Oh my goodness me. I have made a MAJOR boo-boo. But the kind of boo-boo that makes me want to jump out of my seat and run around the streets with my top over my head like a footballer.
Back in February I set myself a challenge to pay off £12,000 of debt in 399 days – with the deadline date of 20 March 2014. I put myself on a spending ban, saved all the pennies I could and sold lots of my belongings. Then in May my car broke and I had to borrow a further £1,200 from my parents to buy a new one. This was a bit of a setback, but I decided I would still carry on with the same end-date – I’d just need to work harder.
Anyway, having transferred the balance of my two credits cards on to one new 0% card this week, it suddenly dawned on me – I haven’t been including any of my credit card payments over the past 5 months of my debt clearance! So, I calculated the balance of my credit card and what I owe to my parents and found that instead of owing £10,101 as I thought I did, I actually owe £7,565!
When I thought I owed £10,101, in order to hit my deadline of 20 March next year, I had to be paying off £1,443 each month between now and then which is literally impossible for me to do, so I knew that unless something big happened, I was going to fail. However, with this new balance, it means I need to be paying off £1,080 each month, which is still fairly unachievable, but is obviously a lot lower and therefore not as scary.
Although it’s going to be difficult, I’m still going to do all I can to hit my deadline to be debt-free – I just need to put my thinking cap on and work out a new way of raising some cash!