NHS worker bee's diary: buzzing towards debt freedom

NHS_worker_bee

Hello

I've been lurking for a while since my LBM last year. 'Pickle me' asked if I had a diary and so I've decided to come out of hiding and enter diaryland.

I'm in my mid-twenties and have been in debt since graduating in 2011. It's a 'rolling' debt: I've never missed a payment but it has rolled into a bigger debt over the past three years rather than a smaller debt. :eek:

Before I went to university I worked full time as a carer and was completely debt free. I enjoyed my job but the pay was never going to increase (carers are sadly undervalued) and I wanted to pursue my career dreams... unfortunately my course wasn't NHS funded. So I took out a student loan and survived through University with the help of three part time jobs, however I didn't manage to avoid acquiring a £3000 student overdraft and a credit card (oh if I could turn back time...!) However, if I hadn't had access to the overdraft I wouldn't have been able to afford to go to university so it was a necessary evil.

During this time I completely paid off my little car (which I still have) this was essential for getting to placements during my course. So although I did accrue debt, I do still have something to show for it: my car and also my degree, which gave me my professional registration.

I was very excited about qualifying and getting my seemingly huge (to a student) full time NHS wage. A slightly older and much wiser friend told me at University that as soon as you start to earn more, you start to to spend more too. "No" I scoffed, I will have so much money I won't know what to do with it...

*reality check*

I moved into key worker flats, in the new town where I was working. This was very lonely and with shared facilities, not very homely. I then split up with my long term partner (amicably, but still a sad time). I missed my friends and our shared house. On my days off, I would drive to visit friends all over the country, rather than sit in my flat on my own. I wasn't living the high life but I wasn't budgeting either.

I also went back to University part time and purchased a posh laptop which I'd always wanted on finance (This is pre-LMB behaviour, never again...)

Then an opportunity to rent a lovely little house all of my own presented itself (with no flatmates trashing the kitchen and not taking the bins out...) Fast forward a year and I wasn't managing to pay private sector rent, bills, council tax, finance agreement all by myself without relying on the credit card for groceries and fuel... I never missed a payment but the CC debt started to mount up... Also *hangs head in shame* a payday loan which thankfully I paid off and this is when I realised things had to change, my life was a big juggling act of shifting money and making payments. I could keep juggling it, but I couldn't see a way out either..

I'd got myself into a bit of a pickle... I was always making my payments, but then using the CC again mid-month...

I was never a big spender (big charity shop fan) apart from the expensive laptop (lesson learnt) but
outgoings > incomings = something's gotta give!

*head out of sand*

Cloud: I was in £11,194 of debt at the start of this year :eek:

NHS_worker_bee

So, I had my LBM but couldn't see a way out of my mess.

Silver lining: I then moved in with my wonderful OH, we had already been together for a while at this point. I confessed the whole situation to him and he was just so supportive. I'm able to make small contributions towards household running costs whilst I pay off my debt. (Because my OH was managing his finances perfectly well before I moved in, it's more a case of I want to contribute than I need to contribute to bills)

So I'm now in a fantastic position which I am very grateful for: I have an opportunity to really tackle this debt and I can afford to do so. A year ago, sinking, living on my own, ashamed to tell anyone I had overstretched myself by renting on my own, I could not imagine this situation.

I really feel like I have been given a second change to get things right and I'm so grateful for this

However, the quicker I pay off this debt the quicker I can start saving and building a future with my OH as equal partners. I'm hugely grateful for the 'breathing room' to allow me to get debt free, but I'm keen to 'pay my way' and also be able to start saving as soon as possible.

So following the Martin Lewis philosophy, my plan is simple:

1) Get debt free
2) Start a savings account

I wish I'd started this ages ago, but I'm not going to dwell on where I've been but instead focus on enjoying the journey from now on

NHS_worker_bee

So my debt was £11,194 :eek: Now £10,460

Since my situation has improved and I'm not at the limit of my CC every month, I've been able to shift a lot of the debt onto 0% balance transfers.

It's been like a positive domino knock on effect for me:

A year ago I was juggling debts with no way out, paying them off and them running them up again each month...

...I couldn't get a 0% balance transfer card because I had no wiggle room in my budget.

Now I don't actually have access to any of the cards, I just treat them like loans and am snowballing the debt...

And now I'm in a better position the debt is actually a lot cheaper because I've shifted some to 0%, so my overpayments are making a real dent...

But I think the biggest change is in my mentality towards money. I'm almost glad this has happened because I've learnt some invaluable lessons along the way, about the real value of money, the true cost of credit and that your real friends will still love you even if you explain you're skint and want to stay in rather than go out. In fact, it's definitely made me a better person. I'm going to be a super saver once I'm debt free!

This diary writing is addictive!

Goals for next month:

Get debt under 10k

Whizz123

Well done and keep going.

I've subscribed x

pickle_me

NHS_worker_bee wrote: »

I think the biggest change is in my mentality towards money. I'm almost glad this has happened because I've learnt some invaluable lessons along the way, about the real value of money, the true cost of credit and that your real friends will still love you even if you explain you're skint and want to stay in rather than go out. In fact, it's definitely made me a better person. I'm going to be a super saver once I'm debt free!]

I could have written this myself. Sounds like you're well on your way :T and I'm looking forward to our sub-10k party next month

I've subscribed

NHS_worker_bee

Thanks -

Yes! We will say goodbye to five figures forever and debt-bust into four figures

I say I'm almost glad this has happened. Obviously I would rather have £10,460 in savings than in debt (!) but oh gosh, haven't I learnt some lessons. Most importantly, that I can just say no to things and the world won't end.

I'm eBaying this weekend. Selling not buying of course!

Good luck with the debt clearing, roll on payday I say :T

pickle_me

The way I look at it is this: it's costing us £15k of tightening our belts now, but we're going to save thousands in the future as a result of everything we're learning now. Sort of like a degree in money management

NHS_worker_bee

That's a really good way of looking at it, it's the price we are paying for a financially savvy future. It's been a crash course in money management for me

NHS_worker_bee

So, good news, after a rather long time off work ill, I am able to go back to work...which means back onto FULL PAY... which means some serious debt busting will be happening (after payday that is!)

Goals for next month:

Get debt under 10k

NHS_worker_bee

More good news (on a smaller scale) my eBaying is going well. I've got twelve watchers on a pair of shoes (which I originally got from a charity shop). I'm looking around the flat for more things to sell...

NHS_worker_bee

Only made £2.70 profit from eBay sales...still, every little helps.

On the plus side, I am now back on 'full pay' at work. Spending a short time on 'half pay' has made me appreciate my wages so much more, realise how hard I work for them and how much harder I could make the money work for me too... So roll on payday when I can make some serious overpayments