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?

I'm joining you. We've got 50k debt (and don't own a house). I want to be debt free by 2020.

I have a spreadsheet... I have a plan. Just need to stick to it and hope for no unexpected expenses!

Can someone explain snowballing to me please? Google confused me!

Ignore previous post, I worked it out via wikipedia!

It's what we're doing.

This morning I have changed my credit card payment from DD to standing order, I am determined to get this paid

dariel
Glad you like the sheets - anybody can download them and make use of them.
I dislike banks so I'll try to help anybody reduce the amount of interest they pay.

confused
Go for it.

So I’ve joined the Dave Ramsey FB group and had a good look at the spreadsheets. It’s a real eye opener seeing how much of a difference even a small overpayment makes. I’m starting to get my plan together to start from January with the snowballing - I can see a bit of light at the end of the tunnel at last!

I have a question as I can see the logic of having emergency funds set by but struggling with wanting to use the money to pay debt. I’m due a small tax rebate and my instinct is to use it to pay off a small debt but the reading I’m doing suggest starting an emergency fund - any thoughts?

Thanks for this thread and the spreadsheets. My resolution after Christmas is to set up a proper budget and to work to it. We aren't in debt at the moment but due to circumstances beyond our control we are now working to a greatly reduced income and will have to not pay some bills this month. It is all household stuff, no CCs or loans.

I've started filling out forms and sending them off for benefits and the CAB gave me a form for the food bank this morning. But we will definitely be in some debt in the New Year,although I appreciate not as much as everyone here. I am trying to get the money together to at least pay the rent this month.

I'll start on the spreadsheets so at least I can see what is going out and look at what is non essential and cancel those.

Would it be worth opening a Creit Union account at all do you think Peace

Me too! Also on Mat Leave ending in March. Was trying to avoid going back to work but need to clear the debts!

Okay so my plan is to get rid of the overdraft first then do the snowball with the rest, I want to pay off as much as possible each month. My cards are also getting cut up so there's no temptation

Placemarking for when kiddies are in bed

I've got a terrible credit rating- I've read I should keep a credit card after it's paid off and use it every month to buy petrol, paying it off in full every month. Should I do that with all 3 CCs or close 2 of them?

I would love to join, I wanted to go to the 12 step Debtors anonymous group but it's too far away :( so this will have to do.
Ive got 9k of CC to clear, planning to just take it a day at a time and sell some stuff on eBay.

Rainy day money : with interest rates as low as they are it is a toss up ....
A bit of money in an instant access account
OR
A bit of leeway on one credit card (and having unused credit is really good for your rating.

Credit cards - one card that is really well managed is the best way to have things .....

Snowballing : every single pound paid off the balance early will reduce your interest bill .... it is worth it.

Ta1kinpeace I just want to say thank you so much for your posts they have been so helpful. I know you can get a lot of information off google but knowing these methods have been tried and tested gives me much more hope that it will work.

It's also nice to have a space to talk that is non judgemental and supportive.
Sometimes you can get yourself into these positions and start to feel too overwhelmed to deal with it. IRL I don't think I could opening talk to people about it without them thinking how stupid I have been. So thank you all for the support

I've just bumped the most recent of my old debt threads
(my username varies by a single letter every month or so but is always recognisable)
The opening post is one that resonates with a lot of people.

I've just been paid early. After paying my rent & bills, I have - yes minus £170 to last me until then end of January.
:(
I do have an agreed overdraft which I will obviously work hard to stay away from the bottom of. Its just so stressful. I keep imagining how I would feel if I didn't have any debts.

I've got lots of clothes and baby stuff on Ebay.

Thanks for all the advice.

Sorry to hear that everything have you got anything to sell to make a bit of extra money to last the rest of the month? Hopefully the new year will be better for you

Hi, want to join the thread and will update with my story when have a bit of time..maybe will be useful to some!

Sorry to be thick but how does changing from a DD to a standing order for £1 reduce the overall interest so much? Is this snowballing?

Thanks

blankscreen
Pop your numbers into the spreadsheet and scroll up and down ....

A direct debit takes a set percentage of the outstanding balance every month
usually 3%
so as you pay teeny bits off, the amount you pay drops
so that to clear a reasonable interest rate card will take around 20 years

With the Standing order set at what you afforded this month rounded up to the nearest whole £1 ,
the percentage of the balance you are paying creeps up a teeny bit every month
because the amount stays the same
and the repayment term drops to around two years

I originally wrote the sheet for a tax client to explain why buying a Bugaboo on their credit card would result in them still paying for it when the child started university

We are frugal on the frugal thread, there are posters on there who don't need to work or be frugal but there planning for the future & know that money is harder earnt than spent.

The occasional coffee out is ok, every day will have raised eyebrows all round.

We have helped people out of debt.

It's all relative. The ones with 4 kids are going to spend more on food than me with just Dh & the cat.

The Frugaleers are indeed fab at helping people to live within their means

Where's the frugal thread please

Latest thread

Festive Frugaleers gather round the (best value and carefully researched) Christmas Tree for support, advice and chat. All welcome.

www.mumsnet.com/Talk/credit_crunch/3111205-festive-frugaleers-gather-round-the-best-value-and-carefully-researched-christmas-tree-for-support-advice-and-chat-all-welcome