Dealing with the overdraft monster

speakingofart

I don't often wax lyrical about computer programmes (and I promise I'm not being paid by them!) but honestly, I saved the cost within the first month of using YNAB. The website is brilliant - I would really recommend downloading the free trial (it's 34 days) and then watching the videos and trying it out, to see if it works for you, as it's quite an unusual method, but much more realistic and I find much more helpful than simply tracking your expenses, which to be honest, just let to me going, ah, I've overspent. Bother! rather than actually solving the problem.

Would also recommend a diary, as it's good to keep you accountable, and this forum is lovely and supportive. Try some of the DFW challenges as well.

Good luck!

speakingofart

I've just seen my last but one payment to my overdraft go out - less than £200 to go! I'm so excited and can't wait for next payday, although to be honest given I have to hand in a master's dissertation before then, I probably shouldn't wish for time to go faster. I made a small top up payment of £10 to cover any interest/ charges that they apply before next month - luckily, it's been a graduate account up to September 1st so interest has only been around £4/5 a month, but from September it'll be normal interest and Natwest's lovely £6/ month charge for being in your overdraft. However, I'll be walking into the bank to close it a few days later, so hopefully I won't pay too much.

Continuing to use YNAB for budgeting, which resulted in me having £14.50 in my account the day before payday, which to be honest is pretty much unprecedented. Have budgeted all my money this month - even managed to put some aside for my next car tax the month after I've paid the old one and joined the pension scheme at work. So am being much more grown up with my money and I put that entirely down to the good habits I've learned on this forum and YNAB.

Can't wait till I make the final payment, but I'm so glad this is nearly over.

speakingofart

Most of the below is taken from the NST's September challenge, but I'm copying it here because I think it's a good way of reflecting, now that my DFD is almost here. Above all, I want to make sure that I don't ever go down this path again - whilst it wasn't thousands and thousands, it's taught me more about the value of money and how to use it sensibly than all the adults in my life when I was a child, so I don't want to waste this lesson; I want to build a strong future.

I really can't believe that it's September already, I don't know where the summer's gone. Even though I'm no longer a teacher, September still feels like a time of new starts for me and this September in particular. I handed in my master's dissertation yesterday and will be debt free on the 15th September, so this month for me is all about new starts and starting to build a positive future after a very difficult couple of years. What better way to do this than with ninja turtle squirrels!

So targets for this month:

- leave my desk and take a walk of 30 minutes at lunch at least 4x weekly. This will also have the advantage of getting me away from a screen and de-stressing me a bit, during a very busy but interesting period at work.

- take advantage of the next 3 weeks of freedom from studying to catch up on a lot of jobs that I haven't done whilst writing my dissertation, and to read books/ see friends etc. Also to prepare to go back to uni at the end of the month, for my final year of my HR qualification.

- Pay off my debt on 16th September and close my old current account at the end of that week.

- Continue to have a clear out (I've made £90 on amazon this weekend selling books/ things I don't use anymore) and take all old clothes/ shoes to the charity shop.

- Pay for a car repair, books and personal items from this money as far as possible.

speakingofart

I'm very proud to say this is copied from the Debt-free roll of honour!

I've been waiting a long time to make this post, but as of this morning I am DEBT FREE!

a. The date of your lightbulb moment

I had several - I always knew that I wasted money and had a giant student overdraft which I needed to deal with, but the moment I decided I had to tackle it was Christmas 2013.

b. Debts at their highest

£1752.33 on the student overdraft, but I was also up to £200 in my current overdraft consistently every month, and also owed a fee to my university which I kept putting off because I didn't have the money. That is now paid, this will be my third overdraft free month in my current account and my student account is now in credit.

c. Debt-Free Date

16th September, 2014.

d. Your one pearl of wisdom.

YNAB. Seriously, just do it. Best £30 I EVER spent.

e. Links to the MSE guides that helped you

Car insurance guide, but mainly the lovely supportive community here.

f. Which forum threads helped you

NSK/ NST challenges. Not only were they a great way to focus, they were also full of wonderful people who kept me motivated to check in and helped out when I felt like I'd never do it.

I suppose I should really change the title of this diary now, but I very much want to keep it going, as I still have a number of important financial goals that I want to meet and participating on these boards and in the NSK/ NST challenges has been a great way to get this far.

So, next steps, in no particular order:

1) continue to use YNAB to budget my money and spend from my category balances, not my bank account
2) Fill rainy day funds for irregular bills and expenses
3) Save £1,000 into an emergency fund
4) Ensure there is money remaining in my current account at the end of each month
5) Save towards replacing my car and a flat deposit
6) Look for ways to increase my income.

I also want to continue to use my money wisely - for example not wasting it on junk food (I've lost nearly 2 stone so far, only 10 to go!!!) and using it carefully to have fun and save wisely. Now I'm debt free, I can start building for the future - for example, I joined our pension scheme last month and want to start an ISA come next financial year.