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  • FIRST POST
    • Lacherlich
    • By Lacherlich 24th Aug 17, 4:42 PM
    • 108Posts
    • 138Thanks
    Lacherlich
    Debt free before 30?
    • #1
    • 24th Aug 17, 4:42 PM
    Debt free before 30? 24th Aug 17 at 4:42 PM
    Hi all.


    So I haven't actually been on here for a while - I did start a thread back in 2015 called 'A year to clear my debt' where at the time I had around £17k of debt which I worked out I could pay off within a year or so.... Well since I am back here now you can probably guess that didn't quite go to plan.


    After a break-up, selling of the house; and since moving into a new apartment - the situation is no better - if not worse! Total debt at the moment is at £24k. No idea how it has shot up so much - combination of holidays; purchasing the apartment and new furniture etc.


    I am 30 next year and I really wanted to be clear of debt before then. Looking at my budget now it seems unlikely Ill be able to achieve this. I can pay off about £20k in a year - leaving me £4k short.


    There must be a way for me to get this extra cash - although I haven't yet worked out how! I am allowing myself £400 a month spending money; so maybe if I am really disciplined I can use some of this towards the debt too. But I know what I'm like and even with all the will in the world Ill probably still spend it; but hey it worth a shot!


    Anyway - ill start checking back here frequently to motivate myself and to get some tips!!


    But first step was to start this thread So more to follow!


    Thanks
    *£10,000/ £9,602 = Tesco Loan.*/ * £3186/ £3154= Tesco Credit Card.* / *£4541/ £4531=Barclay Card.* / *£1004/ £930 =HSBC Credit Card .* / * £2,150 / £345 = Owed to Family/Friends =* * £4,419/ £4,350 = Furniture for apartment *
    (Starting balance £25,000 owed in July 2017 - Now £22,839)
Page 3
    • EssexHebridean
    • By EssexHebridean 30th Aug 17, 1:17 PM
    • 7,805 Posts
    • 40,391 Thanks
    EssexHebridean
    If you're going to adopt the cash thing then you need to be careful you don't end up falling into the "well I still have £50 left of my week's money so I can just buy X, Y or Z" mindset - it's easily done. It can work brilliantly for some folk though - I've traditionally always done my oddments of personal spending like that - I withdraw £30 (usually on a Friday) and that has to cover me for any odds and ends of personal spending - if I run out within the week then tough, if I have some left I take less the next week and transfer the difference into savings.

    With the bank account thing, look at the "savings accounts" options with your bank - you're looking for something that is linked directly to your current account to make it easy to set up transfers etc, that you can have an unlimited number of, and that is internet only for ease of use. I think HSBC also have a 5% regular saver linked? You could consider using that for your emergency fund money as you're not intending to touch this?
    MORTGAGE FREE 30/09/2016
    Sainsbugs 0% card: 22/12/16 £1229.00/£504.92 (29/08/17)
    • Lacherlich
    • By Lacherlich 31st Aug 17, 12:06 PM
    • 108 Posts
    • 138 Thanks
    Lacherlich
    If you're going to adopt the cash thing then you need to be careful you don't end up falling into the "well I still have £50 left of my week's money so I can just buy X, Y or Z" mindset - it's easily done. It can work brilliantly for some folk though - I've traditionally always done my oddments of personal spending like that - I withdraw £30 (usually on a Friday) and that has to cover me for any odds and ends of personal spending - if I run out within the week then tough, if I have some left I take less the next week and transfer the difference into savings.

    With the bank account thing, look at the "savings accounts" options with your bank - you're looking for something that is linked directly to your current account to make it easy to set up transfers etc, that you can have an unlimited number of, and that is internet only for ease of use. I think HSBC also have a 5% regular saver linked? You could consider using that for your emergency fund money as you're not intending to touch this?
    Originally posted by EssexHebridean


    Hi.

    I think ill try the cash method and any money i dont spend in one week just means I withdraw less the following week. I do think it will help, as ill be able to see the physical cash and make better decisions instead of splurging on my card and just assuming i have enough to cover it.

    I do have a savers accout so will start using this for savinfs for holiday/ emergency fund. On my third no spend day 😁
    *£10,000/ £9,602 = Tesco Loan.*/ * £3186/ £3154= Tesco Credit Card.* / *£4541/ £4531=Barclay Card.* / *£1004/ £930 =HSBC Credit Card .* / * £2,150 / £345 = Owed to Family/Friends =* * £4,419/ £4,350 = Furniture for apartment *
    (Starting balance £25,000 owed in July 2017 - Now £22,839)
    • Lacherlich
    • By Lacherlich 5th Sep 17, 11:01 AM
    • 108 Posts
    • 138 Thanks
    Lacherlich
    Hi All.


    So now mid-month after my light bulb moment; and struggling! I literally cant budget to save my life. Its been a tough lesson - since I now have no budget remaining for the month (Except for groceries). Nothing like that to force me to budget! I overspent the weekend; not on credit cards or anything - but more than I was hoping. An impromptu night out and a hair cut. SO - ive cancelled plans for next weekend and will do something cheap instead like the park.


    Anyway! Needed to confess so there we go. Lets see how the rest of the month goes.
    *£10,000/ £9,602 = Tesco Loan.*/ * £3186/ £3154= Tesco Credit Card.* / *£4541/ £4531=Barclay Card.* / *£1004/ £930 =HSBC Credit Card .* / * £2,150 / £345 = Owed to Family/Friends =* * £4,419/ £4,350 = Furniture for apartment *
    (Starting balance £25,000 owed in July 2017 - Now £22,839)
    • EssexHebridean
    • By EssexHebridean 5th Sep 17, 11:09 AM
    • 7,805 Posts
    • 40,391 Thanks
    EssexHebridean
    You CAN budget but like everything else you need to learn how. Don't expect it to be an instant thing that you can just immediately get right.

    Start setting aside money now ready for the next time you need a haircut - it always grows at the same rate so it shouldn't come as a surprise. (Bit like Christmas - are you budgeting any extra you need for that. too?).

    The other thing it sounds as though you need to learn is how to say no - it's not always easy when someone says "come and do X with us!" but learning to say "I'll pass this time thanks, things are a bit tight this month" is of huge value when you're trying to cut back on spending.
    MORTGAGE FREE 30/09/2016
    Sainsbugs 0% card: 22/12/16 £1229.00/£504.92 (29/08/17)
    • Lacherlich
    • By Lacherlich 5th Sep 17, 11:47 AM
    • 108 Posts
    • 138 Thanks
    Lacherlich
    Hi.


    Its probably just a bit harder this month as only started to adopt some of the ideas people have suggested. So I'd already spent most of my spare cash on paying off some of what I owe. Then the haircut etc were not really planned in. Next month I'll save some cash for holiday/ haircut/emergency etc. And then pay off some debt. Its a little demotivating after being so determined to make a change and realising I failed already! But I understand it will take some time Im not in more debt so that's a plus!


    Yeah saying No is the hardest thing. I have cancelled a trip to London now; and a day out in Birmingham as the funds do not allow me! I do have a camping trip later this month; its only £6 plus whatever I spend on food. So that will be cheap. I just need to check there aren't any other costs involved or ill have to cancel that too.
    *£10,000/ £9,602 = Tesco Loan.*/ * £3186/ £3154= Tesco Credit Card.* / *£4541/ £4531=Barclay Card.* / *£1004/ £930 =HSBC Credit Card .* / * £2,150 / £345 = Owed to Family/Friends =* * £4,419/ £4,350 = Furniture for apartment *
    (Starting balance £25,000 owed in July 2017 - Now £22,839)
    • bexster1975
    • By bexster1975 5th Sep 17, 12:03 PM
    • 1,033 Posts
    • 4,801 Thanks
    bexster1975
    Hi

    You haven't failed! You spent too much last weekend, so you will spend very little this weekend. That IS budgeting! You can't miss nights out as its £30 more than I'd planned. Just cut more from another time.

    Keep your chin up. You could always spend some of the weekend reading the forums, looking for things you have to sell or looking at ways to boost your income. It's all just a mindset really

    Bexster
    • Lacherlich
    • By Lacherlich 5th Sep 17, 1:29 PM
    • 108 Posts
    • 138 Thanks
    Lacherlich
    Hey


    I guess so - just easy to feel defeated when you have most of the month still to go but no budget remaining haha. But yeah next weekend is a quiet one really. No choice about that! So its still achievable. Hopefully nothing comes up that means I need to use more money - I guess that's where the all important emergency fund would come into play! From next month anyway


    I don't think I have a lot to sell really. I sold a lot of stuff after the sale of my last house in January and that was to fund a trip to Barcelona.... not the wisest way to spend it but at the time I wasn't focussed. I used to do surveys etc as was good to get a little boost now and then. But the time spent on them vs the amount you'd get didn't seem worth it after a couple of months. Plus in my new job I don't have the time to do surveys instead of working haha.
    *£10,000/ £9,602 = Tesco Loan.*/ * £3186/ £3154= Tesco Credit Card.* / *£4541/ £4531=Barclay Card.* / *£1004/ £930 =HSBC Credit Card .* / * £2,150 / £345 = Owed to Family/Friends =* * £4,419/ £4,350 = Furniture for apartment *
    (Starting balance £25,000 owed in July 2017 - Now £22,839)
    • EssexHebridean
    • By EssexHebridean 5th Sep 17, 2:39 PM
    • 7,805 Posts
    • 40,391 Thanks
    EssexHebridean
    You see - it's not as straightforward as "I've failed" or "I can't do it" is it.

    You hit the nail on the head when you said that at least you're not in more debt...
    MORTGAGE FREE 30/09/2016
    Sainsbugs 0% card: 22/12/16 £1229.00/£504.92 (29/08/17)
    • Lacherlich
    • By Lacherlich 6th Sep 17, 4:48 PM
    • 108 Posts
    • 138 Thanks
    Lacherlich
    So Im feeling motivated again - and decided to revisit my budget.


    I realised even though I posted a new SOA on here.... I hadn't really reflected in my own excel budget. (Don't ask why - maybe I was kidding myself). Anyway I have now done this so it covers everything that's goes out; even the money set aside for emergency/ holidays and presents (xmas & bdays). This then forced me to cut back elsewhere to be able to free up more money to hit my previous target of paying off £900 a month. Still not quite there but now its a lot more realistic. I have cancelled my TV package with BT as a result as its unnecessary (I already have NOWTV free with my phone contract and Netflix!).


    The only areas I might struggle with now is the weekly budget for socialising. But I am hoping I can stick to this if I promise myself one outing a week; be that a cheap meal or few drinks. But no more!


    Ive also set up a standing order to my savings account for the emergency fund/ holiday savings and opened a current account with Tesco with NO overdraft - where I will transfer my monthly budget to. Therefore no spending from my main account.


    Anyway - just updating on here as another way of staying motivated!
    Last edited by Lacherlich; 06-09-2017 at 5:03 PM.
    *£10,000/ £9,602 = Tesco Loan.*/ * £3186/ £3154= Tesco Credit Card.* / *£4541/ £4531=Barclay Card.* / *£1004/ £930 =HSBC Credit Card .* / * £2,150 / £345 = Owed to Family/Friends =* * £4,419/ £4,350 = Furniture for apartment *
    (Starting balance £25,000 owed in July 2017 - Now £22,839)
    • EssexHebridean
    • By EssexHebridean 7th Sep 17, 9:40 AM
    • 7,805 Posts
    • 40,391 Thanks
    EssexHebridean
    Good work so far then! Maybe think about setting up a diary over on the diaries board - or even DM a Board Guide and ask them to move this across for you?
    MORTGAGE FREE 30/09/2016
    Sainsbugs 0% card: 22/12/16 £1229.00/£504.92 (29/08/17)
    • bexster1975
    • By bexster1975 7th Sep 17, 10:24 AM
    • 1,033 Posts
    • 4,801 Thanks
    bexster1975
    Hi

    I don't know how you socialise, or what you do but a few ideas:

    If you can get the 2 for 1 meerkat movies that's you and a friend to the cinema every week if you want for the price of one of you. Take your own snacks if needed ( large handbag sometimes required for this depending on your cinema of choice).

    Invite friend (s) over for food, a movie etc. Popping your own corn is easy, cheap and you can add what you like to it

    National trust membership can be very good value if you use it. Maybe a gift request for birthday or Christmas if the places available appeal to you.

    Loads of great places to eat have deals, often means you have to eat mid-week rather than at weekends but for half price food why not?

    There are loads of other ideas for going out cheaply or having people over. It's just a change in how you look at things really.


    Glad you are feeling more positive

    Bexster
    • rjw4
    • By rjw4 7th Sep 17, 6:11 PM
    • 294 Posts
    • 173 Thanks
    rjw4
    With the life cover - did you compare the critical illness conditions covered? If not, you really should have as there can be a massive difference! How much was the premium for life cover and how much was the premium for the critical illness part? Have you still got income protection as that's extremely important!
    I am an Independent Financial Adviser (IFA). Any posts on here are for information and discussion purposes only and should not be seen as financial advice.
    • bexster1975
    • By bexster1975 7th Sep 17, 7:45 PM
    • 1,033 Posts
    • 4,801 Thanks
    bexster1975
    Critical illness and income protection are optional extras. I had neither on either policy. Critical illness rarely covers what you actually need, when you actually need it in my experience.

    Income protection may or may not be useful depending on personal circumstances. It is important to compare like for like as you say, assuming your circumstances are unchanged, when trying to find a cheaper cover.

    Bexster
    • Lacherlich
    • By Lacherlich 8th Sep 17, 9:32 AM
    • 108 Posts
    • 138 Thanks
    Lacherlich
    Hi

    I don't know how you socialise, or what you do but a few ideas:

    If you can get the 2 for 1 meerkat movies that's you and a friend to the cinema every week if you want for the price of one of you. Take your own snacks if needed ( large handbag sometimes required for this depending on your cinema of choice).

    Invite friend (s) over for food, a movie etc. Popping your own corn is easy, cheap and you can add what you like to it

    National trust membership can be very good value if you use it. Maybe a gift request for birthday or Christmas if the places available appeal to you.

    Loads of great places to eat have deals, often means you have to eat mid-week rather than at weekends but for half price food why not?

    There are loads of other ideas for going out cheaply or having people over. It's just a change in how you look at things really.


    Glad you are feeling more positive

    Bexster
    Originally posted by bexster1975



    Hi!


    To be fair I have taken your advice and decided to go the cinema next Weds instead of today to get the 2-4-1. No point paying double when I can go half price a few days later! Although I might get a few funny looks if I walked into the cinema with a handbag . Having friends over tonight instead. She is trying to be good with money too; so less chance to be tempted to spend money!


    Yeah definitely; I think I can still have a good time on a budget - just means I need to consider things more than before and not go crazy!


    Hope you have a nice weekend
    *£10,000/ £9,602 = Tesco Loan.*/ * £3186/ £3154= Tesco Credit Card.* / *£4541/ £4531=Barclay Card.* / *£1004/ £930 =HSBC Credit Card .* / * £2,150 / £345 = Owed to Family/Friends =* * £4,419/ £4,350 = Furniture for apartment *
    (Starting balance £25,000 owed in July 2017 - Now £22,839)
    • Lacherlich
    • By Lacherlich 8th Sep 17, 9:49 AM
    • 108 Posts
    • 138 Thanks
    Lacherlich
    With the life cover - did you compare the critical illness conditions covered? If not, you really should have as there can be a massive difference! How much was the premium for life cover and how much was the premium for the critical illness part? Have you still got income protection as that's extremely important!
    Originally posted by rjw4

    Hi. I will take a look - but before I was paying £61 a month for life insurance and income protection. That seemed pretty high as I'm 28 with a mortgage of £123k. (Plus the cover for H2B) Now its £14. I am sure I took out income protection and critical illness - as when I switched I had my old policy open to check it offered the same cover. I'll review when I get the paperwork through.
    *£10,000/ £9,602 = Tesco Loan.*/ * £3186/ £3154= Tesco Credit Card.* / *£4541/ £4531=Barclay Card.* / *£1004/ £930 =HSBC Credit Card .* / * £2,150 / £345 = Owed to Family/Friends =* * £4,419/ £4,350 = Furniture for apartment *
    (Starting balance £25,000 owed in July 2017 - Now £22,839)
    • bexster1975
    • By bexster1975 8th Sep 17, 12:26 PM
    • 1,033 Posts
    • 4,801 Thanks
    bexster1975
    Hi

    It's likely you took income protection. I was 33 when I changed mine. No critical illness or income protection as I didn't feel I needed it. Decreasing term assurance less than £8 per month. With legal and general it was £171 per month

    Spending time with like minded people socially is also always helpful in staying on track. People on MFW often say people in real life don't understand why they want to be mortgage free/careful etc. I imagine it's part of the reason the forum is so popular.

    Bexster
    Last edited by bexster1975; 08-09-2017 at 12:28 PM.
    • rjw4
    • By rjw4 8th Sep 17, 2:17 PM
    • 294 Posts
    • 173 Thanks
    rjw4
    Hi

    It's likely you took income protection. I was 33 when I changed mine. No critical illness or income protection as I didn't feel I needed it. Decreasing term assurance less than £8 per month. With legal and general it was £171 per month

    Spending time with like minded people socially is also always helpful in staying on track. People on MFW often say people in real life don't understand why they want to be mortgage free/careful etc. I imagine it's part of the reason the forum is so popular.

    Bexster
    Originally posted by bexster1975
    What would happen if you were unable to work ever again? Do you have sufficient savings for the rest of your life? What would happen if you got a serious illness and needed to adapt your home? x
    I am an Independent Financial Adviser (IFA). Any posts on here are for information and discussion purposes only and should not be seen as financial advice.
    • bexster1975
    • By bexster1975 8th Sep 17, 2:47 PM
    • 1,033 Posts
    • 4,801 Thanks
    bexster1975
    Thanks for your concern rjw4.

    As I no longer have a mortgage and paid if off in ten years fortunately it is no longer an issue.

    Bexster
    • Lacherlich
    • By Lacherlich 15th Sep 17, 3:49 PM
    • 108 Posts
    • 138 Thanks
    Lacherlich
    Who should I message to move this across to the diaries board?


    This month is going soooo slowly! Im not wishing my life away but being on a budget certainly makes the time drag. Just over a week until payday; 2 weekends to get through with very little cash available. Although I have no plans this weekend apart from dinner round my moms! Then next week the camping trip for £6. My friend has the tent etc so just that and a bottle of wine needed! So I guess its achievable. Just feeling impatient and want to make another dent in the debt! I've seen this is a common theme in other peoples diaries; just waiting each month for the next payday!


    I still want to clear the debt and my motivation is still high. I was thinking over the weekend about how much spare cash I'd have per month if I didn't want to clear my debt and to be fair it would still be a decent amount. But I have to be real and honest about why I am doing this. One - I don't want to spend my life in debt - having a chunk of my wages every month to contend with. Secondly; maybe as I'm getting a bit older I really want to be sensible with money. I'd eventually like to buy a place with my partner but still be able to keep my apartment that I have recently bought. Pensions aren't great these days so it would surely be a good investment in the long run! But to be able to do that and take out another mortgage; clearing my debt would no doubt help; freeing up more money per month to then allow me to then save for the next deposit.


    That wont be for a few years now - but I need to take action now to get myself into a better position.


    Anyway - I'm rambling on - but good to get my thoughts out!
    *£10,000/ £9,602 = Tesco Loan.*/ * £3186/ £3154= Tesco Credit Card.* / *£4541/ £4531=Barclay Card.* / *£1004/ £930 =HSBC Credit Card .* / * £2,150 / £345 = Owed to Family/Friends =* * £4,419/ £4,350 = Furniture for apartment *
    (Starting balance £25,000 owed in July 2017 - Now £22,839)
    • Lacherlich
    • By Lacherlich 18th Sep 17, 12:39 PM
    • 108 Posts
    • 138 Thanks
    Lacherlich
    I wont be able to clear my debt before 30 unfortunately. If I can stick to my plan I'd still have c.£5000 remaining by October next year. So some way off!


    If I don't touch my emergency/holiday savings until then I could potentially clear another £3k... but I doubt id manage not to spend it. Unless I wait until after October next year before going on holiday? In which case once the debt is paid I can treat myself to a holiday from the next months wages. But that would still leave around £2k to pay off. I may get a small bonus at xmas - £500 or so which ill use to pay off some debt.


    Looks like i'll have to be inventive. Here's to a positive end of year review next month! Maybe that will help!


    Any suggestions of how to make a few grand over the next year? I don't have anything to sell really after already having purged a lot when I sold my house. Surveys could help by a hundred quid or so.. but are so time consuming!
    *£10,000/ £9,602 = Tesco Loan.*/ * £3186/ £3154= Tesco Credit Card.* / *£4541/ £4531=Barclay Card.* / *£1004/ £930 =HSBC Credit Card .* / * £2,150 / £345 = Owed to Family/Friends =* * £4,419/ £4,350 = Furniture for apartment *
    (Starting balance £25,000 owed in July 2017 - Now £22,839)
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