This Duo's debt free journey

DebtFreeDuo

Things just feel so busy with me at the moment, I always feel like this when I have exams approaching. I think I start to feel guilty when I do anything that isn't either about DS or about uni.

I originally said that this month would be just minimum payments on the debt front but I have used my savings pot to clear some now rather than waiting until November to use the pot in one go. I will benefit more by doing this as I will get a higher interest rebate. so total from the debt for this month so far is looking like the following:

£202.60 minimum payments
£290 Overpayments
£1.91 interest rebate from last months overpayment

Total £494.51

Another interest rebate will be added to this, based on previous rebate I'm guessing around £10 which will then take me over the £500 for the 3rd month running! This really is massive for me, my income as a student isn't huge but I'm determined to live a debt free life ASAP.

Next month I'm looking at around £300 off the debt, a part of me really wants to try and get this up to £500 but next month is exam month and I don't want anything to stop me passing them this year so instead I will try and make up for it in June when I have no distractions.

Pots are looking healthy, I have planned my month out this month with spends and so far I have done well at sticking to my plan. I feel like I am finally learning how to budget properly, I have enough money aside for big birthdays that are coming up, I have half of the money for my car insurance even though it isn't due until September. I just feel like I have a whole new approach to finances.

I did realise that my car budget is probably slightly too high, instead of lowering this I think I will keep it as it is for any unexpected repairs but ultimately for a new car when I need one. It should be a good few years until mine needs replacing but if I can start saving bits now and then once the debt is cleared I can add more to it and I won't have to look into a loan for it in the future. In the past I have always relied on a loan when I have needed a new car.

Anyway I must go and hit the books!

Willowtree222

Good luck with your exams. Good idea about the car and keeping it the same. x

EssexHebridean

It was what we did with our car maintenance savings DFD - let them build over the level we needed and then used that excess towards the replacement cost. Aiming to do the same thing again now ready for when MrEH's needs sorting too.

Good plan on not putting extra pressures on yourself during the month you have exams too.

DebtFreeDuo

Thank you both. The car thing should be a real help and if I don't put it towards a car before I look into buying a house then I can use it towards that.

£15.45 interest rebate which means that Aprils debt payment total is £509.96. Not much else to report at the moment just trying to keep within those budgets.

Willowtree222

Just keep going!! xx

ladymay

You're doing fantastically! I hope you have some treats to keep you going during the studying - I always had a bar of Fruit and Nut on me for study 'emergencies'

DebtFreeDuo

ladymay wrote: »

You're doing fantastically! I hope you have some treats to keep you going during the studying - I always had a bar of Fruit and Nut on me for study 'emergencies'

After easter I have a lifetime supply of chocolate :rotfl: I suppose its not the worst time to have exams.

DebtFreeDuo

Time is just slipping away! This month is going ok, I have taken my eye off the ball a little but I haven't gone crazy with purchases.

I don't know why but I'm really struggling with my grocery budget, I had a holiday this month (with family and only cost me the fuel to get there and spends) so a week less and I've still spent the whole amount before the end of the month. I try to buy organic and plastic free where I can and I find this really increases the cost but I would rather buy less and be able to try and take care of the environment. Is £200 a lot to be spending each month on groceries? Not just food but everything you would buy from the supermarket so cleaning, toiletries etc.

Something I realised I hadn't written here in a long time is how much debt I currently have, I think I've felt like I failed myself by allowing it to build back up although I know that is because I wasn't realistic previously. So my current total stands at £3235, next month I will be below the 3k mark by a good amount and I'm hoping that June will see me go below the £2k mark as I have some money coming in that will go straight to the debt. June should be a really good month for clearing debt.

I have just done a bank switch which will see £125 coming my way in the next couple of months, this should hopefully mean that either July or August will be another good month for clearing debt. I also signed up for a CC with an introductory £100 in nectar points, it also gives you nectar points from your spends. I currently have just shy of £80 in points so when its credits it will push it up to £180! I'm relying on another double up before Christmas to use this although I think I can only double up £100 of it but that will still give me £280 towards presents.

I feel like I am making lots of positive changes so even though I cleared my debt before and ended up back in a mess I feel that this time is really different. Last time I was in a huge rush to clear it all and left myself really short, this time I am really planning ahead for any possibility. Christmas is already pretty much covered and the biggest birthday I have (DS in a weeks time) is sorted, my annual car costs are half way there with another 6 months until my insurance is due and 8 months until my MOT and service. I need to remember these positives when I start feeling down about the total amount.

Right off to sort out DS and try to get some revision done.

ladymay

You're so close to your next milestone and you're planning incredibly well :T:T:T
I think £200 per month for all groceries for you and DS, especially being as busy and purchasing ethically as you are, is really good. Any lower and you might risk feeling hard done by, which I know for me is terrible for my budgeting personally...


I hope DS has a brilliant birthday next week x

Willowtree222

I know what you mean. I clear so much and then sit in my overdraft for a month and then regret clearing so much at the beginning.

You'll get there and find the balance and all the way through, you are learning and trying new things.That's what I think to myself anyway when I make a few mistakes x