It would be great to double my income so I could pay everything off sooner, however I have to be honest that is unlikely. And yet with some aggressive budgeting and health changes I've made some big savings which I've use to clear off my debts.
To date I've paid off:
Overdraft: £800
Credit Cards: £7,919 + £5039 = £12,958
Car Loan: £6,885
Now I only have my mortgage outstanding and want to pay it off faster.
I admit my debt repayment plan was extreme and I sacrificed a lot but I learned that spending less on the things you think you need saves a fortune and you'll be able to pile that money into your debts.
I've sold things I don't use or want anymore, made massive debt repayments when I've received my company bonus and even spent my emergency fund on debt. I spend money on my debt. I want the evil beast killed off so I can build wealth.
The best course of action is to take action and stop paying the minimum amount every month. Sure some months you may need to reduce the payments and not contribute as much because you want a meal out and a few beers with friends, or want to go on holiday with the family. You can still have a social life and purchase the things that you enjoy now and then. It's not totally forbidden to enjoy yourself and have some fun.
Please remember your debt schedule doesn't have to be forever. Make addition credit card and loan repayments when every you can. Find cheaper insurance pay it towards your debt, save on your energy bills put it towards your debt, reduce your food bill pay it towards your debt, get some birthday money pay it towards your debt, find money on the pavement put it in your debt.
Your schedule to pay off your debt doesn't have to be that radical. I suggest you devote the maximum that you can afford to your debt every month by trying some of my methods above. Spending your income on debt is the only way to reduce the debt balance until it's gone.
The bottom line is make sure you budget for your debt as well as the good stuff. Debt paid off today saves you a fortune in interest in the future. Progress may be slow at the start and yet any small random payments will help repay your debts, whether it takes 12 months or twelve years total debt freedom is the goal.
