Preparing for a debt free future

Caz_

I’ve been having a gander around this site for a while, and have been engaging in some challenges although am in dire need of actually updating where I am on some as I have gone off track a bit. In terms of debt, I’m not in too bad of a position. Okay, there’s student loan but as that gets paid off automatically, so I’m not too concerned about this one. Other than that there’s just my overdraft. I have a limit of £1,000, and by the end of my pay period I am usually about £900 into it. Obviously this is something I want to clear, and am working on.

I wasn’t always this far into it; I would just occasionally dip into it towards the end of some months if something come up, knowing that I would probably end the next month without needing it. What changed? A pretty expensive few months! Having completing my masters degree (and using my savings to fund it) I was working full time in a relatively low paid job that I had been doing part time throughout my studies (both undergrad and postgrad) – I was lucky to have the hours thrown at me and some very understanding bosses. During this period I was applying for jobs in my chosen field and attending interviews until 5 months after completing the course I got offered a job – about 200 miles away. Re-location wasn’t an issue for me, I was glad of the change of scenery and wanting the new challenge. Adjusting to life in a new place, and getting settled in a new home isn’t necessarily cheap and that’s where the overdraft started getting used, or more relied upon. There was always bits and pieces that needed picking up for the flat, evenings out getting to know people over food and a few glasses of wine, and generally just finding my feet. All that, and a few holidays/trips with family/friends from back home. Now, almost 6 months into the new place I am ready to sort things out and minimise the risk of future debt.

My aim here is to clear my overdraft and boost savings to avoid getting into debt and form a basis for the future. I have approx £200 in an easy access savings account, which I plan on leaving there, and building up until I can clear the overdraft. At the moment, moving that money into my current account would not have any impact on the overdraft charges as they are capped (as soon as it gets to a point where a difference would be made I plan on transferring some).

Things I am doing so far:


Cancelled gym membership: I have a rowing machine and free weights from a while back and have taken up running getting in the training without the need for paying out £20 a month.


Keeping clothing purchases to a minimum: aside from a few extra bits for work as the weather turns colder and some longer, warmer running leggings I don’t need anything else in the near future


Saving on the food shop: I live alone so it’s easier to keep food costs down with no one to argue with. Brand swap on some items and batch cook and freeze to ensure no waste on fresh items.


Ebay: selling some clothes that are now too big or that I’ve no intention to wear again, along with some textbooks that I no longer need (am keeping the ones that may come in handy)


Swapping nights out for nights in: me and friends (in similar position) have decided on swapping some more expensive nights out for nights in with dvds etc or choosing to go to the cinema on a wednesday (orange 2 for 1) instead of a weekend.



Challenges: 52 week challenge, £2 savers club (I have already used some of this to treat myself to a new bag after I got offered the job but the rest is not being touched!)

Any other tips/ideas or just good old opinions on the whole debt free thing will be most welcomed!