Debt free by July 2020

QueenT

Hello, I’m new here but not really new to debt!

I took out a credit card when I was 18. Worst decision ever as I didn’t know how to manage it properly. Then I took out another to transfer the balance but kept spending. Cut a long story short. I thought it was fine as I was making minimum repayments and was were full time. I took many lavish holidays and have a huge amount of clothes. BUT at the start of this year I was in around £8’500 worth of credit card debt on two cards.

I’m now 25, a student, work part time and also a mother to an 8 month old.

I’ve managed to pay off one of the credit cards that had the lower balance around £1’300 and cancelled that card which was kind of a rookie mistake! I should have kept it open to do a balance transfer as they often have offers and my current credit card is killing me with interest.

I’ve now managed to get it down to £5’600 which I aim to clear by July 2020. My credit score is pretty good as I’ve never missed any payments and now only have the one creditor. My plan is to clear this debt and then start saving towards a mortgage. My partner has around £25’000 in savings for a deposit already so I’m feeling quite inadequate!

I guess I’m writing this to try and take more accountability. I’m currently paying £300 (more when I have it) but I’m sure I could pay more if I’m a little more frugal!

Any tips on what I can do?

QT x

Abz12

Hi QT,


Firstly, well done on paying off one of your credit cards whilst being a student, working PT and having a child. That cant have been easy. My tips are; budget, budget, budget. Cut costs where you can, such as; reducing tv packages (if you have one), switching to sim only on contract phones (if youre not tied into a contract that is), stop paying for things you do not use (gym memberships) and plan your shopping list to reduce waste.


Can your OH help you out by contributing towards the debt?

QueenT

I definitely will make shopping list and I’ve also tried meal planning but sometimes I forget. I’ve reduced my monthly outgoings as much as possible. I just need to curb spending on unecessary things like takeaways.

I could ask my OH to pay it off and repay him in instalments but I think it’s a pride thing. I also think I should just pay it off as it will teach me to be more financially responsible in the future.

beanielou

Happy shiny new diary.

Also keeping a spending diary is a good idea.

QueenT

Update:

So ive been throwing money at the debt and its now currently £5064. I had around £400 in my emergency fund but I thought it made more sense to just pay it towards the debt as the interest is killing me, and if I'm really in trouble with money I can ask my partner.

Im really enjoying seeing the debt go down and my credit score rise so I'm really determined to pay it off. I've had quite a few no spend days and have been meal planning and not buying things I don't need.

My job sometimes has overtime so I am doing that when I can get the extra childcare.

So heres my current incomings and outgoings.

Incomings:
Student loan paid in three instalments. - £6879.23 (currently have £800 to top up monthly income and a £500 overdraft if needed until my next instalment in April.
Wages - £327.60
CTC - £213.36
I am also getting CB but that goes into a savings account for my son.

Total = £540.96 and will probably top up by £200 from student loan.

Outgoings:
Phone Bill - £44.88
Council Tax - £147
Car Tax - £20.12
CC - £300
Petrol - £120
Food - £100

= £732

My petrol spend is quite high as I commute 80 miles (including return journey) to university once a week. Im also trying to use the car less to reduce this spend.

In February and March I get a break from the council tax so that money I would usually pay to that will be going to my debt.

The £4000 mark is looking near!

I've tried using inbox pounds to do surveys for money but I'm not getting many surveys. Any other survey sites you would recommend?

GlendaSugarbean

Can you apply for a new 0% card and do a balance transfer?

QueenT

I’ve tried but I’ve been rejected �� the only reason I can think of is because my credit limit in this card is high so they may see me as higher risk. My plan is to get the debt down to £4000, reduce my credit limit and then re apply in 3-4 months .

WannabeFree

You're doing well

Instead of saving the CB for your son right now can you 'borrow' it and pay it of the card and then catch up once the credit card is gone? It will save interest in the long run?

Is £100 realistic on food? does that include the babies things/cleaning things etc? Or is that just your half of the budget?

Can you reduce your phone bill at all?

Keep going
x

QueenT

I was thinking of doing that as I have a good amount of savings for him from Christmas and money gifted when he was born. I just felt a bit mean! but I think thats the best idea. Ive put £100 for food as my max budget. I've been managing to spend about £20 a week, making sure I check what things I have at home that I can use like tinned foods etc.

Unfortunately I can't reduce my phone bill as im already getting a discount on it and its a recently new contract as my old phone stopped working.

Thank you!

All the support is needed. Im going to try and do a round up at the end of the week of my spending.

My word for this year is discipline. I've really struggled with being disciplined but I think I've been getting the hang of it these past couple of months.

x

WannabeFree

Don't feel mean, he will have no idea. It will save you quite a lot in interest over the long term and you can catch up once your credit card is done.

We all have bumps in the road/something crop up/going over the budget now and again. But getting back to it straight away makes all the difference

QueenT

So heres a weekly round up of my spending. It hasn't been the best of weeks as I was hoping for more no spend days.

Monday 14th Jan
£6.96 Jumper for my son
£14.47 - Tesco groceries

Tuesday 15th-
£2.45 - hot choc at uni
£14.50 - Mothercare - swimming costume for my son. I have kept the receipt and I am trying to find a much cheaper alternative so I can return this one.
£8.60 - Asda - baby food, milk, haribo
£56.29 - petrol

Wednesday 16th -
No spend day! Hooray!

Thursday 17th -
£12.12 chip savings*
otherwise its a no spend day!

Friday 18th -
£11.25 amazon books for niece
£13.00 dbs update - Have to pay this for my university course.
£13.09 savers - washing stuff, flannels, milk, conditioner, pom bears, lotion, razors

Saturday 19th -
£3.33 Tesco - fruit, cookies, water, lucozade
£6.50 lunch - I did a split shift at work and had about an hours rest in-between so I had to grab something quick on the go.

Sunday 20th -
No spend day!

Total = £162.56

*Forgot to mention in my original post that I have a chip savings account with around £60 and it calculates how much money to take out of my account every few days.

On a good note, I also got my first £25 from opinion panel. Its a survey site for students. I've decided to get this in love to shop vouchers and I can use it for birthdays that are coming up.

I have to say I am really shocked by this figure! I thought I had done but well but this is well and truly an eyeopener. I feel like I barely have anything to show for all this money I'm spending.

Anyway, I'm not going to dwell on it but instead I will strive todo better this week.

Plan for the week.
-Meal plan
- Check whats in cupboard before going shopping
- Defrost meat from the freezer
-Bring drinks and snacks when going out.

Hope you have all done well with your budgets this week!

QT.x