Countdown from £28k...

Sarahwithlove

Will you actually have £2k a month free do you think? If so the debt will be gone in no time and you can get working on that deposit 👍🎉

ryanm8655

IrishSean said:

You'll have the 10k wiped in no time👍

Imagine saving 28k in the same time-frame😱

Yeah, should disappear quickly now...

Haha, the only thing is I don't think I could handle living at home for much longer...I'm considering moving back to London before Christmas (when debt will mostly be gone) as there are some great deals on rentals at the moment...you can rent a flat for less than mortgage on help to buy...will play it by ear though, depends on a few things but will see how it goes.

I'm toying with the idea of diverting money to savings just in case, once the barclaycard is gone, then if I do stay I can clear the debts earlier.

I'm in the position now where I could afford to rent my own place in London and still pay off the debts at a pretty decent rate. Will see how it goes, I seem to change my mind daily at the moment

Likewise, I won't need a car in London so can sell that to put towards savings/clear more debt and car related expenses will be reduced.

Sarahwithlove said:

Will you actually have £2k a month free do you think? If so the debt will be gone in no time and you can get working on that deposit 👍🎉

It depends but before the payrise I've been clearing £2k per month, with it £2500 should be doable even with £220 rent per month. 

If the office reopens I'll have commute costs to think about but that seems unlikely anytime soon.

Likewise when I move back to London I'll have more expenses, how much will depend on whether I get my own place or share but I think I'd rather get my own place, particularly while the market is depressed.

Thanks,
Ryan

Sarahwithlove

Both debts are in 0% so maybe work out how much you need to pay off each month to clear it before the end of the 0%. If that's doable whilst paying rent in London then I would say do it. If not maybe work out how much you could afford and how much would need to be cleared from debt to get to that stage before you move out. 

Smashingitnow

I LOVE this diary! 
Totally relate to this as my earnings are a little less and my debt was a little less (and I'm not able to pay 2k a month!) but same sort of journey and same sort of timespan....you're ahead of me and that's super motivating
You are doing SO well...

I hadn't neard that about rents in London...my brother will be fed up. Not only did he sign a year lease in June but he did it with his girlfriend that he has wanted to break up with for two years!!!!! It is scary sometimes the things we do for money, or because of money, of because of the lack of it.
Well done on the pay rise!

IrishSean

It's contagious this not knowing what to do about house, savings remaining debt.

If you read my diary i've been flip-flopping more than a sun-bather on a beach😂

I've simplified everything to the point i'm getting bored; need a project. The DW car has become one, I got wheels recondition last year it's just had big service. It's easier to 'freshen up' than the house (more immediate too). I'll get a bit of detailing done between now and halloween (also cheaper than the previous idea of a wee rag top for the weekend: summers over here imho so no point). 

Providing we avoid the pitfall of 'acceptable level of debt' we should be OK👍

ryanm8655

Thanks for the replies all.

Payday approaching. It's been an expensive month so I think I'll struggle to pay the full £2k this month but will work things out on payday. Spent £70 over the weekend as met up with friends. Feel like I need to get a handle on the spends again but in the back of my mind I have the thought of a second wave and not being able to go out again so have the mentality of making the most of it. Will see how things go.

Did sell another fragrance for a 50% profit but am starting to slow down on that front as it took a while to sell the latest ones, which harmed cashflow...

Ran out of phone data again...no idea how but had to buy some more...this should be the last month though as I get a phone with the new job and will have unlimited data.

Have dinner with friends on Wednesday but would be good if I could avoid going out next weekend and save some pennies but I don't know how things will be at home and whether I'll need that escape...

Smashingitnow

It's a crazy year and you've made a ton of progress. If we can't look after our mental health while paying off debt then what's the point? And if that means going a bit easier on yourself for a bit then in the long term there's nothing to worry about. For me, I'd try and set a more generous fun allowance for the next month but then stick to it...so you're still in control and consciously deciding to slow down payments rather than setting an ambitious target and feeling bad or disappointed. Good luck!

Sarahwithlove

I agree I think the only way you will survive staying there and being able to save on rent is to allow yourself more spending money so you can have your weekends away. Even if you increase the budget for fun you will still be saving more on rent then you would be if you were back in London so will be worth it to give yourself that bit of freedom again. Might just help you make it to the new year. 

ryanm8655

Thanks for the replies both, very sensible advice and very good points. I’m hoping things become a little easier when I start the new job, partly because I’ll be a lot busier/more distracted plus financially things will be easier. Plus the kids will be back at school, which will hopefully make things a bit calmer in the daytime at least.

I may still be able to clear the £2k this month but also wary of being emergency taxed in the new job initially, as they’re bound to !!!!!! up...

Sarahwithlove

Could you hold off this month paying so much and then pay it once you know how you stand with tax codes. Maybe try work out how much you would get paid if emergency taxed and how much you need to survive the month and that should give you an idea as to how much to keep back and how much to pay off