It has been a long time – particularly in blogland – since my last post. To the small but dedicated readership I had built up in the couple of months I was posting in the beginning, I offer my humble apologies for my abrupt disappearance. In mitigation, I had a lot going on in my life, and there just wasn’t enough mental powe left to blog as well.

But now things are coming back to a sense of normality, and I am extremely pleased to be able to share this with you all.

My job is safe

At least, as safe as it can be in the current economic climate. I am not ashamed to have made the preparations I did, as I think they provided an amazing insight into how a financial disaster can be handled, even when it seems hopeless to even try. I’ve even had a small pay rise since my last post, courtesy of a 3 year pay deal agreed before the credit crunch hit.

I am debt free*

On the 19th November 2009, I sent in the last debt payments to my remaining two creditors. £7,858.63 to Barclays Bank for the consolidation loan I had taken out to combine the debts left to me by my ex-wife, and a whopping 11p to my credit card provider BarclayCard.

This settled the loan 2 years early, and cost me £80 to pay it off, than if I had just let it run. But it was worth it.

*I am now using the credit card again, but sensibly. It is paid off in full every month, and as it is a cashback credit card, I now put all my spending on it. That way I technically get a 1% discount on everything I buy! I have no debt that I cannot repay instantly if required with cash savings.

I am divorced*

The judge stamped my Decree Nisi and the Financial Consent Order I applied for at the beginning of January 2010. This means that I’m all but divorced now. The Decree Absolute (the final part of the divorce procedure in the UK) was due to be signed by the judge last week. This will hopefully bring to a close a very bitter and expensive part of my life.

*I am waiting for my solicitor to forward the Absolute to me. Until I have it in my hand, I won’t actually believe it is over! I still need to pay my solicitor for his work, and the bill should be arriving some time this month. I can’t say I’m particularly looking forward to it.

I have found new love

It’s funny how life works. I was on a residential training course for 16 alternate weekends as part of my profession. After 3 or 4 weekends, I was finding myself drawn to a particular girl who was also on the course. We got on so well, liked the same things, laughed at the same things and loved spending time together when we had finished for the day.

Towards the end of the course we acknowledged that we were ‘in a relationship’ (thank you Facebook for making the lines so clear cut!), and we’ve been spending a lot of time with each other ever since. Each of us has done the ‘meet the parents and family’, We’re going on holiday together in July, and we are looking for places to move into together eventually. Although she still lives at home with her mother, her mother is happy for me to stay, and so I have done just that countless times since January.

Some people were concerned the age gap would be our undoing (I’m 26, she’s 19), but there is no sign of it being an issue, and long may that continue.

I have savings

Being single is considerably cheaper. Being in a new relationship has put pressure on my preset targets for 2010/11, but can you put a price on happiness? I don’t think you can. I am saving at a minimum 50% of my income each month still, and sometimes way in excess of that, but doing things as a couple (dinners out, clothes shopping etc) isn’t something I’d budgeted for when I originally wrote my plan!

All said though, I’d rather be happy than rich. I am debt free, I am all but divorced, my life plan will happen (just a few months delayed thanks to extra expenditure), I am blogging again, and I am 110% in love with someone very, very special.

Life doesn’t get much better than that. I love you Catherine.

• Is Debt Worth It? Does It Matter?
• My Final Credit Card Payment Coming Due
• A Fundamental Question
• Dig Yourself Out of Debt: Spend Less Than You Earn
• MBNA Launch Best Credit Card Balance Transfer Deal Ever

As I wrote several months ago in my Financial Meltdown series, I took out a consolidation loan in January 2009 to pay off 2 higher-rated loans, and get in return one, cheaper, lower rate loan. The two old loans were with Barclays (my banking provider of choice), and so was the new loan.

I made an appointment with a Personal Banker in January, and proceeded to spend over an hour with her. I was open and honest, and she really spent time with me. I discussed my goals, where I was financially, and she talked through the options open to me. I left feeling very, very happy. I had finally taken steps to securing my financial future for the first time in my adult life and left with an even more positive view of my bank of choice.

The first of the two higher-rate loans was settled without complication. The other – due to the loan being created on the ‘old’ system but settled using the ‘new’ – refused to close in its entirety.  I was advised to “not worry about it” and it would resolve itself eventually.

The account remained attached to my online banking with a balance showing. I phoned every few months to check all was in order, and each time I was assured: all was in order. During each call, the balance remaining was described as simply the PPI refund that I had not had to pay during settlement. The ‘new system’ would get bored with it eventually and close it off.

On the 3rd July 2009 I received a ‘Loan Account Statement’ covering the 1st October 2008 to 2nd July 2009 listing a ‘Closing Balance’ at the end. No further correspondence was received and I took this to mean that the settled loan was in the final throes of being removed from my account. A little cheer was given, and the letter filed.

Fast forward to this month, and a Direct Debit for £7.83 bounced from my current account (as the instruction had been canceled by the branch when the old loan was settled). Curious as to what this amount was for, I phoned my branch. The lady I spoke to advised – after considerable digging – it was an attempt to take payment for the old loan still showing on my account. Due to limited information available to counter staff, she could not offer any further information.

Perplexed, I phoned the Barclays Loan line and spoke to a lending specialist, who could not answer why the payment attempt was made. Nor could she answer why it had taken over 10 months to attempt it. All she could tell me was I now owed Barclays £8.29 – courtesy of daily interest. I paid this with her by Fund Transfer, but she could not guarantee me that it would not be registered with the Credit Reference Agencies as a Late Payment.

In a letter to Barclays Customer Relations I penned:

“I find this incomprehensible and indefensible. Not only have I wasted most of this evening reviewing correspondence, bank and loan statements, and telephone records, but now fear negative reporting to my credit rating. Ostensibly, the payment is some 10 months late, but not due to any action or inaction on my part. When you settle a loan and receive repeated reassurances that everything is in order, is it unreasonable to believe that this is the case?

Currently, the loan account is registered as Satisfactory with no late payment markers. I want to ensure that this loan account is now marked as Settled without detriment to my credit history – for what is either a Personal Banker error; a computer error; or a combination of the two. I would also like to discuss the matter of compensating my time for having to be writing this letter in the first place.“

I love Barclays. But a relationship where they have treated me very well over the last 14 years is in danger of falling apart from a silly error on their part. The outcome of this complaint will very much determine where the remainder of my adult banking is conducted.

Tread carefully, Barclays. Very carefully indeed.

Have you ever been in conflict with your bank?

• Patience is a Virtue
• Dig Yourself Out of Debt: Avalanches and Snowflakes
• 7 Reasons My Friend is Poor
• My Financial Meltdown: Part 3
• Could You Live on Half Your Income?

Every month I calculate my net worth and then publish it. While the exact figures of my wages are not disclosed, what it does to my net worth, is. This month I am so close … !

Where I work we receive our overtime 1-2 months after we actually work the hours, due to how the payroll operates and how claim cut-off dates affect claim periods. Therefore this month I am seeing the fruits of my labour from the last part of August and the beginning of September.

The graph speaks for itself.

The last little bit is just there to tease me I am sure. Flicking back through my budget for the previous 10 months there are so many places I could have shaved off that amount if I had really, really put my mind into it just a few more percentage points. If I hadn’t gone on holiday to Cyprus in April, for example. Sure the holiday itself was free – no flights or hotels to pay for – but I took over £1,000 in spending money and guiltily spent the lot.

But, there is little point in crying over spilt milk. What is done, is done.

According to one (of my many) mighty spreadsheets, this means next month is freedom month – assuming my car does not blow up in the meantime of course.

You may remember that last month I was going to attempt to make an additional £1,252.16 to bring forward the pay-off date a month nearer still. I nearly made it, but fell short by £653.58 as can be seen above.

Darnit.

• Credit Card Analysis: From Hell to Heaven
• Dig Yourself Out of Debt: Spend Less Than You Earn
• Dig Yourself Out of Debt: Psychology 101
• My Net Worth Update - Sep 2009
• My Financial Meltdown: Part 4

I’m still feeling under the weather, courtesy of my vaccination on Friday. I very rarely get ill, so I always feel as though I’ve been hit by a truck when it happens! Runny nose, aching muscles and joints, thick head and a general lack of drive to do anything. In short, not fun.

But, one advantage is I have not done all that much the last couple of days. I have spent most of today in fact thinking about what I am going to do when I am finally debt free in the next month or so.

A few years ago I would have splurged on all kinds of ‘toys’, new gadgets, a big expensive holiday and so forth. The last 10 months has disconnected me almost entirely from the consumerism that got me here in the first place.

So what will I do when I am debt free?

I will treat myself to Burger King

As silly as this sounds, I have not eaten out for myself at all this year. I have been frugal in my food shopping, dining and cooking experiences, and just once I would like to say “to hell with it” and go have some fun in a culinary sense. I can be fairly certain to walk away pretty full and not spend more than £10 for the privilege.

It’s hardly haute cuisine, but it has been something I have been dreaming about for the best part of a year and it will be a major expense for me: Ordinarily £10 will feed me for a week!

I will pad out my Emergency Fund

I have never had one, and I know I need one. Especially now that the Grim Reaper has been trying the doors at work. I think a reasonable starting point would be £1,000 – and work upwards towards 12 months of expenses from there. Currently my emergency fund is £70, and that is a bit of a cruel joke in every sense.

I will take my parents out to dinner

My mum and step-dad have been my rock so many times over the years, but they saved me this year. They put me up – at great inconvenience to themselves – rent free, to help me get out of the dark place that a falling-apart marriage creates. Living rent-free has enabled my “Get Out of Debt In A Year” goal to be a real possibility and not some pipe-dream. Thank you, guys.

It won’t be cheap. While my step-dad will eat just about anything (with the exception of carrots), Mum is allergic to a lot of foods. I need to do some research to find a good setting that can cater for this.

I will open my 2009/2010 Cash ISA

I’ve been singing the praises of ISA’s on this blog quite a lot. When I am out of debt, it’ll be time to heed my own advice and go and get one!

I will take a short frugal holiday

I need a holiday. I totted up that I have worked an entire extra month in just 9 months so far at work in my ‘debt payoff’ journey, and it has left me feeling old. A short holiday will be nice, just 4 or 5 days will be fine. Somewhere relaxing, somewhere I can just sit back and unwind. Somewhere I can soak up a bit of culture and a bit of alcohol. I will pay in cash, of course!

Should I expand this list somehow? Have I missed a blindingly obvious “when debt free” todo?

• A Fundamental Question
• Notice of Disassociation
• Dig Yourself Out of Debt: Psychology 101
• Dig Yourself Out of Debt: Spend Less Than You Earn
• Two Steps Forward, Three Steps Back

Today is a feel good day. The last remaining credit card I have with a balance has been set to “pay in full” as of next month.

Come the 9th November I will be credit card debt free!

The little checkbox on my online account will never again move from the “pay in full” position it is now sitting at.

I vow, here and now, to myself and the millions upon millions of people who have Internet access, I will never ever ever pay another penny in credit card interest.

Ever.

Thank you Barclaycard for the balance transfer you gave me in January, and I am sorry I didn’t fall for more than one of your entrapment methods along the way. When I took out the card in January I was duped into purchasing Card Protection that basically covers fraud, loss, holiday cash advances if you get stuck and so on. Live and learn.

I didn’t fall for your 0% interest on purchases that only lasted for the first 3 months. I didn’t fall for your balance transfer cheques you sent me (twice!). I didn’t fall for the 0% ‘deal’ you offered me at month 6 for 0% on just one month of purchases (that would have cost me a fortune unless I had paid off the entire balance afterward – nuking the 0% transfer in the process).

Nice try, but you will have to be content with the £8 of interest you have earned from me. It is the only interest you will ever earn from me, so do not spend it all at once. Can I suggest you put it into a savings account?

Compound interest is your friend!

• A Formal Complaint to my Bank
• Savings Roundup - September 2009
• Beware The Balance Transfer Cheque
• My Financial Meltdown: Part 3
• Say Hello to Kublax