Small Steps Out Of Massive Debt!

GeorgianaCavendish

September Debt & Savings Totals 

Savings 
Emergency Fund : 100% funded    
Moving Fund : 35% funded 
LISA : £200 

Debt : £9,975

TESCO - £1,150.00
0% until April 2021 
(set payment of £100 per month) 

MBNA - £5,875.00
0% until April 2021 
(set payment of £75 per month) 

Virgin - £2950 
0% until March 2022 
(set payment of £50 per month) 

GeorgianaCavendish

I met my first savings target this month (helped along by the refunded expenses I had back a couple of weeks ago) and now have 3 months emergency expenses in my Emergency Fund. It feels really surreal to have money in savings and consciously not be spending it! 

My next goal is the Moving Fund. I'm 35% of the way there already and should have this completely funded next month. 
I also decided to save a little bit into a LISA for now, just to get in the habit (and collect the government bonus along the way) which is for a house deposit. 

Once the Moving Fund goal is achieved, I will concentrate on building up my instant access savings which will be used for lump sums to credit card debt and do a big transfer to my LISA before the end of this tax year. Does anyone know when the cut off date for the bonus is in the current tax year? 

It feels really surreal to have money "just sitting there" in savings and not spending it immediately or using it for debt repayment. I think I mentioned before that debt repayments became a kind of surrogate spending for me. I keep forgetting that my priorities have changed around a bit and that saving is the 'right' thing to do for now, I'll get a bit panicky and then I run my figures again and calm down. At this point, and while there is no financial penalty for not paying off debt immediately, I'm experimenting with allowing savings to build up for a while before I pay off the debts and teaching myself that I can be trusted with money. 

On the debt front, I transferred my HSBC balance to Virgin. I had to pay a 1% fee (£30) but the promo period is until March 2022 so it has brought more breathing space. I'm aiming to pay off the Tesco and MBNA debts before the promo rates expire in April (I'm very confident on Tesco, and cautiously optimistic on MBNA).

If we do accept the kind offer to stay with relatives, we will save some money on rent that could be put towards deposit saving - we're still testing the idea so I don't want to add that into my calculations this month. I'll have some news in my next update hopefully! 

shoppingobsessed2020

Amazing news on the emergency fund, I can but dream of meeting such a goal. That’s such a fantastic achievement.

i hope the stay with family works out as it would be an excellent way to save some money just depends on the family dynamic, but if it’s a short term stay with an end date in mind it would give you a huge boost to the savings pot.

looking forward to your next update and finding out what you’ve decided to do.

astrocytic_kitten

3 months emergency fund AND under the 10k barrier - well done!!

IrishSean

Haha, I was the same, I got my debts to 0% then agonized for 6 months (my diary is a proverbial stream of anguished conscience, lol) about saving and servicing debt.

I think i've the balance right at the minute (debts about £2k total, all 0%; all will clear next year).

My mind melt now is spending on home improvements; it's the needs / wants dilemma, which I should have sorted out in, oh, about a decade or 2 😂😂😂

Still, savings going up, budgets OK & debt is wrestled into a small, manageable box...

And relax Sean...

You're doing great Miss GC! You're a lot calmer & more measured than the rest of us, haha

enthusiasticsaver

You are doing well on the savings and debt reducing front. Exciting news about you migrating to the country for a few months. We live in the South West and have been so grateful for that during these strange times. 

GeorgianaCavendish

shoppingobsessed2020 said:

Amazing news on the emergency fund, I can but dream of meeting such a goal. That’s such a fantastic achievement.

i hope the stay with family works out as it would be an excellent way to save some money just depends on the family dynamic, but if it’s a short term stay with an end date in mind it would give you a huge boost to the savings pot.

looking forward to your next update and finding out what you’ve decided to do.

Thank you so much! It has taken me years to get to the point of having an emergency fund, so don't worry - it will come! 
We've been here for nearly a week and so far, so good ... we're going to give it another week or two before deciding, because right now I'm just so excited at being out of the city that I'm not thinking straight haha! 

GeorgianaCavendish

astrocytic_kitten said:

3 months emergency fund AND under the 10k barrier - well done!!

Thank you! I was so excited about reaching the savings goal that I completely missed the debt landmark! I'm SO happy to be under 10K - I thought that was impossible when I started this journey! 

GeorgianaCavendish

IrishSean said:

Haha, I was the same, I got my debts to 0% then agonized for 6 months (my diary is a proverbial stream of anguished conscience, lol) about saving and servicing debt.

I think i've the balance right at the minute (debts about £2k total, all 0%; all will clear next year).

My mind melt now is spending on home improvements; it's the needs / wants dilemma, which I should have sorted out in, oh, about a decade or 2 😂😂😂

Still, savings going up, budgets OK & debt is wrestled into a small, manageable box...

And relax Sean...

You're doing great Miss GC! You're a lot calmer & more measured than the rest of us, haha

You are doing great Sean! I hope I will be in the same position next year  
I completely understand the mind-melt of needs v wants. I think I'm going to be having a difficult time when "normal life" resumes and I have to start spending money again ... but for now I'm trying not to be too neurotic about it, ha! 

GeorgianaCavendish

enthusiasticsaver said:

You are doing well on the savings and debt reducing front. Exciting news about you migrating to the country for a few months. We live in the South West and have been so grateful for that during these strange times. 

Thank you so much enthusiasticsaver - I know I've said before, but you have really inspired me to sort out my finances in a proper sustainable way. Thank you all the advice and support you provide  
I am loving the country so far, even though it has been raining for most of the week! Just looking out the window and seeing GREEN instead of a thousand shades of grey concrete is incredible!