Countdown from £28k...

BlytheDoll

So amazing.. I have been quietly reading your diary from the beginning and updates for a number of weeks, only to read you going down to £8k a couple of days ago and now lower than £6k. You have been determined all the way through your diary to lowering the debt and now in a few short months it will all be down to ZERO!
What are you plans thereafter? Do you already have an EF? Or savings at all, is that you next goal to SAVE SAVE SAVE?
I am debt neutral with savings that could pay off CC, however find it really difficult to pull out the savings to pay them off, and would rather chunk away each month.
Well done again 
Blythe..x

ryanm8655

Thanks for the replies.

 @alt80 - Agree re: first step being to get on the ladder myself. My aim is to get a 2 bed flat in central London and then let a room to bring in some extra money. Even if I have to go shared ownership initially. The issue is raising the deposit in the first place when paying extortionate rents. I've only been able to clear my debt so quickly because I took the step of moving back home, where I pay minimal rent. I couldn't handle another year and I'm sure they feel the same about me The lack of independence is really tough... I could save a fair bit if I move into another flatshare but they are so hit and miss in London, if I'm in a bad one I'll end up eating out every evening and spending the weekends out and spending a fortune. If I get my own place, which is what I want to do, then with bills etc. that's going to be about half my income gone...

@BlytheDoll - Thanks for checking in! Yeah, I took a bit of a hiatus last month (as you'll have read), so only cleared £600. Then got back on it this month...I've benefitted from an extra £1500 of pay as I moved jobs and was owed some holiday pay, plus got a bit of a pay rise from the job move (next month is the first full month at the new rate).

The next plan will be to move back to London in the short term (likely in January) and then save. I won't bit hitting it as hard, as I want to enjoy life a bit more but hoping to save at least £500 per month as standard. Longer term I'd like to buy my own place. Going to take me a long time to build a deposit at £500/month, so might take a while...I may well revisit my savings goals and commit more to it but will see how things go. Initially my target will be £500 per month. I certainly won't be spending like I used to but London is expensive...I plan to sell my car once I'm back in London, will save me money in maintenance, fuel, insurance etc. but should also get at least £1500 for it, which is then an emergency fund.

I have pretty much wiped out my savings to hit the debt harder this month. I've got about £600 left but may chuck some of that at the debt too (have three bank accounts and some money in paypal, hence not sure on exact figure but it's around £600). I do feel a bit anxious about the lack of savings but I am the kind of person who will dip into money if it's there (I'm not as bad for this as I used to be but will still make the odd small purchase), so I'd rather just get the debt gone. I also had a bit of guilt about my debt free date drifting, so I've now got it back on track. Plus it's giving me a bit of extra motivation now that the date is so close. The finish line seems far more tangible now and anything extra I can pay makes a tangible difference. If there was a way I could pay an extra £990.93 over the next two months then it'd bring the debt free date forward by an entire month, but sadly I don't think there is the room in my budget for that and I don't have that many things I can sell. 

To be honest, it would have made more sense to save rather than clear the debt, given it's all on interest free but for every £1000 I saved, I'd probably nibble away £100 in unnecessary purchases for a little instant gratification. Hence I've gone for the debt option. 

alt80

@ryanm8655 if you’re serious about property have you 100% ruled out a move to Leeds? Half your income going on a house you don’t own is a very difficult pill to swallow. 

ryanm8655

alt80 said:

@ryanm8655 if you’re serious about property have you 100% ruled out a move to Leeds? Half your income going on a house you don’t own is a very difficult pill to swallow. 

Yeah, that’s a good point. My only concern is social life and mates all being in London. But would be able to buy a place much sooner and have more spare cash for saving for second property. Plus being in the area, it is easier to manage. Worth thinking about. Even if I don’t do it for a couple of years.

Another option is switching to a city like Bristol as there are a few departments based there and I’d carry my salary across. Much closer to home and have a couple of friends considering doing the same. Another longer term option though.

My salary in the regions would probably give me close to the lifestyle I’d want in terms of the things I could afford, as well as the flexibility in budget to build more for myself.

One mate moved to Newport, living like a king But that’s a bit extreme...Cardiff is ok though.

ryanm8655

HMRC don’t mess around. Just got a letter saying I owe them £210. I thought I may have been under taxed last month, means I’ll effectively be £35 down until April but also means I’m a couple of hundred ahead in terms of debt...

The issue has been caused by two lots of pay as I changed job in the middle of the month, so basically been given my tax free allowance twice.

alt80

It's a difficult one if you like the London scene I don't think there's anywhere else quite like it in the uk but imo unless you're earning big money you're probably not going to have the lifestyle you want and could have on a lot less money in another part of the country. My home in an equivalent London area I reckon would be 10x what it's worth here - current value £600-625k, 4 bed Victorian detached, gardens, double garage, driveway parking for 3/4 in a very well regarded conservation area.

Bristol is a great city and I'd say probably a bit more open minded than the further north generally. Honestly, if I were you I'd get out of London but I've said the same to quite a few people over the years and they find London draws them in and they don't want to leave despite £500k maybe buying them an ex-LA one bed flat in an area they'd prefer to live and £10 maybe buys you a pint. 

HMRC won't miss a trick mate lol.

BlytheDoll

Ryan, thanks for explaining your plans. I think that you have learnt a great deal of the past 12 months with your debt busting that has given you a lot to look forward to. You will have freed up those debt responsibilities which will then enable you to make and choose those next steps. I imagine you have had some difficult times with moving back home with relatives however this will now be the spring board for to give you those opportunities, You will have also changed your mindset about spending and debt, and will easily be able to start saving. it sounds like your desperate to move back to London, as long as you budget well it could happen, have you thought about staying another year at home to save up a deposit for a house?  I have a child at university who lives at home, and made the decision not to ask for any board as long as they saved most of their student maintenance, and now in year 2 they will do the same again. At the end of the 3 years they will have a decent amount for a house deposit. I have also read about your fragrance buying and selling, that’s fantastic to be able to have a passion for something and then be able to make money from them, and I am a sure along the way it pays for a fragrance that you can keep and enjoy!
Have you looked at payment a day, or rounding off the debt numbers that 93p at the end would irritate me, I like them to be 00. I would be sending over 2.93!
Blythe.. x

enthusiasticsaver

ryanm8655 said:

alt80 said:

@ryanm8655 if you’re serious about property have you 100% ruled out a move to Leeds? Half your income going on a house you don’t own is a very difficult pill to swallow. 

Yeah, that’s a good point. My only concern is social life and mates all being in London. But would be able to buy a place much sooner and have more spare cash for saving for second property. Plus being in the area, it is easier to manage. Worth thinking about. Even if I don’t do it for a couple of years.

Another option is switching to a city like Bristol as there are a few departments based there and I’d carry my salary across. Much closer to home and have a couple of friends considering doing the same. Another longer term option though.

My salary in the regions would probably give me close to the lifestyle I’d want in terms of the things I could afford, as well as the flexibility in budget to build more for myself.

One mate moved to Newport, living like a king But that’s a bit extreme...Cardiff is ok though.

My eldest daughter lives in Bristol mainly for the same reason you are considering. Job opportunities are higher in London but having owned her house up in the Midlands in the University town she did her PhD she did not want to rent. Bristol gave her some good job opportunities and she was able to buy a 2 bed flat there in a good area. A house would have been affordable in South Wales but she wanted to stay this side of the bridge. Added benefit of only being 2.5 hours from us and her sister and family. You would have a better chance of buying somewhere then. I agree with @alt80 that renting is dead money. You are just paying the landlords mortgage instead of paying your own. Depends on drop in salary and whether you are happy to forego the London social life though. More disposable income though if it is not all going on rent/deposit saving. A lot of lenders are now asking for 15% deposits for FTB. How much does a flat cost in the area you are interested in London and the regions? 

alt80

Just read an article Boris is proposing to ‘turn generation rent into generation buy’ - 95%LTV not stress tested and backed by a state guarantee. He’s determined to keep the res market as buoyant as possible it seems.

Who knows if it’ll actually happen but could be good for you? 

If you’re investing and these type of incentives are there you do need to think about your target tenant type - some are never going to buy but more work as a LL some you are going to get renting as a stop gap. You get that now but renting outside London / expensive areas of the South East could become a little more transient in the future.

ryanm8655

BlytheDoll said:

Ryan, thanks for explaining your plans. I think that you have learnt a great deal of the past 12 months with your debt busting that has given you a lot to look forward to. You will have freed up those debt responsibilities which will then enable you to make and choose those next steps. I imagine you have had some difficult times with moving back home with relatives however this will now be the spring board for to give you those opportunities, You will have also changed your mindset about spending and debt, and will easily be able to start saving. it sounds like your desperate to move back to London, as long as you budget well it could happen, have you thought about staying another year at home to save up a deposit for a house?  I have a child at university who lives at home, and made the decision not to ask for any board as long as they saved most of their student maintenance, and now in year 2 they will do the same again. At the end of the 3 years they will have a decent amount for a house deposit. I have also read about your fragrance buying and selling, that’s fantastic to be able to have a passion for something and then be able to make money from them, and I am a sure along the way it pays for a fragrance that you can keep and enjoy!
Have you looked at payment a day, or rounding off the debt numbers that 93p at the end would irritate me, I like them to be 00. I would be sending over 2.93!
Blythe.. x

Thanks for the reply. 

I have considered another year but honestly it would drive me nuts. Now that I have a more demanding job it is also quite hard to focus in a house where I don't have a private space with a desk and am working at the dining table. Either have kids running around and making noise, other householders around, visitors popping in etc. At the moment I am sat with my laptop on my lap as one of the kids is having tutoring at the dining table. It's not ideal, without all the other issues like independence and household specific challenges. As much as I love my family I am certain I drive them nuts too...it also makes dating challenging, my life has essentially been on hold and I don't think I could do that for another year.

Good shout on the rounding, the thing that is annoying me is that if I round to the nearest £100 then I'm not sub £6k...have the room in my budget to clear it down to £5,800 so will do that when I have time to dig out the card etc.

enthusiasticsaver said:

My eldest daughter lives in Bristol mainly for the same reason you are considering. Job opportunities are higher in London but having owned her house up in the Midlands in the University town she did her PhD she did not want to rent. Bristol gave her some good job opportunities and she was able to buy a 2 bed flat there in a good area. A house would have been affordable in South Wales but she wanted to stay this side of the bridge. Added benefit of only being 2.5 hours from us and her sister and family. You would have a better chance of buying somewhere then. I agree with @alt80 that renting is dead money. You are just paying the landlords mortgage instead of paying your own. Depends on drop in salary and whether you are happy to forego the London social life though. More disposable income though if it is not all going on rent/deposit saving. A lot of lenders are now asking for 15% deposits for FTB. How much does a flat cost in the area you are interested in London and the regions? 

Yeah, Bristol is pretty close to my family too as the crow flies though due to the roads it ends up being as far away as London ha. I like the city though, went there recently for a random night out (I say recently...earlier this year ha). Friends from home also have family in Bath so would see people still. Do have a couple of friends/acquaintances in Bristol but 80% of my friends are in London. If I was moving with a partner it would be less of an issue but as a single guy I like the London social life. It's an option for the longer term though. The friends I have that have made the London to Bristol move have done so with their partner and with a view to settling down/money going further.


Salary, I'd barely lose anything. The London weighting is crazily out of touch. I'd only lose about £3k per year by moving outside of London, after deductions it'd be minimal. So it completely makes sense financially. There are some departments down here but the thought of living in a city like Southampton is just depressing  

Re: where I'd want to live in London...ideally zone 1/2, 3 at a push (Clapham as I have friends there and like the area) but if I rent my own place I'll likely get a 1 bed around London Bridge (easy for work, nice and central, plus have friends in the area and it's well connected). Buying, I'm not sure, it would completely depend on the deposit I could save but don't want to plan for that at this stage. Well, I'd like to but keen to focus on the debt first and then I just want to live for a bit (within my means) before committing to another big goal with large sacrifice. I'd likely need to go through help to buy so would be restricted based on where there were developments and would be looking at places that cost c.£450k I'd imagine. Somewhere like Canada Water would be ideal, quite good value given how well connected and central it is and an abundance of flats but would have to review what I can afford when I'm closer to a deposit. Ideally want a 2 bed so that I have the option of letting a room. If I went with shared ownership (could get a place much more quickly) then I've seen affordable 2 beds in Clapham/Elephant and Castle(Zone 1)/Canada Water. Shared ownership isn't ideal but would be better than renting and I could let a room for £800+ per month to help with staircasing.

alt80 said:

Just read an article Boris is proposing to ‘turn generation rent into generation buy’ - 95%LTV not stress tested and backed by a state guarantee. He’s determined to keep the res market as buoyant as possible it seems.

Who knows if it’ll actually happen but could be good for you? 

If you’re investing and these type of incentives are there you do need to think about your target tenant type - some are never going to buy but more work as a LL some you are going to get renting as a stop gap. You get that now but renting outside London / expensive areas of the South East could become a little more transient in the future.

Yes - saw that. That would be ideal for me in terms of getting on the ladder, though how helpful that would even be in London I don't know. Even on a reasonable salary you need a hefty deposit to get around the affordability calculators and they'll only lend upto payments of 45% of your net income (and include service charges in those payments, which are often substantial). I'd imagine it'll be first time buyers also. But might be useful to buy a place outside of London, which I then let...let's see what happens...plus saying it and doing it are two different things, they might implement something that they claim to be doing that but with a whole heap of restrictions e.g. new builds only (like help to buy), which just pushes the price of the new builds up...


In other news...Not a lot to update on. 

Back to going through about a tank of fuel a week with driving people back and forth. Will likely be the case for another month, though will hopefully calm down a little bit as that's about £280/month...Though I'm overestimating a bit, still have a quarter of a tank left and last filled up 11 days ago, so actually it's a tank every two weeks, so not too bad (I like to make this a bit of a stream of consciousness ha). 

Still largely avoiding booze. Had two glasses of red at home at the weekend but no spend as was from a bottle I'd bought previously (had steak for dinner so had to be done). 


Credit card spends haven't been too bad though, sold a fragrance and am due the refund on the broken headphones so will use that money to round down the debt to £5,800. Did buy a cheap fragrance to sell on (I say cheap, I paid about £1.50 per ml but it is worth a bit more than that, so will list that on ebay. Also purchased a 10th anniversary edition Creed Aventus bottle that I got for a very good price. The retail price has actually just been increased, plus I think the anniversary edition may be sought after down the line (limited edition bottle design) so I may even be able to double my money (looking at ebay I could make about a £60 profit now after fees etc. may list on the next £1 seller fees promotion). Have some other samples I could also flog...


Hoping to get through the rest of the month without any major spends. If I can do that then I should be in a pretty good position expense wise next month. While I am driving a lot I'm not doing too many of the small shops, just a few milk runs but avoiding buying too much and also not buying booze minimises those spends.


MOT is due on the car on 10/11 but hoping there won't be anything major, we shall see...will have to budget a bit of cash for that next month, which may impact on the total amount I can clear next month but if it is a bit less than the £2.5k target then that isn't the end of the world. I do have a bit of money saved for it so may be ok...we shall see...