This Duo's debt free journey

DebtFreeDuo

I'm considering switching my bank account but unsure whether this would be a really silly mistake as I have had the account since I was 15. I switched another account into my current account when they were offering money for switching, what I didn't realise was that if you had a student account you weren't eligible for the bonus so I think I'm just feeling annoyed with them because of this. I genuinely thought I had checked out all the T&C's before I made the switch.

I'm feeling tired and irritable this morning so I'm going to take myself off to swimming to try and improve my mood.

DebtFreeDuo

Sorted my car insurance, my original quote with this company was £506, redid the quote so that I could use TCB and it was £474! Not sure what I did differently but everything looked correct, £20 cashback too! Car pot looks a little healthier than I thought now, £125.12.

By the time my MOT and service are due it should be £365.12, I know I will need at least one tyre so I think I will hold any extra money over in this pot for now and if there is anything left once its got through its MOT then I will put it towards the debt.

EssexHebridean

OK - to flip the bank account question on its head - why is having had the account since you were 15 a good reason to keep it?

I ask this from the position of also having had my bank account since I was 15 - but being a lot further down the road on age than you! I've repeatedly done all the head-v-heart calculations and currently have decided that I am staying put. I'm with Nationwide - and I like being with a Building Society rather than a bank. Generally speaking I like Nationwide's ethics. Their interest rates are not the worst out there, AND I like the way their internet banking plus the app work too. I get a loyalty bonus on various savings accounts due to being such a long-term member too. Finally at the moment our joint account gives free travel insurance cover. For me, it's the right decision currently but I do revisit it regularly.

You may well have similar answers - but it's good to step outside the basic premise on stuff like this I think and challenge whether your reasons are as sound as they first stand up to being.

Well done on the car insurance thing - irritating how so often the comparison site will come up cheaper for exactly the same provider and cover. It does put me off renewing with those who do that, I admit.

DebtFreeDuo

The main reason I ask is because at some point in the next 3-5 years I will hopefully be applying for a mortgage and from what I have read over the years lenders like to see long standing accounts. My bank are also currently one of the better ones on interest rates for mortgages. I switch and change with anything related to finances very easily if I think I will get a better deal but I have seen this have an impact on my credit file recently. It's one of the reasons I won't close my very first credit card too even though the interest rate on it is awful and they never offer any 0% deals.

The car insurance was the exact same website just clicking to it through TCB. You would think it be increased because of that with them effectively losing £20 but I won't complain. They do offer better cover than a lot of other insurers too.

DebtFreeDuo

I've received some really good news this morning, my rent increase was going to cause me a lot of problems this month and next with not receiving my student finance until after next months rent is due (landlord decided to not only change the amount but also bring the date forward for my payments), anyway I applied for a little extra help just for these couple of months with the additional rent and it has been agreed! I feel so much relief, it gives me a little more time to adjust to the new rent amount and makes things a little more comfortable for me until my student finance is next received.

EssexHebridean

That's excellent news!

I can also see your point about the longevity thing with bank accounts too - I guess it comes down to how good a deal you're feeling you get from your current bank then? If it's "OK" then may be worth hanging on for the time being just to keep that stability when your history is looked at. If poor, that may not be a good trade-off for you. (And if "good" - then no need to worry anyway!)

DebtFreeDuo

EssexHebridean wrote: »

That's excellent news!

I can also see your point about the longevity thing with bank accounts too - I guess it comes down to how good a deal you're feeling you get from your current bank then? If it's "OK" then may be worth hanging on for the time being just to keep that stability when your history is looked at. If poor, that may not be a good trade-off for you. (And if "good" - then no need to worry anyway!)

I don't get an awful deal, I have a student account so overdraft is interest free and its a decent limit. They have also been quite good with any complaints over the years. Maybe I will stick it out until I have arranged my first mortgage.

DebtFreeDuo

Changed my direct debit for my CC today, the balance on that one will be cleared next month. My loan will be cleared this month. This leaves one more 0% card with a balance of £965.67 which I am hoping to clear over the next few months. I'm debating clearing it and then only having my overdraft so that everything is all in one place and will be automatically covered by January's student finance.

Everything is feeling much clearer now, the pressure of my rent has been lifted and I have adjusted my budgets to cover the difference going forward.

Willowtree222

Glad it is feeling clearer. It's tempting to have it in one place, but look at what the cheapest option is first x

DebtFreeDuo

I've been so busy getting back into the routine of being back at uni full time!

Nicnak, as a student my overdraft is interest free so it wouldn't cost me anything.

So my total debt is currently sat at £976 which is still looking to be cleared in January 2020. I'm currently trying to look ahead to next summer, I always struggle around summer as it is the longest period to make my student loan last. Usually I end up in my overdraft, which isn't a huge deal as it is interest free and is always cleared when I receive my student loan in October. However, I would prefer to be in a better position in the year that I finish university.

So once I have cleared the debt in January my focus is going to be on trying to minimise the use of my overdraft. I guess trying to minimise spends as much as possible and sticking to my budgets are what will help achieve this. I think I will do a new SOA in January with real figures from November and December.