Cailbhinn's debt journey!

NeverUnderestimate

Well done on starting your debt free wannabe diary!

Just recently I have come into the same position (roughly same amount of debt) due to using a low interest loan to pay off my car. It has saved me lots of interest already. I hope to have it all paid off by Sep 2019 at the latest.

My current system which seems to be working goes like this.

- Main account (I have emergency fund here earning interest).
- Personal spends account.
- Bills/monthly budget account.
- Overpayment to Loan account (I sweep any left over pennies from all amounts to here and when it builds up I make an overpayment).

So I have four accounts I use. All my direct debits come out of my main account so I transfer the money from allocated account to main account. I'm aware of the amount it started at each month and end it there. It's working for me so far. With having the separate accounts I'm a lot more aware. If there is any left over at the end of the month I split it half way- half to overpayment of loan and half to emergency fund.

I've already made a nice dent in my loan repayments since beginning of September. I need to update my sig.

Good luck!! Will be following to see how you get on.

Cailbhinn

Katzen wrote: »

Morning!! Hope you did get a hour or two sleep. Well done on the NSDs, how are you tracking how much you are 'saving' by doing this? Obviously there's a million ideas on here but I bet you already have a preferred method.

Thanks Katzen. Didn't get back to sleep. Sitting on my break eating porridge to try give me enough energy to get through the day. I usually get 4 hours per night.

I'm using YNAB. I like the fact that each pound should have a job. And it means I can use excesses from categories to overpay my credit card. I'm currently at £172.60 for an overpayment but think that'll increase. I'm avoiding looking at my bank account too as that was another (of my many) downfalls. That is, "oh I've £40 to spend" when I am now out of that spend rather than budget method.

Cailbhinn

Thanks NeverUnderestimate for you experiences of having differing accounts. Thinking about it I don't think I will need to do that method as long as I religiously use YNAB. It seems to be suit me best and I'm easily confused so keeping things as simple as possible suits me. I'm similarly using the excesses to overpay my CC. I'm actually budgeting for emergency fund, car insurance, car maintenance, presents, professional fees etc which I've never done before. September is always a tight one as my professional fee is due along with my car insurance. Well no more!

Smodlet

In case you do not already know, Cailbhinn, you can earn cashback on some car insurance policies. Also, there are comparison sites' links on here, should you want to use them.

Have you checked you are on the best tariffs for gas/electricity? You can earn £15 per fuel if you switch through the Cheap Energy Club. Apologies if none of this is news.

Cheers!

debtnav

Hi Calbhinn

Hope you don't mind but I've subscribed to your diary. As we both started around the same time I thought it would be nice to see how you are getting along.

Hope all going well.

Cailbhinn

Smodlet wrote: »

In case you do not already know, Cailbhinn, you can earn cashback on some car insurance policies. Also, there are comparison sites' links on here, should you want to use them.

Unfortunately the type that I have doesn't have cash back.

Have you checked you are on the best tariffs for gas/electricity? You can earn £15 per fuel if you switch through the Cheap Energy Club.

I'm a lodger so not my problem (thankfully!)

Apologies if none of this is news. Cheers!

Oh no, please give me all the hints you can! Thanks for your help/suggestions.

Cailbhinn

Debtnav of course you can subscribe. I'm sure it won't be plain sailing all the way so good to have the support of someone going through it too.

Cailbhinn

Sadly not a NSD but did get it cheaper as I found £4 under the driver's seat! So only spent £2.76 today. Dad working late so not seen him but will pop over tomorrow. Too knackered after being up all night. Although doubt I'll sleep - will need to take the pills I brought over from America!

Poor_Single_lady

I think im the same on the internet banking. For me its goes something like -

1. log on see balance of £120 for 2 weeks
2. Think about having £120
3. Spend the £120 and need to live rest of month in overdraft.

Its like if I know its there I have to spend it. I don't use my internet banking too much at the moment for this reason.

Sounds like its going well? Lots of good decisions and monitoring.

Smodlet

Poor_Single_lady, your post has inspired a rant which I have found extremely cathartic and which is not directed at you personally. I thank you for the inspiration... I have needed to get this out for a long time.

No, you don't have to spend it, that is your choice, just as abdicating responsibility for your choices is your choice... It is not some random, omnipotent, advertiser's/bank's/credit card company's fault: It is your choice and your responsibility.

If you have it, you can choose whether or not to spend it; it's your choice and your responsibility.

If you don't have it but do have credit unfortunately, you can still choose whether or not to spend it: It's still your choice and... what else is it?

Please, spare a thought for those whose debt is not a choice because their ex-partners refuse to pay maintenance for their children; because housing benefit no longer comes within shouting distance of private rents; because they, like you, made choices they now regret but, unlike you, lack the means to rectify their situation.

Apologies, Cailbhinn, for the rant on your thread... And no, this does not apply to me, for which I am sincerely grateful.

I also sincerely hope I have not caused offence. If it has been taken, I apologise, sincerely.