A question about : Andy is !!! Kicking his way to Debt Freedom!
Hi,
So 3 weeks ago driving the kids to netball i smash into the back of the car in front of me, writing off my old but lovely and perfectly reliable car. No injuries but spent the next few days working what to do about the car and a replacement.
I really wanted to get a newish one, had no savings obviously but thought i'd better have a quick check of the overall finances to see where i stood?
These were the highlights.
Total credit card debt Ј23,260
Overdraft used every month Ј250
Grand total Ј23410!!
And there i was contemplating adding another 8k or so to this mountain of debt!!! LIGHT BULB MOMENT!!! Screw that!!
Made a decision there and then to stop this madness and turn this around. I have, and have always had PLENTY to live on, so why have i never managed it?? I have been a long term, occasional lurker on these forums so here i turned for advice and info. I read, read read and read some more and formed a loose plan of action.
So a little about me, Retired early (dodgy ticker). I have two kids 12 and 8, and i'm off to uni in Sept to do a degree, will be remaining at home for that though.
Income
pension of Ј22k, index linked (thank you god, just thank you!!)
I do a bit of sporadic work bringing in perhaps 1-2k per year.
So i have been working on my plan (ha!) so far this is what i've done.
1. Sold my camper for 12k. I loved that van but it was always in my mind to have to sell it at some point probably for a new car.
2. Bought an old car Ј1500. Just could not justify a newer car so have got an ancient but beautifully looked after and fully serviced Honda civic for Ј1500. Hopefully its a wise buy. (fingers crossed) Everything else went on paying off credit cards and OD.
3. After much looking on the forums i have got YNAB, it early days but i love this program. For the first time in my life i feel like i am in control of my bank account!! Whoop!
4. Joined the Ј1000 EF challenge (Ј300/Ј1000)
I know the camper was an 'easy win' for me and i'm lucky but it has provided me with a great start to getting myself debt free. I of course realise the rest may be a much much longer slog, so i thought i'd start a diary in the slim hope some may want to accompany me on this journey.
Hope this gives you a picture of me and my circumstances.
I have a plan to supercharge my DF challenge with my student financing, more of that later.
Thanks for reading
Andy.x
Best answers:
- Happy new thread! Good luck
- Sounding good quite a big decision selling the camper van, proves you are serious
XXX - Waiting, waiting, waiting.......
The things I'm waiting to land are
1. Ј155 in wages for some ad hoc work
2. Ј136 in car tax refund
3. Ј95 returned from an old stock trading account.
Now i don't actually need the money but I'm keen to get it into the bank account and categorised on YNAB!! How sad is that?
And while we are on the subject when did posties start delivering at 3pm??
On the negative front, apparently i underpaid my tax by Ј250 last year and they can't take it from my pension by tax code change so i have to stump it up!! I'm going to suggest that i can pay em in September as thats when my Uni funding comes through. Well if i EVER get through on the phone thats what I'm going to do!! I have the money to pay them but i do not want to deplete my rainy day funds, is that unreasonable??
This focus on my finances is a new and unusual feeling. very strange. - Hi Andy,
Well done for taking the decision to take control of your finances. My name's snowscreamer and I'm a YNAB-aholic... Having realised our credit card debt was getting out of control seeing on our first few months of YNAB that spending was up to Ј1000 more a month than income, having started to use the budgeting tool we are now spending well over Ј1500/month less without even feeling like we're living austerely... it's awesome! Feels like we've had pay rises Where the hell was that extra money going?!
Subscribed to follow your journey, good luck - Well brilliant start. Good decision to sell the camper van.
I did download YNAB but didn't get around to using it much before free trial ran out. I get paid weekly so found it a bit awkward.
Good luck on your journey. - Hi there,
So its been a ho hum kinda weekend. Went out last night to celebrate a friends birthday, (i was already committed to going. Had a fab time but spent Ј50!! It was in my entertainment budget but still....... LOL this is the sort of thing i wouldn't have batted an eyelid at before my LBM!
Getting toward the end of the month so i'm interested to see how my budgets hold up on Ynab, its my first month of using it so i guess budgets will need a bit of fiddling with till i get em right!
So i need a bit of encouragement here, i was planning to help my DFW fight by selling some stuff i have. In particular i have a very nice road bike that i hardly ever use, worth Ј600 - 700 minimum (i have another perfectly good road bike!!) same story with a nice guitar worth about Ј250. But i am feeling strangely reluctant to get on and sell these........... On a good day that could be another Ј1k towards my CC!!! C'mon gimme a kick up the backside!!
Things to do this month.
1. Meal plan and reduce my grocery bill.
2. Work on those budgets to make sure every penny is accounted for.
3. Change my phone and internet from sky.
marching on! - Sell em quick, Andy!
If you're going to sell them anyway, that cash could be saving you interest NOW. - Hi Andy
Sell it - like you said, selling the camper gave you a great start but now you need to keep up the momentum even if it means making touch choices...
...just think how good it will feel to be Ј1k closer to being debt free - Thanks for the encouragement.
Great start to the week, postie visited early (3pm some days 9.30am others. Whats all that about?)
Ј12 cheque from British gas for old account.
Ј112.50 cheque from DVLA for car tax refund from the camper
Whoop. Now just have to find a branch to pay em into!! - Hey Andy, thought I'd pop by and say Hi and...
SELL THEM!!!!
When I was on my first debt free journey about 5 years ago, I had the same sort of dilemma over a few possessions. I finally gave in and sold them, and I have to say, paying down the debt felt a lot better than owning these 'things' that gathered dust and I rarely used. I just wished I'd done it earlier!
Hope that helps
Jo
x - Wishing you good luck, Andy!
- Subscribing...well done to you for such a great start towards debt freedom ... oh and SELL THE DARN THINGS...THEY ARE ONLY THINGS .. 1K !!!
...hope that sounds sensible - Hi all,
thanks for the encouragement, i will try to get the things photographed and ready to list this week.
Got the cheques paid in and distributed them amongst my rainy day funds on Ynab. They are starting to look healthy now.
Finally got through to HMRC on the phone and they are going to take the Ј275 i owe them by PAYE rather than me having to stump it up in one go. Not a saving but at least i don't have to deplete my RDF to pay it.
Feeling positive!!! Now for a bit of meal planning because i am spending toooooooo much on grub!!! - ok, so a quick visit to the supermarket today. I checked my supermarket before i went, made a list and planned a couple of meals for me and the kids. i then costed them out,
Prawn Paella - came in at Ј4.90
Shepherds pie - that bad boy is Ј5.40
Trouble is i have no idea if this is good or not. I can imagine some forrumers passing out at the thought of it. ('Ј4.90!!! I feed a family of 6 on Ј3.20 per month!!') Whaddya think?
Either way the paella got a 9/10 from the kids!!
Oh and using the app meant i got some decent pizzas for friday (family tradition) for a quid each!! Big saving.
A strange feeling this food thing will end up consuming me!!
Still no sign of the Ј155 i'm owed for some work earlier in the month. A gentle nudge to my mate hopefully did the trick. (i don't need the money right now i am just keen to get it budgeted to my Rainy Day Funds) Pay day friday so a big Ynab sesh in the offing. oh i know how to live!
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