Take a peek inside my account... Here's a quick pic!

I think capital one has cottoned on to my plan to eradicate my debt, because they've only gone an increased my credit limit by £1000. So my account now stands at £3000.

I imagine they'll be wondering 'what's gotten into her? She's spending on her card and paying it back in full, and she's making overpayments at 6am in the morning like a crazy woman'. 

Increasing my credit limit is probably them trying to lure me back into my deceased spending habits. In the past, when they've increased my limit, I'd have spent the whole lot in my head by now but this time round I'm planning on calling them to ask for it to be reduced. 

Quite frankly, I'm not interested in any money that doesn't belong to me.

Credit card debt is expensive debt, so the sooner you can clear it the better. It's such a pain when you pay an amount towards your credit card and because of those dreadful interest rates, a proportion of your hard earned cash goes back into the companies pockets, which slows down the rate in which you clear your debt. Grrr!

0% Balance Transfer Credit Cards

There are many on the market and these cards are a cheaper alternative. I decided to do a pre application check to find out the likelihood of being accepted for a Barclaycard and the results came back as a 'very good chance'. As I've forecast that it will take another two months to clear my credit card, it will save me over £90 in interest by transferring my balance to a 0% interest card. However, some do charge a fee for transferring your balance over so do check this out beforehand if you decide to do this.

Do you get frustrated by the interest you pay on your credit card debt?  Or have you recently finished paying off any debt? How did it feel to make that last payment? I'm really looking forward to that moment...

*UPDATE* November 2013 debt repayment figures...

Well! What a month it has been. It was only last month I decided I would no longer live in denial and above my means. It was only last month that I decided I wanted to become debt free, and it was only last month that I looked at my budget and spending habits, and decided to change them.

To be honest, this month has flown by with many highs and lows but I'm pleased to say that I've made it. The first thing I did was read up on the best way to clear debt and the snowball method kept coming up. I put my debts in order from the smallest to largest debt and decided to tackle one of my credit card debts which had a balance of £1600.

I then looked at my bank statement and noticed that I was spending a lot in Tesco for lunch, so I decided to bring last nights dinner in everyday to save money. I'm still doing this, and now I look forward to my lunch. Before I would get bored of eating the same ploughman's sandwich daily but now its something different everyday.

However, I did have a huge set back as I broke my iPad. I still haven't had this repaired just yet but just to update you all, I did find a company that could do it and return it back to me within two days for just £64. I'll be sending it off when I break up for the Christmas hols.

Right! Now for the numbers...

So after lots for careful spending and buying petrol from Asda which is by far the cheapest where I live in London. I've ended up with £200 leftover in my bank account the day before payday to pay towards my debts. This has never happened to me before! It's got me really pumped up, and feeling like I can take on the world lol! Please excuse my over-the-top-nessss... I'm just really pleased with myself. I also returned a pair of £140 Aldo boots which were faulty, and I decided I didn't need them and to make do with what I already have.

Last months figures...

Original Debt - £24,180

Credit Card #1 - £1600
Car Loan #2 - £10,962
Credit Card #2 - £3500
Car Loan #1 - £2000

Total - £18,062

Novembers figures...

Credit Card #1 - £1,260
Car Loan #2 - £10,759
Credit Card #2 - £3480
Car Loan #1 - £1990

Total Current Debt -  £17,489

Total Debt Paid - £573

I know its not much but its a start for me and I'm hoping next month, i'll be able to save more but with Christmas on the horizon I'm not so sure. Not giving up just yet though, I'll still try my best.

Have you managed to save or make any extra debt payments this month? Share some of your achievements with me...

Steering clear of negativity whilst clearing debt...

Hi everyone! This weeks been a tough one as its almost been a month since I began my journey and payday is getting closer. This means its getting tougher for me to hold on to what's left in my account. My current balance is £230 as it stands, and this is set to go towards paying down my Dirty Debt! This week I was landed with paying for my Christmas do and I had to attend a friends birthday meal, and both activities cost me £20 in total so I'm down to £230.

Another reason why its been tough is because I've had some negative comments thrown my way. Things like 'you're crazy', 'you can't live on a budget the whole time', and the worst was 'you're being selfish!' That one hurt me the most because it came from someone very close to me. This person is very bad with their money and constantly asks me for money. So whilst I've been trying to clear debt this has been very draining emotionally. It makes me feel awful to say 'no' but my budget simply cannot afford it. Especially as this person has a track record for not paying back what they borrow.

I think it's important to tell people you come into regular contact with about the journey you're on and why. This is so that they can understand your new lifestyle and can support you, which will in turn make your journey easier.

On a good note!

This is the first time I've returned boots to pay off debt and got to the end of the month with money left over in my bank account. This is a huge milestone for me and one that requires a mini celebration. So here goes... 'Yipeeeeee!'

How do you deal with negativity? Do you know someone who is always borrowing money? Or maybe you have some tips that could help me...