Small Steps Out Of Massive Debt!

GeorgianaCavendish

welshspendthrift said:

Hi you are doing so well. Can I just ask about Top cash back , how long do they take to pay out, I have some from January is still pending ? Thank you 

Thank you! I think for the quicker paying retailers it’s 3 months, but some is definitely much longer - I’ve found things like insurance or holiday cash back to be the longest. Hopefully it won’t be too much longer for you now 

Naomim

I have one from last summer still pending! 😬

GeorgianaCavendish

End of Tax Year Update 

Quick update on the debt totals at the end of this tax year. MBNA is G-O-N-E    I paid it off and have closed the card - I'm so happy to be rid of it as it has felt like the one debt I was never going to clear.  Now I just have Virgin left - I'm repaying £250 a month with the aim of clearing it by the end of this year. 

No updates to the savings totals yet - I'm waiting for my bonus (being paid next week) and then the start of the new tax year so that I can pay it straight into my LISA. I'll do another update a week or so into April about where I am with the savings goals. It will be an adjustment for me to switch from the debt repayment mindset to savings mindset, I'm a bit worried about spending urges coming up again (finishing with a credit card and getting a bonus are both spending triggers) so will be keeping an eye on that and trying to redirect those feelings! 

No news about Cycle2Work, the payroll and benefits team at work are being really slow with replying to employee queries - maybe due to extra work at end of the tax year, but I'll keep following up with them! 

astrocytic_kitten

Yayyyyyy to MNBA being gone!!! 🍾 you’re doing brilliantly!

Have also been meaning to say that I’ve started keeping a paper list in my notebook of things I want to buy and it works so well - thanks for the suggestion!

another_casualty

Great stuff Georgiana 😼👏👏
MBNA gone ! So happy for you . Your planning and focus are great . Stick with it and all will be well ..

GeorgianaCavendish

astrocytic_kitten said:

Yayyyyyy to MNBA being gone!!! 🍾 you’re doing brilliantly!

Have also been meaning to say that I’ve started keeping a paper list in my notebook of things I want to buy and it works so well - thanks for the suggestion!

Thank you so much!  
I'm really glad that the list idea is working well for you, I've just looked back at one of my lists and can't even fathom why I wanted some of the things in the first place! 

GeorgianaCavendish

another_casualty said:

Great stuff Georgiana 😼👏👏
MBNA gone ! So happy for you . Your planning and focus are great . Stick with it and all will be well ..

Thank you AC! It will definitely be an adjustment from focusing on credit cards to building up savings - but I'm going to keep the 'teaspoon not lake' mantra in mind except this time I'm trying to fill up the lake!

GeorgianaCavendish

Thinking a bit more about the switch from debt repayment to savings focus, I'm worried about getting spendy urges and thinking "why not, I've got the money just sitting there". I definitely think budgeting and using YNAB / Monzo pots will be a big help, and I'm revisiting some budgeting posts to pick up some tips.

I've been using Monzo for most of my budgeted spends which works really well, but I have also been underbudgeting and keeping some money in my HSBC account each month, so lots of random small spends have snuck under the radar. I think I need to shift all my money over to Monzo earlier in the month have pots for everything, so that I can see exactly where the money is going and have the deterrent of needing to move money out of pots if I want to spend. 

I'm also wondering about moving some of the money in my larger mid-term pots (like holidays and Christmas) over to a savings account. They are getting 0% interest in Monzo and although the interest would be very small, it would be something! It would also keep the money 'out of sight'. I'd rather use Monzo either to build up pots with small monthly savings (like the £7 I'm putting aside for next year's YNAB) or pots that I withdraw from at random times (birthdays, personal care etc). Something to consider!  

pippa_pelada

Hello there, delurking to say you're doing so well! Yours was one of the first diaries I read when I signed up back in November last year and it's very inspiring to see your progress.
Re saving, I've found that putting any spare money in premium bonds means that it's definitely out of sight, out of mind and I've managed to save over £1500 since signing up a few months ago. It's not as easy to transfer the funds immediately the way you can with a starling/monzo account which means I'm not tempted to spend it on a whim and hey, you never know if you might win anything. Happy saving!

GeorgianaCavendish

pippa_pelada said:

Hello there, delurking to say you're doing so well! Yours was one of the first diaries I read when I signed up back in November last year and it's very inspiring to see your progress.
Re saving, I've found that putting any spare money in premium bonds means that it's definitely out of sight, out of mind and I've managed to save over £1500 since signing up a few months ago. It's not as easy to transfer the funds immediately the way you can with a starling/monzo account which means I'm not tempted to spend it on a whim and hey, you never know if you might win anything. Happy saving!

Thank you for reading and commenting Pippa! That is a great top about premium bonds - I will look into that