Today I received a credit card statement in the post and it made me smile because it told me I have just £238 left on it.
In April this year the balance was closer to £1,200. In the last nine months I’ve paid off nearly £1,000 of debt and I’m on target to clear my credit card by the end of March 2013.
I am very proud of myself for this. But how did I do it? Simple, I worked it off. Nearly every piece of paid sewing work, sponsored post or blog advertising income that I’ve received in the last nine months has gone directly onto the card. A direct debit pays off the minimum each month so I never miss a payment with the risk of accruing more charges and then every month I make an extra payment with whatever additional money I’ve earned that month.
To keep me on track a keep an excel spreadsheet of my debts and payments onto them, its a little bit pernikerty but it really helps me to see how well I’m doing and how long debts are going to take to pay off.
Other good news is that I’ve finally finished repaying my mum the £3,000 that she paid off on another debt for me when I had to move back to the UK. It has taken three years at £20 a week but now that it is done that money can go to pay off the remaining overdraft and credit cards that I have. I am determined to stick to my budgets this year and continue to pay off debts without incurring more debt. In total this means I’ve paid off around £4,000 of debt in three years, now imagine if that was savings!
One book that I always find helpful when thinking finance is Your Money or Your Life by Alvin Hall, though I’m yet to get to the point to implement his advice on mortgages and investments.
It seems a silly thing to get excited about and it will take at least another year until I completely clear my credit card and debts but I’m really looking forward to being debt free and being able to use the money I’ve been using for debt for saving.