A new debt free journey

lcc86

Well it's been a while now since I last updated. Things are still ongoing with my house and the potential legal problems. I won't bore anyone with the details, but am saving up in order to get some legal advice when the council release their plans in May. I can only research between now and then and try to get as much information as possible.

On the money front, I had a little windfall of just over £500 from Tesco, they wrote to me stating that when I had a loan with then they had overcharged me in interest. I think it's because I made regular overpayments and they weren't correctly factored in. So that was a very pleasant surprise!! I paid OH back every penny he lent me and put the rest into my vet fund, which now stands at £200.

I did really well financially in February, and that windfall probably saved me another month of being skint, so I'm very grateful for that. I also just managed my money better than I've done for a while (or at least that's how it seemed), and I think that came at exactly the right time as I'd been feeling pretty down about it all towards the end of Jan. I've almost got my debt under £6,000, and will definitely hit that mark this month. I've also been trying to exercise more, am dog walking and going to the gym on top of horse riding. I'm using payasyougym instead of a monthly membership but am enjoying that and seeing results.

On the downside I had a car crash a couple of weeks ago. It's only minor damage, nobody was hurt and it wasn't my fault, but unfortunately for me the person who caused it didn't stop and I couldn't get their details :mad: it's just one of those things really. I've decided to repair it myself rather than claim through my insurance as it will probably cost me £300 to fix, my excess is £250 so I'll just take the hit rather than claim and face a higher premium in future.

I'm also considering returning to education and studying for a Masters (again). I've found a course which I'm incredibly interested in and so I'm just in the process of researching it a bit more and then applying. Financially postgraduate student loans are due to be made available in the coming academic year, so that would be the route I take if I decide to do this. Yes it's difficult to think about having a student loan so that's something I really must look into, but at the end of the day, I will make my decision based on whether I think it'll be the best thing for my future.

Anyway, it was payday on Friday and I've got my budget sorted for the next month. I'm able to put some money away for various things and pay some debt off. I'm of the mindset right now that I don't want to put a date on when I will be debt free, I'm just going to take it month by month because I think I put too much pressure on myself for a while. I also think I will keep my updates to a minimum as I started to get too hung up on posting here and I think it made me overthink and dwell on my finances constantly. The last month has been good for my wellbeing so I'm just going to carry on as is for the time being, still on the debt free wagon and just plodding along

lcc86

Little update to report - I've applied and been accepted onto my masters course :eek: exciting but also daunting. I'm hoping I can do better than I did during my last attempt at postgraduate study, although back then I had no money and my mental health wasn't in a good place so perhaps it was always doomed to fail! I'll need to apply for a student loan in due course. It doesn't start until September so I'll just try and enjoy myself between now and then when the hard work begins!

On the home front, I've decided to stay put and fight the council on their plans to make sure they can't bully existing residents. I've had my flat valued and I've got between £70k and £100k of equity in my place which is great. I don't want to move though as house prices in my area (or within a 30 mile radius really!) are just out of my reach. I can't afford to buy a 2 bed place even with OH, and the current price of a 1 bed is double what I paid for mine, so in my head it makes no sense to move as house prices seem too inflated. I have a cheap mortgage so I'm going to take advantage of that and make the best out of the current situation.

OH and I have a meeting booked in May with the bank when my current deal ends with the view to get him put on the current mortgage. That will help my finances and save me about £130 a month. I'm also looking at secondary window glazing for my place. It's cheaper and less fiddly than replacing the windows altogether (third floor living has its drawbacks!) but it's something which needs doing as my windows are poor for both insulation and noise protection. So that's something else I want to save for over the next few months. Debt busting will of course continue just on a smaller scale. I hope that once I've got these particular things saved for and got OH on the mortgage I can get back to debt busting with a vengeance!! :T

On a more minor note, I've changed both my energy supplier and my Internet provider in the last week so hopefully will be saving about £20 a month. Next up is my contents insurance which runs out in April, I only pay £6 a month at present so not expecting huge changes there whatsoever, but hey, every £ helps! Especially as council tax is going up as of next month :mad: ah well, such is life!

crazy_cat_lady

Sounds like things are going well. Hang on in there with the council - our house was once subject to a compulsory purchase but it never happened in the end due to the residents.
And good luck with the masters - you can totally do it!

lcc86

Time for a quick update. This month has been a little hard financially, I paid out for some of my car repairs following the crash but also found that my tyres were almost illegal, so had to change them too. That was another £120 I've had to find, so as it stands, I've got about £20 to see me through until payday next week :rotfl: it's just one of those things. On the plus side, I'm chuffed that I actually had the money to pay for the tyres up front. Perhaps this time last year I would've had to use my credit card, so all positive steps. I still need to get my bumper painted, but as that's only cosmetic, it can wait, I don't mind having a mismatched car for a while as long as it's safe and legal!

Other than that, the month has been good. Little shorter on funds than I'd hoped but money has been managed well, I've done everything I've needed/wanted to, and I've also managed to pay about £30 extra off my debt and get under the 6k mark. The next few months I'm going to focus on upping my debt repayments as in February and March I budgeted for £125 debt payment and I'd like to be in the region of £200+.

Been keeping busy with the gym, horse riding, dog walking and volunteering so am hoping to see some health benefits long term if I keep that up. I also found a Groupon deal, 10 gym sessions for £10. I wasn't going to buy it but it expired yesterday so figured it actually made financial sense to make myself a little poorer for another week in order to save myself about £30-£40 in gym fees longer term. I certainly feel better for exercising more anyway and keeping myself busier. It also keeps the mind from constantly focusing on debt too!! Right, I've had a nice lie in but time to get up and go to work!!

lcc86

Payday has been and gone, and I have more income tax-related drama. This is all left over from when I left my previous job and them not releasing my P45, so I'm very unimpressed to put it mildly. Essentially my income tax has doubled since last month. I have some time off work in April so am going to call up the HMRC and hopefully get it fully resolved, and work out if I owe any money or vice versa. Hopefully they owe me as I've overpaid for a few months!


Unfortunately this means my plans to up debt repayments haven't really gone quite to plan. I've cut back on some other non-essentials but have also had to cut down my planned debt repayment a little to ensure I get through the month unscathed. I'm fortunate that I had the scope to do that though, that's the way I'm looking at it. A few months ago I wouldn't have had any wiggle room, so must look on the bright side.


Things like this really do get me thinking that, despite me saying not so long ago that I don't want to set a timeframe on my debt, I do perhaps need to push it when financially things are a little more settled. I would like to move in two years and being debt free (or almost debt free) would stand me in good stead, particularly as OH may be fully self-employed by then so my income will be the main factor in any mortgage decision. So in my mind I think I'm setting a loose target of two years... despite saying I didn't want to set a target lol.


April is MOT time, hopefully as I've just had a service, new tyres and crash repairs there will be no drama there. Plus my car is 6 years old so there shouldn't be any hidden dangers lurking around. I also have a week and a half off work to look after my parent's dogs while they go on holiday. I'm making the most of it and have booked some cheap horse riding near where they live, £10 cheaper than it is down my way so I've indulged and booked twice (I did this prior to the tax issue, all paid for so am just gonna do it and try not to think about the money). I don't have much that I need/want to buy this month so it should be an okay month barring any surprises. I need to save for my trip to Ibiza, that's the biggie, but if I keep that in mind then I should be able to stay on track.


Will aim to catch up with some diaries as I have been incredibly absent on here and always feel a little bad that people take time to read and comment on mine but I don't always return the favour!

lcc86

I have managed to speak to HMRC this morning and it isn't good news. Because of the numerous c*ck-ups I owe then £400 :eek: they'll send me a letter to show how they've calculated it all, which I'll go over with a fine toothed comb but it's very disappointing. All because my last employer couldn't get off their a*se and send out a P45 when I left. Ridiculous. Still, nothing I can do about it now (apart from set up an offshore bank account in Panama :rotfl:) so on we go. At least I have sorted it out and know where I stand and what to expect.

One of my neighbours has also kindly hit my car while parking and not left a note to say it was them, so another reason to be cheerful today lol. Not having much luck with that at the moment. Parking continues to be an issue at my home, as does anti-social behaviour at night times. It's a little depressing I must say and does make me want to move. But I know I can't until I've cleared my debt, plus house prices are just crazy so it can't happen. Just have to plug away as we are. It'll be a nightmare when they start this development work too, but what can you do. You can't fight the big guys when they've already made their minds up about something.

No movement on the debt front yet this month, my cc statement isn't due until the 15th. I suppose I could pay £45 now to take it under £5,900, just to cheer myself up

I'm also getting a little concerned about the Masters I have applied for, I have contacted the uni a few times, via phone and email, in respect of some queries I've had, and they tell me completely different things or just don't answer at all. It's making me apprehensive about studying there i.e. if that's what their admin is like, what is the rest of it going to be like? I may be overhyping it in my mind but it's a cause for concern when you're about to borrow 7k to pay for it... It made me start looking at the kinds of jobs I actually want to do in future, and when I did some proper research, experience is key and the role I'm in now will be perfect for helping me to gain that experience. So perhaps some food for thought there, perhaps I don't necessarily need to rush into this just yet. I need to do some more thinking.

lcc86

I've managed to get my debt down to £5,815 this month. Really want to get it under £5,800 but every penny appears to be budgeted for so I'll have to see what I have left at the end of the month. I like nice round numbers I need to think about setting myself another little debt target like I did last year. I need to have a think about that. 40% is the next big target I suppose!

I've been at my parents' house for a few days looking after their dogs and house while they go away. It's been a good opportunity to sit down and go through my finances with a fine toothed comb, do some studying, as well as just relaxing and taking stock of life. I was definitely starting to get tetchy with people prior to this break so it's very much needed. I've spent a lot of time walking in the countryside and horse riding, and it's really making me evaluate what I want from my life. I want to be able to live somewhere a bit more semi-rural, to have the option of having a dog, or sharing a horse, something like that, and just being able to get out into the countryside easily. I don't think town centre living is for me any more. Of course, if I hadn't got myself into debt, this potentially wouldn't be an issue as I could up sticks and go. But it is what it is, so I really, really do want to focus on blitzing my debt and doing what I can in the next two years to set myself up well for the future. If I can clear my debt within the next year and a half, then I can save up some money and be in a good position when I next come to renew my mortgage deal. That's the plan. I don't want to stay where I am any longer than that. I had a think about it, if money was no object, OH and I would move now as he's part employed, part self-employed. But that can't happen. In two years' time, he might be fully self-employed which will probably make getting a mortgage tougher. So it might be the case that we rent our current place out and rent somewhere ourselves if we can't get a mortgage. Either way, two years is the timeline. I need to think about making some cutbacks in that time. Going back to uni will help as I'll have less free time so less time to spend money (in theory). I kinda feel like I want to enjoy myself in the interim as I'll be knuckling down come October, but I need to do that on a budget for sure.

I've had a look at my finances over the past few days. The rates on my various savings accounts were all due to change so I have renewed them. I need instant access to them all so the new rates are pretty pitiful but that's the same for everyone. On the plus side, I've also had a look at mortgage deals available through my existing lender and have found a 2.19% deal fixed for 2 years. The repayments are the same as what I pay now even if I ask them to shave a couple of years off the entire term. At present I have 31 years left and I initially planned to ask them to cut it to 30, but I might go as far as 28. It makes sense as I can't make regular overpayments, I might as well cut the overall term where possible. OH and I have an appointment with the bank in a couple of weeks so will sort all of that out and get him put on the mortgage. Hopefully they won't ask for an exorbitant amount of money to do so. I know some arrangement fees are ridiculous, and I'm not paying £1,000+ just to have an additional name added.

Finally, I found out that a colleague at work who started after me, and who is on the same pay scale as me, is actually getting paid about £3,000 a year more than me. I don't know why, she casually just dropped it into conversation. I sent an email to my line manager before I went on leave to question why this is the case, as I have additional responsibilities to said person so unless there's a very good reason for this, I should be paid at least the same as her, if not more. Being a local authority, I'm sure they will fight it, but so will I. If I can get a little extra in my pocket every month, it will help!! :money: This also spurred me to take another look at qualifications and career routes. I could potentially go into locum work if I do this Masters, which will pay much more, even if it's a temporary thing. I do want to eventually progress to a more senior role, and am in the right role currently to do that if I get more experience and knowledge. I just need to play my cards right.

Okay, I think that's a long enough update. Time to occupy myself outdoors with some dog walking.

Orange_Ena

Have you seen the tsb current account that pays 5% interest up to £2000? You have to pay in £500 per month but it can just be paid in and transferred out again. I think there are a few current accounts that pay better interest than savings accounts!

lcc86

Orange_Ena wrote: »

Have you seen the tsb current account that pays 5% interest up to £2000? You have to pay in £500 per month but it can just be paid in and transferred out again. I think there are a few current accounts that pay better interest than savings accounts!

Hi Ena, I hadn't seen that, in fact I kind of forgot about my current accounts altogether, I must look into that!

lcc86

Payday yesterday, so I made that £15 payment to my cc to bring it down to £5,800. Once my statement comes in I'll get it under £5,600, but that's not until mid-May. My income tax situation appears to be solved so I have no nasty surprises this month and have prioritised debt repayments.


However, while I was away I got an email from one of these estate agents giving me details of various properties for sale (I never de-registered as I've always liked to nose around and torture myself!). Anyway, there was a flat on there which I really liked the look of, and I started looking into it a little more... which was naughty, but the location is fantastic and exactly what I was talking about last time. I know my property has practically doubled in value since I bought it, so I thought I'd do some calculations and I've basically figured out that I could sell mine, pay off my remaining debt, and afford this place... It's given me real food for thought. I've been a little naughty and booked myself in to view it, which I KNOW I shouldn't have done, and to see a broker to see exactly how feasible this all is. Nothing is certain but I just want to see if it's possible. If it is, then I might as well go for it as it means a fresh start with no debt, in a fab location in a larger property that will last for god knows how many years... It also solves my worries about them building 200 flats right outside my front door. If not, then I'll just carry on with the plan as is and plod on repaying. I know that a "quick debt fix" is a dream so I'm not pinning all my hopes on it, but it would be fab. What will be will be.


Anyway, I'm off to Devon on Sunday on my horse riding holiday. Really looking forward to it. Time to enjoy some relaxation time and chill.