Busting debt and taking names | Cottage Retreatist

busting debt and taking names!

I am feeling super happy this week! We sorted out some small debts over the past few days! whoop! We are £1700 closer to debt freedom! We are literally busting debt!

We decided to focus our efforts on the myriad small debts we had lying around rather than throwing it all at a single debt. there were a few reasons for doing this:


There is nothing better than busting debt! Being able to strike something off you to-do list! Being able to strike off a few at once is even better!


A lot of our larger debts are actually defaulted so they are not accruing interest, however by adding up all our individual cards (which have a high APR) these total about £80 per month in minimum payments alone.

Mind change!

We don’t want to borrow money, we don’t want to owe anyone. By getting rid of the credit cards we are perpetuating our mindset that borrowing is not for us! not only have we paid them off but we are cancelling them too! (why do they always ma,e you wait a month before you can close them?!!)

credit report! I don’t know -credit reports are things that only genies and Experien understand but I would think that by reducing our available borrowing that would be a good thing? right? 🙂

Next steps

Next month our focus is on some of the defaults we still need to work on and Mr CR’s student loan! Eek!

Feeling good right now! Hoping with all our debt busting we’ll keep on track for debt freedom in May 2015 – keep your fingers crossed for us! 🙂

What debt busting are you proud of so far in 2015?

This blog post is part of the Financially Savvy Saturdays link-up party hosted by Mel at Brokegirlrich! Follow the link below to find out more and to add your own blog post to the link-up party! 🙂


Image: used under Creative Commons License – from TaxRebate.org.uk (via Images-of-Money flickr)


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18 thoughts on “busting debt and taking names!

  1. Congrats on killing those smaller debts! It is an awesome feeling whenever you can strike something off a to-do list AND if they’re your higher interest debts, it seems like a no brainer to me.

  2. Congrats on paying it off! I don’t know how it works in the UK, but in the US it’s actually better to keep those accounts open. Part of your credit score is dependent on your available credit vs used, so the more you have the better as long as you’re not owing on it.

    • Hello! 🙂 Thank you for your comments!

      Available credit – so if all my accounts are on zero but I have lots – it’s better than having one thats maxed?! I suppose that makes sense but I suppose we’ll need to think if we are good enough mentally to have all that credit at our finger tips!!!

      I’m going to look into it
      Natalya x

      • Exactly. At least that’s how it works here. Something to look into, but I think you’re being smart to assess if you can hold onto the card without using it to it’s capacity; this only works for you if you’re paying stuff off or keeping your balance seriously low! And, again, not sure about it as you’re in the UK.

  3. I know the feeling about trying to pay off the small debts. I had planned to start clearing my lowest debt (mine are all credit cards) but then remembered I had to transfer £700 off one card onto another so given it is a relatively small sum compared to the rest of my debt, I decided to concentrate on clearing that instead of accruing a balance transfer fee.

    You look well on target for a debt free May!

    • Hello! Thank you for your comments!

      If transferring it gave you some respite in terms of interest then it was the right thing to do! We all know what works best for our own debt-busting journey!

      Fingers crossed for May! I’ll keep you posted 🙂

      Natalya x

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