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  • FIRST POST
    • ehdx
    • By ehdx 22nd Nov 17, 5:48 PM
    • 18Posts
    • 9Thanks
    ehdx
    Let's see how long this lasts...
    • #1
    • 22nd Nov 17, 5:48 PM
    Let's see how long this lasts... 22nd Nov 17 at 5:48 PM
    Hi Everyone!


    I posted on here a couple of days ago for the very first time because I didn't really know what else to do. I'm 21 years old with 52k of savings and 17k debt. (No, I couldn't tell you how and I have very little to show for it).


    So, after lots of very helpful advice I've decided that next week when my fixed bond matures I will be paying off all of my debt (YAY!). I thought it would be best to keep 1 card as I've been told that regular payments to it can help with your credit score. I think I'll use this card to put petrol in my car each month and pay it off in full.


    I'm really scared about how things are going to be once I have the majority of my wage to myself.... something that I haven't had for around 3 years, so I thought it would be a good idea to share my journey with you.


    I get paid on the 27th and my money is released on the 28th, so this is how I've planned for the month ahead:


    Direct Debits
    £231.20 - monthly travel
    £100.00 - 'rent' that I give my Mum - yes I'm very lucky I don't have to pay much.
    £ 67.15 - car Insurance
    £ 40.00 - mobile phone bill
    £ 9.99 - Apple Music
    £ 9.99 - Netflix
    £ 7.99 - Amazon Prime


    AND THE REST IS MINE!!!!!!!!!!!!!!!!!!!!!!!!!!!!!


    As much as I would love to spend it all on clothes, shoes and bag - it's time I grew up and actually changed the way that I am with money. If I don't do this now then I don't think I ever will and getting myself into so much debt that I was suicidal was definitely the wake up call that I needed. Being able to plan how I'm going to save my money makes me almost as happy as the happy pills make me.


    So for saving this is how I'm hoping things will go:


    £400.00 - LISA
    £100.00 - Holiday Savings Account
    £100.00 - General Savings Account (I'm thinking this will be for birthdays, emergencies etc.


    That leaves me with just under £400 a month to spend.
    Hair, nails etc. is about £100 a month. Food is about £150 (includes lunches with friends at work) so as long as I stick to this and don't go silly then I think I will be okay.


    I'll keep you posted!
























Page 1
    • Midgetgem82
    • By Midgetgem82 22nd Nov 17, 6:11 PM
    • 71 Posts
    • 604 Thanks
    Midgetgem82
    • #2
    • 22nd Nov 17, 6:11 PM
    • #2
    • 22nd Nov 17, 6:11 PM
    Evening ehdx
    just popping on to say i Hi and ill be following your journey
    DEBT FREE WANNABE
    H+M £72.89 NEXT £319.56 22.9%APR BARCLAY CARD £352.90 26.43%APR ARGOS CARD£38.26/ £698.02 29.9%APR VERY £221.19/ £1825.21 47.9%APR
    • Kodagirl
    • By Kodagirl 22nd Nov 17, 9:58 PM
    • 124 Posts
    • 330 Thanks
    Kodagirl
    • #3
    • 22nd Nov 17, 9:58 PM
    • #3
    • 22nd Nov 17, 9:58 PM
    Hi, ehdx, I read your other thread, that's great your paying all your debts off. Your plan looks great regarding your spends, and savings pots, however personally I'm not sure keeping the card for 'emergencies' is a great idea, I understand why, re credit score, but do you really feel you could be disciplined with it, a lot of people have the them with the intention of doing what your intending to do, but slowly and surely, the temptation could get the better of you?
    Maybe it's just my ex had one, we did just that, and that's why I've never had one.
    Loan = £17602.20/ £2639.63
    Total Mortgage amount borrowed
    £129,176.55 Dmr 2005/ £90,485.00
    Current savings £3000
    • ehdx
    • By ehdx 23rd Nov 17, 11:18 AM
    • 18 Posts
    • 9 Thanks
    ehdx
    • #4
    • 23rd Nov 17, 11:18 AM
    • #4
    • 23rd Nov 17, 11:18 AM
    Hi, ehdx, I read your other thread, that's great your paying all your debts off. Your plan looks great regarding your spends, and savings pots, however personally I'm not sure keeping the card for 'emergencies' is a great idea, I understand why, re credit score, but do you really feel you could be disciplined with it, a lot of people have the them with the intention of doing what your intending to do, but slowly and surely, the temptation could get the better of you?
    Maybe it's just my ex had one, we did just that, and that's why I've never had one.
    Originally posted by Kodagirl

    Hi - thank you for your comment!
    I keep thinking about this and there is a chance I could be setting myself up for disaster.... I suppose I could get the limit lowered, but then in a couple of months I might then just increase it again.


    For the time being I'm going to give the card to my Dad. He's very disciplined when it comes to money and if it was a genuine emergency then he would allow me to use but if it wasn't then I know he wouldn't budge. I'll see how that goes for the next month or so...
    • Kodagirl
    • By Kodagirl 23rd Nov 17, 1:22 PM
    • 124 Posts
    • 330 Thanks
    Kodagirl
    • #5
    • 23rd Nov 17, 1:22 PM
    • #5
    • 23rd Nov 17, 1:22 PM
    Giving it to your Dad, sounds ok, but then you said you wanted to make regular purchases and pay it off every month? Personally, being as you got into £17k debt before, I think keeping it is a risk, living with parents, I really don't see what emergency you could get which would justify needing it?

    You've been very lucky being able to settle this debt, with this money, if it happened again, you might not be in such a lucky position.
    Loan = £17602.20/ £2639.63
    Total Mortgage amount borrowed
    £129,176.55 Dmr 2005/ £90,485.00
    Current savings £3000
    • starting_again_in_the_sun
    • By starting_again_in_the_sun 23rd Nov 17, 1:36 PM
    • 50 Posts
    • 181 Thanks
    starting_again_in_the_sun
    • #6
    • 23rd Nov 17, 1:36 PM
    • #6
    • 23rd Nov 17, 1:36 PM
    Well done on having a plan, looking forward to following your journey!

    As far as I am aware, having an emergency CC kept by your dad wouldn't really benefit your credit rating. I think it has to be used and paid off regularly, but may be wrong.

    If this is the case, I think it would be better to get rid of it.

    Do you have many Christmas presents to buy? That may affect this month's budget.

    Good luck
    • DebtFreeDuo
    • By DebtFreeDuo 23rd Nov 17, 1:42 PM
    • 622 Posts
    • 3,035 Thanks
    DebtFreeDuo
    • #7
    • 23rd Nov 17, 1:42 PM
    • #7
    • 23rd Nov 17, 1:42 PM
    I agree with the others on the CC unless you have had it for quite some time, one of my cards I have had for about 10 years, I barely use it but I won't close it because lenders like to see accounts that have been held for a long time.
    Loan:1780.49 2207.38 Car Loan:2039.22 2419.64 0% CC:984.98 1063.48 Overdraft: 860 Overpayment:1781 Total: 7445.69 DFD Dec 18
    SPC 586
    • ehdx
    • By ehdx 23rd Nov 17, 3:49 PM
    • 18 Posts
    • 9 Thanks
    ehdx
    • #8
    • 23rd Nov 17, 3:49 PM
    • #8
    • 23rd Nov 17, 3:49 PM
    Giving it to your Dad, sounds ok, but then you said you wanted to make regular purchases and pay it off every month? Personally, being as you got into £17k debt before, I think keeping it is a risk, living with parents, I really don't see what emergency you could get which would justify needing it?

    You've been very lucky being able to settle this debt, with this money, if it happened again, you might not be in such a lucky position.
    Originally posted by Kodagirl

    Yes, I think it's probably best that I get rid of it then. Using it for petrol and paying it off each month would be ideal but I don't think that will happen and at the moment there aren't really many emergencies that I could come across!
    • ehdx
    • By ehdx 23rd Nov 17, 3:51 PM
    • 18 Posts
    • 9 Thanks
    ehdx
    • #9
    • 23rd Nov 17, 3:51 PM
    • #9
    • 23rd Nov 17, 3:51 PM
    Well done on having a plan, looking forward to following your journey!

    As far as I am aware, having an emergency CC kept by your dad wouldn't really benefit your credit rating. I think it has to be used and paid off regularly, but may be wrong.

    If this is the case, I think it would be better to get rid of it.

    Do you have many Christmas presents to buy? That may affect this month's budget.

    Good luck
    Originally posted by starting_again_in_the_sun

    Thanks. I think I'm going to get rid of that last credit card. I've brought the majority of my Christmas presents for this year as they all had to go on one of the credit cards that I will be paying off. The odd few presents I can probably pay for out of whatever is left from my budget. It'll only be small bits for my niece and nephews.
    • melanzana
    • By melanzana 23rd Nov 17, 3:59 PM
    • 2,443 Posts
    • 6,813 Thanks
    melanzana
    Am I right in thinking that after you have paid off your debt, you will have 35k savings left?

    If so, that is a fantastic achievement at your young age really. Have you any plans for it, i.e. deposit on a flat or anything like that.

    If I had that amount at such a young age (no I didn't, I was far too busy living the young life of holidays and so on!), I would put an amount into a "fun/emergency" account and enjoy life, and Re-invest the balance.

    Do continue to save, it is a great discipline, as I found out when I finally got around to it! I see that you are.

    Best of luck in your journey. Sounds like you have a good head on your shoulders. But I think you should be thinking of a time when you will not be living at home at 100pm rent too!
    • enthusiasticsaver
    • By enthusiasticsaver 23rd Nov 17, 4:13 PM
    • 4,851 Posts
    • 9,172 Thanks
    enthusiasticsaver
    Am I right in thinking that after you have paid off your debt, you will have 35k savings left?

    If so, that is a fantastic achievement at your young age really. Have you any plans for it, i.e. deposit on a flat or anything like that.

    If I had that amount at such a young age (no I didn't, I was far too busy living the young life of holidays and so on!), I would put an amount into a "fun/emergency" account and enjoy life, and Re-invest the balance.

    Do continue to save, it is a great discipline, as I found out when I finally got around to it! I see that you are.

    Best of luck in your journey. Sounds like you have a good head on your shoulders. But I think you should be thinking of a time when you will not be living at home at 100pm rent too!
    Originally posted by melanzana
    I read the other thread and the £35k was from an inheritance and the OP has had to use £17k of the original inheritance clearing debt incurred at a fairly young age. She has not actually started saving yet.

    OP you are definitely wise to clear the debt - is your mum on board now? I think the savings targets are sensible but in view of the fact at some point you will be wanting a mortgage to buy your own place I think you should look carefully at your expenditure as you will not always only have to pay £100 for rent. £100 just on hair and nails on a relatively low salary seems an awful lot. Also forking out for Netflix, Apple Music and amazon prime seems steep.

    I also think until you can prove to yourself you have some discipline financially keeping and using the card may be too much temptation. Once you are certain you can live within budget then using it and clearing it each month will demonstrate you can use credit responsibly.
    1 week to go until early retirement. 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
    • ehdx
    • By ehdx 27th Nov 17, 11:44 AM
    • 18 Posts
    • 9 Thanks
    ehdx
    Hi Everyone...


    So, payday today and money gets released tomorrow.
    First things first - I've cancelled my overdraft. The WHOLE lot. As I don't have any direct debits going out to debt this month, I thought I should cancel it straight away with some of my wage.


    I've found a 1 year fixed bond for the remaining amount of savings with Atom Bank. I've read mixed reviews with them as they are an app only - not 100& sure I'm going to use them yet.


    By this time tomorrow I will be debt free! I'll post tomorrow to let you all know how it went!
    • enthusiasticsaver
    • By enthusiasticsaver 27th Nov 17, 1:16 PM
    • 4,851 Posts
    • 9,172 Thanks
    enthusiasticsaver
    Good start on cancelling the overdraft. I would also cancel all credit cards except for 1 which should be the one you have had longest. Maybe do a regular saver or help to buy isa to get into monthly savings habit?
    1 week to go until early retirement. 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
    • ehdx
    • By ehdx 28th Nov 17, 1:27 PM
    • 18 Posts
    • 9 Thanks
    ehdx
    Me again..


    So, today I had the chance to become debt free and pay off all of my debt. It hasn't quite worked out like that.


    I couldn't get my Mum's point of view out of my head and I felt that she was right in a sense. Maybe it was all too easy for me and I haven't really had to work hard to pay off my debt like others have. She really wanted me to keep £40,000 to put back into savings - I've kept £39,000 for savings!
    £35,000 has gone into a 1 year fixed bond. 1.75%
    £4,000 has gone into my LISA.


    So far I've paid off my Loan - £10,340.00 and my overdraft £700.00.


    I have just under £3000.00 left and I'm trying to decide which card to pay off. I'm going to update my original post to reflect what I've paid off!


    Thanks for following my journey. I might post a separate thread in credit cards to see if I can get some advice on what to pay off.
    • DebtFreeDuo
    • By DebtFreeDuo 28th Nov 17, 2:02 PM
    • 622 Posts
    • 3,035 Thanks
    DebtFreeDuo
    I completely see your mums point, I think when things come to us easily we don't really learn from them as we should which could lead to a bigger mess down the line.

    I would have a look at the interest rates on your cards and decide that way, pay off the debt that costs you the most first, or if no interest then go for the one where the 0% deal expires first. I can't see if you have already posted details of amounts/interest rates so can't comment on those but that is how I would do it.
    Loan:1780.49 2207.38 Car Loan:2039.22 2419.64 0% CC:984.98 1063.48 Overdraft: 860 Overpayment:1781 Total: 7445.69 DFD Dec 18
    SPC 586
    • ehdx
    • By ehdx 29th Nov 17, 12:34 PM
    • 18 Posts
    • 9 Thanks
    ehdx
    This month might actually be a bit of a struggle, but I'm going to keep going!


    I have around £300.00 for the month and I have a haircut and waxing booked in, so I should be able to manage with £200 providing I don't go out for dinners etc. I think that was my main downfall during the month.
    Debt Free Wannabe
    £18,143.39|£4,402.49

    • ehdx
    • By ehdx 5th Dec 17, 10:21 AM
    • 18 Posts
    • 9 Thanks
    ehdx
    I had a mare! I ended up taking the 4k out of my lifetime ISA and using 2k of it to pay off my other credit cards!


    So now I have 35k in a fixed bond and 2k in a lifetime ISA.


    It feels more manageable to only have I debt going out each month to one credit card. I think this month will still be a bit tight as we have our Christmas Party and a friends birthday and I only have about £100 for the month, but at least I've done all of my Christmas Shopping!
    Debt Free Wannabe
    £18,143.39|£4,402.49

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