigation of the defendents who didn't turn up, so fingers crossed we will get the money that they owe us and that will wipe out one credit card and give us the money to do DC's bathroom, by DD a matress and the chickens a shed. Any left over will go on the other CC and then it is just waiting for the loans to finish and clearing of an O/D on an old bank account.

ON the plus side, all christmas shopping is now done, bar a couple of stocking fillers. I can highly recommend putting money aside in an account monthly to cover this.

[oohlaalaa]

mum3Fergus I work freelance so my plans are to spend less time on internet and procrastinating, and more time fee earning.

We already only buy what we need, and have cheapest insurance, electricity, meal plans etc.

[Mum2Fergus]

Procrastination. I hear ya oohlaalaa! Fair to say Ive a new found determination at the moment. For Sale sign will go up outside the house we rent on Friday, and Im determined next move will be to our house and not another renral. Of course Im relying in a lack of buyers over the festive season!

Aniother wee bonus tonight...having a clearout to a) have less to pack when the time comes and b) to find anything worth going on Ebay. Mid tidy I found travel wallet with €75 in! Will exchange that fir sterling tomorrow!

[cerealqueen]

Good thread, thanks OP.
We are trying to rein in debt too and told family no xmas presents this year, it was getting silly, Big families both sides. We will make some shortbread in festive shapes and send that instead.
The only money I spend is on Ebay for DDs and my clothes (for me very little) and I only buy when I have sold other stuff so the money to pay always comes from my paypal balance.

[IwanabeDebtFREE]

Mum2, I am still waiting on the surrender of the insurance policy. Thankyou to the person regarding the gold, I have had a little weigh in and value is approx £8,000!

[Mum2Fergus]

Jeesy peeps Wanabe...£8k! Thats amazing!! No such luck on my front, couple who were due to view my car have cancelled on me

[Fluffycloudland77]

That's a shame, we sold a car privately once, another buyer will be along soon.

[Mum2Fergus]

Hmm I live in hope...its not your everyday car so enthusiasts can be few and far between.

[Mum2Fergus]

So house gutted this morning to make it presentable for estate agent photographing...suddenly thought 'why bother'! Dont want it to sell too quickly lol hopefully we can continue to rent here into first half of next year...by which time I'll have done more saving and the development Im interested in buying in should be ready!

Have relisted the car, listed 6 things on Gumtree, forgot to exchange currency to sterling, sticking well to my £50 household budget for the week. Once estate agent gone Im going to tackle another cupboard to declutter and see if anything for selling!

How has everyone else done this week?!

[Mum2Fergus]

Found an old MP3 player complete with remote controlled soundock...was set to charity box til checked on Ebay...they go for about £40! Happy days, will get that listed tonight

[Mum2Fergus]

Where is everyone?! Ok, Im in a quandery (if thats how to spell it) ... Ive my car advertised for sale-I say car, its an 8 seater MPV that has been imported from Japan and they are commonly converted to mini campervans-Ive been asking £6.5k but have been made an offer of £4k by a specialist. Im scared no other offers come in with it being in a niche market...do I take the money and run? I'll make a loss of £2k but will save in long run - petrol tax ins all more expensive than run of mill car.

[QuinnFabray]

Bumping this thread. I have £17,000 of debt. I'm aiming to clear at least £10,000 of it in 2013. Anyone care to join me?

[Mum2Fergus]

Hi Quinn, Im still around! Welcome...things moved on a bit since my last post. Sold MPV for full asking price...and had offer accepted on house! So more debt instead of less for me...but at least Im now on property ladder. Ive approx £6k on CC and a £11k loan too...short term goal is to clear CC during 2013

[Carriemoo]

I'm going to join - I have a £750 credit card and a £350 store card to wipe. I also want to make a start on our £10500 loan we took out last year.

Lets see how it is in a few months.

My main aim this month is to stop eating out at work - I've planned I can have lunch out on the 31st January only if I have paid off £200 on either of my debts.

[QuinnFabray]

Hi, sorry I disappeared again. I'm basically on a no spend year. Not as some kind of personal challenge, but because I absolutely have to get myself out of debt. I'm snowballing, starting with my smallest £275 store card debt. Then I have £3000 on on CC, £5000 on another and £9000 on another, all maxed out. Today was a no spend day, good start.