Debt Payment Progress

Debt Payment Progress Report 15 – 22/02/19

February 22, 2019

Every two weeks I will be sharing my debt payment progress report with you. I’ll share my new debt total and some of the things I have done to make this happen. It will help me record my journey and it will also help me to stay motivated!

Debt Payment Progress Report – my new total!

As of February 22nd 2019 my new debt total is £11,753.58 (My starting debt total was £16,814.29)

That means that since I last updated you two weeks ago I have paid off £2406.49 My new total debt payment to date is now £5060.71, which I have calculated to equate to 30% of my debt total. (I should note that I have paid in more than this, however some money has gone straight to interest). The following debts now remain:

Loan One £6236.92
Loan Two £5516.66
Credit Card One £0
Credit Card Two £0 (yaaaaaaaahooooooooo!!)

Debt Payment Progress Report – new debt total on 220219

The past two weeks have been very successful with regards to my debt free journey. That’s a massive understatement actually. Thanks to some financial help I have leapt forward. So much so that I can officially say goodbye to my second credit card. It’s paid off! I’m also 30% of the way through my total now. That feels incredible!

I won’t go into detail about the help received as it’s obviously quite private but what I can express is how grateful I am for the support. When you are moving so slowly on your debt free journey, as I have been over the last few months, it can be draining and disheartening to say the least. This boost has not only helped get rid of a good chunk of my debt, it has also rebooted my motivation.

Now I am left with two loans to pay off. Both with the same bank and both with penalties attached for paying them off early. I’m going to work out my numbers and see if the penalty is worth paying. Of course, following the debt snowball method I should throw everything I have at them and just pay the penalties in order to get rid of the loans. What would you do? I’d really love some advice on this one!

My next debt payment progress report will show a far smaller number, most likely my minimum payments on the loans minus the interest I have to pay. If you’ve been following my journey for a while now though, you’ll already know that I’m absolutely fine with that. As long as the number continues to go down, I’m happy.

You can find my previous reports here.

Debt Payment Progress Report 14 – 08/02/19

February 8, 2019

Debt payment progress report – my new total!

As of February 8th 2019 my new debt total is £14,160.07 (My starting debt total was £16,814.29)

That means that since I last updated you two weeks ago I have paid off £112.67 My new total debt payment to date is now £2654.22, which I have calculated to equate to 16% of my debt total. (I should note that I have paid in more than this, however some money has gone straight to interest). The following debts now remain:

Loan One £6236.92
Loan Two £5679.79
Credit Card One £0
Credit Card Two £2243.36

We’re already into the second month of the year and time is slipping away. I cannot believe how quickly the weeks are passing now. In saying that, I am please to report that so far things are going well for 2019 and I’m in line with my goals. Freelancing work has remained busier than it was at the end of last year and it looks like it might stay this way for a while yet. Of course, I won’t be getting complaisant. My intention is to find one or two more clients, ideally, to help boost my hours.

One or two small ebay sale have also helped contribute to my payments over the last two weeks. I always say that the pennies add up and small things like selling unwanted items and surveys do help me out. My listings are running low now so I’m going to go through my wardrobe and have another clear out. With any luck I can find another 10 to 20 items that I can list and hopefully boost February’s payments a bit more!

After a couple months off from goal setting I also took the time earlier this week to set myself some goals for the month. You can read them in detail here. Mostly, I just want to get my head down and push on with work but I’ve also added a “treat” in there. Like most people paying off debt I’m in it for the long haul and as motivated as I am, it can be a bit of a downer to constantly be throwing every penny at loans. In February I’m going to make a point of treating myself to something small to keep me going. Maybe just a nice lunch, that would do the trick!

You can find my previous reports here.

Debt Payment Progress Report 13 – 25/01/19

January 25, 2019

Every two weeks I share my debt payment progress report with you. I post my new debt total and some of my money making efforts. It can be so easy to get caught up in the day to day payments, especially when my total is going down slowly. These reports help me to record my journey and stay motivated as I look back over the progress I’ve made so far!

My new total!

As of January 25th 2019 my new debt total is £14,272.74 (My starting debt total was £16,814.29)

That means that since I last updated you about a month ago I have paid off £163.13. My new total debt payment to date is now £2541.55, which I have calculated to equate to 15% of my debt total. (I should note that I have paid in more than this, however some money has gone straight to interest). The following debts now remain:

Loan One £6399.46
Loan Two £5579.92
Credit Card One £0
Credit Card Two £2293.36

I feel like there isn’t too much to report on this week, but in a way that’s a good thing. After a very slow November and December work has picked up a bit and so most days have been spent freelancing. There hasn’t been much time left on the side for any surveys and the like, but freelancing pays more so I’m not complaining at all. I’m not quite breaking any income records but it is far more consistent than it was before Christmas so I’m really happy.

This year I’d really like to increase my income in order to allow me to pay more debt off each month (and of course enjoy more when the debt is gone!). On quieter days I’ve been spending a few hours contacting potential new clients via email and have had a handful of responses. I know from past emails that many of these will come to nothing, however two look very promising so I’m keeping my fingers crossed.

Going into February I have a few big expenses coming up which have the potential to dent my debt payments a bit, but all going well I will have some new clients sending work over which will help to counteract them. I don’t want to jinx anything just yet, but I’m feeling really positive about the coming weeks and months. Excited to update you again in two weeks and see where I am!

You can find my previous reports here.

Debt Payment Progress Report 12 – 11/01/19

January 11, 2019

All of a sudden we have arrived in a brand new year. It has been almost an entire month since I last did a debt payment progress report. After I got caught up in the festive season I decided to just ride the wave instead of fighting against it. I took a break from writing, but not from my debt journey. Let me catch you up on where I am now!

Debt payment progress report – my new total!

As of January 11th 2019 my new debt total is £14,435.87 (My starting debt total was £16,814.29)

That means that since I last updated you about a month ago I have paid off £184.16. My new total debt payment to date is now £2378.42, which I have calculated to equate to 14% of my debt total. (I should note that I have paid in more than this, however some money has gone straight to interest). The following debts now remain:

Loan One £6399.46
Loan Two £5743.05
Credit Card One £0
Credit Card Two £2293.36

If you’ve been following my journey closely you will know that it has been just over a month since I last updated you on my debt free journey. As you can see, I have made some progress on my debt total, but not by leaps and bounds. Unfortunately December was a very expensive month and whilst I was able to make all minimum payments I couldn’t afford to throw anything extra at my debt. My totals have all gone down however thanks to interest the dent I have made in the past four weeks feels tiny!

You can probably tell from the way I’m talking in this post that I’m disheartened and a bit frustrated. I stopped posting for a while partially because I was really busy around Christmas and things, but more so because this debt free journey is bloody hard. I really do enjoy sharing my progress because it motivates me to carry on and I know it helps some of you too, but sometimes hiding away for a bit feels like the best option.

Now that we’re well and truly into the new year I feel like I’m out of my slump and ready to take on 2019. This year has so much potential and I’m really excited to see what I can achieve if I keep moving forward, even if it is slow sometimes!

You can find my previous reports here.

Debt Payment Progress Report 11 – 07/12/18

December 7, 2018

Debt payment progress report – my new total!

As of December 7th 2018 my new debt total is £14,620.03 (My starting debt total was £16,814.29)

That means that in the last couple of weeks I have paid off £250.53. My new total debt payment to date is now £2194.26, which I have calculated to equate to 13% of my debt total. (I should note that I have paid in more than this, however some money has gone straight to interest). The following debts now remain:

Loan One £6561.46
Loan Two £5805.21
Credit Card One £0
Credit Card Two £2253.36

Whilst work has continued to be slow, working hard on my side hustles has really helped me to get through the past couple of weeks and ensure I can cover all of my minimum payments plus a little bit extra. I’m not bounding forward with my debt free journey at the moment but my total is still going down and that’s what matters.

Ebay and Prolific Academic were my biggest earners throughout November and are continuing to help me this month. I managed to hit my goal of making an extra £200 by the 28th, plus a little more. I’m definitely going to be continuing my efforts to make sure Christmas is comfortable. Yes I love this festive season, but I refuse to move backwards for the sake of one or two good nights out and a pile of gifts.

I’m also starting to prepare for the new year, getting my tax return out of the way and readying myself for the busy return to work after some time off over Christmas. January is often one of my busiest months and so being prepared ahead of time with things like my blog will free up as much time as possible for me to earn a bigger income and dig further into my debt total.

You can find my previous reports here.

Debt Payment Progress Report 10 – 16/11/18

November 16, 2018

Debt payment progress report – my new total!

As of November 16th 2018 my new debt total is £14,707.43 (My starting debt total was £16,814.29)

That means that in the last two weeks I have paid off £163.13. My new total debt payment to date is now £2106.86, which I have calculated to equate to 12.5% of my debt total. (I should note that I have paid in more than this, however some money has gone straight to interest). The following debts now remain:

Loan One £6723.67
Loan Two £5706.35
Credit Card One £0
Credit Card Two £2277.41

Although I have had another slow fortnight with regards to my debt payments, I am in no way disappointed. If you read my goals update post on Monday you will know that I had to revise my focus a bit. Whilst I would love to pay off my debt as quickly as possible, work tends to slow down for me in the winter months and I have to adjust my budget to suit.

Instead of ploughing every spare penny I have into my credit card I am choosing to be a bit more conservative with my money, keeping some aside just in case my freelancing work drops dramatically. The most important thing is that I am able to afford all of my minimum payments and bills. Then of course there’s the added cost of the Christmas period to consider!

As I have said countless times before, the amount I pay each week, month or year isn’t the focus. The important thing is that I continue to pay off my debt piece by piece. Even when progress is slow, the small payments I am making add up so quickly and make such a big difference over time. If you’re finding that your debt free journey is moving slowly at the moment, stick with it. As long as your total is going down, even by pennies, that is what matters!

You can find my previous reports here.

Debt Payment Progress Report 9 – 2/11/18

November 2, 2018

Debt payment progress report – my new total!

As of November 2nd 2018 my new debt total is £14,870.56 (My starting debt total was £16,814.29)

That means that in the last two weeks I have paid off £149.62. My new total debt payment to date is now £1943.73, which I have calculated to equate to 11.5% of my debt total. (I should note that I have paid in more than this, however some money has gone straight to interest). The following debts now remain:

Loan One £6723.67
Loan Two £5869.48
Credit Card One £0
Credit Card Two £2277.41

Another milestone hit as I clear the £15,000 mark!! This is has been quite a slow two weeks as both interest payments (on my loans) have been taken in this time, but none the less I have smashed through £15k and I’m so excited!

The next two months are set to be slow ones as work often dies down over the Christmas period for me and so I am prepared for slower progress. My priority, as always, is ensuring that all minimum payments are covered along with my other bills. I’m also ensuring that I budget well for Christmas and avoid borrowing money to cover it. Thankfully secret santa is going to help out a great deal there, and the fact that we aren’t hosting this year.

My plan for November and December is to spend any down time on trying to earn some extra income on the side. If you read my goals post yesterday you will know that that means a lot of ebay selling and surveys on Prolific. Any day that is quiet on the work front will be productive in some other way and my debt total will continue to go down no matter what!

You can find my previous reports here.

Debt Payment Progress Report 8 – 19/10/18

October 19, 2018

Debt payment progress report – my new total!

As of October 19th 2018 my new debt total is £15,020.18 (My starting debt total was £16,814.29)

That means that in the last two weeks I have paid off £208.72. My new total debt payment to date is now £1794.11, which I have calculated to equate to 10.6% of my debt total. (I should note that I have paid in more than this, however some money has gone straight to interest). The following debts now remain:

Loan One £6883.18
Loan Two £5759.59
Credit Card One £0 (still makes me so happy!)
Credit Card Two £2377.41

As the weeks go by I can really feel my debt payments picking up speed. Not only have I been busier with work but as my debt total goes down my interest payments go down with it, making it easier to battle each month. It feels like yesterday that I was crossing the £16k mark and paying off my first £1000 so to be inches away from reaching £15k feels incredible.

I’ve noticed a change in myself as well as I’ve been making this progress. Firstly, mood has lifted a great deal. Being able to cover all of my payments without stress (thanks to my budget) has removed all money related stress. Of course my emergency fund helps a great deal too!

My spending habits have improved too. Whilst in the past I wouldn’t have thought twice about picking something up in the shops that was “just a tenner”, I question every purchase now and as a result I am spending a lot less. No spend days are helping this a lot too of course. You can read about these in my goals for the month if you’re not sure what they are.

When I first started my debt free journey I wasn’t too sure where to find this momentum that everyone was talking about. I didn’t get the “excitement” of paying off debt that everyone in the debt free community kept talking about. It’s debt for goodness sake, how can you be excited?!

I get it now. I’m driven with momentum and the excitement of becoming debt free and it feels wonderful!

You can find my previous reports here.

How I paid off my first credit card

October 8, 2018

A couple of weeks ago I finished paying off my first credit card! It had been a goal of mine for over two months and I cannot describe to you how good it felt to phone my bank and close that account. As soon as I hung up the phone I did a happy dance around the kitchen. I’m not joking. Be thankful you didn’t witness those moves. For many people starting out on their debt free journey, getting rid of that first debt total might seem like an impossible mission. To help motivate and guide you, here is how I paid off my first credit card.

Figured out my debt total

Of course, this is the dreaded first step. Before I could begin paying anything off I had to face my debt total. It wasn’t fun, it wasn’t pretty and my anxiety rocketed as I checked each number and added it to the calculator. It had to be done though. In order to understand how you are going to become debt free you have to know what it is you are dealing with.

My total came to £16,814.49. You can read my Starting Point post here. My smallest debt, my first credit card, was at £586.02. If you follow Dave Ramsey’s baby steps and the debt snowball method you will know that this would be the first debt I would focus on paying off. But before I did that, I had a few other things to put in place first.

Created a budget

The next step was to figure out where all of my money was going. I did this by coming up with a budget. Once I knew where my money was going, I would be able to tell it where I wanted it to go. I feel like that is the major difference between getting into debt and getting out of debt for most people. Setting up a budget gave me control over my outgoings for the first time in a long time.

As my income is irregular I had to do things a little bit differently. My total monthly earnings change constantly, so I had to come up with a budgeting method that worked for me. You can read about it here.

Set aside an emergency fund

Next came the emergency fund. This is such an important step and one that should not be skipped. I understand that for most people, by the time you reach this stage you just want to get started on your debt payments. You have to be patient and wait a little bit longer while you save your emergency fund.

It took me around three months to save my emergency fund, which felt like forever at the time. Thankfully I haven’t had to use it yet, but it gives me such piece of mind knowing that I’m covered if anything goes wrong or my income drops drastically in the coming months.

If you have no idea what I’m talking about you can read my post on emergency funds here. In very simple terms it is a pot of money for emergencies, just as it sounds. It’s greatest benefit is that if somewhere along you debt free journey something unexpected happens, such as a car breakdown, you remove your risk of going backwards with your debt progress. No credit cards are needed to make the payments, you have an emergency fund instead.

Focused my over payments

Now we get to the fun stage! For those who follow the Dave Ramsey method, this is where the debt snowball kicks in. Whilst making minimum payments to all of my debts I threw every spare penny I had at my smallest debt, my credit card. This change in the way I handle my finances has made the biggest difference for me. Before I started to focus on becoming debt free I used to pay a little bit of a card off, then a little bit of a loan and so on. Now, I concentrate all of my over payments on my smallest debt.

Some of these over payments came from money “leftover” once I had completed my budget for the month. A lot of it came from things like selling unwanted clothes on ebay and completing surveys on Prolific Academic (my favourite side hustle) too. Everyone will find something different that works for them.

The beauty of using this focused method is that you see much quicker progress with each debt that you have and your momentum really begins to build!

What’s next?

If you have read my goals post for October you will know that I am now putting all of my focus into my second and final credit card. Using the same method as I did for my first I will put everything I have into clearing this total. Even better, I now have the money available that was going into my first credit card (a minimum payment of around £60) which means I will be able to pay this card off even faster.

Whichever method you find best suited to you during your debt free journey, having focus and understanding of your money are both key. You have to know where your money is going and you have to tell it what to do. Take control of your finances and you will make progress towards financial freedom!

Debt Payment Progress Report 7 – 05/10/18

October 5, 2018

Debt payment progress report – my new total!

As of October 5th 2018 my new debt total is £15,228.90 (My starting debt total was £16,814.29)

That means that in the last two weeks I have paid off £471.30. My new total debt payment to date is now £1585.39, which I have calculated to equate to 9.4% of my debt total. (I should note that I have paid in more than this, however some money has gone straight to interest). The following debts now remain:

Loan One £6883.18
Loan Two £5922.72
Credit Card One £0 (hehe, I’m so excited to be able to type this!!)
Credit Card Two £2423.00

I’m so so happy with the progress I have made over the last two weeks! Not only am I inches away from paying off my first 10% but as my balances go down I can see the amount of interest I pay each month dropping too. Of course, the lower the interest I’m paying, the more momentum I will build and the faster I will pay off my debt.

This is why I am doing this. This is why I am recording my journey. Even the tiniest amount towards your debt can make an incredible difference in the long run. If you are currently facing a pile of debt and you don’t know if you can handle it please do click on my Starting Point post linked below and read through my progress so far. There have been weeks when I have only been able to scrape together the minimum payments, but even those have helped me to progress.

One of my greatest achievements over the last two weeks was paying off my first credit card. I cannot describe to you how good that felt. I have spoken before about setting small goals. Begin with your smallest debt. Work as hard as you can to pay it off and let yourself experience the sheer joy of closing that account!

I’m just getting started!

You can find my previous reports here.