I know it’s not quite the end of the month yet but it’s with much awaited anticipation that I write this post today, to share with you my latest progress on debt repayments!
Yes, I’m very happy and just a tad excited because last week, I actually paid off my darned credit card; my flexible friend that I have no desire to spend time with again; the thorn in my side for over 10 years. Yippee, it’s finally gone everyone!
As you may know, my goal was to pay this credit card off by the end of the year but last month it was all looking rather unlikely because of the fact I won’t be earning much at all in December. The hubby and I are going away over Christmas to stay with relatives but because I’m self employed, if I don’t work, I don’t get paid.
Anyway, I had £1299 remaining on my credit card and I can scarcely believe it’s now paid off! In fact, we actually made a massive debt repayment of £1534 in November! We were able to get the money together in the following ways:
- We paid our minimum payments which equated to £296.50.
- We sold a contemporary painting for £450 that we bought 10 years ago.
- I took on a temporary client and managed to earn an extra £287.50 during this month.
- The hubby managed to take a bonus from work in advance for Christmas of £500.
(I was gutted when we decided to sell our painting but it’s really bumped up our debt repayment so I’m feeling a lot better about that now. We’ll just have to make our own wall hanging to go in its place.)
This takes our total debt figure from £35,272 last month down to £33,737!
Needless to say, I did go out and buy a bottle of wine (cheap plonk) to celebrate going well below the £35K mark! This year since January, we’ve paid off £7751, which is around 18% of our total debt.
I remember talking to the hubby back in January and saying about how I really wanted rid of this particular credit card by the end of the year once and for all. My hubby was skeptical (in a nice way) because he didn’t want me to get my hopes up and then be disappointed.
Last month, I’d resigned myself to the fact that I’d probably be able to pay off that card come January 2014 instead of this year – that would be really great of course. One month over my deadline wouldn’t be at all bad. I’m just so happy though that I’ve managed to pay it off now a month early. This is a really awesome feeling! It’s like a huge weight has just been lifted.
Making the final payment
When I made this final payment on my card, I phoned up the creditor to do so rather than make the payment online as I’ve always done beforehand. It was just such a momentous occasion, I had to be sure that the balance was completely cleared and hear it from the horse’s mouth.
I repeatedly asked the poor guy at the end of the phone whether he was sure my balance had been cleared.
Me: “Can you confirm that once this payment has been made, that’s it – the balance has been cleared?”
Him: “Yes. It has been definitely been cleared madam.”
Me (anxiously): “But are you sure you’ve calculated any interest correctly so there won’t be more added on next month?”
Him (bored voice): “Yes. I can assure you that the interest has been calculated correctly.”
Me: “So there will be no more payments?”
Him (pauses): “That’s right.”
Me: “So can I cancel my direct debit?”
Him (confused): “You want to cancel your direct debit?”
Me: “Yes pleeeaasseee!”
Him: “Um ok, I’ve cancelled that off for you. Please note that any payments in the future will need to be paid by alternative methods.”
Me: “Okey dokey then! Thanks for your time!”
You may note that I didn’t close the account. I wasn’t sure whether to do this or not, the only reason that I was thinking that I shouldn’t is that the account is a bit like a security blanket just in case some awful emergency crops up. So as yet it hasn’t been closed but I did cut up the actual card two years ago so the only way I will be able to spend on it is to order a new card.
I also didn’t want to close the account because one day in the future I might be able to use credit cards in a responsible way to my advantage and earn rewards from them whilst paying the balance off each month. But I’m still reeling from the whole credit card experience so I won’t be going down this route anytime soon.
Next steps for debt repayment
Our next goal is to actively tackle the debts within our debt management plan. The plan consists of debts to four different creditors and currently we’re paying a reduced amount to each of them. With my credit card debt gone, we now need to undertake a review with our other creditors in the New Year and increase our payments to account for the extra we’re saving by not having to pay off my credit card anymore. We’ll be continuing to save money and earn money wherever possible of course! I’ll be posting specific goals in January regarding debt repayments for 2014.
How has November been for you? Are you on track with your financial goals?
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62 Comments
Amazing! Congrats!!!
I would have done the same thing – asking the poor guy a hundred times “are you *sure* sure??”
But me? I am not on track at all… I’ve *got* to be better in December!
Amanda recently posted…Goal 83. Buy 5 things off Etsy
Thanks Amanda! 🙂 I look forward to reading more about your November stats and am keeping my fingers crossed for you in December!
Congratulations! That is such a nice accomplishment heading into the new year to have that card cleared away.
I would still be so anxious that there would be an interest charge hanging around for the next billing cycle, so I would have done the same questioning routine as you 🙂
Thanks Alicia! I’m so pleased it’s finally gone! In January that card was costing me £120 per month in minimum repayments. It’s lovely to have that money freed up now to pay off other debts! I’m glad you would have questioned the phone guy like I did!
Yay!!! Congratulations. I like how you were grilling the phone guy. lol! I wouldn’t cancel my card. From what I understand your credit score could take a hit, and like you said in case of an emergency (although thats the idea behind an fund). Just tuck it away where it’s not easy to get to.
Budget and the Beach recently posted…Shopping Deals for the Rest of the Year
Aha – that’s good to know then Tonya re what would happen if I closed the account. I’ll keep it open still but won’t use it. Thank you for that and for your support! 🙂
oh my goodness, congratulations!!!! What a great surprise! I hope the great feeling made up a bit for the sale of the painting. Now you get to start more of a snowball rolling right? So exciting!
Grown-up Thrift Girl recently posted…Barn Style
Thank you! It was a fabulous surprise! The best ever! To be honest, we probably bought the painting on that credit card so I suppose it’s only fair that we sold it to pay off the debts! That’s right, we can get our snowball approach working for us again now. 🙂
SO, so happy for you guys, Hayley!!! What an awesome accomplishment, especially considering you didn’t think you were going to be able to get it done. Woohoo! We had a spendy November in terms of cash going out, but I also had a record side hustle income month, so I’m very excited about that.
Laurie @thefrugalfarmer recently posted…What Are You Thankful For?
Thanks Laurie! The hubby and I are really happy with everything right now. We know there will be hurdles in the future so we’re celebrating this milestone and will remember this feeling going forwards! I can’t wait to read more about your side hustle income Laurie, hope you’ll be posting the details soon!
Congrats! Like Tanya, I wouldn’t cancel the card especially if it’s one of the cards that you’ve owned the longest. The average age of your open credit lines is part of how credit scores are calculated, so getting rid of an old card can hurt your score.
Mrs. Pop @ Planting Our Pennies recently posted…Give Them What They Deserve This Year
I’ve had this card for ages, so in that case I’ll definitely keep the account open. I wouldn’t want to affect my credit score especially as my hubby’s credit score has taken a hit because of the debt management plan. Thanks for that Mrs Pop!
Wooooohooooooo!!! What an awesome month. Those must have been big sacrifices to make (selling the paintings, additional work, etc), but that phone call must have made it worthwhile! Congratulations again!
moneystepper recently posted…Become a millionaire in 20 years in 3 easy steps
They were sacrifices – the painting mostly just because it was something that we both loved and chose together. However, it’s just a painting at the end of the day and as you said, that phone call was the best call I’ve made in a very long time! Thank you Moneystepper!
Congrats on being credit card debt-free Hayley!!! 😀 I remember when I finally kissed my credit card debt goodbye in September and it was amazing! 2014 is looking really good for you in terms of debt repayment! I’m geniunely so happy for you friend.
Girl Meets Debt recently posted…Debt Confessions: Hayley’s Story
Thank you so much GMD! It’s the best feeling ever isn’t it! I loved reading about when you paid off your consumer debt, it was really inspiring. I’m sure that next year will be great for you too re the debts and also for your blog! As always I look forward to following your progress! 🙂 xo
Congrats! That is so exciting! Kudos to you for selling the painting. I can imagine that was hard! That definitely shows you are serious about this getting rid of debt business!
Stephanie @ Six Figures Under recently posted…How’s Your Plumbing? A Discussion on Debt
Thanks Stephanie! It probably was the hardest thing to sell, I’d been thinking about it for a while and I just decided to do it. Really glad I did now though!
This is so awesome. Congrats!
Michelle recently posted…What I’m Thankful For
Thanks so much Michelle! 🙂
Good job and congrats! I’m sure it is such a great feeling. I had a similar conversation on the phone with the customer service rep when I paid off one of my student loans. I confirmed to make sure the debt really is gone.
Andrew@LivingRichCheaply recently posted…Black Friday: The Epitome of Consumer Excess
Lol! I’m glad it’s not just me who feels the need to double and triple check such matters! Thanks Andrew!
Congratulations! That is so exciting and encouraging to the rest of us. When you realized that you were not going to make your goal (paying off that card by the end of the year), you could have just given up or even blown your budget. But instead you held strong and thought outside the box and persevered…and look where it got you! That is so inspiring. I also am rejoicing with you because yesterday we paid off our Basement Loan in full. Now that payment of over 600 per month is gone forever! Now onto the rest of the consumer debt. Thanks again for sharing your story with us. I recently found your blog and backtracked and read every article. I am hooked! I also recently found “Six Figures Under” which I can totally relate too as my husband has med school debt to pay back. I love it how we all can help eachother out!
Hi Liz, I’m so pleased that you found my blog, thanks so much for reading it and for your lovely comment! 🙂 Six Figures Under is indeed a great blog and one that I follow too! The main reason I started my blog was to get my thoughts out of my head about the debt and then I started reading other people’s stories. What I read really inspired me and I then decided to chart my progress here along with ups and downs relating to managing debt. It’s really great being part of this community where everyone is so friendly, helpful and non judgmental! That’s brilliant that you paid your Basement Loan off, that’s a nice sum that you’ll be able to save (or spend) each month now that it’s paid off! Congrats! Thanks again Liz and I hope you visit again soon!
Congratulations Hayley,
Breaking up with your credit card was the best break up ever. Now you can avalanche your debt payments. (I think avalanche is a much better thought than snowballing)
Charles@gettingarichlife recently posted…What I Learned From Growing Up In Government Housing
I agree, avalanche is a much better way of describing the snowball effect! Thanks for your support as always Charles, I really appreciate it.
Well done. That’s a phenomenal effort towards your debt this month. 🙂
Rob recently posted…Understanding how a debt management plan works
Thank you Rob! I’m looking forward to reading about your progress this month too. 🙂
Way to go Hayley, I’m so happy for you!! When there is a will, there is a way. You’ve certainly proved that. It can sometimes be hard to make the sacrifices that make debt repayment possible, like selling the painting, but in the end, it’s worth it. You’re that much closer to being done!
E.M. recently posted…Taking Advantage of Family
Thanks so much E.M. I know there will be hurdles again in the future but this was one milestone I was pretty desperate to achieve. I love looking at my debt total in the sidebar right now!
Congrats Hayley! Awesome way to close out November 2013!
Steve recently posted…Student Loan Payoff Visualization
Thank you Steve! It’s been my favourite month of the year so far!
Big…huge…deal.. Congrats, Hayley! Each and every debt paid is a momentous occasion. I especially love that your husband stayed skeptical for you. We need to balance each other out. So happy for you both!
Tammy R recently posted…Our Holiday Gift to You
Lol, that’s exactly what my hubby says! I would totally get carried away with everything if it weren’t for my hubby. We did have a conversation once about selling our bedroom furniture and sleeping on the floor. Well actually, I started the conversation and he finished it by saying no way! 🙂
Well done for breaking up with your credit card debt. I’ve started waking up and making over payments on my credit card at 6am in the morning. I’m becoming slightly obsessed with clearing my credit card.
That’s great! Wow 6am? When you look forward to making payments like that, you know that you’ve turned a corner when it comes to debt! Thanks so much for stopping by and commenting!
That is some FANTASTIC news!
save. spend. splurge. recently posted…What I learned from growing up without ever talking about money
Thank you! I’m over the moon about it still and I kind of feel like I’ve had the best Christmas present ever!
Congrats Hayley!! That is sooooo awesome! I agree with Mrs. PoP, leave the account open because the lines of credit that you’ve had longer can help bump up your credit score, especially if you’ve been making payments on time and everything. I think you totally earned that bottle of wine!!!
Dee @ Color Me Frugal recently posted…Top 6 Reasons to Look Your Bank Statements Over Carefully
Thanks Dee! I definitely want to keep my good credit score so I’ll be leaving the account open. I hadn’t thought that closing it might affect my rating so I’m really glad I mentioned this in my post!
Wahoo! You’re such an inspiration to other folk in debt. You’re proving that it can be battled one step at a time, that there’s always hope. Maximum respect for blogging about it.
Wealth Tortoise recently posted…Earn Money In Your Spare Time
Thank you! I owe a lot to this blog and the fabulous PF community out there for keeping me motivated, inspired and accountable! 🙂
First, a HUGE congratulations on your debt repayment process. Second, the phrase that jumped out at me in this post was the following “My hubby was skeptical (in a nice way) because he didn’t want me to get my hopes up and then be disappointed.” Isn’t it interesting how people who are in our corner are worried about our disappointment?
It’s sweet and a little frustrating. My mom said the exact same thing to me a few weeks ago and it pissed me off and energized me in a way that hadn’t expected. I’m really proud of how you and your husband are on the same page and making such amazing progress. Keep up the good work.
Michelle recently posted…Black Friday Pay Off Challenge-Did I Succeed??
The people closest to us truly care and they don’t want to see us hurt I think! 🙂 Yes – that’s kind of how I felt Michelle, a bit peed off but I knew the point he was making and his good intentions behind it. I do tend to get a little enthusiastic at times only to fall flat on my face. But I’m glad now that he was skeptical because it’s been an awesome feeling for us both to have achieved this little goal.
Congrats! That’s a huge accomplishment! I’m plugging along repaying my credit cards with a pay off date of December 2014. As extra income comes in, I allocate it towards added payments. I might be able to get a couple of my cards paid off next summer. Then, I’ll start working on my student loans. Argh. 😉
Little House recently posted…My Furry Budget Buster!
Thanks! 🙂 I really hope you get those cards paid off by next Summer – just keep focused and you’ll be amazed at what you can achieve. The trick is not to give up!! Looking forward to reading about your progress!
Hayley recently posted…Save money at Christmas: Christmas necessities
Well done – I don’t blame you for celebrating with a bottle of wine. I would too.
£120 minimum payment now gone – frees up more money that YOU can now decide where its spent.
GetRichWithMe recently posted…Breaking The Chains
Thank you! It’s definitely given us a little peace of mind not having to make that payment anymore. Very refreshing. I’d like the payment to go towards the other debts but at the same time, if an emergency crops up then it’s good to know there’s a little extra in the bank just in case!
Wow, what else can I say but a resounding congratulations to you for job well done! That only goes to show that it can be done if one sets his or her mind and heart to it. Plus of course some solid plan to work on. Great going!
Jen @ Frugal Rules recently posted…Shout Out Saturday #44
Thanks so much Jen! I just need to continue with the goals so that I can make some more progress on the other debts! How’s your debt stuff going?
Awesome 🙂 I think a bottle of wine was a good celebration!
We don’t usually cancel our credit cards unless the company is frustrating us or there’s an annual fee. It’s nice to know you have that line of credit available if something happens!
Amanda recently posted…A Vegetarian’s Thanksgiving
Yeah – it’s a cushion should something awful happen, I do hope to use cards again one day to my advantage but I’m not quite there yet. At the moment, I’ve no desire to use them at all! But I’m sure I’ll repair my confidence at some point!
Congrats! That is wonderful. You must feel so accomplished. Enjoy this moment because you truly have earned it.
Debt and the Girl recently posted…Holiday Musings from this Grinch on Crazy Shopping…
Thanks Natalie! I feel a lot better now than I did back in January that’s for sure. I felt so down and depressed back then. It dawned on me recently just how long I’d been worrying about money. Far too many years. Hopefully the worry should get less and less as of now!
Hayley recently posted…Save money at Christmas: Christmas necessities
Great job Hayley! I like that you’re going to be making your own wall hanging. My cousin paints his own artwork around his house and I can barely tell it’s homemade!
Lisa E. @ Lisa Vs. The Loans recently posted…Links Lisa Likes – 11/25/13
Thanks Lisa! I love putting my own stamp on things anyway so it’ll be a project I enjoy. Your cousin sounds very talented – does he paint and sell them as a side hustle? If not, maybe he should?
That is so awesome! Congrats on being CC debt free. What an amazing feeling. You are doing great. I think I would’ve reacted the same way with the creditor. Are you sure, are you really sure? 🙂 YAY!! You rock and thanks for the inspiration.
Dear Debt recently posted…Dear Debt Letter from Sofia @ Caviar and Quarters
Thanks so much M for your kind words, it really means a lot! 🙂
Well done, Hayley! Amazing job! No more credit card debt, this must feel awesome! 😉 I’ve still got £600 of credit card debt left, cannot wait to make my final payment! Cheap plonk… hehe, this made me smile!
Eva @ Girl Counting Pennies recently posted…My Christmas on a Budget
Thanks Eva! It won’t be long before you get rid of that £600 credit card debt! You had an amazing month for debt repayment in November, woo hoo! 🙂
Hayley recently posted…Friday’s Fab Links #19
Looks like you just beat me – mine will be gone next month. And I know exactly how excited you must have felt!
It makes me laugh – a few years ago the thought of opening credit card statements and paying bills sent me weak at the knees. How much did I owe this time? How much would I have to pay? What am I going to miss out on as a result?
Then I had a total mind-shift. Suddenly I *wanted* to pay off my card. I *wanted* to open my bill to see just how much I’d shaved off it since the last bill. Strangely, somehow, paying off debt became almost fun because I treated it like a game.
Well done to you – and well done to me in 3 weeks time 😉
Richard @ Tech Toucan recently posted…Top 10 Free Tools For Creating Unique Images For Your Blog And Social Media Profiles
Thanks Richard for stopping by and congratulations on clearing your debt in the very near future! Paying off debt once and for all seems to happen when that mindset change occurs – and only then. It’s like you say about ‘wanting’ to pay off extra payments rather than buying some material item. Paying off debt is all I want to do these days! Really pleased for you Richard about tackling your debt head on – cause for celebration!