For my last post of the year I thought I would write about my debt plans for 2013.
I would also be interested to hear about your own plans as well, please feel free to comment.
Next year is the year where I hope to reduce even further the number of outstanding debts I have and reduce the debt I owe.
I am still a long way off paying all my debt in full but I will get there eventually.
Debt I have paid off in 2012
I have paid off in full the following debts: -
- Network Three Debt
- British Gas Debt
- TXT Loan Debt.
The above debts were not very big but paying them off was still progress.
I did feel a small sense of achievement when I paid off these accounts and with the number of debts I have, it is always good to have one less debt to deal with.
Debts I plan to Pay off in 2013
- Wageday Advance
- Capital One
The above outstanding accounts are slightly larger than the first three I settled but it should be possible to get rid of them all by the end of 2013. That of course assumes that there aren’t any unexpected surprises along the way.
Where am I today?
At the moment my total amount outstanding is £40,339.83. I am hoping to reduce this to £32,000 by the end of 2013.
I just missed my target of owing £40,000 for the end of this year but I am determined to meet or exceed the debt reduction goal I am setting for 2013.
I still have a total of 17 debts outstanding, so paying off another five debts will reduce this number to 12.
Reducing my Monthly Expenditure
I also need to reduce my monthly expenditure even further. I am hoping to find a job closer to home to reduce the amount of money I spend on my commute. I should then be able to use this additional money to reduce what I owe even further.
I will also look at other expenses such as rent on my home and food shopping too to see if I can make some savings there. It is all about throwing as much as I can at the balance to make it reduce in size as quickly as possible.
Increasing Payments towards my Debt
I have talked about increasing how much I pay towards my debt. I have already increased the payment to my Esporta Debt to £27.10 per month starting from January 2013. This means I will pay off that debt in 36 months.
In November I also increased the payment I make to my Co-operative Bank account from £10 per month to £20 per month. That means I should pay that back within the next 24 months or so.
I will also be looking to increase my current repayments on all my debts. It will only be a slight increase but it should keep all my creditors happy for another year or so. It should also slightly reduce the length of time I am in debt for.
Let’s see what happens
It will be interesting to see if I manage to stick to the plan above. At least now that I have written about it I can come back to this post at the end of next year and see what I achieved.
Thanks for reading this blog on debt and I wish you all a happy new year. Debt is a boring subject but I hope it isn’t too painful for you reading about it.
If you have any plans for your own debt, please comment in the box below and we can all look back at the end of 2013 to see how we got on.