Becoming debt free in 2018

[iammeegan]

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?

twinkle
You'll get there.
On maternity leave you can save loads of money.
No new work clothes. No lunches and coffee out. No child care. Going to any event off peak. Hitting the yellow stickers at the supermarket and freezing stuff.
Cooking from scratch (the oven helps warm the kitchen)

When I stopped working my day to day expenses dropped loads - and that money is 50:50 enjoyed / thrown at debt.

I agree that yellow stickering is a good idea! I've been trying to keep my eyes open for reduced meat in particular as that seems to be the most expensive thing!

Need to get back into batch cooking then freezing so if things are particularly tight one week, we have food in the freezer!

Not sure if this is the best place to ask this but how much of your debt problems do you let your DC know about, obviously not little DC but teens and upwards?

myway
I'm an absolute believer in being honest.
"we cannot afford that" will make ALL children realise that the plastic thing is not a magic money tree

I am self employed so my kids have always known that some months there is money and some months there is not.
Now I have savings its a lot more relaxed, but I had no "cushion" until my mid 40's
Both my kids are really good with money - they understand about credit and borrowing
so they will hopefully never get into debt (other than student loans)

The sooner financial literacy is part of their brains the better - I'd say from year 3 upwards.

Can I ask

If I pay my mortgage by Standing order instead of direct debit

Will this be better

Hi there quitelikely
Your mortgage will be best as the direct debit as then the bank can adjust it if the rate changes.

If its a repayment mortgage, then the money they are taking will be paying down the balance so its all OK

If its an interest only mortgage, then give them their direct debit and use all spare cash to pay down the capital.

The standing order trick is primarily for unsecured loans where the lender takes a percentage of the balance each month

• in that situation, paying even a couple of pounds extra every month will snowball through the debt.

Have a play with the spreadsheets on my spreadsheets thread

• there is one for credit cards
• one for mortgages
• and one for household budgets

I agree TalkinPeece is letting them know about not borrowing etc but I mean things such as bad decisions which have then become debt problems if you get what I mean.

Thanks @ TalkinPeece – you’re right, as usual!

All this support on here is really, really helping. Thank you all.

I allowed myself a treat this morning – a McDonald’s breakfast . I know most people won’t class that as a treat but I haven’t had one for ages! DS has a birthday party tomorrow so I’ll be going to TKMaxx to find a cheapy present! No other plans this weekend so keeping it cheap and cheerful.

DH is under strict instructions to not buy any food from the supermarket! We have plenty to get us through for the foreseeable.

myway
things such as bad decisions which have then become debt problems
I would.
Just because the more financial literacy you can give your kids the less likely they ever are to be in debt.

• never buy a financial product you do not understand
• never lend to others more than you can afford to lose
• never take out a store card when drunk it took me years to pay off
• if an investment return seems too good to be true, its not true
• if a partner hides their bank records from you, ask why

all the things we have learned the hard way, teach them young.

I’ve really enjoyed reading this thread and getting tips and encouragement towards becoming debt free this year.

I’m currently on course with my last loan payment due in October 3rd (£364/month) and if I keep plugging away at my Next account, that should also be gone in October (£2-300/month). All great as these are my only debts left.

What I’m struggling with is the impulse to extend the loan and purchase some things we’ve had to hold off buying. We are also having to go without a holiday this year so it’s tempting to put one on credit.

How do you all keep being good when the end is so close?

Its the same as weight loss - what do you want MORE ?
Which will you regret years later ?

Deferred gratification - the science behind it explains both debt and weight

That explains a lot considering I’m overweight too!

You are not alone
But if you can crack deferred gratification life will get a lot better ....

My other main posting area on MN is the 5:2 board ......
knowing that you'll enjoy a bit of really good food later
more than scoffing junk now
is a key part of it

getting out of bad spending habits is exactly the same thing
its a behaviour feedback loop that once reset can be kept working properly

Unfortunately it's been confirmed today that I will miscarry.

I have known since Friday but was praying it wasn't going to happen.

Obviously have taken my eye a bit off the ball moneywise.

This was an IVF baby too, hence the high debt.

twinkle I'm so sorry to hear that

Be kind to yourself xxx

Oh twinkle I am sorry xx

£25.000 in debt. Various loans, credit cards, overdrafts. Currently able to meet all payments but our income will be going down in September due dh’s semi retirement ( Ill health )
Panicking

Thanks @Makingdinner and @Mummingainteasy

@Echo2 - we are in a similar boat with the amount that we owe. Keep chipping away. Are you paying interest on the cards?

Hi twinkledag I’ve only just read back a few posts and seen your news. I’m so very sorry. ( first time posting on this thread )

Regarding our debt. Yes we are paying interest on everything, interest only comes to about £400 pm.

Thank you echo.

£400 is loads. Can you transfer on to an interest free card?

@twinkle. I'm so sorry to hear that news.

Can I join in? 'Can you transfer onto an interest free card' is what I'm trying to do, so would love answers on that.

Try here for balance transfer cards info -

www.moneysavingexpert.com/credit-cards/balance-transfer-credit-cards

Thank you. Have just been on an M&S one. Been through the rigmarole of status etc and they've asked for my bank a/c number to verify credit checks.

That can't be right surely?

Yes I’ve had to give bank details in the past.

Yes I've given bank details too. Think it's just part of you verifying you are who you say you are. I got a 0% credit card with the post office. Dps is with virgin. It's about 36 months 0% balance transfer i think.