This Duo's debt free journey

DebtFreeDuo

Thank you EH, there will be some issues I think with moving when it comes to my ex but I've tried to offer as much reassurance as I can in regards to him still seeing small each week.

I think I might try and push my insurance renewal back by a week, I'm not due back in uni until the week of 24th and my insurance is due 17th, I might just keep my car off the road for that week.

My spends on food has been really high recently so I have made a decision to try out one of these subscription boxes that include all the ingredients. I had 50% off so 5 meals has cost £21 for the 2 of us, I then ordered some additional fruit and veg from a company that I really rate as they are working hard to combat plastics and all their produce is organic. Fruit, veg and milk cost £33 so a total of £54 for the week, I have been spending more than this in the supermarket. I think by staying away from the supermarket it will really help me cut costs there. I don't think I could justify the subscription box at full price but if I try out the various ones on offer then I could probably get through a month like this, we'll see!

DebtFreeDuo

So I've been really worried the last month or 2 that my debt was beginning to spiral what with the summer holidays, have completely gone over all of my finances today thinking the worst. So on 29th July I posted here that my debt total was £2255.67, at the end of this month once my regular payments have all been made my debt total will be £1505.26. That really is no where near as bad as I was expecting!

I can't quite decide now whether to leave all my payments as they are and allow it all to clear naturally as it will be cleared before the 0% ends or to try to make any overpayments. If I leave it as it is then it will be cleared by Feb 20.

EssexHebridean

Is a compromise to overpay 50% of anything you have spare to chivvy things along a little, while still having some extra to stash away into savings? No need for it to be black & white in any way, is there? depends really whether you want to max the advantage of the 0% or whether you'd rather be able to ring the metaphorical debt-free bell a bit sooner. I know for me I prefer to work on a bit of a compromise, where I can!

DebtFreeDuo

I do like that idea EH. The next 3 weeks will be the biggest hurdle I think, waiting on the student finance to come through. Then in December I have my MOT and service so for now I might put anything spare into the car pot just incase but once that is all ok then I will make some overpayments. For the first time in a while I feel like the end is in sight!

DebtFreeDuo

A reason I have been struggling a little recently is due to a housing benefit overpayment being taken, I have just worked out how much I have left to pay and it looks like this weeks payment will be the last one with it deducted! I have put this into my spreadsheets and it has made me feel much better about my finances. It means an extra £10 per week which will really help towards the rent increase as I won't have time to adjust to the new amount before the increase.

As it stands I will have the money to clear my debt at the beginning of January when I receive my second student finance of 19/20 so I think this will be my official DFD. It doesn't make much sense to just leave it in my account to be paid naturally when I can just clear it. Its unlikely that I will be able to bring this forward to this year unless I can miraculously find £600 from somewhere!

I haven't talked much about my day to day spends here recently, I don't think I have been tracking them all that well which means a lack of accountability I think. So I give myself a certain amount each month, within my income and I spread it across various pots. I am doing quite well with my pots this month as I haven't done anything that required a big spend, my pots are currently as follows:

Clothing -£51.45 - After school uniform this has taken a bit of a hit, it has made me realise that my monthly amounts might not be quite right so I will look into adjusting if needed once all my debt is clear.
Fuel £96.09 - I will need another top up this month so at the end of the month I should have around £40 left here. I'm going to leave this to build up as there is usually a month in the year where I use more than I allow (school holidays) so it should balance out over the year.
Car £600 - Will be under £100 once I pay my car insurance, by the time my MOT and service is due I should have £330 so hopefully this will cover everything it needs.
Home £22.24 - I don't buy things for the home often, as I rent and plan on moving in the next year I don't have any motivation to buy anything. Home insurance is due in March, by this point I should have enough here to cover it.
Hair £35 - I would really like to have my hair done again, I only generally have it done once a year as it is so expensive but I might try and build this up a little faster if I can.
Holiday £14.85
Presents £218.45 - along with what I have in nectar points, Christmas is more than covered!
Groceries £67.22 - this includes the meal box and veg box I ordered for next week so it should only need to cover the last week.
Entertainment/other £177.41 - plenty left here, only taken my gym membership out of it. I have never had a month where I have had anything left here as any overspends get taken from here. I might start using this pot to make overpayments and save towards my hair, if I split it 50/50 I think it will encourage me not to fritter money away elsewhere and as 50% is going to overpayments then I won't feel really guilty for getting my hair done!

EssexHebridean

That looks like some good planning and reasoning there DFD. I was literally just thinking before I read your post that I'm currently feeling a bit like I need to start keeping a tighter rein on things for a while - it's funny how even though you don't feel as though you're spending unnecessarily general spends can just creep up a little, isn't it. great news that you'll have that bit extra to help towards the rent increase as well - that really is good timing!

Your DFD is so close now - it'll be with you in no time! :T

DebtFreeDuo

Yes general spends absolutely creep up EH. I am feeling quite positive at the moment, I feel that the foundations will always be there now, my mindset has changed from what it was when I started this diary and I can't see me going back to where I was. I mean I still have blips but not to the extreme they would have been previously where I end up in a complete mess.

I'm excited for my DFD, 2020 will still be about learning to stick within my budget but I think from the end of 2020 onwards I will be quite comfortable provided I don't have any big changes to my finances. I may even be able to manage an abroad holiday for just me and DS each year as previously I have only managed this with the help of my family.

db2016

just a note on the "leaving the car off the road" for a week - i read it as have it uninsured for a week or so.

don't forget insurance isn't just for when its on the road, yes being on the move increases its risk, but insurance is still needed when its just sat there.

i know plenty in the classic car world who insure for a full year, but then they get money back or an adjustment from sept-april ish (only use car in good weather etc), so they have the cover dropped down coz its not being driven, just "laid up".

Willowtree222

Some good plans there. Glad the debt wasn't as bad as you thought. That's always an advantage. Like has been already said, maybe pay a small bit off?

Holidays always get me for spending. In October, my little one has different holidays. What I save in days out, I get in terms of extra childcare. It's never ending x

DebtFreeDuo

db2016 wrote: »

just a note on the "leaving the car off the road" for a week - i read it as have it uninsured for a week or so.

don't forget insurance isn't just for when its on the road, yes being on the move increases its risk, but insurance is still needed when its just sat there. .

You make a very valid point here, thank you. If god forbid it was stolen or damaged then it wouldn't be covered. I'm going to do a thorough comparison later this evening to see if I can get it below the £500 mark.

Nicnak wrote: »

Some good plans there. Glad the debt wasn't as bad as you thought. That's always an advantage. Like has been already said, maybe pay a small bit off?

Holidays always get me for spending. In October, my little one has different holidays. What I save in days out, I get in terms of extra childcare. It's never ending x

Thank you Nicnak. I will pay bits off where I can but I can't see me bringing the date forward to this year so I'm not going to stress over it too much. It's a shame your holidays are different in October, I'm sure you would much rather spend the money on your DD than childcare.