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  • FIRST POST
    • DrSpendLittle
    • By DrSpendLittle 22nd Aug 17, 4:30 PM
    • 207Posts
    • 750Thanks
    DrSpendLittle
    Reducing Debt - being accountable and taking responsibility
    • #1
    • 22nd Aug 17, 4:30 PM
    Reducing Debt - being accountable and taking responsibility 22nd Aug 17 at 4:30 PM
    Hi everyone!

    DFW newbie here! Been a lurker for a while but have been so inspired by reading others' DFW diaries - it's literally all I've done this weekend! - that I decided to take the plunge and join in the fun. Now's the time. Had my LBM a few weeks ago and can't wait to get started

    So, a little about me before I state my financial situation and my goals:
    - a happy, healthy and engaged homeowner
    - settled in my career with a fairly well paid job & annual increment
    - looking at starting a family soon as time is ticking!
    - enjoys sports and the outdoors and a healthy approach to life
    - has just started using YNAB
    - has a 'secret' unsecured debt of just over £10k (2 x cc's)

    About DF
    DF is debt free but doesn't actively save. He seems to spend what he earns which isn't great since we have a tiny mortgage and lowish bills. He had family money passed on to him a few years ago on the advice of his mother's accountants - she would NEVER give it away otherwise. This dosh acts as a financial cushion for him .....and, admittedly, me gosh, it really has meant I've been a wee bit lacking in the old saving malarkey Time to banish this false sense of security!

    About DF and I's financials
    DF and I don't have a joint account. All bills / mortgage come out of his current account except car insurance and broadband/phone which I'm responsible for paying. I give him £465 every month towards bills (includes a deduction for car insurance) and he gives me half of whatever the broadband phone bill is. This arrangement is, on reflection, part of my problem as I have too much 'distance' from the reality of bill payments and direct debits etc etc etc I'm sure you all know the score....

    DF knows I have some debts but isn't really aware of the current status of my 'net worth' He's one of life's worriers so I am taking this DFW journey alone for now. I'm completely settled and happy with this idea and I have been managing it all on my own thus far, so no need to change. I got myself into this situation so I'll be getting myself out of it.

    Why the DFW diary?
    Well, we're thinking of moving home since we could take a few leaps up the ladder. Its time for our dream home. This has caused my LBM. I want my dream home and the only thing stopping me is my poor money management skills! Its also time to move. We've been here a while and have never fully settled.

    My interim goal?
    To clear £4K of debt by January so when we put the house on the market, my debt levels are lower. I obviously also want to make sure we can maximise our borrowing, so I want to demonstrate good money management skills and a good pattern of spending and saving.

    My overall aim
    But, more than this interim goal, I just want to be in control of my money and no longer feel guilty for spending it. I want to save up for things and have that lovely 'I deserve this because I saved for it' feeling when I buy something. I want to be responsible. And, I am here to become accountable.

    My plan of action!
    So....this diary is my way of sharing my story, being accountable for my actions, taking responsibility and doing all this whilst my other half is oblivious!

    I hope you join me on my journey and I look forward to joining you on yours.

    My current financials
    I'll post my current financial situation later today - got some work things to get done before close of play. Its been one of those 'working at home' days which have largely comprised of obsessing over YNAB and lurking on DFW diaries, oh deary me A hint of my procrastinating / self sabotaging ways......

    DSL
    Last edited by DrSpendLittle; 30-09-2017 at 9:20 AM. Reason: I'm a formatting perfectionist :)
Page 6
    • enthusiasticsaver
    • By enthusiasticsaver 30th Sep 17, 10:30 AM
    • 4,826 Posts
    • 9,111 Thanks
    enthusiasticsaver
    Checking in to say hello and keep up to date.

    Working from home today so no fuel or car parking costs. NSD so far but we have no clue what to have for dinner. We have stuff in but not too sure on a recipe just yet.

    Super busy at work for the next two weeks, so hoping time flies by to 29th when its payday! Whoooo!

    No movement on debt or spends since I last updated.

    I've been using my JL partnership card for all food spends this month. The money I assigned to my groceries budget in ynab on 1st September is still sat in my current account. I will pay off the full balance of the card on the 30th using said funds. I do this because I like getting the Waitr0se £10 vouchers. But I also like the comfort of knowing I have the ynab groceries money sat in my current account as a buffer against any unforeseen direct debits (there are none, I'm 100% sure of this, but I just can't shake that old debt fuelled anxiety of having no money in my account to cover DDs). Totally psychological, but it works for me!

    I'm tempted to do the same for fuel spends too. That way, I keep the assigned money for both categories (around £300 per month) in my current account until the last day of the month to alleviate random debt anxiety hangover, and then pay off in full on the last day of the month. Positives to this are that I will get more £10 JL vouchers and demonstrate good use of credit. Negatives are what Dave Ramsey always refers too - you spend more using plastic than you do using real money. Plus, it can encourage that 'buy now pay later just this once' mentality which invariably leads to the debt spiral we all know and loathe.

    With all that said, I'm confident that I can stick to my budget and only spend what I have assigned that month. I guess I could pay half off half way through the month as a temporary measure / precaution? Does anyone else use credit cards like this to generate cashback? What lessons have you learned? Would you recommend it? Are you really against this practice? Let me know

    DSL
    Originally posted by DrSpendLittle
    I have a Santander 123 credit account (and a JL partnership card) and my DH is an additional user. He is a notorious fritterer and when he retired last year I organised for him to have an additional card on the Santander 123 credit card simply for buying food and fuel as we get 1% cashback on supermarket spends and 3% on fuel spends (old terms and conditions and I think it is less favourable now). He is actually really good now about only using the card for food and fuel and it helps us to keep the overall spend on budget. I just look at the balance and can see if we are in budget as I know we don't put anything else on it. The cashback is also good. We pay all our credit cards off in full by direct debit but we have a large cash buffer as the Santander 123 pays 1.5% interest on savings up to £20k so our emergency fund is kept in there.

    I use the JL partnership for large spends for furniture, white goods, decorating etc and that all comes out of our house budget.

    It works for us and although I don't like credit cards and the temptation some people have to not pay it off every month we are disciplined savers and spenders and use it to our advantage. Our food and fuel money earns 1.5% in Santander 123 until the bill paid and we get cashback on the credit card spend. I also find the Santander spendylitics app a good way of keeping track of what we are spending and where our money is going.

    You sound pretty disciplined so I would think that the method would work for you too.
    2 weeks to go until early retirement in December . Debt free and mortgage free.

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • CP2016
    • By CP2016 30th Sep 17, 3:31 PM
    • 86 Posts
    • 186 Thanks
    CP2016
    Car payments. That's all I think of whenever I see a new / nearly new car
    Originally posted by DrSpendLittle
    Ha! This is exactly what I think. I'd love a new car but my 12 year old car hardly ever needs anything doing and costs me nothing in payments. I do have a replacement car category for saving in YNAB though - it's still cheaper than car payments!
    “Have nothing in your house that you do not know to be useful, or believe to be beautiful.”
    Wiliam Morris
    • DrSpendLittle
    • By DrSpendLittle 30th Sep 17, 4:57 PM
    • 207 Posts
    • 750 Thanks
    DrSpendLittle
    Ha! This is exactly what I think. I'd love a new car but my 12 year old car hardly ever needs anything doing and costs me nothing in payments. I do have a replacement car category for saving in YNAB though - it's still cheaper than car payments!
    Originally posted by CP2016
    Great minds think alike!

    My little car is 5 years old and I have one more year paying off the loan I took out to cover the balloon payment then its fully paid and fully mine. Its cheap to run and I will keep it as my commuting car as long as it remains cheap to run. Can't wait to be car payment free!!!
    Since 1st September 2017
    CC1: £paid off/£1,253.73 | CC2: £1,002.21/£9,124.15 | CC3: £paid off/£312.34 | Car Finance: £631.64/£1,894.92
    Total CC Repayments: £2,568.28/£10,690.22 (24.02%) | Total Debt Repayments: £3,200.00/£12,585.14 (25.42%)
    • wishingthemortgaheaway
    • By wishingthemortgaheaway 30th Sep 17, 6:49 PM
    • 639 Posts
    • 2,513 Thanks
    wishingthemortgaheaway
    p.s. I love your '100 payment countdown' - what a brilliant way of dealing with large debt repayments!!
    Originally posted by DrSpendLittle

    Thank you 100x£400 payments seems a lot less than 8plus years. Not that it will be because I'm going to do it quicker.
    The 100 payment countdown (each payment = £400)
    2017 July : £36,800 8/100 Aug: £36,411.85 8/100 Sep: £35,945.66 10/100 Oct: £35,500 11/100
    Term Mortgage free date: October 2029
    Current mortgage free date: April 2025
    • Orange Ena
    • By Orange Ena 30th Sep 17, 10:08 PM
    • 1,239 Posts
    • 3,278 Thanks
    Orange Ena
    Well done on your debt reduction this month, you're doing brilliantly
    Debt April 2015 - £6895.44 Debt April 2017 - £2500 May - £1455 Sept - £900
    CHEFS challenge (Cruise Holiday Entirely Funded by Surveys) - £327.26
    Every penny is a prisoner
    • DrSpendLittle
    • By DrSpendLittle 1st Oct 17, 10:04 AM
    • 207 Posts
    • 750 Thanks
    DrSpendLittle
    Weekend Wonderings
    Up unusually early this morning as my body clock has corrected itself from a week of getting up early for work. Its nice to have this quiet time before the hurricane that is DF awakes.

    Just spent an hour or so tinkering with my ynab categories for this month and giving every £ a job - I did a biggish 'October' food shop yesterday (still September, oops) as I had to go into town anyway to collect a pressie from Waitr0se that I'd ordered from JL (also an October budgeted purchase but bought in September). I used my Partnership Card (CC1) for both purchases to get cash back, so I was able to balance the books this morning as October transactions before they had cleared and pay off the CC. Feels a little bit naughty but I saved on fuel and time!

    I reeeeeeally want to make my CC overpayments today but I need to wait for the minimums to be taken, which will probably be Monday but who knows, its never the same day annoyingly. I will then overpay the remaining balance from my allotted CC payments for this month.

    CC1 minimum payment will be around £6, so I will over pay £594 (something is wrong with HBOS online banking this morning so I can't see my precise details)
    CC2 minimum payment will be £198.61 so I will overpay £101.39

    I will hopefully get a reimbursement of £92.71 shortly to help shift the £114.58 of work expenses I've accrued this month that are sat on CC1. The remaining £21.87 still needs to be claimed but they won't be payable until the end of the month anyway. I may also have a further £28 of expenses appearing soon from a June work visit. This was dumped on CC2. I'll probably put that into my work expenses category in ynab to help cover any further expenses that I will accrue this month.

    Awaiting £25.25 from TCB to clear in my bank account. That will be split £20 into EF and £5 into pressies (forgot to budget for wrapping paper and a card, doh!).

    Expecting to be able to update my Short Term CC Goal to 44.08% shortly!

    DSL
    Last edited by DrSpendLittle; 01-10-2017 at 10:07 AM.
    Since 1st September 2017
    CC1: £paid off/£1,253.73 | CC2: £1,002.21/£9,124.15 | CC3: £paid off/£312.34 | Car Finance: £631.64/£1,894.92
    Total CC Repayments: £2,568.28/£10,690.22 (24.02%) | Total Debt Repayments: £3,200.00/£12,585.14 (25.42%)
    • DrSpendLittle
    • By DrSpendLittle 2nd Oct 17, 8:55 AM
    • 207 Posts
    • 750 Thanks
    DrSpendLittle
    Payment Day
    Super exciting. Its my Second Credit Card Payment Day as a Debt Slayer!

    Those CC numbers are beginning to look different compared to August when I had my LBM. This is all the motivation I need to stay on track.

    This morning, I have paid £300 off CC2 and £600 off CC1. My new balances are:

    CC1: £399.73 but I have £113.95 of work expenses sat on it so its actually £513.68.

    CC2: £8,527.13. This card will never be used again. Its been the bane of my life since 1999 and holds all the bad debt memories. Can't wait to get it shifted.

    Total credit card debt repayments since August's LBM: £1,763.33 which is 44.08% of my short term repayment goal.

    Really pleased with these figures. I'd like to have paid £1000 off this month but I've had to put £100 towards a new boiler (£2220 now saved between DF and I) and £50 towards a big birthday. Still, I've paid cash for a new boiler and have enough money put away to pay for a big birthday that otherwise, would have been put on CC2.

    I've also got some treats to look forward to this month: £21 on books (a new release I've been waiting for since mid September) and £30 on toiletries as I need some new foundation and other bits and bobs. I think its important to have small treats now and again so you don't feel like you're really scrimping but they must be budgeted and small.

    Hope payment day is rewarding for all you fellow debt slayers.

    DSL
    Last edited by DrSpendLittle; 02-10-2017 at 11:46 AM.
    Since 1st September 2017
    CC1: £paid off/£1,253.73 | CC2: £1,002.21/£9,124.15 | CC3: £paid off/£312.34 | Car Finance: £631.64/£1,894.92
    Total CC Repayments: £2,568.28/£10,690.22 (24.02%) | Total Debt Repayments: £3,200.00/£12,585.14 (25.42%)
    • DrSpendLittle
    • By DrSpendLittle 2nd Oct 17, 9:16 AM
    • 207 Posts
    • 750 Thanks
    DrSpendLittle
    Credit Utilisation Query
    My current credit card debt is fairly imbalanced across my two cards.

    CC1 was paid down this month by £600 to avoid interest charges as my 0% deal ran out but is now 0% until April 2018. The current balance is £399.10 with a limit of £11,750 so has a really low credit utilisation rate.

    CC2 is on 0% until June 2019. The current balance is £8527.15 with a limit of £10,450 so has a relatively high credit utilisation rate.

    I want to get an AIP in the new year as we're planning to move and I know that credit utilisation is something that they look at (its part of your credit score) but no one really knows how they use it.

    My overall credit utilisation exc. overdrafts is roughly 37% and inc. overdrafts is 35%.

    However, my CC2 credit utilisation is sitting at 82%

    I don't want to pay any balance transfer fees BUT my question is:

    Do I need to shift my debt around so my individual card balances are more evenly spread?

    OR

    Am I overthinking all this and should I just focus on paying off my debts as planned which, by January, my balances should be CC1 £249.10 and CC2 £5777.15

    Thoughts welcome!
    Since 1st September 2017
    CC1: £paid off/£1,253.73 | CC2: £1,002.21/£9,124.15 | CC3: £paid off/£312.34 | Car Finance: £631.64/£1,894.92
    Total CC Repayments: £2,568.28/£10,690.22 (24.02%) | Total Debt Repayments: £3,200.00/£12,585.14 (25.42%)
    • DrSpendLittle
    • By DrSpendLittle 3rd Oct 17, 7:29 AM
    • 207 Posts
    • 750 Thanks
    DrSpendLittle
    Interest and other Ramblings
    Oooh, don't you just love getting paid interest instead of paying interest? It may only be a measly £1.25, but it's better than a kick in the teeth!

    Up early again this morning though I think that was more to do with being anxious to see how Tom Petty faired overnight (big fan). Sadly he passed on. Music won't be the same without him.

    Yesterday I picked up a small item for the house on my way home from work, which came off my household misc. budget. Was only £15 and whilst unplanned, was something we had needed for a while and I had the budget to cover. Did a tiny top up shop of salad as DF didn't fancy leftovers and brought an alternative dinner home after work.

    Working at home, probably for the rest of the week, and looking forward to some NSDs and saving on fuel and car parking. Need to make some celery soup as bought a load of celery from Aldi at the weekend that was going cheap. I can't see the need to spend any money over the next few days but we do have a gap on our meal plan for today. Will try to think of rustling up something with stuff already in.

    Otherwise, I'm looking forward to October and continuing the debt slaying. Feel pretty positive after a successful September knowing I can pay £1,057 off my debts (inc. car payment) fairly easily and not really notice any difference in standard of living. I think this is because I decided not to scrimp on food and have no immediate 'needs' (though I must budget for a new pair of black jeans as the trouser situation is getting pretty dire).

    The new boiler may need some remedial decoration around it once its fitted. I haven't budgeted for this. Will see how it goes and I can always reduce CC payments for November to cover it. Not expecting any other income between now and 30th October, apart from my expenses refund, so it will need to come off my debt repayment totals. I could use expenses refund since its already been cleared from CC by overpayment, but lets see how much it is first.

    Right, on to the next coffee and a bit of brekkie before getting stuck into a day of work

    Have a good one!

    RIP Tom Petty

    DSL
    Since 1st September 2017
    CC1: £paid off/£1,253.73 | CC2: £1,002.21/£9,124.15 | CC3: £paid off/£312.34 | Car Finance: £631.64/£1,894.92
    Total CC Repayments: £2,568.28/£10,690.22 (24.02%) | Total Debt Repayments: £3,200.00/£12,585.14 (25.42%)
    • DrSpendLittle
    • By DrSpendLittle 3rd Oct 17, 10:41 PM
    • 207 Posts
    • 750 Thanks
    DrSpendLittle
    NSD | Gas Refund | Soup
    Had a NSD today. And a busy work day too, for that matter. Still, working at home is always nice.

    Made some soup as I was cooking dinner - for the freezer for work lunches over the coming few weeks. Enough to feed an army by the looks of the final product! Still needs whizzing and sorting into batches. Will keep some out for lunch these next few days also.

    Probably have a low spend day tomorrow. Need to head out to get some meat to make up a stir fry for dinner tomorrow evening as we've got all the veg for it. DF might do the shop, depends on what his plans are, if he does then it'll be another NSD for me.

    Good news on the energy switch - we've got a £130 refund from our gas supplier, so that will either repay my work expenses early (so desperate to get CC1 down to its rightful £300 mark) OR put it in my household misc. category for the likely post-boiler remedial decoration works. I'll see what I feel like when DF transfers it into my account. Still not sure when my work expenses will come thorough.

    Feeling generally good about debt slaying and looking forward to tomorrow (or midnight, depending on how late I stay up!) when most of my other direct debits come out and I can have a clearer picture of what I have to live on for the next few weeks.

    DSL
    Since 1st September 2017
    CC1: £paid off/£1,253.73 | CC2: £1,002.21/£9,124.15 | CC3: £paid off/£312.34 | Car Finance: £631.64/£1,894.92
    Total CC Repayments: £2,568.28/£10,690.22 (24.02%) | Total Debt Repayments: £3,200.00/£12,585.14 (25.42%)
    • DrSpendLittle
    • By DrSpendLittle 4th Oct 17, 11:19 AM
    • 207 Posts
    • 750 Thanks
    DrSpendLittle
    Yucky
    Ugh. Feeling a wee bit yucky this morning so taking the morning off work and waiting for medication to kick in so I feel better. Had a bit of a cold the past few weeks so I think my body is just wanting some down time now. Managed to eat some toast and take some pills, which have helped, and I’ve been catching up on diaries on here which I always enjoy.

    Got an email this morning from my bank about a chaps payment but can’t see anything in my account. I wonder if it was for the payment I received last week or whether my expenses are finally coming through. Hmm. I will wait with bated breath.

    Good news is my book - that I budgeted for this month as my little treat spend - arrived in the post this morning. I can’t wait to get stuck in!!

    Right, I’ve subscribed to a few new diaries this week that I need to read from start to finish. Might do that with the rest of my morning off.

    DSL
    Since 1st September 2017
    CC1: £paid off/£1,253.73 | CC2: £1,002.21/£9,124.15 | CC3: £paid off/£312.34 | Car Finance: £631.64/£1,894.92
    Total CC Repayments: £2,568.28/£10,690.22 (24.02%) | Total Debt Repayments: £3,200.00/£12,585.14 (25.42%)
    • DrSpendLittle
    • By DrSpendLittle 5th Oct 17, 11:54 AM
    • 207 Posts
    • 750 Thanks
    DrSpendLittle
    September Financials | Spends, Expenses & Savings
    Thought I'd spend some time this morning going through my September finances and charting my payments / spends / savings.

    Below is an overview of the key figures:

    Salary: £2,270.83 (net after tax & NI, student loan and 8% pension deduction)

    Other Income: £34.58 (£29.88 from Eb4y sales and £4.70 from T0pCashBack)

    Debt Payments: £1,124.24

    Monthly Spends:
    Groceries: £249.21
    Fuel: £66.43
    Cash: £14.28
    Misc. £38.59 (incs. new case for iPad & random stuff)
    Ebay: £10.46 (new MacBook case and dongle bags)
    Work Expenses: £114.58 (sat on CC1 ugh!)
    Takeaways: £21.20

    Immediate Obligations inc. mortgage & bills: £607.45

    Yearly Expenses:
    Presents: £52.58
    YNAB: £38.79 (annual subscription)
    Holidays: £3.37 (final invoiced toll payment)

    Yearly Savings:
    Presents: £53
    Car Maintenance: £49
    Emergency Fund: £20 (must do better)

    Had a residual £9.81 that carried over to October's budget.

    Food spends are probably a bit too high, but I do have a £16 beef joint in the freezer that wasn't used as planned this month. Also, I bought a few lunches at work towards the end of the month when I was too busy (..ahem, lazy..) to make lunch the night before.

    Fuel spends are good and I still had £30 worth of fuel in my little car at the end of the month. Working at home quite a lot turned out to be economical.

    Overall, I'm happy with this month. There have been some random unexpected spends such computer accessories, 58.05 to our new energy provider after switching and my YNAB subscription, but I'm happy with these spends as they were needed and my emergency budget covered them.

    Will post October spend / payment plans shortly.
    Since 1st September 2017
    CC1: £paid off/£1,253.73 | CC2: £1,002.21/£9,124.15 | CC3: £paid off/£312.34 | Car Finance: £631.64/£1,894.92
    Total CC Repayments: £2,568.28/£10,690.22 (24.02%) | Total Debt Repayments: £3,200.00/£12,585.14 (25.42%)
    • wishingthemortgaheaway
    • By wishingthemortgaheaway 5th Oct 17, 12:07 PM
    • 639 Posts
    • 2,513 Thanks
    wishingthemortgaheaway
    Looking good dr.

    You've 'spent' half your salary on your debt this month. Some might say but I say for your discipline.

    Have a fabulously frugal October.
    The 100 payment countdown (each payment = £400)
    2017 July : £36,800 8/100 Aug: £36,411.85 8/100 Sep: £35,945.66 10/100 Oct: £35,500 11/100
    Term Mortgage free date: October 2029
    Current mortgage free date: April 2025
    • DrSpendLittle
    • By DrSpendLittle 5th Oct 17, 12:38 PM
    • 207 Posts
    • 750 Thanks
    DrSpendLittle
    October Plans | Budgeted Spends, Savings and Payments
    Alrighty, plans for October are as follows:

    Salay: £2251.61 (net after tax & NI, student loan and 9% pension deduction)

    Other Income: £533.47 (£507.01 from a work fee, £25.25 from T0pCashBack & £1.21 in interest). Another £64.50 is due shortly from a British Gas refund from switching suppliers. It'll be put aside to cover remedial redecoration from our new boiler installation.

    Debt Payments: £1,057.91

    Monthly Spends:
    Groceries: £234
    Fuel: £80.01 (need to save some for new parking book)
    Cash: £12.92
    Misc. £10.21
    Toiletries: £30 (foundation & other bits & bobs)
    Sport: £10
    Household Misc: £610 (for new boiler)
    Work Expenses: £20 (got another couple of trips)

    Immediate Obligations inc. mortgage & bills: £504.01

    Yearly Savings:
    Presents: £111.25 (will all be spent this month)
    Car Maintenance: £51 (total now at £100; £250 car service in January)
    Health: £14.30 (for prescription & dentist)
    YNAB: £3.40
    Books: £21.98 (treat purchase on a new release I wanted)

    I'm sure these categories will be tweaked over the course of the month but that's what I like so much about YNAB - you have a predetermined income and a series of priority spends (immediate obligations and yearly savings / expenses) and then you can shuffle the remaining money around you monthly spends.

    My immediate obligations are down by £103.44 this month (were £607.45 last month) due to cheaper broadband and energy (switched suppliers) and not having to pay new and old energy suppliers in one month.

    Will be interesting to see how much I shuffle money around the categories this month - I did it quite a bit last month!

    DSL
    Since 1st September 2017
    CC1: £paid off/£1,253.73 | CC2: £1,002.21/£9,124.15 | CC3: £paid off/£312.34 | Car Finance: £631.64/£1,894.92
    Total CC Repayments: £2,568.28/£10,690.22 (24.02%) | Total Debt Repayments: £3,200.00/£12,585.14 (25.42%)
    • DrSpendLittle
    • By DrSpendLittle 5th Oct 17, 12:41 PM
    • 207 Posts
    • 750 Thanks
    DrSpendLittle
    Looking good dr.

    You've 'spent' half your salary on your debt this month. Some might say but I say for your discipline.

    Have a fabulously frugal October.
    Originally posted by wishingthemortgaheaway
    Thanks Wishing! Yes, its a bit scary how much I'm putting aside for debt repayments but funnily enough, I don't feel like I've cut back too much. I consider that scary, since I have no idea what I was spending the money on before. That said, there are no savings for holidays which I think we'll pass on anyway next year due to possible house move. My drive to get the debt paid off is making me put so much aside. Fingers crossed I can keep at it!!
    Since 1st September 2017
    CC1: £paid off/£1,253.73 | CC2: £1,002.21/£9,124.15 | CC3: £paid off/£312.34 | Car Finance: £631.64/£1,894.92
    Total CC Repayments: £2,568.28/£10,690.22 (24.02%) | Total Debt Repayments: £3,200.00/£12,585.14 (25.42%)
    • enthusiasticsaver
    • By enthusiasticsaver 5th Oct 17, 12:50 PM
    • 4,826 Posts
    • 9,111 Thanks
    enthusiasticsaver
    You are doing fantastically well and seem incredibly focused. As both your CCs are not incurring interest I think I would start to target the awful CC2 and maintain minimums on CC1 until next April when interest kicks in and hopefully you will then be close enough to zero to clear it. On mortgage applications high credit card debt is frowned upon depending on income. Getting it lower would look better on an application and maybe help to clear within the interest free period. Getting the credit utilisation percentage down looks good too.
    2 weeks to go until early retirement in December . Debt free and mortgage free.

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • DrSpendLittle
    • By DrSpendLittle 5th Oct 17, 1:02 PM
    • 207 Posts
    • 750 Thanks
    DrSpendLittle
    Looking Forward
    Been playing around with my YNAB this morning and putting in theoretical monthly budgets for the next 12 months.

    Theoretically I could get all my debts paid off by June 1st 2018 rather than July 1st 2018.

    This is based on following my current budgeting and repayment approach plus incorporating my January salary increment (net income to £2,304.95) from 1st February 2018.

    However, this is a budget without life getting in the way, which it does. A potential house move will be costly (though fees and expenses associated with this will come from DFs family money) as will the first few months of settling into a new place with a bigger mortgage and higher running costs. I'm not blind to this, especially having read quite a few diaries on here that show people tend to splurge cash on buying new furniture, largely on finance, in the excitement of moving house and then generate a bunch of new debt. I don't plan on doing that, but who knows what could happen. That said, it may take longer than 7 months to move house so it may actually all work out in practice!

    The above theoretical budget does have a household misc. category from February and £110 for clothing spends for the January sales. I'm hoping to save on car insurance payments come December when my policy is up for renewal.

    I'm not going to change my Debt Free Date for now - I'll plod along with my DFD of 1st July 2018 and see what kind of progress I make, leaving the decision to bring the date forward until April or May.

    I really better get back to work. I seem to have merged my elevenses and lunch break together into one big budgeting / MSE bonanza!
    Since 1st September 2017
    CC1: £paid off/£1,253.73 | CC2: £1,002.21/£9,124.15 | CC3: £paid off/£312.34 | Car Finance: £631.64/£1,894.92
    Total CC Repayments: £2,568.28/£10,690.22 (24.02%) | Total Debt Repayments: £3,200.00/£12,585.14 (25.42%)
    • DrSpendLittle
    • By DrSpendLittle 5th Oct 17, 3:07 PM
    • 207 Posts
    • 750 Thanks
    DrSpendLittle
    You are doing fantastically well and seem incredibly focused. As both your CCs are not incurring interest I think I would start to target the awful CC2 and maintain minimums on CC1 until next April when interest kicks in and hopefully you will then be close enough to zero to clear it. On mortgage applications high credit card debt is frowned upon depending on income. Getting it lower would look better on an application and maybe help to clear within the interest free period. Getting the credit utilisation percentage down looks good too.
    Originally posted by enthusiasticsaver
    Thanks Enthusiastic! Yes, you're right, CC2 is awful. On your advice, I've revised my CC payments through to April and if I stick to my planned budgets, the balance on CC2 should be £5,707,15 on 1st Jan, which will hopefully look much better for an AIP, especially in relation to my gross salary and my low monthly spends. This strategy allows for £10 payments to CC1, which will be a bit above the minimum payment, until April and then a final payment of £200 in May. After January, my plan is to pay £1000 per month (roughly) off CC2 through to June, with a final July payment of £327.15.

    There is a chance we will progress with some exploratory mortgage conversations with a broker before January, so I will be interested to get their take on my overall and specific credit utilisation. If I need to, I will BT some of CC2 to CC1 and take the hit on the fee, but I'm uncertain whether this type of financial behaviour will be negatively perceived by mortgage lenders. I know the broker in question since he's dealt with other members of my family so I'm sure we can have a good chat about all this!
    Last edited by DrSpendLittle; 05-10-2017 at 3:09 PM.
    Since 1st September 2017
    CC1: £paid off/£1,253.73 | CC2: £1,002.21/£9,124.15 | CC3: £paid off/£312.34 | Car Finance: £631.64/£1,894.92
    Total CC Repayments: £2,568.28/£10,690.22 (24.02%) | Total Debt Repayments: £3,200.00/£12,585.14 (25.42%)
    • wishingthemortgaheaway
    • By wishingthemortgaheaway 5th Oct 17, 4:33 PM
    • 639 Posts
    • 2,513 Thanks
    wishingthemortgaheaway
    Thanks Wishing! Yes, its a bit scary how much I'm putting aside for debt repayments but funnily enough, I don't feel like I've cut back too much. I consider that scary, since I have no idea what I was spending the money on before. That said, there are no savings for holidays which I think we'll pass on anyway next year due to possible house move. My drive to get the debt paid off is making me put so much aside. Fingers crossed I can keep at it!!
    Originally posted by DrSpendLittle

    Come next July/August time, you'll be able to pay for a holiday outright with 1 or 2 months 'debt' money.
    I firmly believe that when you have a achieved something you should mark the occasion somehow. (Spot my theme)

    I got a new job - new purse
    I finished paying off my student loan - new handbag
    Successfully completed a massive work job - new handbag
    (Don't think I need to go on....)
    The 100 payment countdown (each payment = £400)
    2017 July : £36,800 8/100 Aug: £36,411.85 8/100 Sep: £35,945.66 10/100 Oct: £35,500 11/100
    Term Mortgage free date: October 2029
    Current mortgage free date: April 2025
    • Kittychick
    • By Kittychick 5th Oct 17, 6:02 PM
    • 224 Posts
    • 556 Thanks
    Kittychick
    I like your thinking wishing....
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