A Reformed Spender - My debt diary

Reformed

Two and a half years out of university and I've finally realised I can't spend more than I have or I'm going to be in trouble I am going to enjoy re-educating myself, the frivolous excess days at university, clubbing, shopping, drinking and the rest need to be curbed.

Monthly Incomings:

My salary - £1,325.00
Total - £1,325.00

Monthly Outgoings:

Mortgage/Rent - £474
Council Tax - £52.50
Gas/Electric - £15
TV Licence - £6
Phone/Internet - £11.00 (that's the minimum, always ends up being more)
Food - £173 (again always ends up being more)
Water - £11.16
Amnesty International Donation - £2.00
Plan International Donation - £8
Transport - £36.80 (lots more if I get the tube)


Total: £789.46

Debts:
Debt to other half: £2800 - I am very fortunate that my other half offered to pay off all my overdrafts and credit cards on a 0% interest basis :rotfl:
A bit of an offer I couldn't refuse. He's in a very comfortable financial position (!) and hasn't even given a time frame but I'm hoping to pay it off within the year.
Debt on student loan: £12400 - approx I have to check with the loan company. It's a bit of a mystery why I haven't automatically started paying this off but perhaps it takes a while for the earning information to filter through. Going to call on Tuesday for the exact total and work out repayments and the interest they charge.

Total: £15200 :eek:

My situation is not too scary, I realise I am very lucky to be nipping it in the bud as it were. Because of this site I will save money and be more in control - I'm not going to get in a worse financial position, its only going to get better! So I am a committed money saver now. I spend only on my Morgan Stanley Platinum Card and with the cashback I am earning (I clear the balance every month) I am putting this into a Kent Reliance Variable rate ISA. I also put 20% of what I'm earning into this ISA - I know I could put in more so I'm working on spending less on going out and on myself. It can be quite difficult to never appear 'tight' with another half who doesn't worry about money. Aside from this loan the OH and I pay our own way for bills and going out and we're independent financially. Sometimes I think he can be a bit frivolous with it but basically if you are spending less than your passive income (money you incur from investments) then you're doing alright no? But I'm still trying to convince him that its worth shopping around to get the best deals for the same products.

The OH won't accept repayment for the long term loan in anything less than £1000 installments so it's not going to look like I've made a dent in my debt for a while but I will have put money aside to pay it off.

Challenge is to be a bit smarter with my spending. Today is a NSD. I'm going to go out for a run (I don't need to pay for gyms anymore!) and we are watching Ferris Bueller. We have a friend over for dinner this evening and so it'll be a lovely day without denting my resolve to sort out my debt mess. Shouldn't have any need to spend for the next week or so.

Encouragement to not spend would be appreciated. I have the money diet already and the thrifty ways is heading my way in an amazon order. I'm going to try and log on everyday to keep my focus at sorting out my situation this next year.

jenchin66

Hi Reformed and welcome.

I think studant loans start to be paid back on about £1500 salary a month. Someone who knows for sure will be along soon.

taxi73

Hi and welcome

CLAPTON

you should repay your student loan (new version) once your gross salary is 1,250 per month (15,000 per year) at 9% of the excess over 1250.

you dont start paying until the april after you graduate, so if you graduated in july 2004 you should start paying in april 2005 (assuming you earned more than 1,250 per month)

its your employer's responsibility to deduct the correct amounts so you need to speak to your payroll department.

you should receive a statement from SLC once a year; about july time ...if you haven't had one, phone them (do they have an uptodate address for you?)

Vickicb

I paid off my old-style student loan last year and got a letter regarding the new style student loan (from my PGCE) in April informing me that they did not have the info they needed from the Inland Revenue regarding my income and so would not be taking payments yet. They actually started in July. If they haven't contacted you I think maybe your address is wrong on their system and perhaps you should contact them?

Reformed

Definitely going to contact them on Tuesday. I called a few months back to get my balance and asked whether they would automatically be able to pull the 9% from my NI number once I started work (I was unemployed for a bit a few months ago). I sent my address change slip off as soon as I moved to London so they should have my updated address. I hope they don't start asking for backdated payments as I have been earning over the threshold for a few months! that would be a nightmare! I am getting letters from HM Revenue and Customs at the moment though referring to the temp agency I worked for before the placement I am currently working in. I love temping for its flexibility but it gets a bit confusing when working out whether you've paid enough tax and seems to take ages for the system to catch up with where you're at. I did also phone the temping agency about my contributions and they said they didn't know anything about it... I reckon I need to speak to their payroll department.

Thanks for all your advice. Its good to know there's a friendly crowd out there. I've had a NSD today!!! (Apart from the Water and Gas Direct Debit - different I think) And it was a good day. I'm looking forward to tomorrow, hopefully another NSD. I've got yearnings to go into town and treat myself to some new makeup (I know I can't afford clothes) but have talked myself out of it. If I don't go to the shops I won't spend. I know it sounds stupid wanting something as inconsequential as a new lipstick and eyeshadow.

By reading the threads on this page today I found out about pigsback and have £2.10 already! I did a couple of Yougov surveys today as well.

Looking forward to the celebrations, I've got a load of food to prepare for when various friends and family members visit and we've got plenty of booze from the massive shop we did in Tescos on Friday and parties to go to as well as a tee totaller amongst us who's prepared to do the driving so there's no taxi fares to worry about. Perfect!!

Hope everyone has a great New Years!

Reformed

Had a good New Years Eve drinking through all the bottles of wine from colleagues and friends and cooking up some lovely food for my sister and her fiancee, some chicken we'd got buy one get one free the other week covered in herbs (thanks to the Jamie Oliver flavour shaker- Useful Christmas present) I got all Nigella and made an asparagus quiche put out lots of breads and dips and salads. She was happy she didn't spend any cash going out for lunch and I was happy when everyones plates were cleared!

Another successful No Spend Day yesterday so that's two in a row, and I don't think I'll be leaving the house today let alone spending any money. Plenty of TV to watch and housework to do. Made some pigsback points - what's the most people have made in a month doing pigsback?

I'm going to change our gas and electricity suppliers today using uswitch.com and apply for a 0% card to transfer my OH's unusually high £3000 balance for 6 months and complete my application for a citibank saver account. We'll then use the £3000 we'd use to pay the original debt off (we're good about clearing our cards every month) and put it in this savings account for 6 months therefore making money until the 0% card needs paying off. Cunning huh? I'm also going to investigate Quidco which I keep reading about from other threads.

So although I'm resigned to the sofa, I'm feeling proactive about starting the New Year positively. I feasibly think that I can have paid my OH back by November this year and made a good cut into the student loan once the 9% gets taken out of my salary. If I have any money left over to hit at the loan I will put it in a high interest account so I will earning from that as the interest on student loans is so low. I wish I had been more clever with my money as a student. Hey ho, no regrets, onwards and upwards.

Reformed

It's later on in my third NSD of the week and I'm sorry for my second post but I thought I'd set out what little I managed to get done today and what I would like to achieve by Friday.

TODAY
Joined Quidco
Entered Pigsback competitions

THIS WEEK
Send off my application for a citibank savings account
Apply for 0% credit card
Make sandwiches for work
No Spend days until Friday
Do pigsback everyday
Go running everyday (moneysaving because its not going to the gym!)
Keep spending diary (hopefully only the necessary bills)
Check Electric and gas costs
Make sure all electricals are switched off when not being used
Get cashback cheque sent from Morgan Stanley and put towards OH debt

bobbie78

Hi Reformed it looks like your doing really well. Just remember though it is baby steps to begin with, if you do too many challenges and make them too hard you don't want to fail and loose momentum. You seem to be really in the zone though so well done, I'm just trying to say don't be too upset if your NSD's don't work out exactly as planned straight away, this is a marathon effort and not a sprint but you seem to have all the right stuff to get through it.

Reformed

Thanks bobbie, I won't get down if I have to spend a bit of cash but as I have left the house without my wallet anyway and can't find my credit card (New Year) I am pretty safe. I suppose I have spent 85p on the bus this morning using my oyster, but it is a necessary spend as it would take me 1hr and a half to walk!!!

Phoned my student loan company to hold my hands up and let them know I should be paying it back, it's low interest but two years of non-payment have added on nearly a grand. However they are not open as its a bank holiday but I've informed my agency and they are getting in contact with their payroll department. They better not ask for back dated payments or I will be a bit $%£&ed if you know what I mean!

It's my OH's birthday on Friday so I shall be spending to get a cake etc... which means one I would attempt making one but the oven in our rented flat is pretty crap and I don't think it would be very nice!! I've given up drinking for the forseeable so the weekend shouldn't hurt too much but I think it is only right for me to subsidise OH's drinking and activity's for the weekend. He got plenty for Christmas and we don't tend to go in for birthday presents, more birthday 'experiences' - I got a ticket for a musical on my birthday just for something different we'll go ice skating and go on a walk round the sights for his. Problem is I haven't earnt any money since the 22nd and I'm a temp so I won't get very much on payday (Friday) Ah well... (deep breath)

Reformed

So I was aiming for an NSD today but I saw a bargain and got three bottles the eye make up remover I use reduced from £3.25x1 to £1.95x1 (saving me £3.90) so I paid by cashback credit card (15p) and got 23 points at Boots (23p) and then I got given a voucher with money off processing film worth £4.00 so if I use the vouchers (more than likely OH will use them) they only cost me £1.47. I feel like a geek.

And because I'm feeling a bit rotten I got the tube instead of the bus which is an extra £1.00 - my resolve is flagging slightly but I deserved the treat after a hard day at work (I got a seat-bonus)

Can anyone else believe a cash fare single in Zone 1 is now £4.00? Scandalous. Oysters/Walking all the way.