Beating Debt | New Years Resolution

I see all of those money bloggers who discuss beating their debt and the tactics that they take to curb the spending and I respect them, it takes a lot to discuss money woes and debt balances yet they've done it. 

I've yet to meet a person who doesn't worry about income, money or debt and how they will manage when the shit hits the fan and that's why I am making 2020 a debt-free year for us. While I realise this really means that we won't literally be debt-free in 2020, we will be actively working towards that goal, owning it and paying off any dribs and drabs possible towards the debt. 

I'm excited! 

So I've made my own Excel Snowball tracker and Sinking Fund tracker and while most use the snowball trackers the correct way, I don't. I have direct debits set up for the minimum so I don't account for those. Instead, I take my Paypal balances, sent it to my account monthly, open my tracker and pay off the ''bits''. When I check my online accounts every few days, weeks or months I adjust for the Excel to reflect any added interest or direct debit payments that have come off. 

Every few days I skim our joint account. So if we have £867.09 in there, I will take either the £2.09 (rounding it up to £865) or the £7.09 (rounding it up to £860) depending on how truly broke we are. That skimmed amount is paid to one of the many accounts listed on my tracker Excel. Especially those that are rounded already, for example, balances of £300 are nice and clean, so breaking that by a few pounds makes me want to continually balance it, it's a winning OCD trait.

To begin with, we took all of the accounts that held a balance. Big and small. Adding those to the Excel was scary, especially if they were accounts that were manageable or small but they had to be added as they accumulated a balance and we were never fixing the issue if nothing was done about them. So, they were added. 

We then agreed that even the smallest amount was better than doing nothing or putting it off until the next month, I mean even £1 - every pound chipping away counts? right? 

Next, we agreed that we should check every few days, setting up a tracker was no use if nothing was being tracked or tackled. So I tend to open our Excel and set about logging into each account online to check the balances don't need adjusting. If I can I pay small amounts and update the tracker. Sometimes it's literally been £1 or on one occasion I paid 56p to a credit card. Crazy, but it all helps. 
Here's what we're working with, I've changed the headers for privacy but you would add your own headers to suit what balances you have. I've added notes for login details and account details etc: 

 Loans - £2,772.68
 Credit Cards - £7,006.93
 Store Cards - £1,236.72
 Total: £11,016.33

Absolutely shocking! 

Can you see why it's so necessary to add up all of the accounts, our balance is high but the total is made from seven-plus accounts, some with small balances. If you have so many small accounts it's easy to lose track and to think it's OK because they are small and manageable but what you pay out is accumulative. So, some may add more accounts until eventually there's not enough income to pay what's necessary. 

I am going to be looking into other methods for increasing our income in 2020, I've been super inspired by Skylark Virtual Services who write about so many inspiring methods for improving our business game. In particular, the post they wrote about creating digital products has piqued my interest. Watch this space. 

Who is with me? Who wants to make 2020 a debt crunching year? The first step is to embrace what debt you owe, we can do this together. 

Elyse & Connor

Statement: Nothing to Disclose