Time to get serious with my debts. Since starting to write this blog 8 months ago, I’ve made some massive changes in my life, and my way of thinking
- Number 1 positive is that I’ve decided to tackle my crappy financial situation and become more financially stable
- Number 2 positive is that for the first time in my life, I’ve started using a spending plan, monitoring my income and expenses and cutting back on the spending which doesn’t improve my life (like beer, lunch from the office canteen, meals out etc)
- Number 3 positive is that I’ve made a list of my credit card debts, and started to make more than just the monthly minimum repayments each month.
My debts have reduced by £3,000 ($4,800) over the last 8 months – which works out at £375 a month reduction.
A big help in this process has been shifting my balances onto 0% deals and reducing the amount of interest I pay each month – with the money saved going towards repaying the capital balance.
This still leaves me £19,500 in the red, but thats a lot better than the £22,500 (or $36,000) I owed last September.
I’m quite pleased with the lifestyle changes that I’ve made and I already feel better now that I’m getting to grips with my financial situation. I no longer dread opening my mail as my outstanding balances are now falling rather than rising.
For the first time in my life I have an emergency fund (though I’ve realised that the Dave Ramsey minimum recommendation of £1000 just isnt enough for me), and I’ve realised that credit cards shouldnt be my first port of call in a storm.
I’m 47 years old – can it really have taken this long for the penny to drop ?
Anyway – its time to get serious with my debts
Over the course of the last few weeks, I’ve been trying to organise a “money chat” with my wife.
This finally happened last weekend during one of our regular Sunday afternoon family walks.
The upshot of it is that I’ve been making a little more than expected (averaged out over the last quarter) and so has my wife who has taken on extra locum work.
I’ve become lazy, just making minimum payments again – she says its time to get serious with my debts
Instead of running a personal budget (just my money stuff) were going to run a family budget (her stuff too)
My wife has told me that she is going to contribute £500 a month towards debt repayments from her increased income. I’m going to take another £500 income from my business each month, and put this towards debt repayments (a result of my working harder/more efficiently). This will bump up my monthly credit card repayments to £1550 per month instead of the current £550 month I’m paying off now.
£19500 reducing by £1375 a month should have us debt free by the end of 2015
Much better than capital repayments of £375 per month – when it would take us to at least 2018 and still be paying off the last of our debts.
In addition to making these commitments from our salaries, I’m going to sell off a load of stuff I’ve accumulated over the years (my wife calls it man junk)
If I can sell off some my stuff, make more money at work, use my imagination to create a bit of side income I might even be able to get rid of the £19,500 ( $31,000) even quicker. The family budget will help – as I can squeeze my wifes income a bit harder too.
S0rry darling I love you and I know you read my blog – but hey – if I’m deep in the doo then so are you
In the month of April – I intent to reduce my indebtedness by a minimum of £1375, and I’m going to start thinking of a way to increase this amount to £1800 ($2880 in US funny money).
Maybe monetise this blog a little more, maybe set up a new online venture… watch this space
Ok – thats enough Jibber Jabber – time to get back to work