Debt free by 40 -- 19 Months and counting

A question about : Debt free by 40 -- 19 Months and counting

Morning Fresh New Diary,

Ok, so I am currently 38.1/2 years old and have around 19k worth of debt. (desperately wishing the shocked smiley was working!).

I have decided that I am going to set myself a challenge to be debt free by 40. That is currently 19 months away.
That works out at around Ј1000 per month that I need to plough into debts.

On my spreadsheet it says that we SHOULD have around Ј850 per month after all the regular household bills, food, petrol etc to pay against debts. This Ј850 sounds a lot of money, but believe me, I never see it, and it currently gets paid against debts and also frittered away on my impulse buys online. (This has GOT to stop!)

I have also started up a small craft business from home and with being super frugal and also building my new little business, I am hoping to be able to supplement household money to make this Ј1000 per month payments.

Its going to be tough, but if I don't try, I feel I am going to be in debt FOREVER. I have been half heartedly trying for the last two years and gotten nowhere.

It would be great if you want to join me, I don't know about you, but I need all the help and support I can get.

Do you have a milestone that you want your debt gone by?? How many months have you got left to go?.

I have done my snowball calculation and have printed it out. I am going to keep this in my purse.

I have calculated it on Ј800 per month which works out that it will be March 2016!! when I will be debt free. So I need to work hard on getting the extra Ј200 per month coming in to bring it to July 2015.

Wish me luck xxxx

Best answers:

• Hi Steph
  Shiny new diary ready for the New Year and the big push on the debts. Sorry haven't posted on old diary for a few days, I have had a horrid virus that has left me with a cough, absolutely no appetite so have been feeling very wishy washy. I had to cancel a booked and paid for lunch out and my gym session, so that was Ј70 without anything to show for it.
  Anyway nuff said about me, hopefully a few people will be along with advice on how to spend less, both on the essential stuff and perhaps a plan for avoiding the "shopping sprees". Someone wrote on the diaries somewhere that if they wanted to by something (IRL or on-line) that they made themselves have a minimum of 2 sleeps before they could buy, most times they didn't go ahead and buy afterwards. I think you should do the spends diary and make yourself confess to every penny here each day. That's what I do with on the no more toiletries board and you wouldn't believe how much less I buy these days.
  Good luck, I will be cheering you along.
  Good point made by someone on old thread about preparing your craft items and advertising them ready for Valentines and Easter.
• Hi MaddieMay
  Sorry to hear you have been poorly, and missed out on your paid for meal. BooHoo. That's not good . Hope you feel better soon. At least you will hopefully be all over it by Christmas week.
  Very good idea about having two sleeps before purchasing anything on line. I am sooo impulsive and often with two clicks I can have bought something. Always justifying it because its only Ј5 etc. But with my budget a few Ј5's can be devastating.
  Ok so from now on if I am tempted with an online purchase I will confess on here first before I start clicking!.
  Feel like 40 is a big milestone and seriously do not want to still be struggling when I reach it. Hoping it will give me a big incentive.
  xx
• Just read about the birthday meal, gosh! There is no way that we would do this at that sort of outlay, we as a family (siblings, step kids etc) are all ticking over well and debt free, but wouldn't expect to spend this even on a family celebration, so don't feel bad about cancelling. After Christmas why not try putting a small amount by each month to save up and take OH out for a good steak or something every few weeks, it might take the sting out of having to be ultra xx
• Right...Well I have updated my spreadsheet upto the end of 2016 . hehe. Abit optimistic.
  The only thing I hate about forecasting on spreadsheets is that it doesn't take into account any of the un-expected that has a nasty habit of cropping up to ruin my debt busting plans.
  I am going to have to include Birthdays and Christmas savings and ideally a little bit towards an emergency fund.
  I have already promised Ј200 per month profits from my craft business, which is iffy as to wether I will consistently make this amount. I think I am being a little crazy thinking I can find money to save out of that as well........Hmmmmm not sure what to do??
  Think I have whittled down my bills to as low as possible, but will have to have another look.
• Morning.
  Things went pretty well yesterday. I sent a text to my friend explaining that we couldn't afford to attend their birthday meal on Monday because money is tight and including a sitter, the hired mini bus and the expensive meal, it would have come to at least Ј150. (That we just don't have).
  I quite expected her not to reply or be abit chilly with me, but she was amazing. Instead she has invited us to hers for drinks on Saturday night. How lovely is that?. So I feel like its a win win for us. We still get to go out, but its a super cheap night. yay!.
  Looking forward to using our free tickets to the Pantomine, gifted to us from another fab friend this Sunday. Have been pretty lucky so far.
  Got a few items left to make from my craft business today and over the weekend. Then by Monday it should just be deliveries and all finished.
  I certainly need a break.
  Money wise, the bank account looks dire - only a few pounds away from maxing out our 3k Overdraft. Eeeek.
  I really ought to prioritise getting rid of that first, but I have always struggled with that in the past. I find it hard to see money in the bank and not spend it. Even when its not my money its still the overdraft.... (V V ashamed).
  I feel like as the debts gets dealt with the overdraft will kind of sort itself out, but like it has been said on here before, its scary how the bank can just take it away. I have had warning about abusing the Ј500 reserve that I have on my account.
  My overdraft is Ј2500, but on top of that I have a further Ј500 that is an emergency reserve to pay the odd overspend. Trouble is I live in it...... I REALLY want to get rid of it, because every time I use it they charge me Ј22!. And that explains why my last bank charges we Ј270!!!!.
  So, I do plan that as soon as I get within the Ј2500, I will pop in the bank and get them to remove the reserve. Its a luxury I cannot afford.
  Ok probably enough gassing from me, I had better go and carry on with my orders.
  SS xx
• Morning Steph Well done on getting out of the birthday dinner that was super expensive, and right before xmas too not many can afford that I bet !
  As for your bank can you not open a new basic one and transfer all of your bills, incomes etc to that and treat your current bank account as a real debt. That way you won't be dipping into the O/D because you're not using that bank anymore (cut the cards up!) and your new one will be without an o/d? It's the only thing that worked for me when we finally had the big LBM!
  I'll be cheering on from the sidelines you can do it once you've set your mind to it. I wanted to be DF by 35 and i'm 35 in Feb and I did it by a few months so it's possible. (although I feel we cheated a little as we had a windfall!?!) Aim high and we'll all be here with you
• Hmmm very interesting reading that was DFW. I will have a think about it. I remember ages ago when I last managed to clear my OD, I asked the bank to reduce it down to Ј300 for me, and I let the bank manager talk me out of it. Grrrrrr.
  Will add that to my list of things to tackle in the New Year. x
  Got up before everyone else this morning as have horrendous stiff neck and a cough and cold . (yay smilies are working).
  I haven't got alot of items to finish now for my craft business. Just some bunting and a draught excluder, which I will have to complete over the weekend. Then I can officially REST. phew....
  Waiting for hubby to get paid this weekend, so I can pop into L1dl on Mondy to buy some nice bits for over Christmas. My T2sco shop arrived yesterday with the basics, but could'nt afford to buy any cheeses or sweets on that shop.
  Got four credit cards to pay as well, it won't leave much left to last over two weeks but won't be needing to do much so will just have to hibernate.
  Hope you are all feeling abit better than me, I think all the hard work is catching up with me.
• Have just joined the Frugal living challenge for 2014. Sounds like my sort of thing. Eeek
• Steph why don't you post your SOA here so we can all help to see where further cuts could be made to help you achieve your Debt free date.
  I've recently started on the journey with CAP and already feel so much better!
• hello Steph,
  I am also on the Frugal living challenge, am a similar age to you and would love to have a deposit for a house or a round the world trip(!)by then. So I am in! X
  Got so many plans.
  I have to pop out (scared!) to get guinea pig food! and a few bits...(could be fatal)
  Best get on, the hoardes will be there already!
  XXXX
  ps excellent on the dinner/drinks swop XX
• Hello, popping in to say hello.. I reach that age milestone next year and my goal is to have shifted some weight by then..
  Well done for taking control of the debt.. You can do it.. x
• Sorry that you are feeling under the weather, you must be exhausted, but well done on all your money raising through December. The frugal living challenge sounds great and hopefully it will be great with each cheering the other along.
  Finally got my act together and shopped for the fruit, veg, salad etc. this morning, just OH and I for Christmas day, my Ma declined an invitation this year and said as we are having a complete gathering of the clans on the 29th that she is happy to stay at home, ring all her regulars and watch what she wants to on TV, she came here two years ago and I made lunch etc. there last year, so we are going to slob out on our own with HRH the border collie.
• How did xmas go steph...are you all set for the new year?
• Hi Diary
  Sorry I have been missing in action. It ended up being a total shutdown of a Christmas. I haven't barely lifted a finger, it was fabulous.
  We haven't spent any money, because we haven't been anywhere AT ALL. Its just what we needed. Its was such a hectic run up to Christmas, that a week doing nothing much at all was just what the Dr ordered.
  I taught myself to crochet during the break which has been fun. All the decorations are down now and yesterday and today are house blitzing days. Want to get the house organised. Tidy house / tidy mind.
  Finances are hanging in there. Early next year looks super tight. My snowballing calculations are all worked into the spreadsheet, but I think the extra payments to my first debt (B#rclaycard) are what is making my finances looks abit precarious. I need to get crafting to make that extra money needed to bump up the account. Childrens tax credit seems to have paid super early. I usually get it the first week of every month, but it has gone in already!!. Assume its not a generous extra payment???.
  Got a night out at the pub tonight for new years eve. It is financed by cash we have squirrelled away, but the MSE'er in me doesn't really want to spend it. hehe.
  Had a few strokes of luck/good friends recently. Hubby went to help a neighbouring farmer yesterday and came back with a huge back of turkey breasts for free. Yay. Also I have been invited to a spa for a cream tea and massage for a friends birthday this Friday, financed by her husband....Double yay.
  I have good feelings about 2014.
  Hope you are all doing well after the Christmas Break. Promise to check back in daily from now on xxx
• Happy New Year Steph.. good stroke of luck re the chicken breasts and spa day.. I must go check my tax credits now just in case I think I have more than I should in the bank.
  Hope you have a nice NY Day whatever you have planned x
• Sorry that I haven't checked in for a week diary. But its has been a very busy time and lots has happened.
  I very luckily got an invite to a Spa day with a couple of friends for a birthday treat. Its was wonderful.
  Also my Little Craft business is taking off again. I was worried January would be a totally dead month with not an order in sight. but I have quite a few orders and my FB page is very busy.
  I also have a stroke of luck that a local gift shop has offered to stock some of my products, so I am on a big push to get some stock built up to delivery to them end of next week.
  I have got to be careful with my budget thought as I have bought the odd bits for the company from the internet, and I REALLY can't afford to. My budget it completely over-stretched without any misc spending being added to it. Eeeek.
  Its very hard to run a business without investing a little money in advance. Must try my best to use materials I already have instead of picking a colour I don't have and incurring costs. before the items have sold.
  Hope anyone reading this has had a good Christmas and New Year. I need to balance my bank account against my Spreadsheet after the Christmas Holidays, but the bank website is playing so will have to try later.
  Also need to sort out my filing tray of bills etc and its over-flowing and looks really dis-organised.
  Speak soon xx