Debt Free Wannabe Teacher

dfw87

enthusiasticsaver wrote: »

Opening a HTB ISA makes senses if you know you will be wanting to buy a property at some point in the next few years. However I am sure the interest rate on the loan is higher than you are earning and £20k is a substantial loan. You seem to have changed your spending habits so hopefully you won't revert to unbudgeted spending in the future but making overpayments on the loan regularly is probably the best way to go if there are no penalties. That way you are not tempted to splurge on holidays or whatever until it is gone. It is not wise to go into buying a property with that sort of debt still hanging round your neck.

Have you stopped using the credit cards/overdrafts as with debt consolidation many people then start to build it up again if they are still using the card.

Thanks for the advice. I used the loan to pay off all credit cards and overdrafts and then closed all these accounts and cut up the cards. I opened a new bank account with a new provider (received £200 for doing this) and have no overdraft with this. I have the HTB ISA open with no money in yet as it is transferring over. I have a regular ISA with my savings in (roughly £1200) and I have another small saving account where I am saving £10 a month for my Mum's 60th birthday in 18 months.

The loan is in my Mum's name - I was unable to get one. This was her suggestion and was something that we discussed for a long time as I was so reluctant for her to be involved. This is one reason that I would rather pay the loan off early.

I think the reason I've been thinking about property is because of my age - I recently had my 30th birthday and all my friends are buying etc. It is my own fault that I am not in the position to do this! I have a boyfriend who is 5 years younger than me and in a significantly different situation to me in terms of finance. He is set to inherit a very large amount of money one day and currently gets a similar salary to me for going to university. It is a rather long story but basically his parents are super wealthy and he never has to worry about money. He has no desire to ever own property as he enjoys renting and if he wants to buy a house, his parents will buy it for him. This is how different it is for me!!

Anyway, as much as I absolutely love him and do hope we will be 'together forever', I do know that I probably won't buy a property with him as I want to do it independently from his parents. It's a very complicated set up and it does make things tricky for me!

I think ultimately I will aim to pay the loan off early, but in one or two big lump sums rather than many smaller payments.

enthusiasticsaver

dfw87 wrote: »

I think the reason I've been thinking about property is because of my age - I recently had my 30th birthday and all my friends are buying etc. It is my own fault that I am not in the position to do this! I have a boyfriend who is 5 years younger than me and in a significantly different situation to me in terms of finance. He is set to inherit a very large amount of money one day and currently gets a similar salary to me for going to university. It is a rather long story but basically his parents are super wealthy and he never has to worry about money. He has no desire to ever own property as he enjoys renting and if he wants to buy a house, his parents will buy it for him. This is how different it is for me!!

Anyway, as much as I absolutely love him and do hope we will be 'together forever', I do know that I probably won't buy a property with him as I want to do it independently from his parents. It's a very complicated set up and it does make things tricky for me!

That does sound a tricky situation if one partner in a relationship has such different financial circumstances and must surely make it harder for you.

I think retaining some financial independence is probably a good idea in case the relationship ever broke down.

You also need to be careful you do not get persuaded into doing or buying things outside your budget. Getting yourself further into debt trying to keep your partner happy when he has no money worries is not sustainable and will lead to financial difficulties for you. You will need to be strong and I think in your position I would be saying to your partner, if you want us to do something expensive then you will need to pay more than half. That way you are still contributing but not getting into difficulty doing it. Alternatively he has to live within your budget.

dfw87

enthusiasticsaver wrote: »

That does sound a tricky situation if one partner in a relationship has such different financial circumstances and must surely make it harder for you.

I think retaining some financial independence is probably a good idea in case the relationship ever broke down.

You also need to be careful you do not get persuaded into doing or buying things outside your budget. Getting yourself further into debt trying to keep your partner happy when he has no money worries is not sustainable and will lead to financial difficulties for you. You will need to be strong and I think in your position I would be saying to your partner, if you want us to do something expensive then you will need to pay more than half. That way you are still contributing but not getting into difficulty doing it. Alternatively he has to live within your budget.

He is actually really good in that sense - our Summer holiday this year was more expensive than we usually do and his parents paid for him - he then paid for half of my share. He is brilliant and pays his way and more. The issues come when we talk about the future and, in particular, buying property. I would want to do it independently and he doesn't want a mortgage (understandable I suppose!)

Anyway, I am miles away from affording a deposit and I think I am best to pay off the loan first anyway!

dfw87

Today:

- Worked 3 hours behind the bar - £8.41 an hour, minus tax etc. Will get paid that next week.
- Signed up to a shift for the weekend - 4 until close which I expect will be 12ish so another good 8 hours at £8.41 an hour too.
- Spoke to the committee about a job that is available as the bar manager - part time (16 hours) which I would be able to fit in whenever it suits me... potential for some good extra earnings here!
- Was told that I am inheriting £2000 from my Granddad which is so lovely. Not sure when I will get this but it will go straight into savings and eventually on to the loan repayment. I'll one day save another £2000 and ensure that I allocate this as my inheritance money and spend it on something a bit more exciting than debt repayments!
- Sent off for another £10 Swagbucks voucher.
- Got some more PA money validated so I am almost at another £50 which will go in to savings.
- Paid off my next instalment of loan so I am 2 months down, 58 to go! With the savings I currently have and the inheritance, I will have enough to pay another 10 months of the loan.

Narola1976

dfw87 wrote: »

Today:

- Worked 3 hours behind the bar - £8.41 an hour, minus tax etc. Will get paid that next week.
- Signed up to a shift for the weekend - 4 until close which I expect will be 12ish so another good 8 hours at £8.41 an hour too.
- Spoke to the committee about a job that is available as the bar manager - part time (16 hours) which I would be able to fit in whenever it suits me... potential for some good extra earnings here!
- Was told that I am inheriting £2000 from my Granddad which is so lovely. Not sure when I will get this but it will go straight into savings and eventually on to the loan repayment. I'll one day save another £2000 and ensure that I allocate this as my inheritance money and spend it on something a bit more exciting than debt repayments!
- Sent off for another £10 Swagbucks voucher.
- Got some more PA money validated so I am almost at another £50 which will go in to savings.
- Paid off my next instalment of loan so I am 2 months down, 58 to go! With the savings I currently have and the inheritance, I will have enough to pay another 10 months of the loan.

You are really focused which is great; short term pain for long term gain. And doing well with the survey's. I can't get on with Swagbucks for some reason, sticking with VO and PA.

dfw87

Narola1976 wrote: »

You are really focused which is great; short term pain for long term gain. And doing well with the survey's. I can't get on with Swagbucks for some reason, sticking with VO and PA.

I wanted to sign up with VA but they are not accepting new accounts at the moment.

I don't really like Swagbucks and they pay hardly anything per survey, kick you out of surveys etc... but every little helps and I've had time over the Summer. When I am back to school I will focus more on PA - hope I'll still get surveys seeing as I'll be busy all day.

dfw87

Today:

- Free Graze box arrived - I've already cancelled the next box.
- I have a pop up dog bowl and dog food arriving from Amazon, paid for with my vouchers.
- Off to my caravan for two nights with my dog, Mum and brother. My Mum will probably pay for most things but I'll buy some things to contribute.
- Did another SB survey

Aiming for at least one thing a day which is either making or saving me money!

Narola1976

dfw87 wrote: »

Today:

- Free Graze box arrived - I've already cancelled the next box.
- I have a pop up dog bowl and dog food arriving from Amazon, paid for with my vouchers.
- Off to my caravan for two nights with my dog, Mum and brother. My Mum will probably pay for most things but I'll buy some things to contribute.
- Did another SB survey

Aiming for at least one thing a day which is either making or saving me money!

I like those graze boxes; but pricey so well done for cancelling the subscription before they charge you. Have a good time with your family, where are you going? I agree about SB, they are not easy surveys to do - have you tried Crowdology - the surveys are not very frequent granted and they don't pay massive amounts but you can cash out from £4 via paypal in actual money. I did this and the money was in my paypal account within 48 hours and is now in my bank account.

dfw87

Narola1976 wrote: »

I like those graze boxes; but pricey so well done for cancelling the subscription before they charge you. Have a good time with your family, where are you going? I agree about SB, they are not easy surveys to do - have you tried Crowdology - the surveys are not very frequent granted and they don't pay massive amounts but you can cash out from £4 via paypal in actual money. I did this and the money was in my paypal account within 48 hours and is now in my bank account.

Yep, I thought as I had a new bank card then I would take advantage of the offer but cancelled straightaway! It arrived and they were yummy!

We have a caravan in Cornwall - my Mum bought it as a gift for me and my two brothers - the gift that keeps on giving!

Thanks for the suggestion of Crowdfunding - just signed up!

dfw87

Have had a lovely couple of days away in Cornwall. We went bodyboarding, swimming, lots of walking and just relaxing. My Mum bought my brothers and I a caravan for Christmas a few years ago and we have it on a site in Cornwall, about 1.5 hours away from us. My plan for this Summer was to spend lots of time down there but with everything happening with my Granddad, this was the first time this Summer! I'm back at work on Monday (which I'm dreading!) so I won't get to use it again for a little while now as weekends will also be quite busy.

I spent about £16 on some drinks and nibbles at a bar for my Mum, brother and I. This is the sort of thing that I don't want to be spending money on but Mum paid for everything for the trip, and my brother bought us breakfast, so I needed to pay something. When I go, I plan to just keep it as cheap as possible by taking all of my own things. I also spent about £4 on some other drinks.

I got home today and went to Aldi to do my food shop. Lidl is more local to me but I could get 10% cashback if I used my Halifax card in Aldi and my boyfriend drove so it didn't cost me any extra petrol! I spent about £28 for the week, which includes all breakfasts, lunches and dinners for the week. Also included some other things for school and a treat dinner for tonight.

Tomorrow I am working behind the bar which means I will be earning money and also not out spending money! My boyfriend is going to work with me as they couldn't find anyone else - he really doesn't need the money but it's nice of him to help. It is a wedding so should hopefully get some tips too - the last one I got about £15 in tips.

Sunday I am off to a market with my Mum - will try not to buy anything!!

Today I quickly sorted out my banking - I opened the HTB ISA and I have to send £200 to that by standing order each month. I've also opened a separate savings account for any other money as some months I may find it hard to transfer £200 a month. My plan is to put all savings into savings account, then once a month send £200 from here to the ISA... hope it works!

I cashed out £50ish from Prolific Academic which is awesome - £100 in the last 6ish weeks!
I got another £13 in Amazon vouchers from Swagbucks and I'm close to another £3.