7. Clear all debt

Ok, who hasn't got this on their things to do list? If you're like me, it's been one of your main targets for quite some time now and you're probably a lot less closer to achieving it than when you first set it, right?

Well, this has been my longest target, there's no doubt, and things have certainly been worse before they got better but alas I'm sure somehow there is light at the end of the tunnel. It's just a very long tunnel!

First of all, to do this with the aim to pass it. I need to determine what is meant by the term 'debt'? Strictly speaking, a mortgage is a debt but I hope to mark this target off before I'm in my mid 60's, thank you!

So in this instance, the aim is pretty much to eradicate every item of debt that isn't the mortgage. That includes my personal loan, all overdrafts, all credit cards, everything taken out on finance packages, and anything owed to anyone else. I've quite a lot outstanding at the minute, manageable though but life would be a lot healthier if it was severely reduced.

I've already made a plan of what is coming in and going out over the next few years and will use this to inspire me to pay things off and reduce the outgoings. Besides, who knows what's just around the corner? We already know we have a little one on the way and so incomings may drop whilst Milly is out of work, whilst expenditure is sure to shoot up, what with food, furniture and nappies et al!

Milly is also yet to learn to drive and is planning on starting and passing before junior arrives, so that's going to be an unplanned expense, not to mention whatever we decide to do about running an additional car.

So the plan is to start concentrating on getting things paid off. The first thing is to identify current levels of debt, then focus on certain areas that will make the most difference. This includes paying things off with the highest interest rates, things that are needed to be paid sooner than others, and those that will make the biggest difference to us both in the short term and the long.

The next update to this will look at current levels of debt, covering what is owed to who, interest rates, end dates and will include some sort of plan to getting it paid off! Wish me luck!