This Duo's debt free journey

DebtFreeDuo

So I am very close to being ready for Christmas, I think I have 3 people left to buy for. I have spent a little more on people this year though but I think with good reason. I have really cut down the list of people I buy for, I used to buy for around 25 people and this year my list has 11 names on it, all of which are family members.

The reason I have spent a little more is partly because I can afford a little extra with having less people to buy for but mostly because instead of buying things for people I have bought experiences. I'm trying to cut down on waste but also give people the gift of memories instead of things they will forget about.

On the debt front I am currently around the £850 mark which is a reduction of £120 since the start of the month. Overdraft is still looking to be at -£600 next summer but I haven't made any effort on that front just yet and it won't cause me any financial harm as it will be cleared at the end of September anyway and it is interest free. Once Christmas and exams are finished then I will aim to reduce that as much as I can.

DebtFreeDuo

Feeling a little stressed today, have lots of work that needs doing and the car is in tomorrow. I have everything crossed that all the work will come in below what I have to one side, if not then my debt is likely to increase as I don't have it in any other pot to take from.

On the plus side Christmas is all finished so I don't have to worry about any gifts now until around April (I think) which gives me plenty of time to replenish the pot. I think I may have slightly overspent which may impact my debt total a little, I will check over everything again in a couple of days to balance everything out.

Willowtree222

Hopefully it wont be too much. x

DebtFreeDuo

So with my car coming in at a little more than I had in the pot along with a little overspending on Christmas and some unexpected costs my debt has increased by quite a lot. Thankfully it is still all 0% interest but it feels like a massive step back. Debt is now sat around the £1500 mark. I'm trying not to be too down about it as I have still come such a long way. I've realised that I need to readjust my pots and try to allow something for an emergency that isn't my help to buy ISA.

When I compare my debt to my savings I am still around +£5000 so overall I'm not massively in debt and could pay it off now if I wanted to but I don't think there would be any financial gain in doing so and I also wouldn't learn from this.

2020 is going to be the year of budgeting I think, building up my pots and only spending what is in them. If I want something that is more than what I have in the pot then I will have to cut down elsewhere and build it up that way. I allow myself £200 a month for entertainment which covers everything from days out to treats once a week for me and DS, maybe I should look at cutting this down a little and building the pot up so that it could double as my go to pot for an emergency.

Exams are looming quickly, I'm doing quite well at the moment, from my coursework I am currently sitting at a first but the exams are the bulk of my grade so lots of revision is needed!

EssexHebridean

Remember that as the overall picture changes you have to learn to flex with those changes, and one of the hardest things to adjust to is to actually having a little more spare cash. A new SOA / budget to reflect the changes that have kicked in, an acceptance that things need to be redistributed a little (A little more to car expenses, a little less on christmas spending perhaps?), and the knowledge that just because you *have* more surplus, does not mean you need to spend it, will be your friends here. Personal and household finances and budgets are a total learning experience - that never changes, but you do get better with experience of seeing those changes coming, I think.

DebtFreeDuo

Thank you EH, I couldn't agree more with everything you said there.

Sent an additional payment over to the CC so debt currently stands at £1379.42. A new SOA will be completed in January to reflect my income during 2020.

Still looking to clear the debt with January finance which could mean I will go in to my overdraft more than I wanted to over the summer. I am going to try and have a good clear out next year and see if I can get a few pennies in to bring it down as much as possible. I also think I may use any money I get for Christmas to put towards it all, I usually have around £100 so it would make quite a difference.

Some ideas for 2020
Clear out to raise funds to prevent overdraft usage
Do not buy any new clothing unless absolutely necessary - buy used for DS (not including uniform)
Adjust and stick to budget - still continuously learning with this one, its just so difficult when you don't have a 'normal' income
Do not overspend on gifts - this is quite a big one for me just lately

There will likely be some other things that come up but these are just some ideas.

I'm hoping that I can manage to take DS on a holiday again next year, we made some really wonderful memories this year and ultimately life is all about the memories we make. I currently have £50 a month in my budget for clothing, I may reduce this for the first 6 months of 2020 and add it to our holiday pot. I'm also going to try to cut down in other areas, any extra pennies left over will go to the holiday pot which will be used to clear any leftover debt and also be put towards a nice holiday that is affordable for us. If I can cut down our entertainment (in reality an everything else pot) and grocery pots this would give the holiday pot a real boost and would be a real goal for me to work towards aswell as giving me a reward for cutting down and sticking to the budgets.

Anyway I better get back to the revision! Not long at all until exams!

EssexHebridean

There's some really great goals and plans in there DFD!

Agree that if a holiday can be managed that would be a good thing to do as well - you're not going to get these years back after all. Bolstering the funds available for that from elsewhere seems like a good way of keeping your focus on the budget, too.

DebtFreeDuo

Yes I definitely feel it will help keep me on track with the budgeting. I listed something to sell today not expecting any immediate sale but I've had 3 people message me about it and one of those has offered me my asking price. It's (hopefully) being collected on Saturday and I will have £180 in my pocket! Will send this straight over to the CC to reduce the balance on there. I'm really chuffed about it!

DebtFreeDuo

So for me its time for a little reflection, I'm planning ahead for next year so its only right I reflect on this current one.

A few bumps along the road which is quite normal for anyone. I always beat myself up about debt, its hard not to fall in to just living with debt, since I was around 18 I have always had debt so it has always just been the norm for me. I'm changing my mindset slowly but surely.

So I started 2019 with a debt total of £4949.33, I had some unrealistic views of clearing this by April and there have been moments where I have been quite close to clearing it. The problems are when I take my eye off the ball and start to again see debt as being the norm, or things crop up that weren't completely planned for. However, in saying this, I finish 2019 with a debt total of £1261.46.

This means that in 2019 I have cleared £3687.87 of debt, I have also managed to add £500 to my savings. For a single parent who is on a relatively low student income I don't think I have actually done too badly.

Here's to 2020 and clearing the debt once and for all! 2020 goals to follow.

DebtFreeDuo

Following 2019 reflection I wanted to set out some goals for 2020.

2020 Goals
Clear an item a day - Tried this in 2019 and even though it didn't last the year I still cleared 162 items that otherwise wouldn't have been cleared. Hoping this will help prevent the use of the overdraft during Summer 2020
No new clothes - Buy used where needed, hoping I can manage this for at least the first few months to help build the holiday pot.
Savings goal - I attempt this every year, one year I will complete it! Week 1 - 52, £1 - £52 but staggered as and when I can afford a little extra. Total of £1378 if I complete it
Debt free by October 2020 - This is more to cover the overdraft use over the summer. If I can get a good start to the year and avoid this then my debt will be cleared in April 2020 but I'm just trying to stay realistic.
Stick to budgets - Always learning with this one