>A finance update

>In June last year I entered into a finance management plan.

I’m delighted to report that in that 13 months my overall debt has reduced by £3,500 (what could I do with that much money in my hand?!). Most of it has been by monthly payment, some has been the odd lump sum I’ve been able to push their way.

I’m posting it here to demonstrate that I’m not all spend, spend, spend, but it is possible to budget and pay for things as the need arises, not live the life of a pauper, and still reduce a debt considerably. I’ve also been living without credit for this period, i.e. if I’ve not had the cash (or very generous friends and family – who have covered the emergency stuff for me, and been paid back), I’ve not had the backup of a credit card, and have gone without.

Living without credit is hard, it was Very Hard for the first few months, but I don’t think I’d have it any other way now. It certainly makes you appreciate money more and feel a helluva lot better about yourself. And, when the debt is gone I’ll be able to put this money towards savings. Now there’s something to look forward to. (This year’s reduction alone is a full mini-cash ISA.)

In June of this year I increased my monthly payment by £20. I’m hoping for a bigger reduction next year.


8 thoughts on “>A finance update

  1. Lynne Hackles 21 July 2010 / 9:32 am

    >So brutally honest, Diane. If it helps, we've been through tough times and a lovely friend of mine made the comment – 'You do poverty well' meaning we never looked broke and always had fun.May a little windfall come your way.


  2. carolwarham 21 July 2010 / 10:20 am

    >Well done you. Not only have you managed to save but you will have a great feeling of satisfaction. Being in control of your finances is a huge burden off your shoulders. Great news.


  3. Devon Ellington 21 July 2010 / 12:03 pm

    >Yeah, I renegotiated everything over the past few months. One debt is completely paid off, and I'm well on the way to getting rid of everything else.I have one credit card, which I rarely use.Unfortunately, there are things here you can't do without a credit card. Some companies won't accept cash, money order, check, or debit card, only credit. I've stopped doing business with most of them, but one or two I'm forced to.


  4. Ordinary Man 21 July 2010 / 12:48 pm

    >Well done Di. Maybe if everyone did this is it would help to bring down the current banking system, possibly only way things are going to really change. But there's lot of Gordon Geko 'greed is good' types from the 80's, early 90's that need to hang up their red braces first before we can even think about that. Hopefully in my lifetime. They are in the game to look after themselves, so like you, we need to look after ourselves.


  5. Diane 26 July 2010 / 10:33 am

    >Lynne: Debt has been shoved under the carpet for too long. It was a dirty word when I was growing up, and then suddenly it was ok for the whole world to get into debt. I'm going to do a separate post on this in the future, but if just one more person addresses their debt, tries living without credit, or simply finds it helpful to know there are others out there, then my job here is done.


  6. Diane 26 July 2010 / 10:34 am

    >Carol: I never thought I could do it, but once I made it official, it was out of my hands. I do feel good about it though. Maybe one day i'll feel REALLY good. :o)


  7. Diane 26 July 2010 / 10:34 am

    >Devon: I can't understand why they only want credit card holders. Surely a debit card does exactly the same thing.


  8. Diane 26 July 2010 / 10:35 am

    >Nidge: As I said to Lynne, if just one more person does this then my job here is done. We're keeping the credit industry afloat and when I see interest rates at an APR equivalent of 280%, all I can think is … HOW? :o/


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