Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • Sharon87
    • By Sharon87 15th Sep 16, 5:34 PM
    • 3,428Posts
    • 2,877Thanks
    Sharon87
    Keeping Motivated During Debt Free Journey
    • #1
    • 15th Sep 16, 5:34 PM
    Keeping Motivated During Debt Free Journey 15th Sep 16 at 5:34 PM
    I've been on these boards for a while now. I had my LBM earlier this year. I've started budgeting with YNAB and it has been an eye opener to how much I was actually spending.

    After 3-4 good months of paying off debt I feel like my debt free journey is going to take a while, and the temptation is always there to spend money on entertainment purposes.

    I have £12,800 worth of debt - which is all on 0% or low balance transfer of 4.9%. I am paying around £300/month to my debts - but obviously there's a small bit of interest on my 4.9% card. I am also building a small emergency fund for when I'm not in work - I work contracts. My savings account pays 6% and is locked in for a year. I also have £500 earning 3% which was what I saved up on last year's regular savings and is my emergency fund.

    I feel I don't have much money for entertainment purposes after my rent, food, bills and debt payments. I've given up some things including my personal training sessions, buying music/spotify.etc I did give up Sky for a while as well, but I have it back as I missed it.

    But I just feel it's going to take ages to pay off my debt. I do extra transcription work to get a bit more money, but I do find myself losing motivation sometimes, my social life suffers.

    I am also about to become an aunty, so I know there'll be lots of trips to visit my new niece, which will eat into my entertainment budget! (about £16 return for a day trip, a lot more for overnight trips!)

    How do other people keep motivated during their debt free journey?
Page 2
    • Katzen
    • By Katzen 16th Oct 16, 11:48 AM
    • 497 Posts
    • 1,597 Thanks
    Katzen
    So, have you got everything on 0% now? I can't keep up! What's the current target sum/ card. Set yourself some targets so you can start to achieve them, that's always key to motivation. Are you able to do some calculations to see how all this shuffling has impacted your DFD?
    Finally, I find a light alarm clock and a light box really help my SAD, for less than the price of a holiday!
    • Sharon87
    • By Sharon87 16th Oct 16, 6:34 PM
    • 3,428 Posts
    • 2,877 Thanks
    Sharon87
    Everything except £1500 is on 0%, the rest is on 4.9% now. It's hard to work out my exact debt free date, snowball calculators are useless as when a 0% deal comes to and end I transfer it and there's no snowball calculator that takes that into mind. If I pay £300/month it'll take 3.5 years to pay everything off, but that doesn't include any interest or fees, so probably a few more months, maybe 4 years. But I would like to pay more towards that when I earn a bit more - hopefully should get a pay rise next year as I move up in my career. Also a new housemate means I will pay less council tax (my current housemates's a student) so that means a bit more money towards savings or debt. Obviously if I pay more than £300/month I will be debt free sooner, so I will try and do that.

    The holiday's not just for SAD, my current job is quite stressful right now and I need some time off, even just 4 days to help de-stress! I haven't had a proper holiday this year and thanks to Quidco and hotels.com it's super cheap (£192 for flights, hotel, breakfast and dinner!) The rest of the cashback will go towards savings or debt. Haven't decided how to split it yet. Holidays are the one thing I never used to do, but these days I feel I need them more, even if it's just a weekend away. I would rather spend money on a holiday than unnecessary clothes or stuff that just clutters up my room.

    As for freecycle, it's a bit rubbish in my area, and it may sound snobbish I don't want someone's old book case! Other things I wouldn't mind, but I want a new bookcase and you can get them cheap. I did actually go to IKEA today to buy all the small bits to replace my housemates things she's taking. I spent a total of £28 lol! I did intend to buy either a book case or a new TV stand today, but the book case was too big for my friend's car and couldn't find a TV stand I wanted. My bookcase is too small now which is why I need to replace it, I need a tall one, it's served me well for 10 years, now it needs replacing, especially as the back is taped up to hold it together! I don't replace anything unnecessarily. only when they start falling apart or become redundant.

    How much were the light alarm clocks, that was something I was thinking of getting to help me wake up in the darker mornings.
    • Meepmeep
    • By Meepmeep 18th Oct 16, 7:27 AM
    • 63 Posts
    • 117 Thanks
    Meepmeep
    Maybe you could track what your debt would be if you would have kept spending at the rate you were before your LBM? So, for eg you are not just paying £300 a month off your total debt of say £10,000 and watching it go down by that much each month - you're actually doing much better as could be each month the debt goes up by 300£ which means you're £600 better off a month.
    Random figures I know, but you get the point.....

    I know what you mean about motivation so many times I'd start off well but it seemed impossible - buy you can do it. And you're going to feel so bl00dy good when it's sorted!
    • EssexHebridean
    • By EssexHebridean 18th Oct 16, 10:08 AM
    • 6,317 Posts
    • 35,041 Thanks
    EssexHebridean
    You asked earlier in the thread about the amount you should budget for your 2018 holiday. The answer to that is the amount it will cost divided by the number of months before you go.

    I think you need to make a decision on whether you want to be debt free, or whether you want to be able to carry on with your desired level of social life. I'm afraid I don't think you can have both, at least not in any sensible level of time. If you REALLY hammer your debts for a while, you can get things cleared off in a far shorter time - yes it will still take a while, sadly it takes longer to pay off debt than it does to run it up in the first place! The longer it takes to pay off, the harder it will be, and the more deprived you will start to feel. If you can make use of the LBM "burst of enthusiasm" to really get stuff cleared, the boost that seeing the numbers fall will provide will help you through.
    MORTGAGE FREE 30/09/2016
    • determined new ms
    • By determined new ms 18th Oct 16, 10:46 AM
    • 5,556 Posts
    • 29,453 Thanks
    determined new ms
    does your holiday in 2018 have to be a once in a lifetime experience? I have been to lots of places on a budget. Went to Morocco in 2011 after clearing our debt and it cost sub £400 for flights and accommodation. If I went again I suspect accommodation would be less as last time we booked an apartment for 10 days but once there realised we would have been better to book a couple of nights and then booked into Riads while there. Going to Morocco was something I had wanted to do ever since watching Hideous Kinky when it first was released. so for me this was a dream holiday.

    If you are looking for a package holiday you can always pick them up for £500 or less.

    If you're thinking travelling around Asia, America, South America I agree if it were me I would wait until my debt was cleared.

    I did still go on holiday's while we were paying our debt but they were always extremely frugal finds
    Last edited by determined new ms; 18-10-2016 at 10:48 AM.
    Debt to Bank of oh Mum: £4200/£5700
    Wombling 2016 £263.42 Roadkill £27.21
    • determined new ms
    • By determined new ms 18th Oct 16, 10:47 AM
    • 5,556 Posts
    • 29,453 Thanks
    determined new ms
    You asked earlier in the thread about the amount you should budget for your 2018 holiday. The answer to that is the amount it will cost divided by the number of months before you go.

    I think you need to make a decision on whether you want to be debt free, or whether you want to be able to carry on with your desired level of social life. I'm afraid I don't think you can have both, at least not in any sensible level of time. If you REALLY hammer your debts for a while, you can get things cleared off in a far shorter time - yes it will still take a while, sadly it takes longer to pay off debt than it does to run it up in the first place! The longer it takes to pay off, the harder it will be, and the more deprived you will start to feel. If you can make use of the LBM "burst of enthusiasm" to really get stuff cleared, the boost that seeing the numbers fall will provide will help you through.
    Originally posted by EssexHebridean
    Just seen your sig EssexHebridean how amazing!
    Debt to Bank of oh Mum: £4200/£5700
    Wombling 2016 £263.42 Roadkill £27.21
    • lazer-zxr
    • By lazer-zxr 19th Oct 16, 10:45 AM
    • 307 Posts
    • 341 Thanks
    lazer-zxr
    We've just gone off the rails.
    After 18 months of minimal costs, we've booked tickets to go to the London Palladium in Feb (The Divine Comedy), hotels and trains yet to sort out.
    But sod it, we deserve a break. I'll limit the whole thing to a £400 weekender.
    I'll be on the straight and narrow apart from this.

    What do people think of this?
    DFWB £45190 of £52549 repaid. LBM feb15
    MFWB On hold due to low int rates
    • Bedsit Bob
    • By Bedsit Bob 19th Oct 16, 10:58 AM
    • 9,311 Posts
    • 48,764 Thanks
    Bedsit Bob
    Please tell us you haven't put this trip on tick?
    My job is Top Secret. Even I don't know what I'm doing.

    Amount I have so far denied the BBC - £1015-50
    • lazer-zxr
    • By lazer-zxr 19th Oct 16, 11:16 AM
    • 307 Posts
    • 341 Thanks
    lazer-zxr
    Please tell us you haven't put this trip on tick?
    Originally posted by Bedsit Bob
    Haha no, I've learned that lesson.

    I have a virtual pot within my cash account for holidays ..... tickets have been bought on debit card from there.

    Hotel will be paid for from loyalty points.

    Travel will be either be in the car, if I can get a work related customer visit in the area and expense the mileage, or an early booked train ticket again funded by the holiday pot.
    DFWB £45190 of £52549 repaid. LBM feb15
    MFWB On hold due to low int rates
    • EssexHebridean
    • By EssexHebridean 19th Oct 16, 11:31 AM
    • 6,317 Posts
    • 35,041 Thanks
    EssexHebridean
    Just seen your sig EssexHebridean how amazing!
    Originally posted by determined new ms
    Thank you so much! We got the paperwork through from the bank last night confirming it all too - finally beginning to feel real!

    We've just gone off the rails.
    After 18 months of minimal costs, we've booked tickets to go to the London Palladium in Feb (The Divine Comedy), hotels and trains yet to sort out.
    But sod it, we deserve a break. I'll limit the whole thing to a £400 weekender.
    I'll be on the straight and narrow apart from this.

    What do people think of this?
    Originally posted by lazer-zxr
    I'm sure there will be plenty of opinions, but I'll limit mine to saying that it's not really the "done thing" to hijack someone else's diary thread like this.
    MORTGAGE FREE 30/09/2016
    • lazer-zxr
    • By lazer-zxr 19th Oct 16, 11:38 AM
    • 307 Posts
    • 341 Thanks
    lazer-zxr
    I'm sure there will be plenty of opinions, but I'll limit mine to saying that it's not really the "done thing" to hijack someone else's diary thread like this.
    Originally posted by EssexHebridean
    Apologies, but as I understand it,

    1) This isnt a DFWB diary ... it was a question thread in the DFWB general forum.
    2) The OP asked the question:

    How do other people keep motivated during their debt free journey?

    So I've posted what we've done as a treat during our DF journey.

    So no thread Hijacked, other than your misplaced criticism Essex H. Thanks.
    DFWB £45190 of £52549 repaid. LBM feb15
    MFWB On hold due to low int rates
    • EssexHebridean
    • By EssexHebridean 19th Oct 16, 11:47 AM
    • 6,317 Posts
    • 35,041 Thanks
    EssexHebridean
    Apologies, but as I understand it,

    1) This isnt a DFWB diary ... it was a question thread in the DFWB general forum.
    2) The OP asked the question:

    How do other people keep motivated during their debt free journey?

    So I've posted what we've done as a treat during our DF journey.

    So no thread Hijacked, other than your misplaced criticism Essex H. Thanks.
    Originally posted by lazer-zxr
    You posted your own story, then asked for opinions on it. That's rather different. But I appreciate your thanks anyway,. Feel free to hit the usual button...
    MORTGAGE FREE 30/09/2016
    • EssexHebridean
    • By EssexHebridean 19th Oct 16, 11:54 AM
    • 6,317 Posts
    • 35,041 Thanks
    EssexHebridean
    Everything except £1500 is on 0%, the rest is on 4.9% now. It's hard to work out my exact debt free date, snowball calculators are useless as when a 0% deal comes to and end I transfer it and there's no snowball calculator that takes that into mind. If I pay £300/month it'll take 3.5 years to pay everything off, but that doesn't include any interest or fees, so probably a few more months, maybe 4 years. But I would like to pay more towards that when I earn a bit more - hopefully should get a pay rise next year as I move up in my career. Also a new housemate means I will pay less council tax (my current housemates's a student) so that means a bit more money towards savings or debt. Obviously if I pay more than £300/month I will be debt free sooner, so I will try and do that.

    The holiday's not just for SAD, my current job is quite stressful right now and I need some time off, even just 4 days to help de-stress! I haven't had a proper holiday this year and thanks to Quidco and hotels.com it's super cheap (£192 for flights, hotel, breakfast and dinner!) The rest of the cashback will go towards savings or debt. Haven't decided how to split it yet. Holidays are the one thing I never used to do, but these days I feel I need them more, even if it's just a weekend away. I would rather spend money on a holiday than unnecessary clothes or stuff that just clutters up my room.

    As for freecycle, it's a bit rubbish in my area, and it may sound snobbish I don't want someone's old book case! Other things I wouldn't mind, but I want a new bookcase and you can get them cheap. I did actually go to IKEA today to buy all the small bits to replace my housemates things she's taking. I spent a total of £28 lol! I did intend to buy either a book case or a new TV stand today, but the book case was too big for my friend's car and couldn't find a TV stand I wanted. My bookcase is too small now which is why I need to replace it, I need a tall one, it's served me well for 10 years, now it needs replacing, especially as the back is taped up to hold it together! I don't replace anything unnecessarily. only when they start falling apart or become redundant.

    How much were the light alarm clocks, that was something I was thinking of getting to help me wake up in the darker mornings.
    Originally posted by Sharon87
    Given a choice between what might be a very well made bookcase, that simply require a clean up and perhaps a lick of paint or a rub down and re-stain to look really nice, or a cheap IKEA option that realistically won't last well and will need replacing before long, I'd suggest that "someone elses old bookcase" might well sound a better option? Would calling it "Antique" rather than Second-hand help at all? We still have several bits of furniture at home that we were gifted by others as they no longer required them, and all have lasted far better than cheaper stuff we bought brand new for ourselves, I have to say.

    A suggestion in place of spending money on a daylight alarm clock - a table lamp on the opposite side of the room, on a timeswitch that sets it to come on a few minutes before your alarm goes off, might well work and be a far cheaper option?

    Determined New Ms from what the OP has said I assumed that the 2018 holiday was already booked, in which case there may be a deposit to be lost if cancelling?

    Sharon One further point - you've mentioned earning a large sum in cashback - you are remembering that in those kind of amounts you will need to account for tax from those figures, aren't you?
    MORTGAGE FREE 30/09/2016
    • Sharon87
    • By Sharon87 20th Oct 16, 11:06 PM
    • 3,428 Posts
    • 2,877 Thanks
    Sharon87
    Does cashback count as taxable? Never heard that before! I will look into it. I have to do a self assessment.

    The holiday in 2018 can't be done on £500, it's a specific thing. I'm going to see NASCAR in Daytona, so tickets for that week is about £500 anyway! I've been wanting to see NASCAR for about 10 years. It's been put off so many year due to money, so we finally set a date and will stick by it (unless anything really drastic happens).

    The book case - depends on what a second hand one looks like. If I find one in a charity shop or something that looks good I may go for it. I was going to buy a new second hand sofa, but put that off for a while. My brother found a really good second hand sofa for less than £100. I can use throws to cover it up if the colour doesn't match what I want.

    My quidco cashback that's 'tracked', but not confirmed is £1200 or so now! Some of that won't track as it's been cancelled.

    I had a panic earlier - my self assessment of 2014-15 came back and they said there was an error, apparantly I owe £775 more in tax!! But they got my pay wrong (they used the wrong tax year) so it's a firm phone call to HMRC tomorrow to clear it up! Apparently the company got someone else's tax wrong too! The accounts team did tell me the payroll company they used were useless!
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

2,195Posts Today

5,557Users online

Martin's Twitter